Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2366

Introduced by Assembly Member Bocanegra

February 21, 2014

An act begin delete relating to benefit and relief associations. end delete begin insert to add Section 11408 to the Insurance Code, relating to insurance. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2366, as amended, Bocanegra. Benefit and relief begin delete associations: Insurance Commissioner. end delete begin insert associations. end insert

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Existing law prohibits a firemen’s, policemen’s, or peace officer’s benefit and relief association from operating or doing business in the state without a certificate of authority issued by the Insurance Commissioner.

end insert begin insert

This bill would authorize the commissioner to receive and investigate formal written complaints made against a holder of a certificate of authority, as specified, and would authorize the commissioner, after providing notice and an opportunity for a hearing, to suspend or rescind the certificate if a complaint cannot be resolved in a timely manner.

end insert begin delete

Existing law provides for the regulation of insurers by the Department of Insurance. Existing law directs the Insurance Commissioner to enforce the execution of laws regulating the business of insurance. Existing law excludes firemen’s, policemen’s, and peace officers’ benefit and relief associations meeting certain requirements from state laws relating to insurance.

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This bill would express the intent of the Legislature to enact legislation to provide increased authority to the Insurance Commissioner to regulate public safety member benefit and relief associations.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 11408 is added to the end insert begin insert Insurance Code end insert begin insert ,
to read: end insert

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begin insert 11408. end insert   

(a) (1) Notwithstanding any other law, the
commissioner may receive and investigate formal written
complaints made against a holder of a certificate of authority
issued under Section 11401.

(2) In implementing this section, the commissioner may hold a
hearing or request any necessary documentation, including, but
not limited to, financial statements or legal documentation in an
effort to resolve the complaint.

(b) If a complaint cannot be resolved in a timely manner, the
commissioner may, after providing adequate notice and an
opportunity for a hearing, do either of the following:

(1) Suspend the certificate of authority issued under Section
11401, which shall prohibit the association from adding any
additional members until the complaint or violation is corrected.

(2) Rescind the certificate of authority issued under Section
11401.

(c) This section shall not be construed in a manner that conflicts
with the Employee Retirement Income Security Act of 1974 (Public
Law 93-406).

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begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation to provide increased authority to the Insurance
Commissioner to regulate public safety member benefit and relief
associations.

end delete