Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2279

Introduced by Assembly Member Hagman

February 21, 2014

An act to amendbegin delete Sectionend deletebegin insert Sections 1676 andend insert 1749.01 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 2279, as amended, Hagman. Insurance: life agents.

begin insert

Existing law does not require an applicant for a life-only license or a life-only license limited to the payment of funeral and burial expenses, who is limited by the terms of a written agreement with an insurer that has filed on that life-only agent’s behalf a notice of appointment with the commissioner to transact only specific life insurance policies or annuities having an initial face amount of $15,000 or less that are designated by the purchaser for the payment of funeral and burial expenses, to take the full life agent examination to obtain a license.

end insertbegin insert

This bill would raise the initial face value of those life insurance policies or annuities to $20,000 or less.

end insertbegin insert

Existing law requires licensed life agents and applicants for licensure as a life agent to meet certain education standards unless they are limited by the terms of a written agreement with an insurer to transact only specified life insurance policies or annuities having an initial face value of $15,000 or less that are designated by the purchaser for the payment of funeral and burial expenses.

end insertbegin insert

This bill would raise the initial face value of those life insurance policies or annuities to $20,000 or less.

end insertbegin delete

Under existing law, applicants for a license as a property broker-agent, casualty broker-agent, limited lines automobile insurance agent, personal lines broker-agent, life-only agent, or accident and health agent are required to meet specified prelicensing education requirements and postlicensing continuing education requirements. A life agent who is limited by the terms of a written agreement with an insurer to transact only specific life insurance policies or annuities that have an initial face amount of $15,000 or less that are designated by the purchaser for the payment of funeral and burial expenses is not required to meet those education requirements.

end deletebegin delete

This bill would make technical, nonsubstantive changes to that provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1676 of the end insertbegin insertInsurance Codeend insertbegin insert is amended
2to read:end insert

3

1676.  

(a) Except as set forth in Sections 1675 and 1679, the
4commissioner shall not issue a permanent license pursuant to this
5chapter to an applicant therefor unless the applicant has within the
612-month period next preceding the date of issue of the license
7taken and passed the qualifying examination for that license. This
8section shall not apply to a person licensed as a property
9broker-agent or as a casualty broker-agent who applies for a license
10as a personal lines broker-agent.

11(b) An application for both the life-only and accident and health
12license types shall meet the requirement in subdivision (a) by
13passing one examination covering subjects pertaining to both
14license types. These applicants shall pay the fee for a life agent,
15as specified in paragraphbegin delete (2)end deletebegin insert (4)end insert of subdivision (a) of Section 1751.

16(c) An applicant for a life-only license pursuant to Section 1626
17or a life-only license limited to the payment of funeral and burial
18expenses who is limited by the terms of a written agreement with
19an insurerbegin delete whichend deletebegin insert thatend insert has filed on that life-only agent’s behalf a
20notice of appointment with the commissioner to transact only
21specific life insurance policies or annuities having an initial face
22amount ofbegin delete fifteen thousand dollars ($15,000)end deletebegin insert twenty thousand
23dollars ($20,000)end insert or less that are designated by the purchaser for
P3    1the payment of funeral and burial expenses, shall not be required
2to take the full life agent examination to obtain a license. The
3applicant shall be required to take an examination developed to
4test their knowledge of topics relevant to the type of policies that
5they are restricted to sell.

6

begin deleteSECTION 1.end delete
7begin insertSEC. 2.end insert  

Section 1749.01 of the Insurance Code is amended to
8read:

9

1749.01.  

Sections 1749 and 1749.3 shall not apply to a life
10agent who is limited by the terms of a written agreement with the
11insurer, which filed on that life agent’s behalf a notice of
12appointment with the commissioner, to transact only specific life
13insurance policies or annuities that have an initial face amount of
14begin delete fifteen thousand dollars ($15,000)end deletebegin insert twenty thousand dollars
15($20,000)end insert or less that are designated by the purchaser for the
16payment of funeral and burial expenses. The commissioner may
17require the insurer appointing those life agents to certify as to the
18 limitations of the agents’ representation.


O

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