BILL NUMBER: AB 2782 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Committee on Insurance (Solorio (Chair), Bradford,
Carter, Feuer, Hayashi, Nava, and Torres)
MARCH 3, 2010
An act to amend Sections 31, 33, 34, 1621, 1623, 1625, 1637, 1639,
1749, 1749.3, 1758.96, 1758.992, 1802.1, 1807.5, 1807.7, 1808,
1810.7, 1811, 14090, 14090.1, 15054, and 15059.1 of, to add Sections
1742.3, 1807.8, and 1807.9 to, and to repeal Section 1673 of, the
Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2782, as amended, Committee on Insurance. Insurance omnibus.
(1) Existing law prohibits insurance agents, insurance brokers,
and insurance solicitors from transacting in life insurance.
This bill would also prohibit insurance agents, insurance brokers,
and insurance solicitors from transacting in disability insurance,
health insurance, and 24-hour care coverage.
(2) Existing law provides that a fire and casualty licensee is a
person authorized to act as an insurance agent, broker, or solicitor,
and a fire and casualty broker-agent license is a license to make
those insurance transactions. A fire and casualty licensee is
authorized to transact 24-hour care coverage and any coverage that a
personal lines licensee is authorized to transact.
This bill would delete the authorization of a fire and casualty
licensee to transact 24-hour care coverage and any coverage that a
personal lines licensee is authorized to transact. This bill would
divide the fire and casualty broker-agent license into 2 insurance
license types: property broker-agent licenses, for insurance coverage
on the direct or consequential loss or damage to property of every
kind, and casualty broker-agent licenses, for insurance coverage
against legal liability, including for death, injury, disability, or
damage to real or personal property.
(3) Existing law requires a minimum of 40 hours of prelicensing
study as a prerequisite to qualification for a fire and casualty
broker-agent license.
This bill would require a minimum of 20 hours of prelicensing
study as a prerequisite to qualification for a property broker-agent
license, and a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a casualty broker-agent license.
(4) Existing law requires a fire and casualty broker agent to
complete an annual minimum of 25 hours of continuing education for
the first 4 years of his or her licensing, and after 4 years the
licensee is required to complete a minimum of 24 hours of continuing
education prior to license renewal, every 2 years.
This bill would instead require the property or casualty
broker-agent to complete 24 hours of continuing education prior to
license renewal.
(5) Existing law authorizes a person licensed as a fire and
casualty broker-agent or a life licensee to transact disability
insurance on behalf of an insurer which is authorized to transact
disability insurance by filing a notice of appointment for that
purpose.
This bill would delete that provision.
(6) Existing law authorizes the Insurance Commissioner, where a
licensee has been found by the commissioner to have violated any
provision of the code that would justify the suspension or revocation
of a license held, or where a person is applying for a license and
there exists grounds for the denial of the application by the
commissioner, to after a hearing, revoke the license held or deny the
application for an unrestricted license, and in lieu of an
unrestricted license issue a restricted license.
This bill would authorize the commissioner, without a hearing, to
issue an order denying an application by a business entity for an
unrestricted license and granting instead a restricted license. The
bill would also authorize this action by the commissioner where a
controlling person of the business entity, as defined, holds a
restricted license. The bill would provide for a means by which the
business entity would be authorized to request reconsideration of the
commissioner's decision. The bill would require that if the
commissioner determines that the business entity should have been
granted an unrestricted license, the unrestricted license would be
required to be granted retroactively.
(7) Existing law authorizes licensed insurance agents, insurance
brokers, and credit insurance agents to act as credit insurance
agents for an authorized insurer with respect to certain kinds of
insurance sold in connection with and incidental to a loan or other
extension of credit, as specified.
This bill would include in the definition of credit insurance
guaranteed automobile protection insurance, as defined, and any other
form of insurance declared by the commissioner to be credit
insurance.
(8) Existing law requires an insurer not to execute an undertaking
of bail except by and through a person holding a bail license issued
by the commissioner. Bail licenses are renewable annually by way of
a notice of intention to keep licenses in force or applications for
renewal of licenses filed on or before June 30th of each year.
This bill would, commencing January 1, 2011, delete the notice of
intention to keep licenses in force as a renewal method, and make
bail licenses renewable every 2 years, as prescribed.
(9) Existing law requires that insurance adjusters and public
insurance adjusters be licensed by the commissioner. Adjuster
licenses expire on May 31 of each even-numbered year. Licensees are
required, if not exempt, to complete a minimum of 24 hours of
continuing education, including ethics.
