AB 1492, as introduced, Low. Assigned risk plans.
Existing law authorizes groups of insurers not under common ownership or management to form a limited assignment distribution arrangement. Existing law requires each arrangement to have one servicing carrier that writes assigned risk business on behalf of the members of the arrangement in return for consideration from the other participating carriers for not writing the business.
This bill would make technical, nonsubstantive changes to that 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 11623.5 of the Insurance Code is
2amended to read:
(a) Groups of insurers not under common ownership
4or management may form a limited assignment distribution
5arrangement. Each arrangement shall have one servicing carrier
6that writes assigned risk business on behalf of the members of the
P2 1arrangement in return for consideration from the other participating
2carriers for not writing the business.
3(b) begin deleteNo end deletebegin insertAn end insertinsurer maybegin insert notend insert act as a servicing carrier except with
4the continuing approval
of the commissioner.
5(c) Each servicing carrier shall have a surplus of at least ten
6million dollars ($10,000,000).
7(d) Upon the approval of the commissioner of a servicing carrier
8under this section, the plan shall make all assignments that
9otherwise would be made to a participant to the servicing carrier
10for that participant.
11(e) The commissioner shall impose a filing fee for the filing
12necessary to obtain approval pursuant to thisbegin delete section, whichend deletebegin insert section.
13The end insert fee shall be limited to thatbegin insert amountend insert sufficient to defray the
14
costs of the department in connection with considering the
15application.
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