BILL NUMBER: AB 2295	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 6, 2010

INTRODUCED BY   Assembly  Member   De La
Torre   Members   De La Torre   and
Fletcher 

                        FEBRUARY 18, 2010

    An act to amend Sections 815 and 816 of the Insurance
Code, relating to insurance.   An act to add Section
3001.5 to the Penal Code, relating to parole. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2295, as amended, De La Torre.  Insurance. 
 Parole: retention of records.  
   Existing law generally regulates parole.  
   This bill would require the Department of Corrections and
Rehabilitation to permanently retain all files prepared by the
Division of Adult Parole Operations regarding any person who was
paroled who has been imprisoned for committing a serious felony or a
violent felony, as defined, or who is required to register as a sex
offender, as specified.  
   Existing law provides for the regulation of insurers by the
Department of Insurance and prohibits an insurer from paying a person
given discretion as to the settlement of claims under an insurance
policy a compensation that is contingent on the amount of the
settlement of those claims, except as otherwise provided. 

   This bill would make technical, nonsubstantive changes to those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 3001.5 is added to the 
 Penal Code   , to read:  
   3001.5.  The Department of Corrections and Rehabilitation shall
permanently retain all files, including handwritten or typed field
files, prepared by the Division of Adult Parole Operations regarding
any person who has been released on parole from the state prison who
was imprisoned for committing a serious felony, as defined in
Sections 1192.7 and 1192.8, or a violent felony, as defined in
Section 667.5, or who is required to register pursuant to the Sex
Offender Registration Act.  
  SECTION 1.    Section 815 of the Insurance Code is
amended to read:
   815.  An insurer shall not pay a representative given discretion
as to the settlement or adjustment of claims under life or disability
policies, whether in direct negotiation with the claimant or in
supervision of the person negotiating, a compensation that is in any
way contingent upon the amount of settlement of those claims.
 
  SEC. 2.    Section 816 of the Insurance Code is
amended to read:
   816.  An insurer shall not pay a person given discretion as to
settlement of claims under a policy of insurance, or surety bond,
whether in direct negotiation with the claimant or in supervision of
the person negotiating, a compensation that is in any way contingent
upon the amount of settlement of those claims, except as otherwise
expressly provided in this section.
   This section shall apply equally to a single claim, a number of
specified claims, an aggregate of claims during a specified period of
time or an aggregate of claims under a contract, agreement, or
arrangement.
   This section shall not affect the interpretation or provisions of
Section 815.
   The word "person" as used in this section includes, but is not
limited to: employees, agents, brokers, representatives, general
agents, managing general agents, surplus line brokers, insureds,
coinsureds, adjusters, and independent contractors, but does not
include attorneys in fact or other exclusive managers of an insurer.
   This section does not apply to:
   (a) Compensation of a producer, managing general agent, surplus
line broker, or general agent under an arrangement, agreement, or
contract whereby the producer or general agent is not granted
discretion in the actual adjustment or settlement of any or all
individual claims settled for an amount exceeding five hundred
dollars ($500).
   (b) A producer, managing general agent, surplus line broker, or
general agent who is compensated by a contingent commission
arrangement based wholly or partly on underwriting results, unless
the arrangement guarantees an agreed return to the insurer that may
exceed the underwriting profit actually earned by the insurer on
business written through the producer, managing general agent,
surplus line broker, or general agent.
   (c) Contracts of reinsurance between insurers.
   (d) An arrangement, schedule of charges, agreement, or contract,
express or implied, for the adjustment of claims under which the
compensation for the services of the person making the adjustment
(exclusive of reimbursement for actual expenses) consistently
increases, in reasonable brackets, as the amount paid in settlement
of a claim increases.
   An insurer that in any other jurisdiction is making payments that
would be in violation of this section if made in respect to insurance
business done in this state shall not be admitted to this state
until it presents evidence satisfactory to the commissioner that it
will not make those payments in this state and that it will within
one year after admission to this state cease to make those payments
in any other jurisdiction and, within the same period, terminate any
contract or arrangement under which those payments are to be paid.
Failure to so cease those payments and to so terminate those
contracts and arrangements within that one-year period shall
constitute grounds for revocation of the insurer's certificate of
authority.