This bill would change the expiration of those licenses to the day
2 years after the last calendar day of the month in which the
initial license was issued. The bill would require licenses issued
prior to January 1, 2011, to expire on May 31 of each even-numbered
year. The bill also would require that 3 hours of the continuing
education requirement consist of ethics.
(10) This bill would make conforming and related changes and
delete obsolete provisions.
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. Section 31 of the Insurance Code is amended to read:
31. "Insurance agent" means a person authorized, by and on behalf
of an insurer, to transact all classes of insurance other than life,
disability, or health insurance, on behalf of an admitted insurance
company.
SEC. 2. Section 33 of the Insurance Code is amended to read:
33. "Insurance broker" means a person who, for compensation and
on behalf of another person, transacts insurance other than life,
disability, or health with, but not on behalf of, an insurer.
SEC. 3. Section 34 of the Insurance Code is amended to read:
34. "Insurance solicitor" means a natural person employed to aid
a property and casualty broker-agent acting as an insurance agent or
insurance broker in transacting insurance other than life,
disability, or health.
SEC. 4. Section 1621 of the Insurance Code is amended to read:
1621. An insurance agent is a person who transacts insurance,
other than life, disability, or health insurance, on behalf of an
admitted insurance company. The term "insurance agent" as used in
this chapter does not include a life agent as defined in this
article.
SEC. 5. Section 1623 of the Insurance Code is amended to read:
1623. (a) An insurance broker is a person who, for compensation
and on behalf of another person, transacts insurance other than life,
disability, or health insurance with, but not on behalf of, an
admitted insurer. It shall be presumed that the person is acting as
an insurance broker if the person is licensed to act as an insurance
broker, maintains the bond required by this chapter, and discloses,
in a written agreement signed by the consumer, all of the following:
(1) That the person is transacting insurance on behalf of the
consumer.
(2) A description of the basic services the person will perform as
a broker.
(3) The amount of all broker fees being charged by the person.
(4) If applicable, the fact that the person may be entitled to
receive compensation from the insurer, directly or indirectly, for
the consumer's purchase of insurance as a consequence of the
transaction.
(b) If a transaction involves both a retail broker and a wholesale
intermediary broker, the wholesale intermediary broker shall be
deemed to have satisfied its disclosure obligations under this
section if it provides written disclosure to the retail broker of the
criteria set forth in paragraphs (2), (3), and (4) of subdivision
(a).
(c) The presumption of broker status is rebutted as to any
transaction in the admitted market in which any of the following is
present:
(1) The licensee is appointed, pursuant to Section 1704, as an
agent of the insurer for the particular class or type of insurance
being transacted.
(2) The licensee has a written agreement with an insurer
containing express terms that authorize the licensee to obligate the
insurer without first obtaining notification from the insurer that
the insurer has accepted, conditionally or unconditionally, the
submitted risk.
(3) The licensee is authorized, pursuant to a written agreement
with an insurer, to appoint other licensees as agents of the insurer,
pursuant to Section 1704.
(4) The licensee is authorized, pursuant to a written agreement
with an insurer, to pay claims on behalf of the insurer.
(d) In all other cases, the presumption of broker status is
rebutted based on the totality of the circumstances indicating that
the broker-agent is acting on behalf of the insurer.
(e) For purposes of this section, "totality of the circumstances"
means evidence indicating whether a broker-agent was acting on behalf
of the insurer or was acting on behalf of a third person. In
determining the totality of circumstances, all relevant facts and
circumstances shall be reviewed and the review is not limited to any
particular fact or factors and this section does not require that any
particular circumstance receive greater or lesser weight.
SEC. 6. Section 1625 of the Insurance Code is amended to read:
1625. (a) A fire and casualty licensee is a person authorized to
act as an insurance agent, broker, or solicitor, and a fire and
casualty broker-agent license is a license so to act.
(b) Licenses to act as a fire and casualty broker-agent under this
chapter shall be of the following types:
(1) Property, which shall entitle the licensee to transact
insurance coverage on the direct or consequential loss or damage to
property of every kind.
(2) Casualty, which shall entitle the licensee to transact
insurance coverage against legal liability, including that for death,
injury, disability, or damage to real or personal property.
SEC. 7. Section 1637 of the Insurance Code is amended to read:
1637. An organization may hold any license or licenses necessary
to act in the following capacities under this chapter and no others:
(a) A license to act as a life-only agent.
