BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1024
                                                                  Page  1

          Date of Hearing:   May 27, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 1024 (Hueso) - As Amended:  May 11, 2011 

          Policy Committee:                              InsuranceVote:12 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill allows insurance agents and brokers to sell low-cost 
          automobile insurance through an Internet referral website, and 
          requires the California Automobile Assigned Risk Plan (CAARP) to 
          contract with a certified producer to operate a website to refer 
          consumers to certified agents or brokers for the purchase of 
          low-cost automobile insurance.

           FISCAL EFFECT  

          One-time costs to the Department of Insurance to develop the 
          required system and internet web site would be approximately 
          $160,000 (Insurance Fund).

           COMMENTS  

          Rationale  . The author states that while current law permits 
          licensed brokers to sell low-cost auto insurance, it does not 
          allow on-line processing or sales of this insurance.  This bill 
          would authorize both the processing and sale of low-cost auto 
          insurance through an authorized website.  According to the 
          author, Consumer Watchdog states this will not only enable more 
          uninsured drivers attain the minimum level of coverage required 
          by law, but it will also help achieve the goal of that law: to 
          reduce the number of uninsured drivers.  
           
           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081 











                                                                  AB 1024
                                                                  Page  2