Amended in Assembly June 9, 2014

Amended in Senate March 28, 2014

Senate Bill No. 1065

Introduced by Senator Monning

February 18, 2014

An act to begin delete amend Sections 11629.85 and 13902 of, and to end delete add Section 45.5 begin delete to, end delete begin insert to end insert the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

SB 1065, as amended, Monning. Insurance: reports: electronic submission.

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. The existing Insurance Code requires various entities to submit certain reports to specified committees of the Legislature.

This bill begin delete would, except as specified, end delete begin insert would end insert authorize begin insert certain end insert reports required to be submitted to a committee of the Legislature pursuant to the Insurance Code to be submitted electronically, as specified. The bill would also begin delete make other technical, nonsubstantive changes. end delete begin insert require any report that is required under the Insurance Code to be submitted to a committee of the Legislature to also be submitted as an electronic or printed copy to the Legislative Counsel. end insert

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

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

SECTION 1.  

Section 45.5 is added to the Insurance Code, to
read:

45.5.  

(a)  begin delete A end delete begin insert For purposes of this section, “report” includes
any study or audit. end insert

begin insert

(b) Any report required under this code to be submitted to a
committee of the Legislature shall also be submitted as an
electronic or printed copy to the Legislative Counsel.

end insert begin insert

(c) Reports required under Sections 1872.95, 11629.85, and
13902 may be submitted electronically to a committee of the
Legislature. This subdivision is not intended to prohibit the
submission of a report electronically if authorized by any other
law or the consent of any legislative committee.

end insert

begin insert (d) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert If a end insert report begin delete required end delete under this code begin insert is end insert to be submitted
begin insert electronically end insert to a committee of the Legislature begin insert , it end insert may be
submitted electronically in any of the following ways:

begin delete

(1)

end delete

begin insert (A) end insert  Providing the committee a digital copy of the report
delivered by electronic means to a person or account designated
to receive reports begin delete and in a form acceptable to the committee end delete .

begin delete

(2)

end delete

begin insert (B) end insert  Providing the committee a digital copy of the report stored
on permanent media delivered by first-class mail.

begin delete

(3)

end delete

begin insert (C) end insert  Placing the report on the reporting entity’s Internet Web
site so that it is publicly available for a period of no less than three
years. If a report is submitted electronically in accordance with
this begin delete paragraph, end delete begin insert subparagraph, end insert the committee shall be provided
notice begin delete of end delete begin insert that end insert the report begin insert is available end insert that includes specific
instructions on how to access the report and how to request a
hardcopy. The notice shall be delivered by first-class mail or by
electronic begin delete means, end delete begin insert means end insert and addressed to the person or account
designated to receive reports begin delete and in a form acceptable to the
committee end delete .

begin delete

(b) This section shall not apply to reports required under
Sections 38.5, 10089.13, 10965.9, and 11885, of the Insurance
Code.

end delete begin insert

(2) Reports and notices submitted electronically shall be
provided in a standard format accessible by software or other
means that is available without charge or obligation and is
acceptable to the committee.

end insert

begin delete

SEC. 2.  

Section 11629.85 of the Insurance Code is amended
to read:

11629.85.  

(a) On or before March 1 of each year, the
commissioner shall prepare and propose a plan to the Senate
Committee on Insurance and the Assembly Committee on
Insurance setting forth the methods the commissioner intends to
implement to inform households eligible for the program about
the availability of low-cost automobile insurance. To be eligible
for funding through the budget process, the plan shall be reviewed
by the Senate Committee on Insurance and the Assembly
Committee on Insurance. The information required under
subdivision (c) shall also be provided to the Senate Committee on
Transportation and Housing and the Assembly Committee on
Transportation.

(b) The plan shall include, at a minimum, a brief description of
methods proposed to be used, anticipated costs, sources of revenue,
goals, targets, objectives, and a justification of the proposed
methods. The plan shall also explain how the department proposes
to work in cooperation with the California Automobile Assigned
Risk Plan, the social service departments in eligible counties, the
Department of Motor Vehicles, and community-based
organizations in order to inform eligible households of the
existence of the program.

(c) The plan shall also include all of the following:

(1) The commissioner’s determination regarding whether the
program has been successful, based on the criteria specified in
subdivision (d), and an explanation regarding that success or lack
thereof.

(2) In cooperation with the California Automobile Assigned
Risk Plan, structural characteristics of the program that may require
statutory revision in order for the program to succeed or to improve
upon existing success.

(3) Impediments to success of the program that can reasonably
be overcome by revision to the strategies adopted by the
department.

(4) A detailed explanation of the department’s use for the
program of funds assessed pursuant to Section 1872.81.

(5) For the previous calendar year, a list of the total low-cost
auto premium for each county in which the program was available.

(d) The program is successful if the following occur:

(1) The program generated sufficient premiums to cover losses
incurred under policies issued under the program, and expenses
incurred by the program, as calculated pursuant to subdivision (c)
of Section 11629.72.

(2) The program served the public purpose of offering access
to automobile insurance to otherwise underserved communities in
the program areas.

(3) The program offered access to automobile insurance to
previously uninsured motorists seeking affordable coverage in the
program areas.

(4) The program’s outreach efforts lead uninsured motorists to
contact a producer, and the driver obtains any auto insurance policy
that complies with California law.

(e) Any written or oral advertisements, including, but not limited
to, paid or unpaid commercial or noncommercial advertising, by
the department with reference to the low-cost automobile insurance
program shall reference the department and shall not reference the
commissioner by name or office, or include the commissioner’s
voice, image, or likeness. The department shall not participate with
any nongovernmental entity that produces or intends to produce
advertisements or educational material that include the name of
the commissioner or his or her voice, image, or likeness, and that
are intended to make eligible households aware of the existence
of low-cost automobile insurance.

SEC. 3.  

Section 13902 of the Insurance Code is amended to
read:

13902.  

(a) Any insurance pool, established pursuant to this
division, may be organized as a nonprofit corporation, limited
liability company, partnership, or trust, whether organized under
the laws of this state or another state or operating in another state.

(b) Any insurance pool established pursuant to this division
shall have initial pooled resources of not less than two million five
hundred thousand dollars ($2,500,000) in the form of cash or cash
equivalents.

(c) Any insurance pool established pursuant to this division
shall maintain adequate reinsurance to protect against its risks.

(d) Any insurance pool established pursuant to this division
shall furnish a copy of the pool’s annual audited financial statement
and most recent actuarial review, by first-class mail or by any other
method of delivery, including electronic transmission, to the
Assembly Committee on Housing and Community Development,
the Assembly Committee on Insurance, the Senate Committee on
Insurance, and the Senate Committee on Transportation and
Housing within 180 days of the close of the pool’s fiscal year. If,
in the period of time since the last submittal required by this
subdivision, any of the following has occurred, the transmittal
letter accompanying the annual audited financial statement and
most recent actuarial review shall so indicate and shall provide a
brief description of each matter:

(1) There has been a change to the pool’s plan of financing,
management, or operation, including any material amendment to
any of those plans.

(2) A claims audit report has been filed with any regulatory
body with respect to the pool.

(3) A report of examination issued by any regulatory body with
respect to the pool has been received.

(4) There has been a material change in the scope of the
regulation of the pool by other states in which the pool operates.

end delete