BILL NUMBER: AB 2474	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Mullin

                        FEBRUARY 19, 2016

   An act to amend Section 12901 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 12901 of the Insurance Code is amended to read:

   12901.   (a)    The commissioner shall be a
person competent and fully qualified to perform the duties of the
office. Neither the commissioner nor  any   a
 deputy or employee  shall   shall, 
during his or  their   her  tenure of
 office   office,  be an officer, 
agent   agent,  or employee of an insurer or
directly or indirectly interested in  any   an
 insurer or licensee under this code, except  (a)
  (1)  as a policyholder, or,  (b)
  (2)  by virtue of relationship by blood or
marriage to  any   a  person interested in
 any   an  insurer or licensee. 
    If 
    (b)     If  the  commissioner
or any deputy or   commissioner, a deputy, or an 
employee holds  any   a  license or permit
issued under this code, he  or she  shall surrender it for
cancellation within 10 days after appointment and qualification. Upon
termination of his  or her  office or employment 
such   that  license or permit shall be reissued
for the balance of the then current license or permit year without
fee or penalty.