BILL ANALYSIS Ó AB 1391 Page 1 Date of Hearing: May 1, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1391 (Committee on Insurance) - As Amended: April 11, 2013 Policy Committee: Insurance Vote: 13 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill makes a number of technical and clarifying changes to the Insurance Code. Specifically, this bill: 1)Clarifies that cancellation notices for auto insurance policies must be mailed at least 20 days prior to the cancellation date, and requires mailing 10 days prior when a policy is cancelled for non-payment of premium. 2)Extends the window for agents and brokers previously licensed in another state for multiple lines of insurance to obtain those licenses in California without an examination to 12 months if they obtain one such license within 90 days of cancelling their license in another state. 3)Requires life insurance agents selling variable contract products to be registered to sell securities in California by the Financial Industry Regulatory Authority (FINRA). FISCAL EFFECT Costs associated with this legislation should be minor and absorbable within existing Department of Insurance (DOI) resources. COMMENTS Purpose . This bill is sponsored by the Department of Insurance as their annual omnibus bill which makes technical and clarifying changes to the Insurance Code. AB 1391 Page 2 Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081