AB 1391, as amended, Committee on Insurance. Insurance: omnibus.
(1) Existing law provides that no cancellation of a motor vehicle insurance policy, not subject to certain cancellation protections because it has been in effect less than 60 days, is effective unless a notice of cancellation, subject to certain notice provisions, is mailed or delivered by the insurer to the named insured not later than the 59th day following the effective date and at least 10 days prior to the effective date of cancellation. Existing law also provides no notice of cancellation of a motor vehicle insurance policy, where the cancellation is based on, among other things, nonpayment of premium, is effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation, except as specified.
This bill would delete the requirements for cancellation of a motor vehicle insurance policy less than 60 days old, and would apply the requirements regarding notice of cancellation for nonpayment of premiums, and other specified reasons, to all cancellation circumstances.
Existing law requires every life agent who sells annuities to satisfactorily complete 8 hours of training prior to soliciting individual consumers, and requires every life agent who sells annuities to satisfactorily complete 4 hours of training prior to each license renewal.
This bill would clarify the completion of an 8-hour training requirement to initially procure a license to sell annuities does not satisfy the requirement to complete a 4-hour training course in order to renew the annuity license.
Existing law prohibits the Insurance Commissioner from granting authority to transact variable contracts unless the life agent or applicant furnishes proof that he or she is registered to sell securities in accordance with the rules of the United States Securities and Exchange Commission or the Financial Industry Regulatory Authority.
This bill would make clear that the life agent or applicant is required furnish proof that he or she is registered to sell securities in California in accordance with the rules of the United States Securities and Exchange Commission or the Financial Industry Regulatory Authority.
Existing law requires an individual holding an insurance adjuster license, not otherwise exempt, to complete a minimum of 24 hours of continuing education courses, as specified.
This bill would authorize an exemption from the continuing education requirements for an individual licensed as an insurance adjuster and as a property or casualty broker-agent who has met other specified continuing education requirements.
Existing law defines an insurance solicitor as a natural person employed to aid an insurance agent or insurance broker in transacting insurance other than life.
This bill would redefine an insurance solicitor to mean a natural person employed to aid a property and casualty broker-agent acting as an insurance agent or insurance broker in transacting insurance other than life, disability, or health.
Existing law provides that a nonresident licensee who applies for a property broker-agent, casualty broker-agent, personal lines broker-agent, or life agent resident license in this state, and who is currently licensed for the same lines of authority in the state of his or her current resident license, is not required to complete an examination. The application for examination is required to be received within 90 days of the cancellation of the applicant’s resident license and the producer database records, maintained by the National Association of Insurance Commissioners, are required to indicate that the producer is licensed in good standing for the line of authority requested.
This bill would provide that upon issuance of the California resident license, the examination waiver also applies to adding additional lines of authority to the California resident license provided that the individual was previously licensed in good standing for the requested additional lines of authority, and the application is received within 12 months of the cancellation of the applicant’s previous resident license in another state.
This bill would make technical, conforming, and clarifying changes, and delete obsolete provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 662 of the Insurance Code is amended
(a) A notice of cancellation of a policy shall not be
4effective unless mailed or delivered by the insurer to the named
5insured, lienholder, or additional interest at least 20 days prior to
6the effective date of cancellation; provided, however, that where
7cancellation is for nonpayment of premium, at least 10 days’ notice
8of cancellation accompanied by the reason for the cancellation
9shall be given. Unless the reason accompanies or is included in
10the notice of cancellation, the notice of cancellation shall state or
P4 1be accompanied by a statement that upon written request of the
2named insured, mailed or delivered to the insurer not less than 15
3days prior to the effective date of cancellation, the insurer will
4specify the reason for the cancellation.
5(b) This section shall not apply to nonrenewal.
6(c) Notices made to lienholders pursuant to this section may be
7done electronically with the consent of the lienholder.
Section 668.5 of the Insurance Code is repealed.
As used in this article, these terms shall have the following
12(a) “Adjusted RBC Report” means a Risk-Based Capital (RBC)
13report that has been adjusted by the commissioner in accordance
14with subdivision (c) of Section 739.2.
15(b) “Corrective Order” means an order issued by the
16commissioner specifying corrective actions that the commissioner
17has determined are required.
18(c) “Domestic insurer” means any life or health insurer or
19property and casualty insurer organized in this state.
20(d) “Foreign insurer” means any life or health insurer or property
21and casualty insurer that is licensed to do business in this state but
22is not domiciled in this state.
