BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE INSURANCE COMMITTEE
                          Senator William W. Monning, Chair


          AB 2731 (Assembly Insurance Committee) Hearing Date:  June 25,  
          2014  

          As Introduced: February 25, 2014
          Fiscal:             No
          Urgency:       No

          VOTES:              Asm. Floor     (04/10/14)74-0/Pass
                         Asm. Ins.      (04/02/14)12-0/Pass


           SUMMARY   Clarifies reporting requirements for various reports  
          related to insurance that must be submitted to the Legislature.   
          
          
           
          DIGEST
            
          Existing law
            
           1.  Requires the submission of the following reports to the  
              Legislature regarding insurance issues


              a.     Reports regarding the insolvency of an insurer.   
                 (Ins. Code § 985.5.)


              b.     Annual report of the California Life and Health  
                 Insurance Guarantee Association.  (Ins. Code § 1067.13.)


              c.     Annual report summarizing the number, type and  
                 disposition of complaints received by the Department of  
                 Insurance.  (Ins. Code § 1858.35.)


              d.     Annual report from the California Assigned Risk Plan.  
                  (Ins. Code § 11629.81.)


              e.     Workers' Compensation Insurance Rating Board report  




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          2731 (Assembly Ins. Committee), Page 2



                 to the Legislature regarding workers' compensation issues  
                 for the taxi industry by May 1, 2003.
           

          This bill


            1.  Specifies that reports required by Insurance Code Sections  
              985.5, 1067.13, 1858.35, and 11629.81 be reported directly  
              to the Assembly and Senate Committees on Insurance rather  
              than the Legislature generally.


           2.  Repeals a requirement for the Workers' Compensation  
              Insurance Rating Board report to the Legislature regarding  
              workers' compensation issues for the taxi industry by May 1,  
              2003.  


           COMMENTS

          1.  Purpose of the bill  .  The Assembly Committee on Insurance  
              has received questions from staff within the Department of  
              Insurance regarding to whom in the Legislature the reports  
              should be sent.  This bill resolves those questions by  
              specifying the relevant policy committees in the statutes  
              requiring the reports.  The bill also repeals the reporting  
              requirement on taxi driver wages as the due date for the  
              report has long since passed.

           2.  Background  .  The Insurance Code has many obsolete and  
              outdated reporting requirements with inconsistent reporting  
              standards.  Over the years, legislative preferences have  
              shifted as to who should receive the report and how it  
              should be submitted.

              Committees that may receive reports required by the  
              Insurance Code include the Health, Insurance, Judiciary,  
              Labor, and Transportation Committees of either or both  
              houses, each potentially having different preferences as to  
              how report should be submitted (especially whether they  
              should be submitted in electronic or hardcopy form).

              This bill and SB 1065 (Monning) are independent, but  
              cooperative, efforts between the Assembly and Senate  
              Insurance Committees to work out a consistent approach to  




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          2731 (Assembly Ins. Committee), Page 3



              reporting requirements, without imposing standards on  
              committees with different preferences.  By assigning the  
              reports specifically to the Insurance Committees, the  
              committees may establish more specific reporting standards.


           3.  Support  . 

              None received.

           4.  Opposition  

              None received.
           
           
           5.  Prior and Related Legislation  

              SB 1065 (Monning) would require that all report submitted to  
              legislative committees required under the Insurance Code  
              also be submitted to the Legislative Counsel.  Would also  
              establish standards for the electronic submission of reports  
              required by the Insurance Code.

           


























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          2731 (Assembly Ins. Committee), Page 4



          POSITIONS
          
          Support
           
          None received.
           
          Oppose
               
          None received.

          Consultant:   Hugh Slayden (916) 651-4773