California Legislature—2015–16 Regular Session

Assembly Bill No. 565

Introduced by Assembly Member Cooley

February 24, 2015

An act to amend Section 10191 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 565, as introduced, Cooley. Insurance contracts.

Existing law authorizes the Insurance Commissioner to promulgate, from time to time as conditions warrant, after notice and hearing, reasonable rules and regulations, and amendments and additions to those rules and regulations, as are necessary or advisable in order to establish and maintain a procedure for the filing and approval of specified documents prior to their issuance, delivery, or use in this state.

This bill would make technical, nonsubstantive changes to this provision.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 10191 of the Insurance Code is amended
to read:

10191.  

(a) The commissioner may, from time to time as
conditions warrant, after notice and hearing, promulgate begin delete such end delete
reasonable rules and regulations, and amendments and additions
begin delete thereto, end delete begin insert to those rules and regulations, end insert as are necessary or
advisable, to establish and maintain a procedure for the filing and
approval of documents, as defined in this section, prior to their
issuance, delivery, or use in this state, in lieu of the requirements
of submission, filing, or approval for the documents presently
provided in Section 10205, 10205.5, 10205.6, 10225, 10270,
10270.1, 10270.57, 10270.9, 10270.91, 10270.92, 10270.93, 10290,
10292, 11066, 11069, begin delete 11513, 11513.1, 11513.2, 11515, end delete or 11658.
For purposes of this section, “document” includes, but is not limited
to, every form of contract, insurance policy, application, rider,
endorsement, amendment, insert policy page, certificate, or other
evidence or notice of insurance, fill-in material, schedules of rates
and classifications of risks, and any modification to any document,
which is subject to the requirements of any of the begin delete enumerated
sections. end delete begin insert sections described in this subdivision. end insert

(b) Any begin delete such end delete rule or regulation shall be promulgated in
accordance with the procedure provided in Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.

(c) In promulgating any begin delete such end delete rule or regulation, the
commissioner may give consideration to the following
circumstances:

(1) Whether all begin delete such end delete documents, the submission, filing, or
approval of which is governed by any of the begin delete foregoing enumerated
sections, end delete begin insert sections described in subdivision (a), end insert or only a portion
begin delete thereof end delete begin insert of those documents end insert described in the rule or regulation, shall
be subject begin delete thereto. end delete begin insert to the rule or regulation. end insert

(2) Whether certain documents or portions begin delete thereof end delete begin insert of those
documents end insert should be regulated in respect of submission, filing, or
approval in a fashion differing from similar requirements applicable
to other documents.

(3) Whether varying procedures may be made applicable among
admitted insurers in respect of the submission, filing or approval
predicated, in whole or in part, upon begin delete such end delete begin insert the following end insert factors begin delete as end delete begin insert :
(A) end insert the age and size of the submitting insurer, begin insert (B) end insert the period of its
licensing in this state for the class or classes of insurance
represented by the documents, begin insert (C) end insert the nature and number of prior
submissions of similar documents and the disposition begin delete thereof end delete begin insert of
those prior submissions end insert by the commissioner, begin insert (D) end insert and similar
criteria begin delete which end delete begin insert that end insert is relevant to a determination that the submitting
insurer has demonstrated compliance with all applicable statutes,
rules, and regulations relating to documents comprising prior
submissions.

(d) In promulgating any begin delete such end delete rules and regulations, the
commissioner shall, so far as practical, describe or define certain
provisions: (1) begin delete which end delete begin insert that end insert the commissioner will authorize without
review when accompanied by a certification prescribed by him or
her by rule, and (2) begin delete which end delete begin insert that end insert the commissioner will under no
circumstances approve.

(e) The commissioner shall establish a period of time, not shorter
than one year, during which any change in the provisions begin delete which end delete
begin insert that end insert pursuant to subdivision (d), he or she has provided he or she
will under no circumstances approve, will not apply to policies
filed prior to the effective date of the change.

(f) Except as otherwise provided in this begin delete section end delete begin insert section, end insert any
document approved by the commissioner pursuant to rules and
regulations authorized by this section may have its approval
withdrawn in accordance with subdivision (d) of Section 10291.5
or Section 12957, whichever is applicable.