BILL NUMBER: AB 1024	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 30, 2011
	AMENDED IN SENATE  AUGUST 15, 2011
	AMENDED IN ASSEMBLY  MAY 11, 2011
	AMENDED IN ASSEMBLY  APRIL 28, 2011
	AMENDED IN ASSEMBLY  MARCH 25, 2011

INTRODUCED BY   Assembly Member Hueso
   (Coauthors: Assembly Members Solorio and Torres)
    (   Coauthors:   Senators  
Calderon   and Correa   ) 

                        FEBRUARY 18, 2011

   An act to add Sections 11629.86, 11629.87, and 11629.88 to the
Insurance Code, and to amend Section 4000.38 of the Vehicle Code,
relating to insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1024, as amended, Hueso. Insurance: low-cost automobile
insurance: sales.
    (1) Existing law establishes within the California Automobile
Assigned Risk Plan a low-cost automobile insurance program in order
to provide a means for eligible consumers to buy automobile
insurance, as specified.
   This bill would authorize a California Automobile Assigned Risk
Plan (plan) certified producer to accept and process an application
to purchase low-cost automobile insurance policies through an
Internet Web site, as provided. The bill would require the plan to
coordinate with the Department of Insurance in order to develop a
system for receiving and assigning policies issued through Internet
Web sites, and would provide that the plan may request, and the
department may include in its plan submitted to the Legislature the
use of $50,000 from the department's existing consumer outreach fund
for the sole purpose of implementing these provisions.
   The bill would require the plan, subject to the approval of the
Insurance Commissioner, to establish and maintain, or contract with
an entity, by way of an open bidding process, to establish and
maintain, an Internet Web site to refer or assign, at the consumer's
option, persons to certified agents or brokers, for the purchase of a
low-cost automobile insurance policy. The bill would also provide
that the plan may request and the department may include in its plan
submitted to the Legislature, that up to $100,000 from the department'
s existing consumer outreach fund be made available for development
of the Primary California Low-Cost Auto Web Site.
   This bill would prohibit a low-cost automobile insurance policy
applicant from being required to provide a copy of his or her, or
other household member's, driver's license, if the department finds
another suitable means of verifying the driver's licensure.
    (2) Existing law requires the Department of Motor Vehicles to
suspend, cancel, or revoke the registration of a vehicle if the
financial responsibility requirements have not been met. Existing law
requires the department, prior to suspending, canceling, or revoking
the registration of a vehicle, to notify the vehicle owner of its
intent to suspend, cancel, or revoke the registration, and to provide
in the notification document in plain, boldface type not less than
12 point in size, and in both English and Spanish, a statement that a
program offering affordable automobile insurance to low-income
households has been established.
   This bill would revise this statement and rename the program as
 the "California's Low Cost Automobile Insurance Program"
  "California Low-Cost Auto Insurance"  and would
require that the statement include  an Internet  Web site
 information   address  , a toll-free
telephone number, and eligibility requirements for applicants.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 11629.86 is added to the Insurance Code, to
read:
   11629.86.  (a) A California Automobile Assigned Risk Plan
certified producer may accept and process an application to purchase
a low-cost automobile insurance policy under  the 
 this  program through an Internet Web site, in accordance
with this section and regulations adopted by the Department of
Insurance pursuant to this section.
   (b) Any producer seeking certification to accept and process
low-cost automobile insurance policy applications through an Internet
Web site shall notify the California Automobile Assigned Risk Plan
of its intentions to do so prior to accepting any applications to the
program, and the producer's Internet Web site shall comply with the
rules established by subdivision (c) of Section 11629.87.
   (c) Prior to accepting payment and upon transmitting any
information from the consumer, the producer's Internet Web site shall
include a clear explanation of whether the consumer will be afforded
insurance coverage upon payment and, if not, when the consumer will
receive coverage and how he or she will receive notice of coverage.
   (d) A producer accepting and processing applications through an
Internet Web site shall be entitled to the same commission available
to a producer selling a low-cost automobile insurance policy by any
other means acceptable under the law.
   (e) Any producer accepting and processing applications through an
Internet Web site is subject to the laws and rules governing this
program and is liable for any errors and omissions related to the
transaction of insurance to the same extent as a producer selling a
low-cost automobile insurance policy by any other means acceptable
under the law.
   (f) Any consumer information required by this article may be
accepted by electronic means after the Department of Insurance adopts
regulations implementing this section and only if the information is
submitted in accordance with those regulations.
   (g) The California Automobile Assigned Risk Plan shall coordinate
with the Department of Insurance in order to develop a system for
receiving and assigning policies issued through Internet Web sites.
   (h) The California Automobile Assigned Risk Plan may request, and
the Department of Insurance may include in its plan submitted
pursuant to Section 11629.85, up to fifty thousand dollars ($50,000)
from the department's existing consumer outreach fund to be used for
the sole purpose of implementing this section.
  SEC. 2.  Section 11629.87 is added to the Insurance Code, to read:
   11629.87.  (a) Subject to the approval of the commissioner, the
California Automobile Assigned Risk Plan shall establish and
