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 --