BILL NUMBER: AB 2251	CHAPTERED  08/09/00

	CHAPTER   211
	FILED WITH SECRETARY OF STATE   AUGUST 9, 2000
	APPROVED BY GOVERNOR   AUGUST 8, 2000
	PASSED THE ASSEMBLY   AUGUST 7, 2000
	PASSED THE SENATE   JULY 6, 2000
	AMENDED IN SENATE   JUNE 27, 2000
	AMENDED IN SENATE   JUNE 14, 2000
	AMENDED IN ASSEMBLY   MAY 15, 2000
	AMENDED IN ASSEMBLY   MAY 1, 2000
	AMENDED IN ASSEMBLY   APRIL 10, 2000

INTRODUCED BY   Assembly Member Cox

                        FEBRUARY 24, 2000

   An act to add Sections 702 and 1726 to the Insurance Code,
relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2251, Cox.  Insurance:  sales:  Internet:  disclosure.
   Existing law requires a licensed insurance agent to have printed
on specified documents their license number.
   This bill would require any person who is licensed as an insurance
agent or broker or an insurer that maintains a certificate of
authority to transact insurance in this state, and advertises for the
sale of insurance on the Internet and transacts insurance in this
state, to provide on the Internet specified identifying information,
including a specified identification number or an insurance license
number or certificate of authority number.  The bill would specify
when a person advertising insurance on the Internet is transacting
insurance in this state.  The bill would require an insurer that
advertises on the Internet and is not admitted in California to
follow the provisions relating to advertising by nonadmitted
insurers.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 702 is added to the Insurance Code, to read:
   702.  (a) An insurer that maintains a certificate of authority to
transact insurance in this state, advertises insurance on the
Internet, and transacts insurance in this state, shall identify all
of the following information on the Internet, regardless of whether
the insurer maintains its Internet presence or if the presence is
maintained on its behalf:
   (1) Its name as it appears on its California certificate of
authority, and if different, the name approved by the commissioner
for doing business in this state.
   (2) The  state of its domicile and its principal place of
business.
   (3) The number on its California certificate of authority.  In
lieu of this number, an insurer may identify all states in which it
maintains certificates of authority to transact insurance, provided
that the insurer discloses its identification number as assigned by
the National Association of Insurance Commissioners.
   (b) An Internet presence maintained by or on behalf of an insurer
not admitted to transact insurance in this state constitutes an
advertisement, and the insurer shall comply with the requirements of
Section 703.1 if it transacts insurance as defined in subdivision
(c).
   (c) A person who advertises on the Internet shall be deemed to be
transacting insurance in this state if the person does any of the
following:
   (1) Provides an insurance premium quote specifically to a
California resident.
   (2) Accepts an application for coverage from a California
resident.
   (3) Otherwise communicates with a California resident regarding
one or more terms of an agreement to provide insurance or an
insurance policy.
   This subdivision shall not apply to any lawful placement with a
nonadmitted insurer, including when a person conveys a quote, accepts
an application, and conducts all communications with a California
resident solely through a surplus line broker or special lines'
surplus line broker pursuant to California surplus line laws.
  SEC. 2.  Section 1726 is added to the Insurance Code, to read:
   1726.  (a) A person who is licensed in this state as an insurance
agent or broker, advertises insurance on the Internet, and transacts
insurance in this state, shall identify all of the following
information on the Internet, regardless of whether the insurance
agent or broker maintains his or her Internet presence or if the
presence is maintained on his or her behalf:
   (1) His or her name as it appears on his or her insurance license,
and any fictitious name approved by the commissioner.
   (2) The  state of his or her domicile and principal place of
business.
   (3) His or her license number.
   (b) A person shall be deemed to be transacting insurance in this
state when the person advertises on the Internet, regardless of
whether the insurance agent or broker maintains his or her Internet
presence or if it is maintained on his or her behalf, and does any of
the following:
   (1) Provides an insurance premium quote to a California resident.

   (2) Accepts an application for coverage from a California
resident.
   (3) Communicates with a California resident regarding one or more
terms of an agreement to provide insurance or an insurance policy.