BILL ANALYSIS AB 2782 Page 1 Date of Hearing: May 5, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2782 (Committee on Insurance) - As Amended: April 22, 2010 Policy Committee: Insurance Vote:12-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill makes several changes to conform California insurance law to the National Association of Insurance Commissioners (NAIC) Producer Licensing Model Act (PMLA). The PMLA establishes uniformity in six major lines of insurance: life, health, property, casualty, life and annuity, and personal lines. The PMLA was adopted by NAIC to avoid federal preemption of state insurance laws in 2000. FISCAL EFFECT Minor and absorbable workload to the California Department of Insurance (CDI) to continue oversight of insurers. COMMENTS 1)Rationale . This bill is sponsored by the California Department of Insurance to increase conformity of state law relative to recommendations of the NAIC PMLA. The NAIC is the organization of insurance regulators from the 50 states. This bill makes conforming changes across a number of statutes including laws governing bail bonds, insurance adjustor licensure, continuing education requirements, and authority of the department to receive attorney fees in specified circumstances. 2)Background . Following the passage of the federal Gramm-Leach-Bliley Act in 1999, the NAIC worked to reduce the risk of federal preemption in state insurance laws. The PMLA is the primary vehicle for states to achieve uniformity in this area of law. This bill makes a number of conforming changes to increase uniformity. AB 2782 Page 2 Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081