BILL NUMBER: AB 1130 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 18, 2013
AMENDED IN ASSEMBLY MARCH 21, 2013
INTRODUCED BY Assembly Member Wilk
FEBRUARY 22, 2013
An act to amend Section 12743 12744
of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 1130, as amended, Wilk. Insurance: home protection contracts.
Existing law governs home protection contracts for the repair or
replacement of a component, system, or appliance of a home. Existing
law makes various provisions of the Insurance Code
applicable to those contracts, including provisions governing
reinsurance transactions and actions, suits, or proceedings against
nonadmitted insurers prohibits a person from issuing
or offering to issue home protection contracts in this state unless
the person holds a home protection company license issued by the
Department of Insurance, except as specified .
This bill would delete provisions governing reinsurance
transactions and actions against nonadmitted insurers from the list
of Insurance Code provisions that are applicable to home protection
contracts.
This bill would also make technical, nonsubstantive changes to
that provision.
This bill would provide that certain requirements for a home
protection company license do not apply to a foreign applicant,
including filing a financial statement certified by the applicant's
home state regulatory official as a true and correct copy of the
statement filed with that official, and holding a certificate of
authority as an insurance company, only if the applicant stipulates
that the applicant will provide financial reports in the same manner
required of domestic home protection companies.
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 12744 of the
Insurance Code is amended to read:
12744. (a) No person shall issue or offer to issue home
protection contracts in this state unless such
the person holds a home protection company license issued
by the department, except as provided in subdivision (b) of this
section.
(b) An insurer admitted for the class of insurance defined in
Section 120 is authorized, in addition to the underwriting powers
granted by such the class, to issue home
protection contracts, but the provisions of this part shall not be
otherwise applicable to such those
insurers or their contracts.
(c) No license shall be granted to a foreign applicant that has
not fulfilled the requirements of Sections 716 and 717. For purposes
of this part, the term "class of insurance" as used in said sections
shall mean the business of a home protection company. This section
shall not prohibit the admission of a foreign home protection company
which has actively transacted home protection business in its state
of domicile for three years or more.
(d) The commissioner shall by regulation prescribe forms for
applications for home protection company licenses consistent with the
provisions of this part. Any reference to certificate of authority
in Article 3 (commencing with Section 699) of Chapter 1 of Part 2 of
Division 1, shall mean home protection company license.
(e) (1) Subject to paragraph (2) and, notwithstanding subdivision
(c) or any regulation to the contrary, the following requirements
shall not apply to any foreign applicant:
(A) Filing a financial statement certified by the applicant's home
state regulatory official as a true and correct copy of the
statement filed with that official. This exemption applies only if
the official does not require a home protection company or the
applicant to file a financial statement.
(B) Filing an examination report certified by the applicant's home
state regulatory official as a true and correct copy. This exemption
applies only if the official does not prepare examination reports of
home protection companies or has not prepared an examination report
of the applicant.
(C) Holding a certificate of authority as an insurance company.
(2) The exemptions described in paragraph (1) apply only if the
applicant's chief executive officer stipulates that the company will
provide financial reports in the same manner required of domestic
home protection companies.
SECTION 1. Section 12743 of the Insurance Code
is amended to read:
12743. The following provisions of this code shall be applicable
to home protection contracts and home protection companies:
(a) Sections 1 to 46, inclusive.
(b) Chapter 3 (commencing with Section 330) of Part 1, Division 1.
(c) Chapter 12 (commencing with Section 679.70) of Part 1,
Division 1.
(d) These provisions of Chapter 1, Part 2, Division 1:
(1) Article 1 (commencing with Section 680).
(2) Article 1.5 (commencing with Section 685).
(3) Article 2 (commencing with Section 690).
(4) Section 699, 699.5, 700, 701, 704, 704.5, 704.7, 705, 705.1,
707, 708, 709, 710, 713, 714, 715, 716, 717, 718, 720, and 725 of
Article 3 (commencing with Section 699).
(5) Section 750.
(6) Article 5.5 (commencing with Section 770).
(7) Article 6.5 (commencing with Section 790).
(8) Article 8 (commencing with Section 820).
(9) Article 9 (commencing with Section 880).
(10) Article 11 (commencing with Section 939).
(11) Article 13 (commencing with Section 980).
(12) Article 14 (commencing with Section 1010).
(13) Article 14.5 (commencing with Section 1065.1).
(14) Article 15 (commencing with Section 1070).
(15) Article 16 (commencing with Section 1080).
(16) Article 17 (commencing with Section 1100).
(e) These provisions of Chapter 2, Part 2, Division 1:
(1) Article 1 (commencing with Section 1140).
(2) Article 2 (commencing with Section 1152).
(3) Article 3 (commencing with Section 1170).
(4) Article 4 (commencing with Section 1190).
(5) Article 4.7 (commencing with Section 1215).
(6) Article 7 (commencing with Section 1250).
(f) Article 3 (commencing with Section 1631) of Chapter 5 of Part
2 of Division 1.
(g) Sections 1850.5, 1853.5, 1853.8, 1857, 1857.2, 1857.3, 1857.4,
1858, 1858.05, 1858.1, 1858.15, 1858.2, 1858.3, 1858.4, 1858.5,
1858.6, 1858.7, 1859, 1859.1, 1860, 1860.1, 1860.2 of Chapter 9, Part
2, Division 1.
(h) Division 3 (commencing with Section 12900).
(i) In any references in the provisions made applicable to this
part by subdivisions (a) to (h) inclusive of this section:
(1) "Insurer" shall mean home protection company.
(2) "Insured" shall mean a home protection contract holder.
(3) "Premium" shall mean protection contract fee.
(4) "Policy" or "insurance" shall mean home protection contract.
(j) When any provision of this code, other than this part, is
applied to home protection companies, such provision shall be
construed in accordance with the nature of home protection companies
and the home protection business. In the event of any conflict
between such other provision and this part, this part shall prevail.