BILL NUMBER: AB 2710 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Cooley
FEBRUARY 19, 2016
An act to amend Section 38.5 of amend,
renumber, and add Sections 1063.5 and 1063.14 of, and to repeal
Sections 1063.45 and 1063.135 of, the Insurance Code, relating
to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2710, as amended, Cooley. Insurance: notice:
electronic transmission. California Insurance Guarantee
Association: premium charges.
(1) Existing law creates the California Insurance Guarantee
Association (CIGA) and requires all insurers admitted to transact
specified insurance lines in this state to become members. Each time
an insurer becomes insolvent, to the extent necessary to secure funds
for payment of covered claims of that insolvent insurer and also for
payment of reasonable costs of adjusting the claims, CIGA is
required to collect premium payments from its member insurers
sufficient to discharge its obligations, as specified.
This bill, among other things, would no longer require an insurer
to become insolvent in order for CIGA to collect premium payments
from the member insurers and would require CIGA to collect premiums
in order to secure funds for the payment of its administrative
expenses.
(2) Existing law requires that the rate of premium charged be a
uniform percentage of net direct written premium, as defined, in the
preceding calendar year applicable to specific categories of
insurance. The rate of premium charges to each member insurer in the
appropriate categories are initially based on the written premium of
each insurer as shown in the latest year's annual financial statement
on file with the Insurance Commissioner and are later adjusted as
provided.
This bill would delete the requirements that the rate of premium
charges be initially based on the written premium of each insurer and
be adjusted later as provided, and would instead require that the
rate of premium charges to each member insurer in the appropriate
categories be based on the net direct written premium of each insurer
as shown in the latest year's annual financial statement on file
with the commissioner. The bill would also make conforming changes.
(3) Existing law authorizes CIGA to exempt or defer a member
insurer from paying the premium charge if the payment would cause the
member insurer's financial statement to reflect an amount of capital
or surplus less than the minimum amounts required for a certificate
of authority by any jurisdiction in which the member insurer is
authorized to transact insurance. Deferred premium charges are
required to be paid when the payment will not reduce capital or
surplus below required minimums. These payments are credited against
future premium charges to those companies receiving larger premium
charges by virtue of the deferment.
This bill would delete the requirement that the payments be
credited against future premium charges to those companies receiving
larger premium charges by virtue of the deferment.
(4) Existing law requires CIGA's plan of operations to contain
provisions requiring each member insurer to recoup the premium charge
paid to CIGA from its insureds over a reasonable length of time by
way of a reasonably calculated surcharge on insurance policies to
which the provisions of CIGA apply.
This bill, commencing January 1, 2017, among other things, would
instead require each member insurer to recoup the premium charge from
its insureds in the year following the charge, would require the
member insurer to file a report in accordance with the provisions of
the plan of operation indicating the amount of surcharges it has
collected, and would prohibit a member insurer electing to omit
collecting surcharges from any of its insureds from being entitled to
any reimbursement from CIGA, as specified.
Existing law authorizes any written notice required to be given or
mailed to any person by an insurer relating to any insurance on
risks or on operations in this state, with exceptions, to be provided
by electronic transmission, pursuant to certain provisions, if each
party has agreed to conduct the transaction by electronic means, as
provided.
This bill would make nonsubstantive, technical 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 1063.5 of the
Insurance Code is amended and renumbered, to immediately
precede Section 1063.5 of the Insurance Code, to read:
1063.5. 1063.45. (a)
(1) Each time an insurer becomes
insolvent then, to the extent necessary to secure funds for the
association for payment of covered claims of that insolvent insurer
and also for payment of reasonable costs of adjusting the claims, the
association shall collect premium payments from its member insurers
sufficient to discharge its obligations. The
(2) The association shall
allocate its claim payments and costs, incurred or estimated to be
incurred, to one or more of the following categories: (a)
workers' compensation claims; (b) homeowners' claims, and automobile
claims, which shall include: automobile material damage, automobile
liability (both personal injury and death and property damage),
medical payments and uninsured motorist claims; and (c) claims other
than workers' compensation, homeowners', and automobile, as above
defined. Separate
(A) Workers' compensation claims.