(b) A license to act as an accident and health agent.
(c) A license to act as a property broker-agent.
(d) A license to act as a casualty broker-agent.
(e) A license to act as a cargo shipper's agent.
(f) A license to act as a personal lines licensee.
(g) A license to act as a credit insurance agent.
(h) A license to act as a rental car agent.
(i) A nonresident license to act as a limited lines licensee
pursuant to subdivision (i) of Section 1639.
(j) A license to act as a self-service storage agent.
(k) A license to act as a limited lines automobile insurance
agent.
SEC. 8. Section 1639 of the Insurance Code is amended to read:
1639. The following types of licenses under this chapter may be
issued to nonresidents:
(a) A property broker-agent or a casualty broker-agent if the
nonresident is duly licensed to transact those lines of insurance
described in Section 1625, under the laws of the state, territory of
the United States, or province of Canada where the resident license
is maintained.
(b) A personal lines broker-agent if the nonresident is duly
licensed to transact those lines of insurance described in Section
1625.5, under the laws of the state, territory of the United States,
or province of Canada where the resident license is maintained.
(c) A life-only agent or an accident and health agent if the
nonresident possesses a resident license in another state, territory
of the United States, or province of Canada to transact life
insurance or disability insurance.
(d) A nonresident life-only agent may be granted authority to
transact variable contracts if he or she has been granted that
authority by the state where the resident license is maintained.
(e) A surplus line broker and a special lines surplus broker if
the nonresident holds that type of license in the state or territory
of the United States where the resident license is maintained.
(f) A credit insurance agent if the nonresident holds that type of
license in the state, territory of the United States, or province of
Canada where the resident license is maintained.
(g) A rental car agent if the nonresident holds that type of
license in the state, territory of the United States, or province of
Canada where the resident license is maintained.
(h) A cargo shipper's agent if the nonresident holds that type of
license in the state, territory of the United States, or province of
Canada where the resident license is maintained.
(i) A limited lines license if the nonresident holds that type of
license in the state, territory of the United States, or province of
Canada where the resident license is maintained. As used in this
section, "limited lines license" means any authority granted by the
resident state that restricts the authority of the license to less
than the total authority granted by any of the types of licenses
identified in this section.
(j) A self-service storage agent if the nonresident holds that
type of license in the state, territory of the United States, or
Province of Canada where the resident license is maintained.
SEC. 9. Section 1673 of the Insurance Code is repealed.
SEC. 10. Section 1742.3 is added to the Insurance Code, to read:
1742.3. (a) The commissioner may, without hearing, issue an order
denying an application by a business entity for an unrestricted
license and granting instead a restricted license. The commissioner
may do so when a controlling person of the business entity, as
defined in subdivision (b) of Section 1668.5, holds a restricted
license. The commissioner may impose any reasonable restriction on
the business entity's authority to transact insurance that is similar
or related to the restriction imposed upon the controlling person. A
description of the nature and scope of the restriction imposed upon
the business entity shall be included in the commissioner's order.
The business entity shall have no property right in the restricted
license and the commissioner may, with or without hearing or cause,
suspend or revoke the restricted license. The restricted license
shall be issued in the normal course of business following the
issuance of the order and shall remain in effect pending the outcome
of any request for reconsideration and any decision following a
hearing pursuant to that request.
(b) The business entity may request reconsideration of the
commissioner's decision to deny an unrestricted license within 30
days from the date that the decision is mailed to the entity.
If the commissioner grants If the business
entity requests a hearing on the request for reconsideration,
the hearing shall be conducted pursuant to Article 10 (commencing
with Section 11445.10) of Chapter 4.5 of Part 1 of Division 3 of
Title 2 of the Government Code, and the business entity shall bear
the burden of proving by clear and convincing evidence that an
unrestricted license should have been granted instead of a restricted
license. If the commissioner determines, after a hearing, that the
business entity should have been granted an unrestricted license, the
entity shall be granted that unrestricted license retroactive to the
date of the granting of the restricted license.
SEC. 11. Section 1749 of the Insurance Code is amended to read:
1749. The department shall require all new applicants for license
as a property broker-agent, casualty broker-agent, limited lines
automobile insurance agent, personal lines broker-agent, life-only
agent, or accident and health agent to meet prelicensing education
standards as follows:
(a) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a property broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(b) Require a minimum of 20 hours of prelicensing study as a
prerequisite to qualification for a casualty broker-agent license.
