BILL ANALYSIS �
SENATE INSURANCE COMMITTEE
Senator William W. Monning, Chair
AB 2731 (Assembly Insurance Committee) Hearing Date: June 25,
2014
As Introduced: February 25, 2014
Fiscal: No
Urgency: No
VOTES: Asm. Floor (04/10/14)74-0/Pass
Asm. Ins. (04/02/14)12-0/Pass
SUMMARY Clarifies reporting requirements for various reports
related to insurance that must be submitted to the Legislature.
DIGEST
Existing law
1. Requires the submission of the following reports to the
Legislature regarding insurance issues
a. Reports regarding the insolvency of an insurer.
(Ins. Code � 985.5.)
b. Annual report of the California Life and Health
Insurance Guarantee Association. (Ins. Code � 1067.13.)
c. Annual report summarizing the number, type and
disposition of complaints received by the Department of
Insurance. (Ins. Code � 1858.35.)
d. Annual report from the California Assigned Risk Plan.
(Ins. Code � 11629.81.)
e. Workers' Compensation Insurance Rating Board report
AB
2731 (Assembly Ins. Committee), Page 2
to the Legislature regarding workers' compensation issues
for the taxi industry by May 1, 2003.
This bill
1. Specifies that reports required by Insurance Code Sections
985.5, 1067.13, 1858.35, and 11629.81 be reported directly
to the Assembly and Senate Committees on Insurance rather
than the Legislature generally.
2. Repeals a requirement for the Workers' Compensation
Insurance Rating Board report to the Legislature regarding
workers' compensation issues for the taxi industry by May 1,
2003.
COMMENTS
1. Purpose of the bill . The Assembly Committee on Insurance
has received questions from staff within the Department of
Insurance regarding to whom in the Legislature the reports
should be sent. This bill resolves those questions by
specifying the relevant policy committees in the statutes
requiring the reports. The bill also repeals the reporting
requirement on taxi driver wages as the due date for the
report has long since passed.
2. Background . The Insurance Code has many obsolete and
outdated reporting requirements with inconsistent reporting
standards. Over the years, legislative preferences have
shifted as to who should receive the report and how it
should be submitted.
Committees that may receive reports required by the
Insurance Code include the Health, Insurance, Judiciary,
Labor, and Transportation Committees of either or both
houses, each potentially having different preferences as to
how report should be submitted (especially whether they
should be submitted in electronic or hardcopy form).
This bill and SB 1065 (Monning) are independent, but
cooperative, efforts between the Assembly and Senate
Insurance Committees to work out a consistent approach to
AB
2731 (Assembly Ins. Committee), Page 3
reporting requirements, without imposing standards on
committees with different preferences. By assigning the
reports specifically to the Insurance Committees, the
committees may establish more specific reporting standards.
3. Support .
None received.
4. Opposition
None received.
5. Prior and Related Legislation
SB 1065 (Monning) would require that all report submitted to
legislative committees required under the Insurance Code
also be submitted to the Legislative Counsel. Would also
establish standards for the electronic submission of reports
required by the Insurance Code.
AB
2731 (Assembly Ins. Committee), Page 4
POSITIONS
Support
None received.
Oppose
None received.
Consultant: Hugh Slayden (916) 651-4773