BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1426|
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CONSENT
Bill No: AB 1426
Author: Assembly Insurance Committee
Amended: As introduced
Vote: 21
SENATE INSURANCE COMMITTEE : 9-0, 6/22/11
AYES: Calderon, Gaines, Anderson, Corbett, Correa, Lieu,
Lowenthal, Price, Wyland
ASSEMBLY FLOOR : 70-0, 5/12/11 (Consent) - See last page
for vote
SUBJECT : Insurance: credit insurance agents and
low-cost auto
insurance
SOURCE : Author
DIGEST : This bill repeals an obsolete reporting
requirement by the Insurance Commissioner regarding credit
insurance agents, and repeals the requirement to adopt
emergency regulations in connection with implementing the
low-cost automobile insurance program.
ANALYSIS :
Existing Law :
1. Requires the Insurance Commissioner (IC) to report to
the Legislature by June 30, 2004, on the effectiveness
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AB 1426
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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.
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.
Comments :
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.
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AB 1426
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FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
ASSEMBLY FLOOR :
AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng,
Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines,
Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall,
Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries,
Jones, Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Silva, Skinner, Smyth, Solorio,
Swanson, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. P�rez
NO VOTE RECORDED: Alejo, Cedillo, Conway, Garrick, Gorell,
Roger Hern�ndez, Bonnie Lowenthal, Mitchell, Portantino,
Torres
JJA:do 6/27/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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