BILL ANALYSIS
AB 299
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 299 (Insurance Committee)
As Amended July 15, 2009
Majority vote
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|ASSEMBLY: |78-1 |(May 11, 2009) |SENATE: |38-0 |(August 27, |
| | | | | |2009) |
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Original Committee Reference: INS.
SUMMARY : Makes a series of changes to technical and
noncontroversial laws governing the authority and duties of the
Insurance Commissioner (IC) and insurance companies to clarify
and update existing law.
The Senate amendments:
1)Specify that each document, pleading or order that remains on
the California Department of Insurance's (CDI) Web site
pertaining to disciplinary proceedings against a licensee are
to be removed 10 years from the date the action becomes final.
If an enforcement action is withdrawn, then each document,
pleading or order against the licensee shall be removed from
CDI's Web site within 30 days of the withdrawal. If a matter
involves multiple licensees and the CDI withdraws all
allegations against one or more of the licensees, the CDI will
be required to post appropriate clarifying documents
indicating the action has been withdrawn on the Web site.
2)Require mortgage guaranty insurers to notify the IC of CDI if
surplus amounts fall below required amounts. Increase the
discretion afforded the IC to issue a waiver of surplus
requirements.
3)Clarify the IC's authority to promulgate all of the
substantive provisions of the National Association of
Insurance Commissioners (NAIC) Annual Financial Reporting
Regulation. Conform existing grant of authority in the
Insurance Code to current provisions and terminology used to
describe those matters.
FISCAL EFFECT : Minor absorbable workload to CDI to continue
AB 299
Page 2
oversight of insurers and insurance products. The Senate
Appropriations Committee referred this bill directly to the
floor pursuant to Senate Rule 28.8.
COMMENTS : This committee bill incorporates a series of
corrective and clarifying amendments suggested by CDI. The
provisions in the present version of the bill have been reviewed
by all the interested parties, and there is no opposition.
Analysis Prepared by : Tracy Elwell / INS. / (916) 319-2086
FN: 0002498