California Legislature—2013–14 Regular Session

Assembly Bill No. 2731

Introduced by Committee on Insurance (Assembly Members Perea (Chair), Hagman (Vice Chair), Bradford, Ian Calderon, Cooley, Dababneh, Frazier, Gonzalez, Nestande, V. Manuel Pérez, and Wieckowski)

February 25, 2014

An act to amend Sections 985.5, 1067.13, 1858.35, 11629.81 of, and to repeal Section 11759.2 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 2731, as introduced, Committee on Insurance. Insurance.

Existing law requires the Insurance Commissioner, the California Life and Health Insurance Guarantee Association, and the California Automobile Assigned Risk Plan to submit specified reports to the Governor and the Legislature by specified dates.

This bill would require those reports to be submitted to the Senate Committee on Insurance and the Assembly Committee on Insurance instead of to the Legislature.

Existing law also requires a licensed rating organization designated as the commissioner’s statistical agent to prepare a report on the potential underreporting of workers’ compensation exposure in the taxicab industry, and to submit that report to the commissioner by April 1, 2003, and to the Governor and the Legislature by May 1, 2003.

This bill would repeal 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 985.5 of the Insurance Code is amended
to read:

985.5.  

In the case of the insolvency of an admitted insurer, the
commissioner shall prepare a report, which shall be a public record,
with respect to the causes and factors which contributed to that
insolvency. The report shall be submitted to the Governor begin insert , end insert begin delete and to end delete
the begin delete Legislature end delete begin insert Senate Committee on Insurance, and the Assembly
Committee on Insurance end insert no later than one year from the date of
the insolvency.

SEC. 2.  

Section 1067.13 of the Insurance Code is amended to
read:

1067.13.  

The association shall be subject to examination and
regulation by the commissioner. The board of directors shall submit
to the commissioner, the Governor, begin delete and end delete the begin delete Legislature end delete begin insert end insert begin insert Senate
Committee on Insurance, and the Assembly Committee on
Insurance end insert each year, not later than 120 days after the association’s
fiscal year, a financial report in a form approved by the
commissioner and a report of its activities during the preceding
fiscal year. Upon the request of a member insurer, the association
shall provide the member insurer with a copy of the report.

SEC. 3.  

Section 1858.35 of the Insurance Code is amended to
read:

1858.35.  

On or before May 1 of each year, the commissioner
shall submit a report to the begin delete Legislature end delete begin insert Senate Committee on
Insurance, the Assembly Committee on Insurance, end insert and the
Governor stating the number and type of complaints received under
this article and the status and disposition of these complaints. The
commissioner may make any recommendations for improving the
efficiency and effectiveness of complaint handling under this
article.

No information shall be provided under this section pertaining
to a specified complaint against a specific insurer or rating
organization. However, the commissioner may report that
information in the aggregate.

SEC. 4.  

Section 11629.81 of the Insurance Code is amended
to read:

11629.81.  

The California Automobile Assigned Risk Plan shall
report to the begin delete Legislature end delete begin insert end insert begin insert Senate Committee on Insurance end insert begin insert and the
Assembly Committee on Insurance end insert on an annual basis, and at those
additional times as it deems prudent, on the status of the program.

SEC. 5.  

Section 11759.2 of the Insurance Code is repealed.

begin delete

11759.2.  

(a) A licensed rating organization designated as the
Insurance Commissioner’s statistical agent shall prepare a report
to be submitted to the Insurance Commissioner by April 1, 2003,
on the potential underreporting of workers’ compensation exposure
in the taxicab industry. The report shall include an analysis of
workers’ compensation exposure, loss, and premium in the taxicab
industry. The licensed rating organization shall submit a report to
the Governor, the Legislature, and the commissioner by May 1,
2003, that describes its findings.

(b) A licensed rating organization designated as the insurance
commissioner’s statistical agent may confer with state agencies,
including, but not limited to, the Employment Development
Department, in the preparation of the study. The state agencies
shall provide all necessary statistical or other information requested
by the licensed rating organization designated as the Insurance
Commissioner’s statistical agent.

end delete