23(e) “Life or health insurer” means any admitted insurer issuing
24insurance subject to Part 2 (commencing with Section 10110) of
25Division 2, or a licensed property and casualty insurer writing only
27(f) “NAIC” means the National Association of Insurance
29(g) “Negative trend” means, with respect to a life or health
30insurer, a negative trend over a period of time, as determined in
31accordance with the “Trend Test Calculation” included in the RBC
32Instructions defined in subdivision (i).
33(h) “Property and casualty insurer” means any admitted insurer
34writing insurance as described in Section 102, 103, 105, 107, 108,
35109, 110, 111, 112, 113, 114, 115, 116, 118, 119.5, 119.6, or 120,
36but does not include monoline mortgage guaranty insurers,
37financial guaranty insurers, or title insurers.
38(i) “RBC Instructions” means the RBC Report, including
39risk-based capital instructions adopted by the NAIC, and as the
P5 1RBC Instructions may be amended by the NAIC from time to time
2in accordance with the procedures adopted by the NAIC.
3(j) “RBC Level” means an insurer’s Company Action Level
4RBC, Regulatory Action Level RBC, Authorized Control Level
5RBC, or Mandatory Control Level RBC where:
6(1) “Company Action Level RBC” means, with respect to any
7insurer, the product of 2.0 and its Authorized Control Level RBC.
8(2) “Regulatory Action Level RBC” means the product of 1.5
9and its Authorized Control Level RBC.
10(3) “Authorized Control Level RBC” means the number
11determined under the risk-based capital formula in accordance
12with the RBC Instructions.
13(4) “Mandatory Control Level RBC” means the product of .70
14and the Authorized Control Level RBC.
15(k) “RBC Plan” means a comprehensive financial plan
16containing the elements specified in subdivision (b) of Section
17739.3. If the commissioner rejects the RBC Plan, and it is revised
18by the insurer, with or without the commissioner’s
19recommendation, the plan shall be called the “Revised RBC Plan.”
20(l) “RBC Report” means the report required in Section 739.2.
21(m) “Total Adjusted Capital” means the sum of:
22(1) An insurer’s statutory capital and surplus.
23(2) Other items, if any, that the RBC Instructions may provide.
Section 739.3 of the Insurance Code is amended to
(a) “Company Action Level Event” means any of the
29(1) The filing of an RBC Report by an insurer that indicates any
30of the following:
31(A) The insurer’s Total Adjusted Capital is greater than or equal
32to its Regulatory Action Level RBC but less than its Company
33Action Level RBC.
34(B) If a life or health insurer, the insurer has Total Adjusted
35Capital that is greater than or equal to its Company Action Level
36RBC but less than the product of its Authorized Control Level
37RBC and 2.5, and has a negative trend.
38(C) If a property and casualty insurer, the insurer has Total
39Adjusted Capital that is greater than or equal to its Company Action
40Level RBC but less than the product of its Authorized Control
P6 1Level RBC and 3.0, and triggers the trend test determined in
2accordance with the trend test calculation included in the Property
3and Casualty RBC instructions.
4(2) The notification by the commissioner to the insurer of an
5Adjusted RBC Report that indicates the event in paragraph (1),
6provided that the insurer does not challenge the Adjusted RBC
7Report under Section 739.7.
8(3) If the insurer challenges, under Section 739.7, an Adjusted
9RBC Report that indicates the event in paragraph (1), the
10notification by the commissioner to the insurer that the
11commissioner has, after a hearing, rejected the insurer’s challenge.
12(b) In the event of a Company Action Level Event, the insurer
13shall prepare and submit to the commissioner a comprehensive
14financial plan that shall do all of the following:
15(1) Identify the conditions in the insurer that contribute to the
16Company Action Level Event.
17(2) Contain proposals of corrective actions that the insurer
18intends to take and would be expected to result in the elimination
19of the Company Action Level Event.
20(3) Provide projections of the insurer’s financial results in the
21current year and at least the four succeeding years, both in the
22absence of proposed corrective actions and giving effect to the
23proposed corrective actions, including projections of statutory
24operating income, net income, capital, or surplus, or a combination.
25The projections for both new and renewal business may include
26separate projections for each major line of business and separately
27identify each significant income, expense, and benefit component.
28(4) Identify the key assumptions impacting the insurer’s
29projections and the sensitivity of the projections to the assumptions.
30(5) Identify the quality of, and problems associated with, the
31insurer’s business, including, but not limited to, its assets,
32anticipated business growth and associated surplus strain,
33extraordinary exposure to risk, mix of business, and use of
34reinsurance in each case, if any.
