AB 2474, as introduced, Mullin. Insurance Commissioner: conflict of interest.
Existing law establishes the office of the Insurance Commissioner and provides that the commissioner shall be elected by the people in the same time, place, and manner as the Governor not to exceed 2 4-year terms. Existing law requires the commissioner to be a person competent and fully qualified to perform the duties of the office, as specified. Existing law also prohibits the commissioner, any deputy, or employee, during his or her tenure of office, from being be an officer, agent, or employee of an insurer or directly or indirectly interested in any insurer or licensee, except as specified.
This bill would make technical, nonsubstantive changes to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 12901 of the Insurance Code is amended
2to read:
begin insert(a)end insertbegin insert end insertThe commissioner shall be a person competent and
2fully qualified to perform the duties of the office. Neither the
3commissioner norbegin delete anyend deletebegin insert aend insert deputy or employeebegin delete shallend deletebegin insert shall,end insert during
4his orbegin delete theirend deletebegin insert
herend insert tenure ofbegin delete officeend deletebegin insert office,end insert be an officer,begin delete agentend deletebegin insert agent,end insert
5 or employee of an insurer or directly or indirectly interested inbegin delete anyend delete
6begin insert anend insert insurer or licensee under this code, exceptbegin delete (a)end deletebegin insert (1)end insert as a
7policyholder, or,begin delete (b)end deletebegin insert
(2)end insert by virtue of relationship by blood or
8marriage tobegin delete anyend deletebegin insert aend insert person interested inbegin delete anyend deletebegin insert anend insert insurer or licensee.
9 If
end delete
10begin insert(b)end insertbegin insert end insertbegin insertIfend insert thebegin delete commissioner or any deputy orend deletebegin insert
commissioner, a deputy,
11or anend insert employee holdsbegin delete anyend deletebegin insert aend insert license or permit issued under this
12code, hebegin insert or sheend insert shall surrender it for cancellation within 10 days
13after appointment and qualification. Upon termination of hisbegin insert or
14herend insert office or employmentbegin delete suchend deletebegin insert thatend insert license or permit shall be
15reissued for the balance of the then current license or permit year
16without fee or
penalty.
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