BILL NUMBER: AB 845	CHAPTERED  08/30/99

	CHAPTER   260
	FILED WITH SECRETARY OF STATE   AUGUST 30, 1999
	APPROVED BY GOVERNOR   AUGUST 30, 1999
	PASSED THE SENATE   AUGUST 19, 1999
	PASSED THE ASSEMBLY   MAY 27, 1999
	AMENDED IN ASSEMBLY   MAY 25, 1999
	AMENDED IN ASSEMBLY   APRIL 20, 1999

INTRODUCED BY   Assembly Member Maddox

                        FEBRUARY 24, 1999

   An act to add Section 12921.8 to the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 845, Maddox.  Insurance Commissioner:  cease and desist orders.

   Existing law specifies the powers and duties of the Insurance
Commissioner with respect to regulation and licensing of the business
of insurance.  Under various provisions, the commissioner is
authorized to issue a cease and desist order against persons engaged
in certain unlawful activities.
   This bill would provide that the commissioner has the authority to
issue a cease and desist order against any person acting as, or
holding himself, herself, or itself out as, an insurance agent or
broker without being so licensed, and against any person holding out
that person as transacting, or transacting, the business of insurance
without having been issued a certificate of authority.  The
commissioner would be authorized to issue the cease and desist order
without holding a hearing prior to issuance of the order, and to
impose a civil penalty of up to $5,000 for each day the order is
violated.  The bill would permit a person against whom a cease and
desist order is issued to request the commissioner for a hearing on
the order, and to have a review of the hearing proceedings and the
order, both pursuant to the Administrative Procedure Act.


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


  SECTION 1.  Section 12921.8 is added to the Insurance Code, to
read:
   12921.8.  (a) The commissioner shall have the authority to issue a
cease and desist order against any person acting as, or holding
himself, herself, or itself out as, an insurance agent or broker
without being so licensed, and against any person holding out that
person as transacting, or transacting, the business of insurance
without having been issued a certificate of authority.  The
commissioner may issue a cease and desist order without holding a
hearing prior to issuance of the order.  The commissioner may impose
a fine of up to five thousand dollars ($5,000) for each day the order
is violated.
   (b) A person to whom a cease and desist order is issued, may,
within seven days after service of the order, request a hearing by
filing a request for the hearing with the commissioner.  Any hearing
shall be conducted in accordance with the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340), Chapter 4
(commencing with Section 11370), Chapter 4.5 (commencing with Section
11400), and Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code), and the commissioner
shall have all the powers granted therein.
   (c) A person who has a hearing pursuant to subdivision (b) shall
be entitled to have the proceedings and the order of the commissioner
reviewed by means of any remedy provided by the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340), Chapter 4
(commencing with Section 11370), Chapter 4.5 (commencing with
Section 11400), and Chapter 5 (commencing with Section 11500) of Part
1 of Division 3 of Title 2 of the Government Code).