The curriculum for satisfying this requirement shall be approved by
the curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(c) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a personal lines broker-agent
license. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements
provided by this section shall be approved by the curriculum board
pursuant to Section 1749.1 and certified by the department.
(d) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a life-only agent license. The
curriculum for satisfying this requirement shall be approved by the
curriculum board and submitted to the commissioner for final
approval. Any additions to the minimum requirements provided by this
section shall be approved by the curriculum board pursuant to Section
1749.1 and certified by the department.
(e) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for a limited lines automobile
insurance agent license. The curriculum for satisfying this
requirement shall be approved by the curriculum board and submitted
to the commissioner for final approval. Any additions to the minimum
requirements under this section shall be approved by the curriculum
board pursuant to Section 1749.1 and certified by the department.
(f) Require a minimum of 20 hours of prelicensing study as a
prerequisite for qualification for an accident and health insurance
agent license. The curriculum for satisfying this requirement shall
be approved by the curriculum board and submitted to the commissioner
for final approval. Any additions to the minimum requirements under
this section shall be approved by the curriculum board pursuant to
Section 1749.1 and certified by the department. This curriculum shall
also include instruction in workers' compensation and general
principles of employers' liability.
(g) In addition to the 20 hours of prelicensing education required
to qualify for a license as a property broker-agent, casualty
broker-agent, personal lines broker-agent, a life-only agent, or an
accident and health agent, or the 20 hours of prelicensing education
required to qualify for a license as a limited lines automobile
insurance agent, the department shall require 12 hours of study on
ethics and this code. Where an applicant seeks a license for more
than one of the following license types: a fire and casualty
broker-agent license, a personal lines broker-agent license, a
life-only license, or an accident and health license, the applicant
shall only be required to complete one 12-hour course on ethics and
this code. The curriculum for satisfying this requirement shall be
approved by the curriculum board and submitted to the commissioner
for final approval.
(h) An applicant for a life-only agent license, an accident and
health license, a personal lines broker-agent license, or a limited
lines automobile insurance agent license, who is currently licensed
as a nonresident in this state shall be required to complete only the
course of study on ethics and this code, as required by this
section. Additionally, any applicant for that license holding one or
more of the designations specified in subdivisions (a) to (p),
inclusive, of Section 1749.4 shall be exempted from any requirement
for courses in general insurance that would otherwise be a condition
of issuance of the license.
(i) An applicant for a property broker-agent or casualty
broker-agent license who is currently licensed as a nonresident in
this state shall be required to complete only the course of study on
ethics and this code, as required by subdivision (g). Additionally,
any applicant for a license holding one or more of the designations
specified in subdivisions (a) to (p), inclusive, of Section 1749.4,
shall be exempted from any requirement for courses in general
insurance that would otherwise be a condition of issuance of a
license.
(j) An applicant for a property broker-agent or casualty
broker-agent license or both who is licensed as a personal lines
agent shall complete a minimum of 20 hours of prelicensing study as a
prerequisite for each of these licenses. The curriculum for
satisfying this requirement shall be approved by the curriculum board
and submitted to the commissioner for final approval. The applicant
shall not be required to repeat any prelicensing requirements
completed as a prerequisite to being licensed as a personal lines
agent.
(k) Review and approval of prelicensing courses not conducted in a
classroom, as referenced in subdivisions (a) to (j), inclusive,
shall include an evaluation of the safeguards in place to ensure that
the student completing the course is the person enrolled in the
course, methods used to monitor the students' attendance are
adequate, methods for the student to interact with the entity
providing the training exist, and methods used to record the times
spent completing the course are adequate.
(l) Prelicensing certificates of completion expire three years
from the completion date of the course, whether or not a license is
issued.
SEC. 12. Section 1749.3 of the Insurance Code is amended to read:
1749.3. An individual licensed as a life-only agent or an
accident and health agent and also licensed as a property or casualty
broker-agent, or an individual only licensed as a property or
casualty broker-agent, shall complete those courses, programs of
instruction, or seminars approved by the commissioner for the type of
license held. Completion of specified product training required in
subdivision (d) of Section 1749.33, subdivision (b) of Section
1749.8, and paragraph (4) of subdivision (a) of Section 10234.93 may
result in the completion of more than the minimum of required
continuing education hours. The minimum number of hours required is
as follows:
(a) Any licensee, as specified in subdivision (a)
this section , shall satisfactorily complete 24
hours of instruction prior to renewal of the license. These hours of
instruction may be completed at any time prior to renewal of the
license.
