BILL ANALYSIS �
AB 1425
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CONCURRENCE IN SENATE AMENDMENTS
AB 1425 (Insurance Committee)
As Amended August 31, 2011
Majority vote
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|ASSEMBLY: |75-0 |(May 26, 2011) |SENATE: |38-0 |(September, 7, |
| | | | | |2011) |
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Original Committee Reference: INS.
SUMMARY : Requires regulations adopted by the Insurance
Commissioner (IC) relating to life settlements and the low-cost
automobile insurance program to be adopted pursuant to the
Administrative Procedure Act (APA), and clarifies how workers'
compensation insurers may comply with recently enacted notice
requirements.
The Senate amendments :
1)Add the low-cost automobile program provisions to the bill.
2)Add the clarification on how a workers' compensation insurer
provides notice to applicants for insurance concerning return
premium upon cancelation of the policy.
3)Repeal an obsolete reporting requirement.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This Assembly Insurance Committee bill is intended
to modify the delegation to the IC of authority to adopt
regulations to implement the life settlement and low-cost
automobile insurance laws. When these programs were initially
enacted, the IC was given authority to adopt emergency
regulations, but those laws failed to specify that this
authority was to apply only to the initial adoption of
implementing regulations. The bill also contains technical and
noncontroversial corrections to the Insurance Code. Some of
these provisions were originally passed by the Assembly on
consent in AB 1426 (Solorio).
AB 1425
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Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086
FN: 0002821