(B) Homeowners' claims and automobile claims, including all of the
following:
(i) Automobile material damage.
(ii) Automobile liability (both personal injury and death and
property damage).
(iii) Medical payments.
(iv) Uninsured motorist claims.
(C) Claims other than workers' compensation, homeowners, and
automobile, as defined above.
(3) Separate premium payments
shall be required for each category. The
(4) The premium payments for each
category shall be used to pay the claims and costs allocated to that
category. The
(b) (1) The
rate of premium charged shall be a uniform percentage of net direct
written premium in the preceding calendar year applicable to that
category. The
(2) The rate of premium charges
to each member insurer in the appropriate categories shall
initially be based on the written premium of each insurer as shown
in the latest year's annual financial statement on file with the
commissioner. The
(3) The initial premium shall be
adjusted by applying the same rate of premium charge as initially
used to each insurer's written premium as shown on the annual
statement for the second year following the year on which the initial
premium charge was based. The
(4) (A) The
difference between the initial premium charge and the adjusted
premium charge shall be charged or credited to each member insurer by
the association as soon as practical after the filing of the annual
statements of the member insurers with the commissioner for the year
on which the adjusted premium is based. Any
(B) Any credit due in a specific
category to a member insurer as a result of the adjusted premium
calculation may be refunded to the member insurer at the discretion
of the association if the member insurer has agreed with the
commissioner to no longer write insurance in that category but has
not withdrawn from the state and surrendered its certificate of
authority. However, in the case of an insurer that was a member
insurer when the initial premium charge was made and that paid the
initial assessment but is no longer a member insurer at the time of
the adjusted premium charge by reason of its insolvency or its
withdrawal from the state and surrender of its certificate of
authority to transact insurance in this state, any credit accruing to
that insurer shall be refunded to it by the association.
"Net
(c) (1) For
purposes of this section, "net direct written premiums"
shall mean means the amount of gross
premiums, less return premiums, received in that calendar year upon
business done in this state, other than premiums received for
reinsurance. In
(2) In cases of a dispute as to
the amount of the net direct written premium between the association
and one of its members member
insurers, the written decision of the commissioner shall be
final. The
(d) (1) The
premium charged to any member insurer for any of the three
categories or a category established by the association shall not be
more than 2 percent of the net direct premium written in that
category in this state by that member insurer per year,
starting on January 1, 2003, until December 31, 2007, and thereafter
shall be 1 percent per year, until January 1, 2015.
Commencing
(2) Commencing January 1, 2015,
the premium charged to any member insurer for any of the three
categories or a category established by the association shall not be
more than 2 percent of the net direct written premium unless there
are bonds outstanding that were issued pursuant to Article 14.25
(commencing with Section 1063.50) or Article 14.26 (commencing with
Section 1063.70). If
(3) If bonds issued pursuant to
either article are outstanding, the premium charged to a member
insurer for the category for which the bond proceeds are being used
to pay claims and expenses shall not be more than 1 percent of the
net direct written premium for that category. The
(e) (1) The
association may exempt or defer, in whole or in part, the premium
charge of any member insurer, if the premium charge would cause the
member insurer's financial statement to reflect an amount of capital
or surplus less than the minimum amounts required for a certificate
of authority by any jurisdiction in which the member insurer is
authorized to transact insurance. However, during the period of
deferment, no dividends shall be paid to shareholders or
policyholders by the company whose premium charge was deferred.
Deferred
(2) Deferred premium charges
shall be paid when the payment will not reduce capital or surplus
below required minimums. These payments shall be credited against
future premium charges to those companies receiving larger premium
charges by virtue of the deferment. After
(f) After all covered claims of
the insolvent insurer and expenses of administration have been paid,
any unused premiums and any reimbursements or claims dividends from
the liquidator remaining in any category shall be retained by the
association and applied to reduce future premium charges in the
appropriate category. However, an insurer which
that ceases to be a member of the association, other than
an insurer that has become insolvent or has withdrawn from the state
and has surrendered its certificate of authority following an initial
assessment that is entitled to a refund based upon an adjusted
assessment as provided above in this section, shall have no right to
a refund of any premium previously remitted to the association.