(b) An individual licensed as a property broker-agent or casualty
broker-agent and as a life-only agent or an accident and health agent
shall satisfy the requirements of this section by demonstrating
completion of the courses, programs of instruction, or seminars
approved by the commissioner for any of the license types listed in
subdivision (a) this section .
(c) A licensee shall not be required to comply with the
requirements of this article if the licensee submits proof
satisfactory to the commissioner that he or she has been a licensee
in good standing for 30 continuous years in this state and is 70
years of age or older. This exemption shall not apply to those
individuals licensed for the first time on or after January 1, 2010.
SEC. 13. Section 1758.96 of the Insurance Code is amended to read:
1758.96. A person licensed pursuant to this article may act as a
credit insurance agent for an authorized insurer only with respect to
the kinds of insurance specified in this section sold in connection
with and incidental to a loan or other extension of credit other than
a loan in excess of sixty thousand dollars ($60,000) relating to or
secured by real property where the repayment period does not exceed
10 years. The sale of credit insurance products as specified in this
section in excess of sixty thousand dollars ($60,000) relating to or
secured by real property where any compensation, fee, or commission
is paid dependent on the placement of credit insurance, requires a
license to act as an insurance agent or life agent pursuant to
Section 1621 or 1622.
(a) Credit life insurance.
(b) Credit disability insurance.
(c) Credit involuntary unemployment insurance or credit
loss-of-income insurance.
(d) Credit property insurance.
(e) Guaranteed automobile protection (GAP) insurance.
(f) Any other form of insurance declared by the commissioner to be
subject to this section pursuant to subdivision (d) of Section
1758.992.
SEC. 14. Section 1758.992 of the Insurance Code is amended to
read:
1758.992. As used in this article, the following definitions have
the following meanings:
(a) "Enrollment" means the process of soliciting or accepting
enrollments or applications from a debtor under a credit insurance
policy, which includes informing the debtor of the availability of
coverage, calculating the insurance charge, preparing and delivering
the certificate of insurance or notice of proposed insurance,
answering questions regarding the coverage, or otherwise assisting
the debtor in making an informed decision whether or not to elect to
purchase credit insurance.
(b) "Creditor" means a lender of money or a vendor or lessor of
goods, services, property, rights, or privileges, for which payment
is arranged through a credit transaction, or any successor to the
right, title, or interest of that lender, vendor, or lessor, and any
affiliate, associate, subsidiary, subcontractor, director, officer,
or employee of any of them or any other person in any way associated
with any of them.
(c) "Credit insurance agent license" means an agent license issued
to an individual or organization for the enrollment and sale of
credit insurance.
(d) "Credit insurance" includes credit life insurance, credit
disability insurance, credit involuntary unemployment insurance,
credit loss-of-income insurance, credit property insurance, or
guaranteed automobile protection (GAP) insurance.
Credit insurance also includes any other form of insurance offered
in connection with an extension of credit that is limited to
partially or wholly extinguishing that credit obligation that the
commissioner determines should be designated a form of credit
insurance.
The commissioner may adopt, pursuant to Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, reasonable rules and regulations necessary to carry
out this subdivision.
(e) (1) "Credit life insurance" means insurance on the life of a
debtor pursuant to or in connection with a specific loan or other
credit transaction, exclusive of any insurance procured at no expense
to the debtor. Insurance shall be deemed procured at no expense to
the debtor unless the cost of the credit transaction to the debtor
varies depending on whether or not the insurance is procured.
(2) "Credit disability insurance" means insurance on a debtor to
provide indemnity for payments becoming due on a specific loan or
other credit transaction while the debtor is disabled, as defined in
the policy, exclusive of any insurance procured at no expense to the
debtor. Insurance shall be deemed to have been procured at no expense
to the debtor unless the cost of the credit transaction to the
debtor varies depending on whether or not the insurance is procured.
(f) "Credit involuntary unemployment insurance" or "credit
loss-of-income insurance" means insurance issued to provide indemnity
for payments becoming due on a specific loan or other credit
transaction while the debtor is involuntarily unemployed, as defined
in the policy.
