BILL NUMBER: AB 1492	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Low

                        FEBRUARY 27, 2015

   An act to amend Section  11623.5   777.1
 of the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1492, as amended, Low.  Assigned risk plans. 
 Insurance: inducements to purchase property or services. 

   Existing law prohibits an insurer from participating in a plan to
offer or effect insurance or annuities as an inducement to the
purchase or rental by the public of specified property or services
without a separate charge for that insurance. Existing law also
prohibits an agent, broker, or solicitor from arranging the sale of
that insurance. Existing law authorizes the Insurance Commissioner to
revoke the license, certificate, or other authority to do business
or engage in his or her occupation, as applicable, of an insurer,
agent, broker, or solicitor who willfully violates those
prohibitions. Existing law specifies exceptions to those prohibitions
for certain categories of insurance.  
   This bill would add to the existing exceptions described above
private passenger automobile insurance issued in connection with the
sale or lease of a new vehicle and paid for by the vehicle
manufacturer, provided that prior to finalizing the purchase the
purchaser is advised of the cost of that insurance included in
connection with the sale or lease.  
   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
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 777.1 of the  
Insurance Code   is amended to read: 
   777.1.  No insurer shall participate in  any 
 a  plan to offer or effect  any kind or kinds of
 insurance or annuities in this state as an inducement to
the purchase or rental by the public of  any 
property, real or personal or mixed, or services, without 
any   a  separate charge to the insured for
 such   that  insurance, nor shall 
any   a  agent, broker, or solicitor arrange the
sale of  any such   that  insurance.
 The provisions of this   This  article
 shall not be applicable   does not apply 
to insurance written in connection with subscriptions to newspapers
of general circulation; nor  shall   does 
it apply to insurance issued to credit unions or to members of credit
unions in connection with the purchase of shares in  such a
  the  credit union; nor  shall 
 does  it apply to insurance offered as a guarantee of the
performance of goods,  which insurance   that
 is designed to protect the purchasers or users of such goods;
 nor does it apply to private passenger automobile insurance
issued in connection with the sale or lease of a new vehicle and paid
for by the vehicle manufacturer, provided the purchaser is advised
prior to finalizing the purchase of the vehicle of the annual cost of
the insurance included in connection with the sale or lease; 
nor  shall it be applicable   does it apply
 to any title insurance or life or disability insurance written
in connection with an  indebtedness, the purpose of which
insurance is   indebtedness that is intended  to
pay the balance of the indebtedness in the event of the death or
disability of the person insured; nor  shall it be applicable
  does it apply  to any of the provisions of Part
5 (commencing at Section 12140), Division 2 of this code; nor
 shall it be applicable   does it apply  to
insurance provided incidentally to the sale of services if the cost
of the insurance to the seller of the services does not exceed the
sum of one dollar ($1) per annum for each purchaser of those
services. 
  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) 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. The fee shall
be limited to that amount sufficient to defray the costs of the
department in connection with considering the application.