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 wouldbegin delete requireend delete, if the applicant or permanent licensee is a natural person and requests a hearing,begin delete 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.end deletebegin insert
authorize the person, at his or her option, to have the hearing held by either the Office of Administrative Hearings, or an administrative law judge appointed by the commissioner to conduct the hearing. If the natural person does not indicate a preference of forum when requesting that hearing, the bill would authorize the commissioner to refer the matter for hearing to either the Office of Administrative Hearings, or to an administrative law judge appointed by the commissioner to conduct the hearing.end insert
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 abegin delete hearing is requested pursuant to begin insert
natural person requests a hearing pursuant
11subdivision (a) by a natural person who is subject to this section,
12the commissioner may select either an administrative law judge
13appointed pursuant to Section 11502 of the Government Code, or
14an administrative law judge appointed by the commissioner to
15conduct the hearing.end delete
16to Section 11506 of the Government Code, he or she may, at his
17or her option, have the hearing held by either the Office of
18Administrative Hearings pursuant to Section 11502 of the
19Government Code, or an administrative law judge appointed by
20the commissioner to conduct the hearing. If the natural person
21does not indicate a preference of forum when requesting that
22hearing, the commissioner may refer the matter for hearing to
P3 1either the Office of Administrative Hearings pursuant to Section
211502 of the Government Code, or to an administrative law judge
3appointed by the commissioner to conduct the hearing.end insert
4(c) The commissioner shall include, in the report required
5pursuant to Section 12922, in each calendar year from 2017 to
62019, inclusive, the total number of cases in which a hearing was
7held, the number of those cases heard by
an administrative law
8judge appointed by the commissioner, the average number of days
9that elapsed between the referral of a case to an administrative law
10judge and a proposed decision by that administrative law judge,
11and the outcome of the cases.
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