BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 933


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          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  








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            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  








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          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  








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          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










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          Independent Insurance Agents and Brokers of California




          Opposition


          None on file




          Analysis Prepared by:Manny Leon / TRANS. / (916) 319-2093