AB 1232, as amended, Cristina Garcia. Insurance Commissioner: administrative hearings.
Existing law grants the Insurance Commissioner certain powers and duties. Existing law prohibits the commissioner from denying an insurance agent or broker license to an applicant without an opportunity to be heard. The hearing is required to be conducted in accordance with specified provisions of the Administrative Procedure Act.
This bill would require, if the applicant or permanent licensee is a natural person and requests a hearing, the commissioner to select either an administrative law judge appointed pursuant to the act, or an administrative law judge appointed by the commissioner to conduct the hearing.
Existing law also requires the commissioner to make an annual report to the Governor, the Legislature, and the committees of the Senate and Assembly having jurisdiction over insurance showing, generally, the condition of the insurance business and interests in this state, and other matters concerning insurance, as specified.
This bill would require the commissioner, for 3 calendar years, to include in the report described above specified information regarding those cases in which a hearing was held, including the total number of cases in which a hearing was held and the average number of days that elapsed between the referral of a case to an administrative law judge and a proposed decision by that administrative law judge.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1667 of the Insurance Code is amended
2to read:
(a) Except as provided in Section 1669, a license shall
4not be denied without an opportunity for the applicant to be heard
5in support of his or her application. When a hearing is held, the
6proceedings shall be conducted in accordance with Chapter 5
7(commencing with Section 11500) of Part 1 of Division 3 of Title
82 of the Government
Code.
9(b) Notwithstanding subdivision (a) of Section 11502 of the
10Government Code, when a hearing is requested pursuant to
11subdivision (a) by a natural person who is subject to thisbegin delete chapter,end delete
12begin insert section,end insert the commissioner may select either an administrative law
13judge appointed pursuant to Section 11502 of the Government
14Code, or an administrative law judge appointed by the
15commissioner to conduct the hearing.
16(c) The commissioner shall include, in the report required
17pursuant to Section 12922, in each calendar year from 2017 to
182019, inclusive, the total number of cases in which a hearing was
19held,
the number of those cases heard by an administrative law
20judge appointed by the commissioner, the average number of days
21that elapsed between the referral of a case to an administrative law
22judge and a proposed decision by that administrative law judge,
23and the outcome of the cases.
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