BILL ANALYSIS Ó
AB 1515
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1515 (Committee on Insurance) - As Amended April 6, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
As proposed to be amended, this omnibus bill contains numerous
minor, technical, and/or clarifying changes to the Insurance
Code.
AB 1515
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Proposed amendments clarify that a requirement to add additional
contact information for the California Department of Insurance
(CDI) to specified contract forms do not trigger a re-filing
requirement.
FISCAL EFFECT:
Negligible state fiscal effect.
COMMENTS:
1)Purpose. This bill is the annual insurance omnibus bill,
containing numerous minor changes. Most notably, the bill
corrects erroneous cross-references to the vehicle code
relating to individual motor vehicle records (MVR). Under
Proposition 103, insurers are required to provide a "good
driver" discount to drivers with less than two "moving
violations." Subsequent legislation required insurers to use
the number of "points" on a driver's MVR when determining
"good driver" status and when determining auto insurance
rates. Previous legislation altered the numbering of the
relevant Vehicle Code section and failed to update the
cross-references in the Insurance Code. This bill is
sponsored by the California Department of Insurance.
2)Amendments. The Insurance Code specifies certain requirements
for forms and communication materials used by insurers, and
CDI reviews forms and materials to ensure compliance with the
requirements. Generally, when insurers make changes to such
forms, a review process is triggered and they are required to
re-file the forms with CDI for review. This bill contains
requirements that certain forms include CDI's internet web
address. The amendments ensure the review and re-filing
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process is not triggered by this trivial change to the forms.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081