BILL NUMBER: AB 1837	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gaines

                        FEBRUARY 12, 2010

   An act to amend Section 700 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1837, as introduced, Gaines. Insurance transactions:
nonadmitted insurers.
   Existing law prohibits persons from transacting any class of
insurance within this state without first being admitted for that
class and makes a violation of that prohibition a crime.
   This bill would make a technical, nonsubstantive change to that
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 700 of the Insurance Code is amended to read:
   700.  (a) A person shall not transact any class of insurance
business in this state without first being admitted for that class.
Except for the State Compensation Insurance Fund as authorized by
Sections 11770 and 11778 to 11780.5, inclusive, admission is secured
by procuring a certificate of authority from the commissioner. The
certificate shall not be granted until the applicant conforms to the
requirements of this code and of the laws of this state prerequisite
to its issue.
   (b) The unlawful transaction of insurance business in this state
in willful violation of the requirement for a certificate of
authority is a public offense punishable by imprisonment in the state
prison, or in a county jail not exceeding one year, or by fine not
exceeding one hundred thousand dollars ($100,000), or by both that
fine and imprisonment, and shall be enjoined by a court of competent
jurisdiction on petition of the commissioner.
   (c) After the issuance of a certificate of authority, the holder
shall continue to comply with the requirements as to its business set
forth in this code and in the other laws of this state, including,
but not limited to, Chapter 5 (commencing with Section 
1631),   1621),  with regard to employees or
contractors who solicit, negotiate, or effect insurance.
   (d) Where a hearing is held under this section the proceedings
shall be conducted in accordance with Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code, and the commissioner shall have all the powers granted therein.

   (e) The commissioner shall either issue or deny an application for
a certificate of authority within 180 calendar days after the date
of the application.
   (f) The commissioner and his or her authorized representative
shall be prohibited from seeking a waiver to extend the 180 calendar
day period specified in subdivision (e), nor shall the applicant be
permitted to waive that period.