BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1098
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 1098 (Hagman) - As Amended:  March 31, 2011 

          Policy Committee:                              InsuranceVote:12 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Department of Insurance (DOI) make a 
          request in writing when they ask an insurer to disclose the fact 
          that they denied a registered auto body repair shop 
          participation in their direct repair program. 

           FISCAL EFFECT  

          DOI's standard practice is to make these requests in writing, 
          though statute allows them to do so orally, therefore costs 
          associated with this legislation would be negligible.

           COMMENTS  

           Rationale  . Current law does not require DOI make a request in 
          writing when they ask an insurer to disclose the fact that they 
          denied participation in their direct repair program to a 
          registered auto body repair shop. The author contends that 
          requiring the request be made in writing protects the privacy 
          rights of the carriers.  

          In support of the bill, the Personal Insurance Federation of 
          California states that a written request will ensure that the 
          person to whom the carriers release the information has the 
          authority to receive it. A telephone call does not allow for 
          that type of verification. 

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081 










                                                                  AB 1098
                                                                  Page  2