35(c) The RBC Plan shall be submitted as follows:
36(1) Within 45 days of the Company Action Level Event.
37(2) If the insurer challenges an Adjusted RBC Report pursuant
38to Section 739.7, within 45 days after notification to the insurer
39that the commissioner has, after a hearing, rejected the insurer’s
P7 1(d) Within 60 days after the submission by an insurer of an RBC
2Plan to the commissioner, the commissioner shall notify the insurer
3whether the RBC Plan shall be implemented or is, in the judgment
4of the commissioner, unsatisfactory. If the commissioner
5determines that the RBC Plan is unsatisfactory, the notification to
6the insurer shall set forth the reasons for the determination, and
7may set forth proposed revisions that will render the RBC Plan
8satisfactory, in the judgment of the commissioner. Upon
9notification from the commissioner, the insurer shall prepare a
10Revised RBC Plan, which may incorporate by reference revisions
11proposed by the commissioner, and shall submit the Revised RBC
12Plan to the commissioner as follows:
13(1) Within 45 days after the notification from the commissioner.
14(2) If the insurer challenges the notification from the
15commissioner under Section 739.7, within 45 days after a
16notification to the insurer that the commissioner has, after a
17hearing, rejected the insurer’s challenge.
18(e) In the event of a notification by the commissioner to an
19insurer that the insurer’s RBC Plan or Revised RBC Plan is
20unsatisfactory, the commissioner may, at his or her discretion,
21subject to the insurer’s right to a hearing under Section 739.7,
22specify in the notification that the notification constitutes a
23Regulatory Action Level Event.
24(f) Every domestic insurer that files an RBC Plan or Revised
25RBC Plan with the commissioner shall file a copy of the RBC Plan
26or Revised RBC Plan with the insurance commissioner in any state
27in which the insurer is authorized to do business if both of the
29(1) That state has an RBC provision substantially similar to
30subdivision (a) of Section 739.8.
31(2) The insurance commissioner of that state has notified the
32insurer of its request for the filing in writing, in which case the
33insurer shall file a copy of the RBC Plan or Revised RBC Plan in
34that state no later than the later of:
35(A) Fifteen days after the receipt of notice to file a copy of its
36RBC Plan or Revised RBC Plan with the state.
37(B) The date on which the RBC Plan or Revised RBC Plan is
38filed under subdivision (c) of Section 739.7.
Section 985 of the Insurance Code is amended to read:
(a) On or after January 1, 1970, as used in this article and
2in subdivision (i) of Section 1011, “insolvency” means either of
4(1) Any impairment of minimum “paid-in capital” or “capital
5paid in,” as defined in Section 36, required in the aggregate of an
6insurer by the provisions of this code for the class, or classes, of
7insurance that it transacts anywhere.
8(2) An inability of the insurer to meet its financial obligations
9when they are due.
10(b) On or after January 1, 1970, an insurer cannot escape the
11condition of insolvency by being able to provide for all its liabilities
12and for reinsurance of all outstanding risks. An insurer must also
13be possessed of additional assets equivalent to the aggregate
14“paid-in capital” or “capital paid in” required by this code after
15making provision for all those liabilities and for that reinsurance.
16(c) On or after October 1, 1967, as used in this code provision
17for reinsurance of all outstanding risks and “gross premiums
18without any deduction, received and receivable upon all unexpired
19risks” means the greater of: (1) the aggregate amount of actual
20unearned premiums, or (2) the amount reasonably estimated as
21being required to reinsure in a solvent admitted insurer the
22unexpired terms of the risks represented by all outstanding policies.
23(d) On or after October 1, 1967, an insurer shall
24for reinsurance of the outstanding risk on policies that provide
25premiums that are fully earned at inception and on policies that
26for any other reason do not provide for a return premium to the
27insured on cancellation prior to expiration.
28(e) On or after October 1, 1967, the commissioner shall prescribe
29standards for reasonably estimating the amount required to reinsure
30that will provide adequate safeguards for the policyholders,
31creditors, and the public.
32(f) On or after October 1, 1967, this section shall not be
33applicable to life, title, mortgage, or mortgage guaranty insurers.