(g) "Credit property insurance" means insurance that provides
coverage (1) on personal property pledged or offered as collateral
for securing a personal or consumer loan, or (2) on personal property
purchased under an installment sales agreement or through a consumer
credit transaction, but does not include any insurance that provides
theft, collision, liability, property damage, or comprehensive
insurance coverage in any automobile or any other self-propelled
vehicle that is designed primarily for operation in the air or on the
highways, waterways, or sea, and its operating equipment, or that is
necessitated by reason of the liability imposed by law for damages
arising out of the ownership, operation, maintenance, or use of those
vehicles. However, that excluded insurance does include single
interest coverage on any of those vehicles that insures the interest
of the creditor in the same manner as collateral secures a loan.
(h) (1) "Guaranteed automobile protection" (GAP) insurance means
insurance in which a person agrees to indemnify a vehicle purchaser
or lessee for any of the difference between the actual cash value of
the insured's vehicle at the time of an unrecovered theft or total
loss and the amount owed on the vehicle pursuant to the terms of a
loan, lease agreement, or installment sales contract used to purchase
or lease the vehicle. GAP insurance may also include a promise to
pay up to five thousand dollars ($5,000) to an insured, in addition
to the sum needed to indemnify the insured for the difference between
the actual cash value and the outstanding debt, to purchase or lease
another vehicle.
(2) GAP insurance does not include, and no insurance license of
any type under this code is required to offer, any of the following:
(A) A promise contained in a conditional sales contract for the
sale of a vehicle by a licensed motor vehicle dealer or a promise
contained in a lease agreement for the lease of a vehicle by a
licensed motor vehicle dealer or leasing company to waive all or a
portion of the difference between the actual cash value of the
insured's vehicle at the time of an unrecovered theft or total loss
and the amount owed on the vehicle pursuant to the terms of a loan,
lease agreement, or installment sales contract used to purchase or
lease the vehicle.
(B) A promise by a lender as part of a debt obligation to purchase
or lease a vehicle in which the lender agrees to waive all or a
portion of the difference between the actual cash value of the
insured's vehicle at the time of an unrecovered theft or total loss
and the amount owed on the vehicle pursuant to the terms of a loan,
lease agreement, or installment sales contract used to purchase or
lease the vehicle.
(C) Coverage under subparagraphs (A) and (B) may not include a
promise to pay money to a vehicle purchaser or lessee in addition to
waiving the difference between the actual cash value and the amount
owed.
SEC. 15. Section 1802.1 of the Insurance Code is amended to read:
1802.1. Every applicant for a license to act as a bail agent
shall file with the commissioner a notice of appointment executed by
a surety insurer or its authorized representative authorizing that
applicant to execute undertakings of bail and to solicit and
negotiate those undertakings on its behalf. Additional notices of
appointment may be filed by other surety insurers, upon the payment
for each additional notice of the fees specified in subdivision (a)
of Section 1811, before the license is issued and thereafter, as long
as the license remains in force. Each appointment shall, by its
terms, continue in force until any of the following occur:
(a) Termination of the bail agent's license.
(b) The end of the license term, if the fee provided in
subdivision (e) of Section 1811 for filing a renewal application is
not paid.
(c) The filing of a notice of termination by the insurer, its
representative, or by the bail agent.
SEC. 16. Section 1807.5 of the Insurance Code is amended to read:
1807.5. Except as provided in Sections 1669 and 1738, the
commissioner shall not suspend or revoke any license, issued under
this article, without first granting a hearing, upon reasonable
notice to the applicant,
except that he may temporarily suspend a license for a period not
exceeding 15 days pending the hearing. Where a hearing is held under
this section the proceedings shall be conducted in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, and the commissioner shall have all
the powers granted pursuant to that chapter.
SEC. 17. Section 1807.7 of the Insurance Code is amended to read:
1807.7. Commencing on January 1, 2011, all licenses issued
pursuant to this article shall be for a license term of two years.
SEC. 18. Section 1807.8 is added to the Insurance Code, to read:
1807.8. "License term" as used in this chapter means all of that
two-year period beginning as described in subdivision (a) or (b) of
Section 1807.9, as applicable, and ending on the day two years after
the last calendar day of the month in which the initial license was
issued. Licenses issued prior to January 1, 2011, shall expire on
June 30th of each odd numbered year.
SEC. 19. Section 1807.9 is added to the Insurance Code, to read:
1807.9. "License year" as used in this chapter shall be
determined for each individual and entity as follows:
(a) Upon initial licensing, the license year starts on the date
the license is issued.
(b) Subsequently, each license year starts the first day of the
month following the month in which the initial license was issued.
(c) A license year ends the following calendar year on the last
calendar day of the month in which the initial license was issued.
