BILL NUMBER: SB 1172	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Lieu

                        FEBRUARY 22, 2012

   An act to amend Section 1733 of the Insurance Code, relating to
licensing.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1172, as introduced, Lieu. Insurance licensees: fiduciary
duties.
   Existing law requires that certain licensees, including, but not
limited to, those licensed as surplus line brokers, receiving funds
as premium or return premium on or under any policy of insurance or
undertaking of bail, receive and hold those funds in his or her
fiduciary capacity.
   This bill would make nonsubstantive changes to those provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1733 of the Insurance Code is amended to read:
   1733.  All funds received by  any   a 
person acting as a licensee under this chapter, Chapter 5A
(commencing with Section 1759), Chapter 6 (commencing with Section
1760), or Chapter 7 (commencing with Section 1800), as premium or
return premium on or under any policy of insurance or undertaking of
bail, are received and held by that person in his or her fiduciary
capacity.  Any such   A  person who diverts
or appropriates  those   the  fiduciary
funds to his or her own use is guilty of theft and punishable for
theft as provided by law.  Any   A  premium
that a premium financer agrees to advance pursuant to the terms of a
premium finance agreement shall constitute fiduciary funds as
defined in this section only if actually received by a person
licensed in one or more of the capacities  herein 
specified  in this section  .