BILL NUMBER: AB 793	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 17, 2011

   An act to add Section 785.1 to the Insurance Code, relating to
insurance producers.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 793, as introduced, Eng. Insurance producers: reverse
mortgages.
   Existing law provides that all insurers, brokers, agents, and
others engaged in the transaction of insurance owe a prospective
insured who is 65 years of age or older, a duty of honesty, good
faith, and fair dealing. This duty is in addition to any other duty,
whether express or implied, that may exist.
   This bill would prohibit an insurer, broker, agent, or others
engaged in the transaction of insurance, except as provided, from
participating in, being associated with, or employing any party that
participates in or is associated with, the origination of a reverse
mortgage, or referring a client or prospective client to any party
that participates in or is associated with the origination of a
reverse mortgage.
   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 785.1 is added to the Insurance Code, to read:
   785.1.  (a) An insurer, broker, agent, or others engaged in the
transaction of insurance shall not do either of the following:
   (1) Participate in, be associated with, or employ any party that
participates in or is associated with, the origination of a reverse
mortgage.
   (2) Refer a client or prospective client to any party that
participates in or is associated with the origination of a reverse
mortgage.
   (b) This section does not prevent an agent or broker from offering
title insurance, hazard, flood, or other peril insurance, or other
similar products that are customary and normal under a reverse
mortgage loan.