(d) A license year for licenses issued prior to January 1, 2011,
starts on July 1st and ends on June 30th.
SEC. 20. Section 1808 of the Insurance Code is amended to read:
1808. (a) Applications for renewal of licenses may be filed on or
before the expiration date upon payment of the fees for filing
specified in Section 1811.
(b) Upon failure to file the application as provided in
subdivision (a), the license shall expire on the first day of the
next month, but the holder may file an application for a new license.
Until that same month and day of the next succeeding year the fee
shall be twice that specified in Section 1811 for the filing.
(c) No application shall be deemed filed within the meaning of
this section unless the document itself has been actually delivered
to, and the proper fee for its filing has been paid at, the office of
the commissioner during office hours, or unless both the document
and the fee have been filed and remitted pursuant to Sections 11002
and 11003 of the Government Code.
SEC. 21. Section 1810.7 of the Insurance Code is amended to read:
1810.7. (a) In order to be eligible to take the examination
required to be licensed under this chapter, the applicant shall have
completed not less than 12 hours of classroom education in subjects
pertinent to the duties and responsibilities of a bail licensee,
including, but not limited to, all related laws and regulations,
rights of the accused, ethics, and apprehension of bail fugitives.
Additionally, a licensee shall complete in each two-year license term
not less than 12 hours of continuing education in these subjects
prior to renewal of his or her license.
(b) The commissioner shall approve or disapprove an applicant to
provide education for licensure as required by this section within 90
days of receipt of the applicant's full and complete application.
However, this 90-day period shall be tolled during the pendency of
any investigation of the applicant by the commissioner for an alleged
violation that would, if proven, result in the suspension,
revocation, or denial of the provider's approval to provide
continuing education to bail agents as prescribed in Section 1813.
Failure to disapprove an applicant within this period shall result in
the automatic approval of the application. Approval shall be valid
for two years. The commissioner may, at any time, disapprove any
provider who is not qualified or whose course outlines are not
approved, who is not of good business reputation, or who is lacking
in integrity, honesty, or competency. A provider shall not provide
education for licensure following the expiration of the two-year
approval period unless the commissioner has renewed the provider's
approval. The commissioner shall, at the time of renewal, approve or
disapprove the course outlines and schedule of classes to be
provided.
(c) Providers responsible for providing education for licensure
under this chapter shall consult with the California State Sheriffs'
Association, the California District Attorneys Association, and the
County Counsels Association of California prior to submission of the
course outlines for approval by the commissioner, and these entities
may respond within 30 days of receipt of a request for consultation
from a provider. Providers shall maintain records of their requests
for consultation and any responses from these entities, and make
these records available to the department for review as requested.
The bail license fee shall be increased, the amount of which shall be
determined by the commissioner, which shall be deposited in the
Insurance Fund for the purposes of recovering the administrative
costs for meeting the conditions and purposes of this section.
Providers of education or continuing education shall offer courses to
all applicants at the same course fees.
(d) Any person who falsely represents to the commissioner that
compliance with this section has been met shall be subject, after
notice and hearing, to the penalties and fines set out in Section
1814.
(e) A licensee shall not be required to comply with the continuing
education requirements of this section if the licensee submits proof
satisfactory to the commissioner that he or she has been a licensee
in good standing for 30 continuous years in this state and is 70
years of age or older.
(f) The commissioner may make reasonable rules and regulations
necessary, advisable, and convenient for the administration and
enforcement of this chapter. The rules and regulations may include a
schedule establishing fees to be paid by an applicant seeking
approval to act as a provider and to deliver courses under this
section. Those fees shall be in an amount no greater than fees paid
by applicants providing similar courses to other insurance agents
licensed by the department, as specified in Section 1751.1.
(g) Nothing in this chapter shall preclude completion of the bail
agent continuing education requirements of this section through a
course of instruction offered via the Internet or correspondence.
However, this subdivision shall not be construed to allow completion
of the prelicensing education requirements of this section through a
course of instruction.
(h) Successful completion of the continuing education requirements
by means of an Internet or correspondence course shall require
obtaining a passing grade of at least 70 percent on a written final
examination. The final examination shall be open book and shall be
graded by the approved provider. The provider shall issue
certificates of completion only to those students who have passed the
final examination.
SEC. 22. Section 1811 of the Insurance Code is amended to read:
1811. For his services in connection with the filing of any
application or request for any license under this chapter, the
commissioner shall charge and collect the following fees:
(a) For filing an application or request for bail agent's license,
one hundred eighteen dollars ($118) per year.