The
(g) The commissioner may suspend
or revoke the certificate of authority to transact business in this
state of a member insurer which that
fails to pay a premium when due and after demand has been made.
Interest
(h) Interest at a rate equal to
the current federal reserve discount rate plus 21/2 percent per annum
shall be added to the premium of any member insurer which
that fails to submit the premium requested by
the association within 30 days after the mailing request. However, in
no event shall the interest rate exceed the legal maximum.
(i) This section shall apply only to premium charges paid prior to
January 1, 2017.
(j) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 2. Section 1063.5 is added to the
Insurance Code , to read:
1063.5. (a) (1) To the extent necessary to secure funds for the
association for payment of the administrative expenses of the
association, covered claims of insolvent insurers, and for payment of
reasonable costs of adjusting the claims, the association shall
collect premium payments from its member insurers sufficient to
discharge its obligations.
(2) The association shall allocate its claim payments and costs,
incurred or estimated to be incurred, to one or more of the following
categories:
(A) Workers' compensation claims.
(B) Homeowners' claims and automobile claims, including all of the
following:
(i) Automobile material damage.
(ii) Automobile liability (both personal injury and death and
property damage).
(iii) Medical payments.
(iv) Uninsured motorist claims.
(C) Claims other than workers' compensation, homeowners', and
automobile, as defined above.
(3) Separate premium payments shall be required for each category.
(4) The premium payments for each category shall be used to pay
the claims and costs allocated to that category.
(b)(1) The rate of premium charged shall be a uniform percentage
of net direct written premium in the preceding calendar year
applicable to that category.
(2) (A) The rate of premium charges to each member insurer in the
appropriate categories shall be based on the net direct written
premium of each member insurer as shown in the latest year's annual
financial statement on file with the commissioner.
(B) Any credit due in a specific category to a member insurer may
be used as an offset against any subsequent premium charge in that
category and may be refunded to the member insurer at the discretion
of the association if the member insurer has agreed with the
commissioner to no longer write insurance in that category but has
not withdrawn from the state and surrendered its certificate of
authority. However, in the case of an insurer that was a member
insurer when the premium charge was made and that paid the premium
charge but is no longer a member insurer by reason of its insolvency
or its withdrawal from the state and surrender of its certificate of
authority to transact insurance in this state, any credit accruing to
that insurer shall be refunded to it by the association.
(c) (1) For purposes of this section, "net direct written premiums"
means the amount of gross premiums, less return premiums, received
in that calendar year upon business done in this state, other than
premiums received for reinsurance.
(2) In cases of a dispute as to the amount of the net direct
written premium between the association and one of its member
insurers, the written decision of the commissioner shall be final.
(d) In charging premiums to member insurers, the association shall
adjust, if necessary, the net direct written premiums shown on a
member insurer's annual statement by excluding any premiums written
for any lines of insurance or types of coverage not covered by this
article under paragraph (3) of subdivision (c) of Section 1063.1.
(e) (1) The premium charged to any member insurer for any of the
three categories or a category established by the association shall
not be more than 2 percent of the net direct written premium unless
there are bonds outstanding that were issued pursuant to Article
14.25 (commencing with Section 1063.50) or Article 14.26 (commencing
with Section 1063.70).
(2) If bonds issued pursuant to either article are outstanding,
the premium charged to a member insurer for the category for which
the bond proceeds are being used to pay claims and expenses shall not
be more than 1 percent of the net direct written premium for that
category.
(f) (1) The association may exempt or defer, in whole or in part,
the premium charge of any member insurer, if the premium charge would
cause the member insurer's financial statement to reflect an amount
of capital or surplus less than the minimum amounts required for a
certificate of authority by any jurisdiction in which the member
insurer is authorized to transact insurance. However, during the
period of deferment, no dividends shall be paid to shareholders or
policyholders by the company whose premium charge was deferred.
(2) Deferred premium charges shall be paid when the payment will
not reduce capital or surplus below required minimums.
(g) After all covered claims of insolvent insurers and expenses of
administration have been paid, any unused premiums and any
reimbursements or claims dividends from liquidators remaining in any
category shall be retained by the association and applied to reduce
future premium charges in the appropriate category.
(h) The commissioner may suspend or revoke the certificate of
authority to transact business in this state of a member insurer that
fails to pay a premium when due and after demand has been made.
