BILL NUMBER: AB 1492	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Low

                        FEBRUARY 27, 2015

   An act to amend Section 11623.5 of the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 11623.5 of the Insurance Code is amended to
read:
   11623.5.  (a) Groups of insurers not under common ownership or
management may form a limited assignment distribution arrangement.
Each arrangement shall 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.
   (b)  No   An  insurer may  not 
act as a servicing carrier except with the continuing approval of
the commissioner.
   (c) Each servicing carrier shall have a surplus of at least ten
million dollars ($10,000,000).
   (d) Upon the approval of the commissioner of a servicing carrier
under this section, the plan shall make all assignments that
otherwise would be made to a participant to the servicing carrier for
that participant.
   (e) The commissioner shall impose a filing fee for the filing
necessary to obtain approval pursuant to this  section, which
  section. The  fee shall be limited to that 
amount  sufficient to defray the costs of the department in
connection with considering the application.