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
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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