BILL NUMBER: AB 1024 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 25, 2011
INTRODUCED BY Assembly Member Hueso
FEBRUARY 18, 2011
An act to amend Section 6091 of the Insurance Code,
relating to fire An act to add Sections 1636 and
11629.86 to the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 1024, as amended, Hueso. Fire insurance: county mutual
fire insurers. Insurance: low-cost automobile
insurance: sales.
Existing law establishes within the California Automobile Assigned
Risk Plan a low-cost automobile insurance program in order to
provide a means for eligible consumers to buy automobile insurance,
as specified.
This bill would require the Department of Insurance to develop and
maintain an Internet Web site through which the department would
sell low-cost automobile insurance policies directly to eligible
consumers, as provided, and would require that the commission paid by
the insurer for those sales would be retained by the department and
used for maintaining and improving the Internet Web site or for
conducting low-cost automobile insurance program outreach.
Existing law authorizes the formation of county mutual fire
insurers, as specified. Existing law authorizes an action to be
brought and maintained against any such insurer by its members to
recover for losses insured against by the insurer, if payment is
withheld after the amount of those losses is determined, and is due
by the terms of the policy.
This bill would make technical, nonsubstantive changes to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1636 is added to the
Insurance Code , to read:
1636. A license shall not be required under this chapter for the
department and the department's employees to engage in the sale of
low-cost automobile insurance policies pursuant to Section 11629.86.
SEC. 2. Section 11629.86 is added to the
Insurance Code , to read:
11629.86. (a) The Department of Insurance shall develop and
maintain an Internet Web site through which it sells low-cost
automobile insurance policies directly to qualifying consumers.
(b) (1) Initial development of the Internet Web site shall be
funded with existing funds held by the department for consumer
outreach.
(2) The commission associated with any policy issued through the
Internet Web site that would otherwise be paid to a producer pursuant
to Section 11629.76 shall be retained by the department for the sole
purpose of maintaining and improving the Internet Web site or for
conducting low-cost automobile insurance outreach.
(3) The commission collected by the department pursuant to
paragraph (2) shall not exceed the reasonable cost of maintaining and
improving the Internet Web site or for conducting low-cost
automobile insurance outreach.
(c) The department shall ensure that, through the Internet Web
site, it does all of the following:
(1) Provides all disclosures and other information required by law
that would otherwise be provided by a producer.
(2) Effectively educates consumers about the policy and its
limits.
(3) Collects any documents that it determines are necessary for
determining qualification for the policy, if any.
(4) Has a system for creating an electronic certification of the
information provided by the consumer.
(5) Maintains safeguards to ensure that consumer information
transmitted through the Internet Web site is secure.
(d) The Internet Web site shall not be made available to the
public until the commissioner has made a determination that it
adequately provides all the necessary information a consumer would
need in order to purchase the policy. Upon this determination, and
notwithstanding any other law or regulation, the Internet Web site
shall be deemed an acceptable method by which application for a
low-cost automobile policy may be made.
(e) The Internet Web site shall be constructed to forward the
application, supporting documents, and the applicant's certification
to the California Automobile Assigned Risk Plan. The California
Automobile Assigned Risk Plan shall coordinate with the department in
order to develop a system for receiving and assigning policies
issued through the Internet Web site.
(f) (1) The Internet Web site shall accept payment by credit or
debit card or other form of electronic payment the department
determines to be appropriate. It shall also provide a mechanism for
payment by check.
(2) Prior to accepting payment and upon transmitting any
information from the consumer, the Internet Web site shall include a
clear explanation of whether the consumer will be afforded insurance
coverage upon payment and, if not, when the consumer will receive
coverage and how he or she will receive notice of coverage.
(g) Any consumer who does not qualify for the low-cost automobile
insurance policy shall be given an option to be directed to the
department's auto insurance premium comparison Internet Web page.
(h) The department shall make the Internet Web site available in
as many languages as it deems necessary, but this shall include
English and Spanish. The English and Spanish language sites shall be
made available to the public as soon as possible, irrespective of
whether other versions are finalized.
SECTION 1. Section 6091 of the Insurance Code
is amended to read:
6091. An action may be brought and maintained against any insurer
by its members to recover for losses insured against by the insurer,
if payment is withheld after the amount of those losses is
determined, and is due by the terms of the policy.