BILL NUMBER: AB 2366	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Bocanegra

                        FEBRUARY 21, 2014

   An act  relating to benefit and relief associations.
  to add Section 11408 to the Insurance Code, relating
to insurance. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2366, as amended, Bocanegra. Benefit and relief 
associations: Insurance Commissioner.   associations.
 
   Existing law prohibits a firemen's, policemen's, or peace officer'
s benefit and relief association from operating or doing business in
the state without a certificate of authority issued by the Insurance
Commissioner.  
   This bill would authorize the commissioner to receive and
investigate formal written complaints made against a holder of a
certificate of authority, as specified, and would authorize the
commissioner, after providing notice and an opportunity for a
hearing, to suspend or rescind the certificate if a complaint cannot
be resolved in a timely manner.  
   Existing law provides for the regulation of insurers by the
Department of Insurance. Existing law directs the Insurance
Commissioner to enforce the execution of laws regulating the business
of insurance. Existing law excludes firemen's, policemen's, and
peace officers' benefit and relief associations meeting certain
requirements from state laws relating to insurance. 

   This bill would express the intent of the Legislature to enact
legislation to provide increased authority to the Insurance
Commissioner to regulate public safety member benefit and relief
associations. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 11408 is added to the 
 Insurance Code   , to read:  
   11408.  (a) (1) Notwithstanding any other law, the commissioner
may receive and investigate formal written complaints made against a
holder of a certificate of authority issued under Section 11401.
   (2) In implementing this section, the commissioner may hold a
hearing or request any necessary documentation, including, but not
limited to, financial statements or legal documentation in an effort
to resolve the complaint.
   (b) If a complaint cannot be resolved in a timely manner, the
commissioner may, after providing adequate notice and an opportunity
for a hearing, do either of the following:
   (1) Suspend the certificate of authority issued under Section
11401, which shall prohibit the association from adding any
additional members until the complaint or violation is corrected.
   (2) Rescind the certificate of authority issued under Section
11401.
   (c) This section shall not be construed in a manner that conflicts
with the Employee Retirement Income Security Act of 1974 (Public Law
93-406).  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to provide increased authority to the Insurance
Commissioner to regulate public safety member benefit and relief
associations.