BILL ANALYSIS Ó AB 2734 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2734 (Insurance Committee) As Amended August 18, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 15, 2014) |SENATE: |35-0 |(August 21, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: INS. SUMMARY : Contains several technical or noncontroversial changes to the Insurance Code. The Senate amendments add several additional provisions to this omnibus bill, including language that: 1)Clarifies that the $5 million financial responsibility requirements recently adopted for the testing of autonomous (driverless) vehicles may be satisfied with an insurance policy. 2)Reduces to 30% from 50% the amount of trusteed surplus that the Insurance Commissioner may allow a reinsurer that has stopped writing new business for 3 years to use in support of reinsurance ceded by United States insurers. 3)Authorizes the Insurance Commissioner to act on an application seeking status as a certified reinsurer 30 days after the application is published, rather than the 90 days currently required. 4)Revises the definition of "disabled veteran business enterprise" by allowing some of these businesses that do not have a home office in California, but that meet the definition in the Military and Veterans Code, to qualify for purposes on insurers' reporting requirements. FISCAL EFFECT : Unknown COMMENTS : 1)Purpose. As a matter of convenience to the Department of AB 2734 Page 2 Insurance, and to the industries that are governed by the Insurance Code, the Assembly Insurance Committee introduced this bill to serve as a vehicle for noncontroversial statutory changes that would be too minor for a stand-alone bill. As passed by the Assembly, there were several provisions in the bill. The Senate amendments reflect the additional discussions that resulted in more technical, noncontroversial updates to the Insurance and Vehicle Codes. Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086 FN: 0004993