BILL ANALYSIS Ó
AB 933
Page 1
Date of Hearing: April 13, 2015
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 933
(Frazier) - As Amended April 7, 2015
SUBJECT: Vehicles: DMV records
SUMMARY: Clarifies that a person who is providing their
driver's license number to an insurer, insurance licensee,
employer, or prospective employer is presumed to have consented
for the number to be used to obtain and transmit the person's
motor vehicle record (MVR) for purposes of obtaining insurance,
as specified.
EXISTING LAW:
1)Provides certain information of a person's MVR held by the
Department of Motor Vehicles (DMV), including abstracts of
convictions and accidents, is to be available for public
inspection, as specified.
2)Prohibits DMV from furnishing to any person information from
an MVR that would be in violation of disclosure requirements
detailed in the federal Fair Credit Reporting Act.
3)Affords confidentiality for the home addresses of all
AB 933
Page 2
individuals contained within DMV records. These provisions
allow for disclosure of this information to courts, law
enforcement agencies, and other governmental agencies but also
allow for limited disclosure to financial institutions,
insurance companies, attorneys, vehicle manufacturers, and
persons doing statistical research.
4)Requires any person or agent of a person who has access to
DMV-related confidential or restricted information to
establish procedures to protect the confidentiality of that
information, as specified.
5)Defines an insurance agent as a person who transacts
insurance, other than life, disability, or health insurance,
on behalf of an admitted insurance company.
FISCAL EFFECT: Unknown
COMMENTS: Independent insurance agents typically represent a
number of insurance companies, or "carriers", and sell insurance
products that most appropriately meet the needs of their
clients. Independent insurance agents are independent
contractors for the insurance companies they represent. Thus,
several companies may authorize the agent to sell for them, but
the agent remains an independent businessperson. This business
model allows the independent insurance agent to review many
quotes and offer their clients the best policy options
available.
In order to obtain a personal or commercial insurance policy, an
independent agent will provide an insurance company's
AB 933
Page 3
underwriters with a copy of an applicant's MVR. On top of other
documentation provided by the applicant, the MVR will be used to
determine the risk in insuring the applicant. Specifically, the
type of MVR (otherwise known as a "basic record") an independent
agent requests does not contain any personal information, rather
only provides the following information relative to the
applicant's driving history:
1)Suspensions, revocations, and cancellations of a driver's
license.
2) Driver's license class.
3) Special driver's license endorsements.
4) Any driver's license restrictions.
5) Traffic citations.
6) Vehicular crimes.
7) Accident reports.
8)Driving record points.
9) DUI convictions.
Ultimately, the insurance agent may provide an MVR to several
insurance underwriters prior to an applicant selecting the
policy that best meets their needs.
The author introduced this bill on behalf of the sponsor to
AB 933
Page 4
address an inconsistency in state law. Last year, DMV auditors
determined that while licensed independent insurance agents had
the authority to obtain an applicant's MVR, they did not have
the authority to then submit the MVR to multiple insurance
underwriters under the applicant's original consent to the
independent insurance agent. As a result, DMV auditor's
notified a number of independent insurance agents that their
authority to obtain MVRs could be revoked.
This bill aims to provide the necessary clarification to
existing law to ensure an independent insurance agent seeking
personal or commercial insurance on behalf of an applicant has
the ability to provide the applicant's MVR to the appropriate
insurance companies. The author notes, "this is a common sense
measure to provide the necessary clarification in existing law
to allow the insurance industry to carry on with their standard
industry practices and also ensure an applicant is not burdened
with signing multiple and redundant disclosure forms."
Double-referral: This bill will be referred to the Assembly
Insurance Committee should it pass out of this committee.
REGISTERED SUPPORT / OPPOSITION:
Support
AB 933
Page 5
Independent Insurance Agents and Brokers of California
Opposition
None on file
Analysis Prepared by:Manny Leon / TRANS. / (916) 319-2093