BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2588 (Chu) - Independent insurance adjusters
-----------------------------------------------------------------
| |
| |
| |
-----------------------------------------------------------------
|--------------------------------+--------------------------------|
| | |
|Version: August 1, 2016 |Policy Vote: INS. 5 - 2 |
| | |
|--------------------------------+--------------------------------|
| | |
|Urgency: No |Mandate: Yes |
| | |
|--------------------------------+--------------------------------|
| | |
|Hearing Date: August 11, 2016 |Consultant: Debra Cooper |
| | |
-----------------------------------------------------------------
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 11, 2016
Bill
Summary: AB 2588 would make changes to the Insurance Adjuster
Act relative to qualifications for an independent insurance
adjusters (IA) license.
Fiscal
Impact:
Estimated ongoing costs to the Department of Insurance (CDI)
of $700,000-$800,000 per year for the added licensing and
enforcement costs for the new licensees. (Insurance Fund)
Estimated revenue of $1.5-2.5 million per year from fees
AB 2588 (Chu) Page 1 of
?
generated from these new licenses. (Insurance Fund)
Estimated costs to the Department of Justice of $400,000 in
fiscal year 2017-18, $480,000 in fiscal year 2018-19, and
$160,000 ongoing thereafter for processing live scan
fingerprints submitted with applications. (GF/Fingerprint Fees
Account)
Author
Amendments:
Requires that applicants submit a set of fingerprints
submitted with a live scan fingerprinting service provider
certified by the Department of Justice instead of fingerprints
submitted in a manner acceptable to the Department of
Insurance.
Reduces the application fee for new and renewed licenses from
$120 to $80 per two-year period.
-- END --