BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1899


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1899 (Calderon) - As Amended March 16, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the California Department of Insurance (CDI)  
          to provide the license examinations for life, life-only, and  
          accident and health agents in Spanish.  


          FISCAL EFFECT:


          1)Costs to CDI of approximately $230,000 in FY 2017-18 to  
            translate the materials into Spanish, including psychometric  
            testing, and for initial staffing costs (Insurance Fund). 









                                                                    AB 1899


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          2)Depending on the increased number of exams administered and  
            licenses issued, the department would also incur additional  
            costs and collect additional revenues, depending on the growth  
            in the number of exams.  The examination fee is $50 and  
            license fees are $170 biennially.


          COMMENTS:


          1)Purpose.  According to the author, existing law does not  
            require an examination for a license as a life-agent,  
            life-only agent, or accident and health to be provided in  
            Spanish. The author asserts offering the licensing exam in  
            Spanish will increase the number of agents able to serve  
            Spanish-speaking consumers.  This bill is supported by various  
            insurance industry stakeholders and has no opposition.


          2)License Examinations.  California residents who wish to apply  
            for an insurance producer (agent or broker) license issued by  
            CDI must first pass a qualifying license examination. At this  
            time, examinations are offered only in English.


          3)Translations. Although the content of an examination can  
            fairly easily be translated to another language, translating  
            examinations so they are useful in practice as a measure of an  
            individual's skill, knowledge, and ability is not a  
            straightforward endeavor. In order to ensure validity and  
            comparability of results with the original language,  
            psychometric testing must be used when a complex item like an  
            examination is translated.  Such testing ensures that the  
            translated content can reliably measure an individual's skill,  
            knowledge, and ability, and that the translation did not  
            inadvertently introduce a source of error or systematic bias.










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          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081