maintain, or contract with an entity to establish and maintain, an
Internet Web site that shall provide members of the public with an
option for either of the following:
   (1) Referral to a list of certified agents or brokers with an
office in the same geographic area as the consumer who may be
contacted to purchase a low-cost automobile insurance policy. This
list shall contain the name, address, telephone number, and, if
available, the e-mail address and Internet Web site of those agents
or brokers.
   (2) Assignment to a randomly selected certified agent or broker in
the same geographic area as the consumer who can be accessed online
to process and accept an application to purchase a low-cost
automobile insurance policy. The assigned agent or broker shall be
subject to the conditions specified in Section 11629.86.
   (b) The plan may, with the approval of the Department of
Insurance, authorize the use, for a designated period of time, of the
department-owned Internet Web site domain name
http://www.mylowcostauto.com, or any other relevant domain names
controlled by the Department of Insurance, for the purposes of this
section and Section 11629.86.
   (c) The plan shall ensure that the Internet Web site does all of
the following:
   (1) Provides all disclosures and other information required by law
that would otherwise be provided by a producer.
   (2) Effectively educates consumers about the eligibility
requirements, the benefits, and the limits of the low-cost automobile
insurance policy.
   (3) Describes or establishes a process to collect any documents
that are necessary for determining qualification for the policy.
   (4) Establishes a process to electronically certify the
information provided by the consumer.
   (5) Maintains safeguards to ensure that consumer information
transmitted through that Internet Web site is secure.
   (6) Provides the physical address of the producer and the
telephone number and e-mail of the producer.
   (7) Provides the contact information for the Consumer Services
Division of the Department of Insurance.
   (8) Adheres to any other rules and regulations adopted by the
Department of Insurance to promote the purposes of this section and
Section 11629.86.
   (9) Notifies the consumer that if he or she does not qualify for
the low-cost automobile insurance policy that other policies may be
available from producers or insurers. Directs the consumer to the
Department of Insurance's auto insurance premium comparison Internet
Web page.
   (d) The Internet Web site shall not be made available to the
public until the commissioner has made a determination that it
adequately provides all of the necessary information a consumer would
need in order to apply to purchase the policy.
   (e) The Internet Web site shall be constructed to authorize the
plan-certified producer to forward the application, supporting
documents, and the applicant's certification to the plan.
   (f) The Internet Web site shall accept payment by credit or debit
card or other form of electronic payment the Department of Insurance
determines to be appropriate. It shall also provide a mechanism for
payment by check.
   (g) The Internet Web site shall be made available in English and
Spanish and in as many additional languages as feasible. The English
and Spanish language sites shall be made available to the public as
soon as possible, irrespective of whether other versions are
finalized.
   (h) Notwithstanding any provision of Chapter 2 (commencing with
Section 10290) of Part 2 of Division 2 of the Public Contract Code,
if the plan chooses to contract with an entity to establish and
maintain the Internet Web site, the plan shall solicit and consider
the contract via an open, competitive bid process; however, it shall
not issue a request for proposals until the Department of Insurance
has approved the request. The contract period shall not extend more
than three years. Twelve months before the expiration of the
contract, the plan shall determine whether to renew the contract or
solicit bids for a new contract.
   (i) The plan may request, and the Department of Insurance may
include in its plan submitted pursuant to Section 11629.85, that up
to one hundred thousand dollars ($100,000) from the department's
existing consumer outreach fund be made available for the development
of the Internet Web Site.
  SEC. 3.  Section 11629.88 is added to the Insurance Code, to read:
   11629.88.  An applicant shall not be required to provide a copy of
the applicant's or other household member's driver's license, if the
Department of Insurance finds that there is another suitable means
of verifying the driver's licensure.
  SEC. 4.  Section 4000.38 of the Vehicle Code is amended to read:
   4000.38.  (a) The department shall suspend, cancel, or revoke the
registration of a vehicle when it determines that any of the
following circumstances has occurred:
   (1) The registration was obtained by providing false evidence of
financial responsibility to the department.
   (2) Upon notification by an insurance company that the required
coverage has been canceled and a sufficient period of time has
elapsed since the cancellation notification, as determined by the
department, for replacement coverage to be processed and received by
the department.
   (3) Evidence of financial responsibility has not been submitted to
the department within 30 days of the issuance of a registration
certificate for the original registration or transfer of registration
of a vehicle.
   (b) (1) Prior to suspending, canceling, or revoking the
registration of a vehicle, the department shall notify the vehicle
owner of its intent to suspend, cancel, or revoke the registration,
and shall provide the vehicle owner a reasonable time, not less than
45 days in cases under paragraph (2) of subdivision (a), to provide
evidence of financial responsibility or to establish that the vehicle
is not being operated.
   (2) For the low-cost automobile insurance program established
under Section 11629.7 of the Insurance Code, the department shall
provide residents with information on the notification document, in
plain, boldface type not less than 12 point in size, and in both
English and Spanish, stating the following:

