BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE INSURANCE COMMITTEE
                           Senator Ronald Calderon, Chair


          AB 1426 (Committee on Insurance)Hearing Date: June 22, 2011

          As Introduced: March 22, 2011
          Fiscal:             No
          Urgency:       No
          

           SUMMARY    Would maintain the Insurance Code by deleting obsolete 
          provisions. 
          
           DIGEST
            
          Existing law
            
          Requires the Insurance Commissioner to:

             1.   Report to the Legislature by June 30, 2004, on the 
               effectiveness, and needed legislative reforms, if any, of 
               the credit insurance agents law establishing 1) the 
               licensing requirements to become licensed as a credit 
               insurance agent or endorsee, 2) the authorized lines of 
               insurance, 3)specifying conditions for the sale of credit 
               insurance, and 4) detailing prohibited acts.

             2.   Adopt emergency regulations for implementation of 
               California's Low Cost Auto Insurance Program
           
          This bill
           
          Repeals the obsolete requirement that the Insurance Commissioner 
          report by June 30, 2004, on the effectiveness of laws regulating 
          credit insurance agents; and 

          Repeals a requirement that the Insurance Commissioner adopt 
          emergency regulations in connection with the implementation of 
          the low-cost automobile insurance program.

           COMMENTS

          1.  Purpose of the bill  

          Each year the Assembly Insurance Committee introduces a set of 




                                                                      AB 
          1426 (Committee on Insurance), Page 2



          committee bills, authored by a majority of the committee 
          Members, to address non-controversial issues.
            
          This bill would remove obsolete language from the Insurance 
          Code.


           2.  Background and Discussion:   This Assembly Insurance 
              Committee bill is a non-controversial, "Code Maintenance" 
              measure. 

           3.  Summary of Arguments in Support:   

               a.     None received

           4.  Summary of Arguments in Opposition:    

               a.     None Received
                

          5.  Amendments:  

               a.     None proposed
        
          6.  Prior and Related Legislation:  

            a.  None
           
          LIST OF REGISTERED SUPPORT/OPPOSITION
          
          Support
           
          None
           
          Opposition
               
          None

          Consultant: Ken Cooley  (916) 651-4110