BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1899 (Calderon) - Insurance: production agents: license
examinations
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|Version: March 16, 2016 |Policy Vote: INS. 9 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 11, 2016 |Consultant: Debra Cooper |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 11, 2016
Bill
Summary: AB 1899 would require the California Department of
Insurance (CDI) to provide the license examinations for life,
life-only, and accident and health agents in Spanish.
Fiscal
Impact:
Estimated one-time costs to CDI of $230,000 in fiscal year
2017-18 to translate examination materials into Spanish,
including using psychometric testing. (Insurance Fund)
AB 1899 (Calderon) Page 1 of
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Estimated costs to CDI of $360,000 in fiscal year 2018-19 and
ongoing costs of $370,000 per year for administering the life
agent, life-only agent and accident and health agent exam in
Spanish, including obtaining background checks of applicants
and reviewing applications. (Insurance Fund)
Estimated one-time costs to CDI of $30,000 to prepare a report
to the Legislature. (Insurance Fund)
Potential revenue of $557,000 in fiscal year 2017-18, $1.1
million in fiscal year 2018-19 and $1.4 million per year
ongoing generated from exam fees ($50 per exam) and licensing
fees ($170 per license). (Insurance Fund)
Author
Amendments:
Requires the Insurance Commissioner to evaluate the
examinations taken in Spanish and by March 1, 2023, submit to
the Legislature a report including, but not limited to:
- The number of people taking the examination;
- The pass rate of the examination in Spanish and a
comparison to the pass rate of the examination in English;
- The number of licenseholders that passed the
examination in Spanish and remain licensed;
- The number of consumer complaints received and actions
taken.
Sunsets the Spanish language requirements on January 1, 2024.
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