   "California's Low Cost Automobile Insurance Program - visit
(insert Web site provided by the Department of Insurance) or call
(insert toll-free telephone number for the California Automobile
Assigned Risk Plan or its successor as provided by the Department of
Insurance) to determine if you are eligible. Applicants must have a
good driving record, be 19 years of age or older, have had a driver's
license for the past 3 years, and meet income eligibility
requirements (insert income example provided by the Department of
Insurance)." 

   "California Low-Cost Auto Insurance: A program offering affordable
automobile insurance is available. Visit (insert Internet Web site
address provided by the Department of Insurance) or call toll free
(insert toll-free telephone number for the California Automobile
Assigned Risk Plan or its successor as provided by the Department of
Insurance). Qualified applicants must be 19 years of age or older,
have a driver's license for the past three years, and meet income
eligibility requirements (insert income example provided by
Department of Insurance)."   
   (c) (1) Notwithstanding any other provision of this code, before a
registration is reinstated after suspension, cancellation, or
revocation, there shall be paid to the department, in addition to any
other fees required by this code, a fee sufficient to pay the cost
of the reissuance as determined by the department.
   (2) Commencing on January 1, 2011, the reissuance fee imposed by
paragraph (1) shall not apply to a member of the California National
Guard or the United States Armed Forces who was on active duty,
serving outside of this state in a military conflict during a time of
war, as defined in Section 18 of the Military and Veterans Code, at
the time of the suspension, cancellation, or revocation of his or her
vehicle registration. The person shall submit a copy of his or her
official military orders upon requesting the registration
reinstatement.