BILL ANALYSIS
SENATE COMMITTEE ON BANKING, FINANCE,
AND INSURANCE
Senator Ronald Calderon, Chair
AB 2780 (Committee on Insurance) Hearing Date: June 16, 2010
As Introduced: March 3, 2010
Fiscal: Yes
Urgency: No
VOTES: Asm. Floor(05/06/10)74-0/Pass
Asm. Appr. (04/28/10)15-0/Pass
Asm. Ins. (04/21/10)12-0/Pass
SUMMARY Would permit the Insurance Commissioner to modify the
frequency and due date of certain reports under current law and
would eliminate one annual report to the Governor and the
Legislature.
DIGEST
Existing law
1.Provides that a report by insurers that write liability
insurance for long-term care facilities or other residential
care facilities for the elderly shall be filed by a date set
by the Insurance Commissioner but no later than July 1 of each
calendar year;
2.Requires automobile insurers to annually report to the
Insurance Commissioner specified data relating to inspections
of vehicles for which a property damage claim was paid;
3.Requires the Insurance Commissioner to report annually to the
Governor and Legislature on a number of issues, including an
analysis relating to the relationship between uninsured
motorists and the affordability of automobile insurance.
This bill
1.Would provide that a report of insurers which write liability
insurance for long-term care facilities or other elderly
AB
2780 (Committee on Insurance), Page 2
residential care facilities is to be filed by a date
specified by the Insurance Commissioner not more than once
each calendar year;
2.Would require automobile insurers to report certain data
related to inspections of vehicles for which a property damage
claim was paid, and claims payment data, at the request of the
Insurance Commissioner, but not more than annually;
3.Would repeal a requirement that the Insurance Commissioner
report annually to the Governor and Legislature an analysis
relating to the relationship between uninsured motorists and
the affordability of automobile insurance.
COMMENTS
1. Purpose of the bill To modify various reporting
requirements in recognition that statutory data reporting
requirements can live on in the codes after their usefulness
has diminished. Such requirements impose a burden on both
the insurers which report and the Department of Insurance
which must receive, process and maintain these reports.
2. Background The California Department of Insurance maintains
a Statistical Analysis Division (SAD) in Los Angeles which
has the responsibility to respond to all data collection and
reporting requirements set forth in either the California
Insurance Code or the California Code of Regulations. The
data, analysis and reports of the SAD unit are intended to
support the maintenance of a healthy insurance marketplace
in California and assist the public and the Department in
sound decision-making.
3. This bill has been non-controversial and its effect will be
to permit the Insurance Commissioner to focus the resources
of the Department and the SAD Unit on matters of higher
current public priority. In this respect, the bill supports
effective management of the Department.
4. Support The Department of Insurance supports this bill and
its revisions to the to the required frequency of various
data calls from annual to a date set by the Commissioner not
more frequently than once per year.
AB
2780 (Committee on Insurance), Page 3
AB 2780 retains the requirement for the Medical Professional
Liability, Vehicle Fraud and Long Term Care data calls but
does away with the mandate that they be annual, although the
antifraud activity currently required of auto insurers and
which provides the data reflected in that data call is
continued; it is only the timing of the data call which is
modified.
The Department indicates that while at one time the annual
data calls served a purpose, the need does not exist today.
The Department indicates it receives very few requests for
this information. Accordingly, the Department states
"Eliminating the annual requirement while maintaining the
Commissioner's authority to run a data call when needed is
cost effective and frees up limited departmental staff
resources to carry out more critical functions".
5. Opposition None
6. Questions None
7. Suggested Amendments None
8. Prior and Related Legislation None
POSITIONS
Support
California Department of Insurance
Oppose
None
Consultant: Kenneth Cooley (916) 651-4102