34(g) In the application of this section to disability insurance, as
35defined in Section 106, reserves for unearned premiums and
36amounts reasonably estimated as required to reinsure outstanding
37risks shall be determined in accordance with the provisions of
Section 1011 of the Insurance Code is amended to
The superior court of the county in which the principal
5office of a person described in Section 1010 is located, upon the
6filing by the commissioner of the verified application showing any
7of the conditions in this subdivision exist, or a filing by the Federal
8Deposit Insurance Corporation of the verified application showing
9that the conditions enumerated in subdivision (j) exist and the
10conditions set forth in Section 5383(e)(3) of Title 12 of the United
11States Code having been satisfied, shall issue its order vesting title
12to all of the assets of that person, wheresoever situated, in the
13commissioner or his or her successor in office, in his or her official
14capacity, and direct the commissioner forthwith to take possession
15of all of its books, records, property, real and personal, and assets,
16and to conduct, as conservator, the business of the person, or so
17much thereof as to the commissioner may seem appropriate, and
18enjoining the person and its officers, directors, agents, servants,
19and employees from the transaction of its business or disposition
20of its property until any of the following further order of the court:
21(a) That the person has refused to submit its books, papers,
22accounts, or affairs to the reasonable inspection of the
23commissioner or his or her deputy or examiner.
24(b) That the person has neglected or refused to observe an order
25of the commissioner to make good within the time prescribed by
26law any deficiency in its capital if it is a stock corporation, or in
27its reserve if it is a mutual insurer.
28(c) That the person, without first obtaining the consent in writing
29of the commissioner, has transferred, or attempted to transfer,
30substantially its entire property or business or, without consent,
31has entered into any transaction the effect of which is to merge,
32consolidate, or reinsure substantially its entire property or business
33in or with the property or business of any other person.
34(d) That the person is found, after an examination, to be in a
35condition that makes its further transaction of business will be
36hazardous to its policyholders, or creditors, or to the public.
37(e) That the person has violated its charter or any law of the
39(f) That any
officer of the person refuses to be examined under
40oath, touching its affairs.
P10 1(g) That any officer or attorney in fact of the person has
2embezzled, sequestered, or wrongfully diverted any of the assets
3of the person.
4(h) That a domestic insurer does not comply with the
5requirements for the issuance to it of a certificate of authority, or
6that its certificate of authority has been revoked.
7(i) That the last report of examination of any person to whom
8the provisions of this article apply shows the person to be insolvent
9within the meaning of Article 13 (commencing with Section 980)
10of Chapter 1 of Part 2 of Division 1; or if a reciprocal or
11interinsurance exchange, within the applicable provisions of
12Section 1370.2, 1370.4, 1371, or 1372; or if a life insurer, within
13the applicable provisions of Sections 10510 and 10511.
14(j) Notification is given by the United States Secretary of the
15Treasury that a determination has been made by the secretary, in
16accordance with and satisfying the provisions of Section 5383(b)
17of Title 12 of the United States Code, as to a person described in
18Section 1010 that is an insurance company as defined in Section
195381(a)(13) of Title 12 of the United States Code, and one of the
21(1) The board of directors, or body performing similar functions,
22of the person acquiesces or consents to the appointment of a
23receiver as provided for in Section 5832(a)(1)(A)(i) of Title 12 of
24the United States Code, with that consent to be considered to be
25consent to issuance of an order under this section.
26(2) The United States District Court for the District of Columbia
27issued an order for the appointment of a receiver of the person as
28provided for in Section 5382(a)(1)(A)(iv)(I) of Title 12 of the
29United States Code, without regard to whether an appeal of the
30order is pending.
31(3) A petition by the United States Secretary of the Treasury
32for appointment of a receiver was made to the United States District
33Court for the District of Columbia and was granted by operation
34of the law as provided for in Section 5382(a)(1)(A)(v) of Title 12
35of the United States Code, without regard to whether an appeal of
36the order is pending.
Section 1011.1 of the Insurance Code is amended to
If a verified application is filed pursuant to Section
21011 that shows that the conditions set forth in subdivision (j) of
3Section 1011 exist and upon a showing that notice was provided
4to the person that is the subject of the verification application, all
5of the following apply:
6(a) A superior court hearing shall be held in which the person
7may oppose the verified application solely on the grounds that the
8conditions set forth in subdivision (j) of Section 1101 do not exist.
9The hearing shall be completed within 24 hours after the verified
10application is filed with the court.
11(b) The superior court shall issue an order as provided for in
12Section 1011 within 24-hours after the verified application was
13filed with the court.
14(c) If the superior court does not issue an order within 24 hours
15as provided for in subdivision (b), then an order described in
16Section 1011 shall be deemed granted by operation of law upon
17expiration of the 24-hour period, without further notice.
