BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2734
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2734 (Insurance Committee)
          As Amended August 18, 2014
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |78-0 |(May 15, 2014)  |SENATE: |35-0 |(August 21,    |
          |           |     |                |        |     |2014)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    INS.  

           SUMMARY  :  Contains several technical or noncontroversial changes  
          to the Insurance Code.  

           The Senate amendments  add several additional provisions to this  
          omnibus bill, including language that:

          1)Clarifies that the $5 million financial responsibility  
            requirements recently adopted for the testing of autonomous  
            (driverless) vehicles may be satisfied with an insurance  
            policy.

          2)Reduces to 30% from 50% the amount of trusteed surplus that  
            the Insurance Commissioner may allow a reinsurer that has  
            stopped writing new business for 3 years to use in support of  
            reinsurance ceded by United States insurers.

          3)Authorizes the Insurance Commissioner to act on an application  
            seeking status as a certified reinsurer 30 days after the  
            application is published, rather than the 90 days currently  
            required.

          4)Revises the definition of "disabled veteran business  
            enterprise" by allowing some of these businesses that do not  
            have a home office in California, but that meet the definition  
            in the Military and Veterans Code, to qualify for purposes on  
            insurers' reporting requirements.

           FISCAL EFFECT  :  Unknown


           COMMENTS  :   

          1)Purpose.  As a matter of convenience to the Department of  








                                                                  AB 2734
                                                                 Page  2

            Insurance, and to the industries that are governed by the  
            Insurance Code, the Assembly Insurance Committee introduced  
            this bill to serve as a vehicle for noncontroversial statutory  
            changes that would be too minor for a stand-alone bill.  As  
            passed by the Assembly, there were several provisions in the  
            bill.  The Senate amendments reflect the additional  
            discussions that resulted in more technical, noncontroversial  
            updates to the Insurance and Vehicle Codes.


           Analysis Prepared by  :    Mark Rakich / INS. / (916) 319-2086 


                                                               FN: 0004993