BILL NUMBER: AB 821	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Yamada

                        FEBRUARY 21, 2013

   An act to amend Section 669 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 821, as introduced, Yamada. Insurance: motor vehicle insurance:
cancellation: failure to renew.
   Existing law, with regard to the cancellation or failure to renew
a motor vehicle insurance contract, requires an insurer, before
policy expiration to, among other things, deliver to or mail to the
named insured, at the address shown on the policy, one of the
following: (1) at least 20 days before expiration, a written or
verbal offer of renewal of the policy, contingent upon payment of
premium as stated in the offer, or (2) at least 30 days before
expiration, a written notice of nonrenewal of the policy, including a
required statement. A wilful violation of these provisions is a
misdemeanor, punishable by a fine not exceeding $1,000 per violation.

   This bill would instead make a wilful violation of the above
provisions subject to an administrative penalty, enforceable by the
Insurance Commissioner, not to exceed $1,000.
   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 669 of the Insurance Code is amended to read:
   669.  Any insurer willfully violating any provisions of Section
663 is  guilty of a misdemeanor and is punishable by a fine
of   subject to an administrative penalty, enforceable
by the commissioner,  not exceeding one thousand dollars
($1,000) for each violation  thereof  .