(i) Interest at a rate equal to the current federal reserve
discount rate plus 21/2 percent per annum shall be added to the
premium of any member insurer that fails to submit the premium
requested by the association within 30 days after the mailing
request. However, in no event shall the interest rate exceed the
legal maximum.
(j) This section shall apply only to premium charges paid on or
after January 1, 2017.
SEC. 3. Section 1063.14 of the
Insurance Code is amended and renumbered, to immediately
precede Section 1063.14 of the Insurance Code, to read:
1063.14. 1063.135. (a) The plan of
operation adopted pursuant to subdivision (c) of Section 1063 shall
contain provisions whereby each member insurer is required to recoup
over a reasonable length of time a sum reasonably calculated to
recoup the assessments paid by the member insurer under this article
by way of a surcharge on premiums charged for insurance policies to
which this article applies. Amounts recouped shall not be considered
premiums for any other purpose, including the computation of gross
premium tax or agents' commission.
(b) The amount of any surcharge shall be separately stated on
either a billing or policy declaration sent to an insured. The
association shall determine the rate of the surcharge and the
collection period for each category and these shall be mandatory for
all member insurers of the association who write business in those
categories. Member insurers who collect surcharges in excess of
premiums paid pursuant to Section 1063.5
1063.45 for an insolvent insurer shall remit the excess to the
association as an additional premium within 30 days after the
association has determined the amount of the excess recoupment and
given notice to the member insurer of that amount. The
excess shall be applied to reduce future premium charges in the
appropriate category.
(c) The plan of operation may permit a member insurer to omit
collection of the surcharge from its insureds when the expense of
collecting the surcharge would exceed the amount of the surcharge.
However, nothing in this section shall relieve the member insurer of
its obligation to recoup the amount of surcharge otherwise
collectible.
(d) This section shall apply only to premium charges paid prior to
January 1, 2017.
(e) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 4. Section 1063.14 is added to the
Insurance Code , to read:
1063.14. (a) (1) The plan of operation adopted pursuant to
subdivision (c) of Section 1063 shall contain provisions whereby each
member insurer is required to recoup in the year following the
premium charge a sum calculated to recoup the premium charge paid by
the member insurer under this article by way of a surcharge on
premiums charged for insurance policies to which this article
applies.
(2) Amounts recouped shall not be considered premiums for any
other purpose, including the computation of gross premium tax or
agents' commission.
(b) (1) The amount of any surcharge shall be separately stated on
either a billing or policy declaration sent to an insured. The
association shall determine the rate of the surcharge and the
collection period for each category, and these shall be mandatory for
all member insurers of the association who write business in those
categories.
(2) Each member insurer shall file a report in accordance with the
provisions of the plan of operation indicating the amount of
surcharges it has collected.
(A) Member insurers who collect surcharges in excess of premium
charges paid in the preceding year pursuant to Section 1063.5 shall
remit the excess to the association as an additional premium within
30 days after the association has determined the amount of the excess
recoupment and given notice to the member insurer of that amount.
The excess shall be applied to reduce future premium charges in the
appropriate category.
(B) Member insurers who report surcharge collections that are less
than what they paid in the preceding year's premium charge shall
receive reimbursement from the association for the shortfall in
surcharge collection.
(c) (1) The plan of operation may permit a member insurer to omit
collection of the surcharge from its insureds when the expense of
collecting the surcharge would exceed the amount of the surcharge.
(2) A member insurer electing to omit collecting surcharges from
any of its insureds shall not be entitled to any reimbursement from
the association pursuant to subdivision (b).
(3) However, nothing in this section shall relieve the member
insurer of its obligation to recoup the amount of surcharge otherwise
collectible.
(d) This section shall apply only to premium charges paid on or
after January 1, 2017.
