BILL NUMBER: AB 2406	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2012
	AMENDED IN ASSEMBLY  APRIL 9, 2012

INTRODUCED BY   Assembly Member Buchanan

                        FEBRUARY 24, 2012

   An act to amend Section 1861.10 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2406, as amended, Buchanan. Insurance: rates.
   Existing law, the Insurance Rate Reduction and Reform Act (enacted
by Proposition 103, as approved by the voters at the November 8,
1988, statewide general election), prohibits a rate from being
approved or remaining in effect which is excessive, inadequate,
unfairly discriminatory, or otherwise in violation of the applicable
provisions of law. Under existing law, an insurer  who
  that  wishes to change a rate is required to file
a complete rate application with the Insurance Commissioner, for
which there may be a hearing as prescribed. Existing law authorizes
any person to initiate or intervene in any proceeding permitted or
established pursuant to these provisions, to challenge actions of the
commissioner, and to enforce provisions of the act.
   This bill would require the Department of Insurance to post on its
Internet Web site, during the period of eligibility, all requests
for a finding of eligibility to seek compensation and all findings of
eligibility, as defined.  The bill would also remove language
declared unconstitutional by the courts and would declare that this
change is declaratory of existing law. 
   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 1861.10 of the Insurance Code is amended to
read:
   1861.10.  Consumer Participation.  (a) Any person may initiate or
intervene in  a   any  proceeding permitted
or established pursuant to this chapter, challenge any action of the
commissioner under this article, and enforce a provision of this
article.
   (b) The commissioner or a court shall award reasonable advocacy
and witness fees and expenses to  a   any 
person who demonstrates that (1) the person represents the interests
of consumers and (2) that he or she has made a substantial
contribution to the adoption of  an   any 
order, regulation, or decision by the commissioner or a court. Where
 that   such  advocacy occurs in response
to a rate application, the award shall be paid by the applicant.

   (c) (1) The commissioner shall require every insurer to enclose
notices in every policy or renewal premium bill informing
policyholders of the opportunity to join an independent, nonprofit
corporation that shall advocate the interests of insurance consumers
in any forum. This organization shall be established by an interim
board of public members designated by the commissioner and operated
by individuals who are democratically elected from its membership.
The corporation shall proportionately reimburse insurers for
additional costs incurred by insertion of the enclosure, except no
postage shall be charged for an enclosure weighing less than 1/3 of
an ounce. (2) The commissioner shall, by regulation, determine the
content of the enclosures and other procedures necessary for
implementation of this provision. The Legislature shall make no
appropriation for this subdivision.  
   (d) 
    (c)  All requests for a finding of eligibility to seek
compensation and all findings of eligibility, as described in Section
2662.2 of Title 10 of the California Code of Regulations, shall be
published on the Department of Insurance Internet Web site during the
eligibility period.
   SEC. 2.    The amendment of subdivision (c) of
Section 1861.10 of the Insurance Code made by this act does not
constitute a change in, but is declaratory of, existing law.