BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2884


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          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  








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            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.










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          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


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          Opposition


          None received




          Analysis Prepared by:Paul Riches / INS. / (916) 319-2086