SECTION 1. Section 38.5 of the Insurance Code,
as amended by Section 4 of Chapter 369 of the Statutes of 2013, is
amended to read:
38.5. (a) A written notice required to be given or mailed to a
person by an insurer relating to any insurance on risks or on
operations in this state not excepted by subdivision (a), (b), (c),
(d), (e), or (g) of Section 1851 from the coverage of Chapter 9
(commencing with Section 1850.4) of Part 2 of Division 1 of this code
may, if not excluded by subdivision (b) or (c) of Section 1633.3 of
the Civil Code, be provided by electronic transmission pursuant to
Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of
the Civil Code, if each party has agreed to conduct the transaction
by electronic means pursuant to Section 1633.5 of the Civil Code. The
affidavit of the person who initiated the electronic transmission,
stating the facts of that transmission into an information processing
system outside of the control of the sender or of a person that sent
the electronic record on behalf of the sender, is prima facie
evidence that the notice was transmitted and shall be sufficient
proof of notice. A notice provided by electronic transmission shall
be treated as if mailed or given for the purposes of any provision of
this code, except as provided by subdivision (g) of Section 1633.15
of the Civil Code. The insurance company shall maintain a system for
confirming that a notice or document that is to be provided by
electronic means has been sent in a manner consistent with Section
1633.15 of the Civil Code. A valid electronic signature shall be
sufficient for any provision of law requiring a written signature.
The insurance company shall retain a copy of the confirmation and
electronic signature, when either is required, with the policy
information so that they are retrievable upon request by the
Department of Insurance while the policy is in force and for five
years thereafter.
(b) The offer of renewal required by Sections 663 and 678, the
notice of conditional renewal required by Section 678.1, and the
offer of coverage or renewal or any disclosure required by Section
10086 and the offer of renewal for a workers' compensation policy may
be provided by electronic transmission if an insurer complies with
all of the following:
(1) An insurer, or insurer's representative, acquires the consent
of the insured to opt in to receive the offer, notice, or disclosure
by electronic transmission, and the insured has not withdrawn that
consent, prior to providing the offer, notice, or disclosure by
electronic transmission. An insured's consent may be acquired
verbally, in writing, or electronically. If consent is acquired
verbally, the insurer shall confirm consent in writing or
electronically. The insurer shall retain a record of the insured's
consent to receive the offer, notice, or disclosure by electronic
transmission with the policy information so that it is retrievable
upon request by the Department of Insurance while the policy is in
force and for five years thereafter.
(2) An insurer discloses, in writing or electronically, to the
insured all of the following:
(A) The opt in to receive the offer, notice, or disclosure by
electronic transmission is voluntary.
(B) That the insured may opt out of receiving the offer, notice,
or disclosure by electronic transmission at any time, and the process
or system for the insured to opt out.
(C) A description of the offer, notice, or disclosure that the
insured will receive by electronic transmission.
(D) The process or system to report a change or correction in the
insured's email address.
(E) The insurer's contact information, which includes, but is not
limited to, a toll-free number or an insurer's Internet Web site
address.
(3) An insurer shall include the insured's email address on the
policy declaration page.
(4) An insurer shall annually provide one free printed copy of
any offer, notice, or disclosure described in this subdivision upon
request by the insured.
(5) An insurer shall maintain a process or system that can
demonstrate that the offer, notice, or disclosure provided by
electronic transmission was both sent and received consistent with
Section 1633.15 of the Civil Code. If a different method of sending
or receiving is agreed upon by the insurer and the insured pursuant
to Section 1633.15 of the Civil Code, an insurer shall comply with
the provisions of this subdivision. The insurer shall retain and
document information so that the documentation and information is
retrievable upon request by the Department of Insurance while the
current policy is in force and for five years thereafter related to
its process or system demonstrating that the offer, notice, or
disclosure provided by electronic transmission was sent to the
insured by the applicable statutory regular mail delivery deadlines
and received electronically. The offer, notice, or disclosure
provided by electronic transmission shall be treated as if mailed so
long as the insurer delivers it to the insured in compliance with the
applicable statutory regular mail delivery deadlines.
(A) Acceptable methods for an insurer to demonstrate that the
offer, notice, or disclosure was sent to the insured include simple
mail transfer protocol server log files indicating transmission, or
other methodologies indicating sent transmission consistent with
standards set forth in Section 1633.15 of the Civil Code.
(B) Acceptable methods for an insurer to demonstrate that the
offer, notice, or disclosure was received by the insured include
server log files indicating that the email or application has been
received, or log files showing that the insured logged into his or
her secured account with the insurer, or other methodologies
indicating received transmission consistent with standards set forth
in Section 1633.15 of the Civil Code.
