BILL ANALYSIS
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THIRD READING
Bill No: AB 2780
Author: Assembly Insurance Committee
Amended: As introduced
Vote: 21
SENATE BANKING, FINANCE, AND INS. COMMITTEE : 9-0, 6/16/10
AYES: Calderon, Cogdill, Florez, Kehoe, Liu, Lowenthal,
Padilla, Price, Runner
NO VOTE RECORDED: Correa, Cox
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 5/6/10 (Consent) - See last page for
vote
SUBJECT : Insurance: reporting requirements
SOURCE : Author
DIGEST : This bill permits the Insurance Commissioner to
modify the frequency and due date of certain reports under
current law and eliminates one annual report to the
Governor and the Legislature.
ANALYSIS :
Existing law:
1. Provides that a report by insurers that write liability
insurance for long-term care facilities or other
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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. Provides that a report of insurers which write liability
insurance for long-term care facilities or other elderly
residential care facilities is to be filed by a date
specified by the Insurance Commissioner not more than
once each calendar year.
2. Requires 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. Repeals 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.
Background
The 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
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sound decision-making.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/29/10)
Department of Insurance
ARGUMENTS IN SUPPORT : The Department of Insurance (CDI)
supports this bill and its revisions to the to the required
frequency of various data calls from annual to a date set
by the Insurance Commissioner not more frequently than once
per year.
This bill 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.
CDI indicates that while at one time the annual data calls
served a purpose, the need does not exist today. CDI
indicates it receives very few requests for this
information. Accordingly, CDI 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".
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,
Bonnie Lowenthal, Ma, Miller, Monning, Nava, Nestande,
Niello, Nielsen, Norby, V. Manuel Perez, Portantino,
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Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Yamada, John A. Perez
NO VOTE RECORDED: Bass, Block, De La Torre, Gilmore,
Mendoza, Vacancy
JJA:mw 6/29/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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