BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2782
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

           AB 2782 (Committee on Insurance) - As Amended:  April 22, 2010 

          Policy Committee:                              Insurance  
          Vote:12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes several changes to conform California insurance  
          law to the National Association of Insurance Commissioners  
          (NAIC) Producer Licensing Model Act (PMLA). The PMLA establishes  
          uniformity in six major lines of insurance: life, health,  
          property, casualty, life and annuity, and personal lines. The  
          PMLA was adopted by NAIC to avoid federal preemption of state  
          insurance laws in 2000. 

           FISCAL EFFECT  

          Minor and absorbable workload to the California Department of  
          Insurance (CDI) to continue oversight of insurers. 

           COMMENTS  

           1)Rationale  . This bill is sponsored by the California Department  
            of Insurance to increase conformity of state law relative to  
            recommendations of the NAIC PMLA. The NAIC is the organization  
            of insurance regulators from the 50 states. This bill makes  
            conforming changes across a number of statutes including laws  
            governing bail bonds, insurance adjustor licensure, continuing  
            education requirements, and authority of the department to  
            receive attorney fees in specified circumstances. 

           2)Background  . Following the passage of the federal  
            Gramm-Leach-Bliley Act in 1999, the NAIC worked to reduce the  
            risk of federal preemption in state insurance laws. The PMLA  
            is the primary vehicle for states to achieve uniformity in  
            this area of law. This bill makes a number of conforming  
            changes to increase uniformity.  








                                                                  AB 2782
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           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081