BILL ANALYSIS AB 2717 Page 1 Date of Hearing: May 12, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2717 (Skinner) - As Amended: April 26, 2010 Policy Committee: InsuranceVote:12-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill clarifies and establishes new criteria by which insurers are granted a "senior designation" in connection with the sale of insurance. This bill makes several changes to allow the California Department of Insurance to implement insurer designations more clearly and expeditiously. Specifically, this bill: 1)Clarifies several provisions of AB 2150 (Berg), Chapter 327, Statutes of 2008, including pathways to attaining the senior designation. 2)Deletes obsolete references. 3)Authorizes CDI to reject incomplete applications related to the designation. FISCAL EFFECT Minor absorbable workload to the California Department of Insurance (CDI) to continue oversight of insurers selling insurance policies to older Californians. COMMENTS 1)Rationale . This bill is sponsored by the National Association of Insurance and Financial Advisors of California. According to the author and sponsor, this bill builds on and clarifies requirements established by AB 2150, signed into law in 2008. AB 2150 increased consumer protections by creating a system of oversight of specified professional insurance designations. AB 2717 Page 2 2)Background . Under current law CDI monitors the use of insurance titles aimed at marketing and sales of products to senior citizens. Senior citizens are the target of fraudulent efforts via a number of insurance products. Many seniors have excellent credit, significant savings, and may be more trusting than younger customers, all of which increase risks of unethical or illegal insurance schemes. This bill provides several mechanisms by which to improve oversight of insurance products aimed at older Californians. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081