BILL ANALYSIS �
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THIRD READING
Bill No: AB 2731
Author: Assembly Insurance Committee
Amended: As introduced
Vote: 21
SENATE INSURANCE COMMITTEE : 10-0, 6/25/14
AYES: Monning, Corbett, Correa, DeSaulnier, Lieu, Mitchell,
Nielsen, Roth, Torres, Vidak
NO VOTE RECORDED: Gaines
ASSEMBLY FLOOR : 74-0, 4/10/14 (Consent) - See last page for
vote
SUBJECT : Insurance
SOURCE : Author
DIGEST : This bill clarifies reporting requirements for
various reports related to insurance that must be submitted to
the Legislature.
ANALYSIS : Existing law requires the submission of the
following reports to the Legislature regarding insurance issues:
1.Reports regarding the insolvency of an insurer.
2.Annual report of the California Life and Health Insurance
Guarantee Association.
3.Annual report summarizing the number, type and disposition of
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complaints received by the Department of Insurance.
4.Annual report from the California Assigned Risk Plan.
5.Workers' Compensation Insurance Rating Board report regarding
workers' compensation issues for the taxi industry.
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.
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The Insurance Code has many obsolete and outdated reporting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, 2014) are independent, but
cooperative, efforts between the Assembly and Senate Insurance
Committees to work out a consistent approach to 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.
Comments
The Assembly Committee on Insurance has received questions from
staff within the Department of Insurance regarding to whom in
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the Legislature the reports should be sent. This bill resolves
those questions by specifying the relevant policy committees in
the statutes requiring the reports. This bill also repeals the
reporting requirement on taxi driver wages as the due date for
the report has long since passed.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
ASSEMBLY FLOOR : 74-0, 4/10/14
AYES: Achadjian, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Dickinson, Donnelly, Fong, Fox, Frazier, Beth
Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, V. Manuel P�rez,
Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Alejo, Daly, Eggman, Jones, Salas, Vacancy
AL:nl 7/1/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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