BILL NUMBER: AB 2626	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 19, 2010

   An act to add Sections 12921.65 and 12964 to the Insurance Code,
relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2626, as introduced, Jones. Insurance: commissioner: filings:
reporting.
   Existing law requires the Insurance Commissioner to approve or
disapprove certain insurance rates and insurance policies. Existing
law requires the commissioner to make certain reports annually to the
Governor and the Legislature.
   This bill would require the commissioner, within 45 days of
insurance rate change applications or policy filings for specified
insurance types, to notify the insurer of any known defects in its
filings. The bill would require that, beginning January 1, 2012, and
annually thereafter, the commissioner report specified information
concerning insurance rate change applications and policy filings to
the Department of Finance.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  It is the intent of the Legislature to do all of the
following:
   (a) Increase the speed the Department of Insurance takes to
approve and disapprove insurance rate change applications and policy
filings by insurers.
   (b) Increase the completeness of the insurance rate change
applications and policy filings by insurers with the department.
   (c) Identify the true costs to the department associated with
approving and disapproving insurance rate change applications and
policy filings by insurers.
  SEC. 2.  Section 12921.65 is added to the Insurance Code, to read:
   12921.65.  (a) Within 45 days of an insurance rate change
application or policy filing, for the insurance types described in
subdivision (b), the commissioner shall notify the insurer of any
known defects in its filing.
   (b) This section shall only be applicable to all of the following
insurance types:
   (1) Reinsurance, other than joint reinsurance to the extent stated
in Article 5 (commencing with Section 1856) of Chapter 9 of Part 2
of Division 1.
   (2) Life insurance.
   (3) Insurance of vessels or craft, their cargoes, marine builders'
risks, marine protection and indemnity, or other risks commonly
insured under marine, as distinguished from inland marine, insurance
policies. Inland marine insurance shall be deemed to include
insurance now or hereafter defined by statute, or by interpretation
thereof, or if not so defined or interpreted, by ruling of the
commissioner or as established by general custom of the business, as
inland marine insurance.
   (4) Title insurance.
   (5) Disability insurance.
   (6) Workers' compensation insurance and insurance of any liability
of employers for injuries to, or death of, employees arising out of,
and in the course of, employment when this insurance is incidental
to, and written in connection with, the workers' compensation
insurance issued to the same employer and covering the same employer
interests.
   (7) Mortgage insurance.
   (8) Insurance transacted by county mutual fire insurers or county
mutual fire reinsurers.
  SEC. 3.  Section 12964 is added to the Insurance Code, to read:
   12964.  Beginning on January 1, 2012, and annually thereafter, the
commissioner shall report to the Department of Finance all of the
following:
   (a) The length of time it takes to approve and disapprove rate
change applications and policy filings.
   (b) The number of department personnel necessary to comply with
the time frames required by this code to fulfill these functions.
   (c) The additional personnel, if any, needed to comply with any
applicable statutory time limits.
   (d) The total costs associated with approving and disapproving
rate change applications and policy filings in the previous year.
   (e) The total costs associated with approving and disapproving
rate change applications necessary to meet all statutory time limits.