BILL ANALYSIS Ó AB 1024 Page 1 Date of Hearing: May 27, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1024 (Hueso) - As Amended: May 11, 2011 Policy Committee: InsuranceVote:12 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill allows insurance agents and brokers to sell low-cost automobile insurance through an Internet referral website, and requires the California Automobile Assigned Risk Plan (CAARP) to contract with a certified producer to operate a website to refer consumers to certified agents or brokers for the purchase of low-cost automobile insurance. FISCAL EFFECT One-time costs to the Department of Insurance to develop the required system and internet web site would be approximately $160,000 (Insurance Fund). COMMENTS Rationale . The author states that while current law permits licensed brokers to sell low-cost auto insurance, it does not allow on-line processing or sales of this insurance. This bill would authorize both the processing and sale of low-cost auto insurance through an authorized website. According to the author, Consumer Watchdog states this will not only enable more uninsured drivers attain the minimum level of coverage required by law, but it will also help achieve the goal of that law: to reduce the number of uninsured drivers. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081 AB 1024 Page 2