BILL ANALYSIS                                                                                                                                                                                                    



                                                                  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