(6) If the offer, notice, or disclosure is not delivered directly
to the electronic address designated by the insured, but placed at an
electronic address accessible to the insured, an insurer shall
notify the insured in plain, clear, and conspicuous language at the
electronic address designated by the insured that describes the
offer, notice, or disclosure, informs that insured that it is
available at another location, and provides instructions to the
insured as to how to obtain the offer, notice, or disclosure.
(7) (A) Upon an insurer receiving information indicating that the
offer, notice, or disclosure sent by electronic transmission was not
received by the insured, the insurer shall, within two business days,
either clause (i) or (ii):
(i) Contact the insured to confirm or update the insured's email
address and resend the offer, notice, or disclosure by electronic
transmission. If the
insurer elects to resend the offer, notice, or disclosure by
electronic transmission, the insurer shall demonstrate the
transmission was received by the insured, pursuant to paragraph (5).
If the insurer is unable to confirm or update the insured's email
address, the insurer shall resend the offer, notice, or disclosure by
regular mail to the insured at the address shown on the policy.
(ii) Resend the offer, notice, or disclosure initially provided by
electronic transmission by regular mail to the insured at the
address shown on the policy.
(B) If the insurer sends the first electronic offer, notice, or
disclosure within the time period required by law and the insurer
complies with both paragraph (5) and subparagraph (A) of this
paragraph, the electronic offer, notice, or disclosure sent pursuant
to clause (i) or (ii) of subparagraph (A) shall be treated as if
mailed in compliance with the applicable statutory regular mail
delivery deadlines.
(8) On or before January 1, 2018, the commissioner shall submit a
report to the Governor and to the committees of the Senate and
Assembly having jurisdiction over insurance and the judiciary,
regarding the impact and implementation of the authorization of the
electronic transmission of certain insurance renewal offers, notices,
or disclosures as authorized by this section. The report shall
include input from insurers, consumers, and consumer organizations,
and shall include an assessment of the department's experience
pertaining to the authorization of the electronic transmission of
insurance renewals as authorized by this section.
(c) The department may suspend an insurer from providing offers,
notices, or disclosures by electronic transmission if there is a
pattern or practices that demonstrate the insurer has failed to
comply with the requirements of this section. An insurer may appeal
the suspension and resume its electronic transmission of offers,
notices, or disclosures upon communication from the department that
the changes the insurer made to its process or system to comply with
the requirements of this section are satisfactory.
(d) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 2. Section 38.5 of the Insurance Code, as
added by Section 5 of Chapter 369 of the Statutes of 2013, is amended
to read:
38.5. (a) A written notice required to be given or mailed to a
person by an insurer relating to any insurance on risks or on
operations in this state not excepted by Section 1851 from the
coverage of Chapter 9 (commencing with Section 1850.4) of Part 2 of
Division 1 of this code may, if not excluded by subdivision (b) or
(c) of Section 1633.3 of the Civil Code, be provided by electronic
transmission pursuant to Title 2.5 (commencing with Section 1633.1)
of Part 2 of Division 3 of the Civil Code, if each party has agreed
to conduct the transaction by electronic means pursuant to Section
1633.5 of the Civil Code. The affidavit of the person who initiated
the electronic transmission, stating the facts of that transmission
into an information processing system outside of the control of the
sender or of a person that sent the electronic record on behalf of
the sender, is prima facie evidence that the notice was transmitted
and shall be sufficient proof of notice. A notice provided by
electronic transmission shall be treated as if mailed or given for
the purposes of any provision of this code, except as provided by
subdivision (g) of Section 1633.15 of the Civil Code. The insurance
company shall maintain a system for confirming that a notice or
document that is to be provided by electronic means has been sent in
a manner consistent with Section 1633.15 of the Civil Code. A valid
electronic signature shall be sufficient for any provision of law
requiring a written signature. The insurance company shall retain a
copy of the confirmation and electronic signature, when either is
required, with the policy information so that they are retrievable
upon request by the Department of Insurance while the policy is in
force and for five years thereafter.
(b) This section shall become operative on January 1, 2019.