BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 387 (McCarty) - Insurance:  life and disability policies
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: June 29, 2015          |Policy Vote: INS. 8 - 0         |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: August 27, 2015   |Consultant: Brendan McCarthy    |
          |                                |                                |
           ----------------------------------------------------------------- 


          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 27, 2015


          Bill  
          Summary:  AB 387 would extend the time allowed for the Insurance  
          Commissioner to review disability insurance policies from 30  
          days to 120 days. The bill would require the Insurance  
          Commissioner to advise a multistate regulatory support  
          organization regarding a report that compares California  
          insurance standards with those developed by the Interstate  
          Insurance Product Regulation Commission.


          Fiscal  
          Impact:  
           One-time costs of about $400,000 to develop procedures for  
            reviewing disability insurance policies and developing and  
            publishing procedural requirements and guidelines for use by  
            insurance companies when making filings by the Department of  
            Insurance (Insurance Fund).








          AB 387 (McCarty)                                       Page 1 of  
          ?
          
          
           Unknown costs to prepare a report comparing California  
            insurance standards to those developed by the Interstate  
            Insurance Product Regulation Commission (private funds). The  
            bill requires the report to be commissioned and paid for by a  
            non-state entity and specifically prohibits the use of General  
            Fund or Insurance Fund monies for implementation of that  
            section of the bill (which would indicate that donated funds  
            would also be used for any significant internal costs  
            associated with the report incurred by the Department).


          Author  
          Amendments:  Require the study to be commissioned and paid for  
          by a multistate regulatory support organization, in consultation  
          with the Insurance Commissioner.


                                      -- END --