BILL NUMBER: SB 131 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2011
INTRODUCED BY Senator Gaines
( Principal coauthor: Senator
Calderon )
JANUARY 27, 2011
An act to amend Section 900 Section 1774
of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 131, as amended, Gaines. Insurance: financial
statements: insurers. surplus line brokers: statement
of business transacted.
Existing law requires, on or before the first day of March of each
year, the surplus line broker to file with the Insurance
Commissioner a sworn statement of all business transacted under his
or her surplus line license during the last preceding calendar year.
"Business done" or "business transacted" under a surplus line broker'
s license means all insurance regarding which that surplus line
broker is required to file a confidential written report with the
commissioner or the commissioner's designee, as provided. Existing
law further provides that if 2 or more persons licensed as surplus
line brokers are involved in placing an insurance policy, only the
one responsible for negotiating, effecting the placement, remitting
the premium to the nonadmitted insurer to its representatives, and
filing the confidential written report is considered transacting
under his or her surplus line broker's license.
This bill would instead require that when 2 or more persons
licensed as surplus line brokers are involved in placing an insurance
policy, only the one responsible for filing the confidential written
report would be considered transacting under his or her surplus line
broker's license.
Existing law requires every insurer doing business in this state
to make and file with the commissioner, on or before the first day of
March of each year, statements exhibiting its condition and affairs
as of the previous December 31.
This bill would make a technical, nonsubstantive change to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1774 of the
Insurance Code is amended to read:
1774. (a) On or before the first day of March of each year ,
the surplus line broker shall file with the commissioner a
sworn statement of all business transacted under his or her surplus
line license during the last preceding calendar year. Such
That statement shall contain an account of the
business done by the surplus line broker for the prior year.
(b) For purposes of this chapter, "business done" or "business
transacted" under a surplus line broker's license means all insurance
regarding which that surplus line broker is required to file a
confidential written report with the commissioner or the commissioner'
s designee pursuant to subdivision (a) of Section 1763. If two or
more persons licensed as surplus line brokers are involved in placing
a policy, only the one who is responsible for negotiating,
effecting the placement, remitting the premium to the nonadmitted
insurer or its representatives and filing the confidential
written report pursuant to subdivision (a) of Section 1763 ,
shall be considered transacting under his or her surplus
line broker's license.
(c) The date on which the surplus line broker transacting a policy
prepares a bill or invoice for payment of all or part of the
premiums due, shall be considered the date on which that business was
done or transacted, subject to paragraph (d). This date shall be
shown on the face of the bill or invoice and shall be referred to as
the "invoice date."
(d) (1) The invoice date shall be no more than 60 days after the
policy effective date and no more than 60 days after the insurance
was placed with a nonadmitted insurer, except as provided in
paragraph (2) of this section.
(2) For purposes of this chapter, the amount of gross premium to
be reported, if premiums are billed and payable in installments,
shall be the amount of the installment premium, provided the amount
and due date of each installment, or the basis for determining each
installment, is identifiable in the policy or an endorsement, and
either of the following conditions is satisfied:
(A) Installments under the policy are not billed more frequently
than once per month.
(B) If more than one installment is billed in any month, the
commissioner determines, in his or her discretion, that the
installment billing method used does not unduly burden the
commissioner's ability to accurately determine the amount of premium
paid by the insured.
SECTION 1. Section 900 of the Insurance Code is
amended to read:
900. (a) Each year, on or before the first day of March, every
insurer doing business in this state shall make and file with the
commissioner, in the number, form, and by the methods prescribed by
the commissioner, statements exhibiting its condition and affairs as
of the previous December 31. If the first day of March falls on a day
other than a business day, the filing is due to the commissioner by
the first business day preceding the first day of March.
(b) Each year, on or before the following dates, every insurer
doing business in this state shall make and file with the
commissioner, in the number, form, and methods prescribed by the
commissioner, statements exhibiting its condition and affairs for the
period beginning on January 1 of the current calendar year through
the end of each quarter of the current year as described below. These
quarterly filings shall cover the period of time beginning January 1
of the current year through and including the last day of the
quarter for which the report is being made. The first quarter filing
shall be filed with the commissioner on or before May 15th of every
year. The second quarter filing shall be filed with the commissioner
on or before August 15th of every year. The third quarter filing
shall be filed with the commissioner on or before November 15th of
every year. If any of these dates fall on a day other than a business
day, then the filing is due to the commissioner by the first
business day preceding that date.