BILL ANALYSIS �
AB 1426
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
AB 1426 (Committee on Insurance) - As Introduced: March 22,
2011
SUBJECT : Insurance: credit insurance agents and low-cost auto
insurance
SUMMARY : Repeals an obsolete reporting requirement by the
Insurance Commissioner (IC) regarding credit insurance agents,
and repeals the requirement to adopt emergency regulations in
connection with implementing the low-cost automobile insurance
program. Specifically, this bill :
1)Repeals the obsolete requirement that the IC report by June
30, 2004, on the effectiveness of a set of laws regulating
credit insurance agents.
2)Repeals the requirement that the IC adopt emergency
regulations in connection with the implementation of the
low-cost automobile insurance program.
EXISTING LAW :
1)Requires the IC to report to the Legislature by June 30, 2004,
on the effectiveness of a set of laws regulating credit
insurance agents. The set of laws are the ones that establish
the licensing requirements to become licensed as a credit
insurance agent or endorsee, specifies the authorized lines of
insurance, specifies the conditions for the sale of credit
insurance, and details prohibited acts.
2)Requires the IC to adopt emergency regulations in implementing
the low-cost automobile insurance program.
FISCAL EFFECT : None.
COMMENTS :
1)Background . Each year the Assembly Insurance Committee
introduces a set of committee bills, authored by a majority of
the committee Members, to address non-controversial issues.
This bill would remove obsolete language from the Insurance
AB 1426
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Code.
2)Emergency regulations. Existing law requires the IC to
implement the low-cost automobile insurance program in the
County of Los Angeles and the City and County of San Francisco
within 60 days of effective date of the law (January 1, 2000).
Existing law provides that the implementing regulations shall
be adopted as emergency regulations. Another provision of
existing law requires the IC to implement this program in the
other counties of the state by means of emergency regulations.
Since the low-cost automobile insurance program has been
implemented statewide for several years now, the basis for the
emergency regulations has passed.
Emergency regulations provide fewer days of public notice and
opportunity to comment. Also, emergency regulations are not
subject to the review process by the Office of Administrative
Law as to necessity and consistency with other laws. Since
the low-cost auto insurance program has been implemented
statewide for several years, any further regulations should be
adopted as regular regulations which require an adequate
notice to the public and an appropriate period to comment.
REGISTERED SUPPORT / OPPOSITION :
Support
None received.
Opposition
None received.
Analysis Prepared by : Manny Hernandez / INS. / (916)319-2086