(b) For filing an application or request for bail solicitor's
license, one hundred eighteen dollars ($118) per year.
(c) For filing an application or request for bail permittee's
license, two hundred thirty-six dollars ($236).
(d) For filing an application for examination, or reexamination,
twenty-four dollars ($24).
(e) For a renewal application, a fee of thirty-five dollars ($35)
per year. In the case of a bail agent with more than one valid notice
of appointment on file, the fee to be charged pursuant to this
subdivision shall be the fee provided herein multiplied by the number
of insurers whose valid appointments are on file at the date the
document is filed unless the bail agent in that document advises the
commissioner of his intent to terminate the appointment of one or
more of those insurers, in which event the fee shall be based upon
the number for insurers remaining.
(f) For a bail solicitor's renewal application, a fee of
thirty-five dollars ($35) per year.
(g) For a bail permittee's renewal application, a fee of one
hundred forty-eight dollars ($148) per year.
(h) At the time of filing an application for a license, if a
qualifying examination is required for issue or in connection with
the license, the fee for filing the first application to take the
qualifying examination shall be paid at the time of filing
application for the license.
(i) For filing application or request for approval of a true or
fictitious name pursuant to Section 1724.5, twelve dollars ($12),
except that there shall be no fee when the name is contained in an
original application.
(j) For filing a bond required by this chapter, except when the
bond constitutes part of an original application, ten dollars ($10).
(k) For filing a first amendment to an application, six dollars
($6).
( l ) For filing a second and each subsequent amendment
to an application, twelve dollars ($12).
SEC. 23. Section 14090 of the Insurance Code is amended to read:
14090. Every license, branch office certificate, and pocket card
issued pursuant to this chapter shall expire on the day two years
after the last calendar day of the month in which the initial license
was issued. Licenses issued prior to January 1, 2011, shall expire
on May 31 of each even-numbered year. To renew an unexpired license
or certificate, the licensee shall, on or before the date on which it
would otherwise expire, apply for renewal on a form prescribed by
the commissioner, and pay the renewal fee prescribed by this chapter.
On renewal, the evidence of renewal of the license or certificate as
the commissioner may prescribe, and renewal pocket cards for the
persons mentioned in Section 14034, shall be issued to the licensee.
SEC. 24. Section 14090.1 of the Insurance Code is amended to read:
14090.1. (a) An individual who holds an insurance adjuster
license and who is not exempt under subdivision (b) of this section
shall satisfactorily complete a minimum of 24 hours, of which three
hours are to be in ethics, of continuing education courses pertinent
to the duties and responsibilities of an insurance adjuster license
reported to the insurance commissioner on a biennial basis in
conjunction with his or her license renewal cycle.
(b) This section does not apply to either of the following:
(1) A licensee not licensed for one full year prior to the end of
the applicable continuing education biennium.
(2) A licensee holding a nonresident insurance adjuster license
who has met the continuing education requirements of his or her
designated resident state.
SEC. 25. Section 15054 of the Insurance Code is amended to read:
15054. Every license, branch office certificate, and pocket card
issued pursuant to this chapter shall expire on the day two years
after the last calendar day of the month in which the initial license
was issued. Licenses issued prior to January 1, 2011, shall expire
on May 31 of each even-numbered year. To renew an unexpired license
or certificate, the licensee shall, on or before the date on which it
would otherwise expire, apply for renewal on a form prescribed by
the commissioner, and pay the renewal fee prescribed by this chapter.
On renewal, the evidence of renewal of the license or certificate as
the commissioner may prescribe, and renewal pocket cards for the
persons mentioned in Section 15022 shall be issued to the licensee.
SEC. 26. Section 15059.1 of the Insurance Code is amended to read:
15059.1. (a) An individual who holds a public insurance adjuster
license and who is not exempt under subdivision (b) shall
satisfactorily complete a minimum of 24 hours, of which three hours
are to be in ethics, of continuing education courses pertinent to the
duties and responsibilities of a public insurance adjuster license,
to be reported to the insurance commissioner on a biennial basis in
conjunction with his or her license renewal cycle.
(b) This section shall not apply to:
(1) A licensee not licensed for one full year prior to the end of
the applicable continuing education biennium.
(2) A licensee holding a nonresident public insurance adjuster
license who has met the continuing education requirements of his or
her designated state or residence.