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