18(d) An order entered by the superior court pursuant to
19subdivision (b) or entered by operation of law pursuant to
20subdivision (c) shall not be subject to any stay or injunction
Section 1012 of the Insurance Code is amended to
Except in the case of an order issued based on a verified
26application showing the conditions in subdivision (j) of Section
271011 to exist, the order shall continue in force and effect until, on
28the application either of the commissioner or of that person, it
29shall, after a full hearing, appear to the court that the ground for
30the order directing the commissioner to take title and possession
31does not exist or has been removed and that the person can properly
32resume title and possession of its property and the conduct of its
Section 1016 of the Insurance Code is amended to
(a) If at any time after the issuance of an order under
38Section 1011, or if at the time of instituting any proceeding under
39this article, including under Section 1011, it shall appear to the
40commissioner that it would be futile to proceed as conservator
P12 1with the conduct of the business of that person, he or she may
2apply to the court for an order to liquidate and wind up the business
3of the person. Upon a full hearing of that application, the court
4may make an order directing the winding up and liquidation of the
5business of that person by the commissioner, as liquidator, for the
6purpose of carrying out the order to liquidate and wind up the
7business of that person.
subdivision (a), the court may issue an
9order to liquidate and wind up the business of a person as to whom
10a verified application is filed pursuant to subdivision (j) of Section
111011 based solely on the verified application and hearing as
12provided for in subdivision (a) of Section 1011.1, without further
13hearing, or may issue an order to liquidate and wind up the business
14of the person upon application by the commissioner after the
15issuance of an order under Section 1011. The court’s order may
16direct the winding up and liquidation of the business of the person
17by the commissioner, as liquidator, for the purpose of carrying out
18the order to liquidate and wind up the business of the person.
Section 1070.6 of the Insurance Code is amended to
The withdrawal procedure and fees prescribed by this
23article shall not be required of a nonsurviving admitted constituent
24to a merger or consolidation into another admitted insurer in
25accordance with the applicable statutes and the commissioner’s
26prior written consent given pursuant to subdivision (c) of Section
271011, provided the commissioner is satisfied by documents,
28authenticated so as to be admissible in evidence over objection,
29filed with him or her, that:
30(a) The constituent has discharged all of its liabilities to residents
31of this state in the manner provided by Section 1071.5;
32(b) There will be an admitted insurer directly available to
33constituent’s policyholders: (1) to obtain policy changes and
34endorsements, (2) to receive payment of premiums and refund
35unearned premiums, (3) to serve notice of claim, proof of loss,
36summons, process, and other papers, and (4) for purposes of suit;
37(c) The constituent shall timely file with the commissioner
38appropriate financial statements reporting its insurance business
39done in this state during the calendar year of the merger or
40consolidation and all appropriate tax returns required by law for
P13 1the period, and shall timely pay all taxes found to be due on account
2of the business; and
3(d) The constituent has surrendered its current California
4certificate of authority to the commissioner for cancellation as of
5the effective date of the merger.
6The withdrawal procedure and fees prescribed by this article
7shall not be required of an insurer that has been liquidated by a
8final order of a court of record of this or any sister state provided
9a certified copy of the order reciting the fact of liquidation and
10discharge of all obligations has been filed with the commissioner.
Section 1624 of the Insurance Code is amended to
“Insurance solicitor” means a natural person employed
15to aid a property and casualty broker-agent acting as an insurance
16agent or insurance broker in transacting insurance other than life,
17disability, or health.
Section 1675 of the Insurance Code is amended to
The following applicants who have theretofore been
22licensed under this code are exempt from the requirements of this
24(a) An applicant for a license to act as a property broker-agent
25or a casualty broker-agent who has been licensed as a property
26broker-agent, casualty broker-agent, or surplus line broker during
27any part of the license year in which the application is filed or the
28immediately preceding license year.
29(b) An applicant for a license to act as a life-only agent who has
30been licensed as a life-only agent during any part of the license
31year in which the application is filed or the immediately preceding
33(c) An applicant for a license to act as an accident and health
34agent who has been licensed as an accident and health agent during
35any part of the license year in which the application is filed or the
36immediately preceding license year.
37(d) An applicant for a license to act as a travel insurance agent.
