BILL NUMBER: AB 2406	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 14, 2012
	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 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 any proceeding permitted or established pursuant to this
chapter, challenge any action of the commissioner under this
article, and enforce  a   any  provision of
this article.
   (b) The commissioner or a court shall award reasonable advocacy
and witness fees and expenses to 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 any order, regulation, or decision by the
commissioner or a court. Where such advocacy occurs in response to a
rate application, the award shall be paid by the applicant.
   (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   removal  of
 former  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.