BILL ANALYSIS Ó AB 2884 Page 1 Date of Hearing: April 6, 2016 ASSEMBLY COMMITTEE ON INSURANCE Tom Daly, Chair AB 2884 (Committee on Insurance) - As Amended March 30, 2016 SUBJECT: Insurance: Omnibus SUMMARY: Makes numerous minor or technical changes to the Insurance Code. Specifically, this bill: 1)Deletes the prohibition on having more than four vehicles covered by a private passenger automobile insurance policy. 2)Requires an individual who has failed a licensing examination administered by the department 10 times in one 12 month period to wait 12 months before taking the examination again. 3)Permits insurance licensees to use their "doing-business-as" name in internet advertising if the Insurance Commissioner (commissioner) has not disapproved the name. 4)Creates an inactive license status for independent adjusters and public adjusters. 5)Specifies the procedure for calculating surrender charges for AB 2884 Page 2 annuities with flexible maturity dates. 6)Requires the long-term care insurance consumer rate guide published by the commissioner to include ten years of rate history. 7)Permits the commissioner to cease attempting to collect fees from a grants and annuities society that is bankrupt. 8)Deems the certificate of authority for a grants and annuities society to be terminated by operation of law 12 months after its corporate status has been suspended by the Secretary of State. 9)Makes a number of technical and clarifying changes to the Insurance Code. EXISTING LAW: 1)Defines a private passenger automobile policy. 2)Requires individuals who transact insurance to be licensed by the Department of Insurance (DOI). 3)Requires individuals licensed by the DOI to submit any fictitious name for doing business other than that listed on their license to the DOI and permits the commissioner to disapprove that name if it is misleading or too similar to another name already in use. AB 2884 Page 3 4)Requires the commissioner to publish a long-term care insurance consumer rate guide that includes the rate history for individual long-term care insurance products. 5)Requires individuals acting as an independent adjuster or public adjuster to be licensed by the DOI. 6)Authorizes a charitable or qualified educational organization to be licensed by the DOI as a grants and annuities society that can accept gifts in exchange for providing the donor with an annuity. FISCAL EFFECT: Undetermined COMMENTS: 1)Purpose . This is the annual Department of Insurance (DOI) omnibus bill. It contains numerous minor or non-controversial changes to the Insurance Code. REGISTERED SUPPORT / OPPOSITION: Support Department of Insurance (sponsor) AB 2884 Page 4 Opposition None received Analysis Prepared by:Paul Riches / INS. / (916) 319-2086