38(e) An applicant specifically exempted from the particular
39qualifying examination requirement by other provisions of this
P14 1(f) (1) A nonresident licensee who applies for a property
2broker-agent, casualty broker-agent, personal lines broker-agent,
3or life agent resident license in this state, and who is currently
4licensed for the same lines of authority in the state of his or her
5current resident license, shall not be required to complete an
6examination. The application shall be received within 90 days of
7the cancellation of the applicant’s resident license and the producer
8database records, maintained by the National Association of
9Insurance Commissioners, shall indicate that the producer is
10licensed in good standing for the line of authority requested.
11(2) Upon issuance of the California resident license, the
12examination waiver also applies to adding additional lines of
13authority to the California resident license provided that the
14individual was previously licensed in good standing for the
15requested additional lines of authority, and the application is
16received within 12 months of the cancellation of the applicant’s
17previous resident license in another state.
Section 1749.8 of the Insurance Code is amended to
(a) Every life agent who sells annuities shall
22satisfactorily complete eight hours of training prior to soliciting
23individual consumers in order to sell annuities.
24(b) Every life agent who sells annuities shall satisfactorily
25complete four hours of training prior to each license renewal.
26Completion of the eight-hour annuity training required by
27subdivision (a) does not satisfy the four-hour annuity training
28required by this subdivision. For resident licensees, this
29requirement shall count toward the licensee’s continuing education
30requirement, but may still result in completing more than the
31minimum number of continuing education hours set forth in this
33(c) The training required by this section shall be approved by
34the commissioner and shall consist of topics related to annuities,
35and California law, regulations, and requirements related to
36annuities, prohibited sales practices, the recognition of indicators
37that a prospective insured may lack the short-term memory or
38judgment to knowingly purchase an insurance product, and
39fraudulent and unfair trade practices. Subject matter determined
40by the commissioner to be primarily intended to promote the sale
P15 1or marketing of annuities shall not qualify for credit towards the
2training requirement. Any course or seminar that is disapproved
3under the provisions of this section shall be presumed invalid for
4credit towards the training requirement of this section unless it is
5approved in writing by the commissioner.
6(d) The training requirements set forth in this section shall not
7apply to nonresident agents representing an insurer that is a direct
9For the purposes of this section, “direct response provider” means
10an insurer that meets each of the following criteria:
11(1) The insurer does not initiate telephone contact with insureds
12or prospective insureds.
13(2) Agents of the insurer speak with insureds and prospective
14insureds only by telephone, and at the request of the insureds or
16(3) Agents of the insurer are assigned to speak with insureds or
17prospective insureds on a random basis, when contacted.
18(4) Agents of the insurer are salaried and do not receive
19commissions for sales or referrals.
Section 1758.3 of the Insurance Code is amended to
The commissioner shall not grant authority to transact
24variable contracts unless the life agent or applicant furnishes proof
25that he or she is registered to sell securities in California in
26accordance with the rules of the United States Securities and
27Exchange Commission or the Financial Industry Regulatory
28Authority. Any authority granted to a life agent to transact variable
29contracts shall immediately terminate upon the life agent no longer
30being registered to sell securities in accordance with the rules of
31the United States Securities and Exchange Commission or the
32Financial Industry Regulatory Authority.
Section 1872.87 of the Insurance Code is amended
(a) Each insurer required to pay special purpose
37assessments pursuant to Sections 1872.8, 1872.81, 1872.85, 1874.8,
38or subdivision (a) of Section 1872.86 may, over a reasonable length
39of time, but in no event later than the calendar year in which the
40assessment is paid, recoup the special purpose assessments by way
P16 1of a surcharge on premiums charged for the insurance policies to
2which those sections apply or by including the assessments within
3the insurer’s rates. Amounts recouped shall not be considered
4premiums for any purpose, including the computation of gross
5premium tax or agents’ commission.
6(b) The amount of the surcharge shall be separately stated on
7either a billing or policy declaration sent to an insured.
Section 14090.1 of the Insurance Code is amended
(a) An individual who holds an insurance adjuster
12license and who is not exempt under subdivision (b) shall
13satisfactorily complete a minimum of 24 hours, of which three
14hours are to be in ethics, of continuing education courses pertinent
15to the duties and responsibilities of an insurance adjuster license
16reported to the insurance commissioner on a biennial basis in
17conjunction with his or her license renewal cycle.
18(b) This section does not apply to any of the following:
19(1) A licensee not licensed for one full year prior to the end of
20the applicable continuing education biennium.
21(2) A licensee holding a nonresident insurance adjuster license
22who has met the continuing education requirements of his or her
23designated resident state.
24(3) An individual licensed as an insurance adjuster and as a
25property or casualty broker-agent, pursuant to Section 1625, who
26has met the continuing education requirements specified in Section