BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2367
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 2367 (Calderon) - As Introduced:  February 19, 2010 

          Policy Committee:                              Insurance  
          Vote:12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Department of Insurance to  
          provide insurers written notice related to specified financial  
          reporting requirements. 

           FISCAL EFFECT  

          Annual fee-supported special fund costs of less than $15,000 to  
          the California Department of Insurance (CDI) to notify each  
          insurer by mail of requirements related to financial reporting. 

           COMMENTS  

           1)Rationale  .  This bill requires CDI to notify insurers of any  
            changes made to the standard National Association of Insurance  
            Commissioners (NAIC) forms. The NAIC is the organization of  
            insurance regulators from the 50 states. The NAIC provides a  
            forum for the development of uniform public policy to be  
            introduced in states to improve oversight and increase  
            regulatory uniformity.

           2)Background  .  Under current law, CDI does not send a written  
            notice to each of the 1400 admitted insurers following  
            modifications to the NAIC financial statement forms. Instead,  
            this information is posted on the department's website. This  
            bill requires notification be provided in writing to each  
            insurer. 


           Analysis Prepared by  :    Mary Ader / (916) 319-2081