AB 299 — Insurance.

Summary

Existing law provides that the Insurance Commissioner shall annually mail to every domestic insurer a report specifying the reciprocal states. This bill would provide that every 4 years the commissioner shall mail to every domestic insurer a report specifying the reciprocal states. Existing law provides that at specified times the commissioner may, and at specified times shall, examine the business and affairs of insurers. In conducting an examination the commissioner shall consider the results of specified data, reports, and criteria. This bill would add other criteria that the commissioner must consider and would allow the consideration of any other criteria deemed appropriate by the commissioner. Existing law provides that the commissioner may disclose the content of an examination report, preliminary examination report or results, or any matter relating thereto, to the insurance department of this or any other state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time, or to the National Association of Insurance Commissioners (NAIC) , as specified. This bill would add market analysis data to the information that the commissioner may disclose, as specified. Existing law provides that all examinations shall be at the expense of the insurer, organization, or person examined, except that special examinations which are in addition to regular examinations may be at the expense of the state in the discretion of the commissioner. This bill would provide that all analyses performed pursuant to the provisions discussed above authorizing examinations by the commissioner would be at the expense of the insurer, as specified. Existing law provides that all insurers doing business in this state shall have an annual audit by an independent certified public accountant. The audit shall be conducted and the audit report prepared and filed in conformity with the Annual Audited Financial Reports instructions contained in the annual statement instructions as adopted from time to time by the NAIC. Existing law authorizes the commissioner to grant a 30-day extension of the filing date upon a showing of substantial cause. Existing law requires an insurer to submit a request for an extension 20 days prior to the date the audit is due. This bill would provide that the annual audit, including required auditor and management reporting, the audit committee and its membership, and any other aspects of the audit content and process be conducted in conformity with the standards adopted by the NAIC. The bill would instead authorize the commissioner to grant multiple 30-day extensions, as specified. This bill would require an insurer to submit a request for an extension 10 days prior to the date the audit is due. Existing law provides that domestic incorporated insurers may invest in an account or accounts in one or more banks or savings and loan associations to the extent the account or accounts are insured by an agency or instrumentality of the federal government, as specified. This bill would add credit unions to the financial institutions in which domestic incorporated insurers may invest. Existing law provides that excess funds investments shall not be made in a loan to any one borrower, as defined, in an amount exceeding 10% of the capital stock and surplus or 1% of the admitted assets of the lending insurer, whichever amount is greater. This bill would provide that excess fund investments shall not be made in a loan or any other obligation to any one borrower or obligor, as specified. Existing law prohibits domestic insurers or commercially domiciled insurers from entering into specified transactions unless they have notified the Insurance Commissioner of their intent to enter into the transaction in advance of entering into the transaction and the commissioner fails to prohibit the transaction, as specified. This bill would specify that tax sharing agreements are among the types of transactions for which the insurer would have to give the commissioner advanced notification of its intent to enter into the transaction, as specified. Existing law defines a fraternal benefit society as an incorporated society or supreme lodge without capital stock conducted solely for the benefit of its members and members' beneficiaries and not for profit. Under existing law, a fraternal benefit society may issue certificates of insurance providing for the payment of life and disability insurance benefits, as specified. Existing law requires fraternal benefit societies to use, among other tables, mortality tables approved by regulation promulgated by the Insurance Commissioner for purposes of determining actuary values, as specified. This bill would, in addition, authorize fraternal benefit societies to use mortality tables approved by bulletin issued by the commissioner for purposes of determining actuary values, as specified. Existing law provides that every policy of automobile liability insurance, as specified, or collision coverage, as specified, shall provide coverage for replacement of a child passenger restraint system (child seat) that was in use by a child during an accident for which liability coverage under the policy is applicable due to the liability of an insured. Existing law provides that upon the filing of a claim for replacement, unless otherwise determined, an insurer shall have an obligation to ask whether a child seat was in use by a child during an accident that is covered by the policy, and must replace the child seat if it was in use by a child during the accident or reimburse the claimant for the cost of purchasing a new child seat. This bill would provide that every policy of automobile liability insurance, as specified, shall provide coverage for replacement of a child seat that was damaged in a covered accident, and that every policy that provides collision coverage, as defined, shall include a child seat within the definition of covered property, as specified. This bill would provide that upon the filing of a claim for replacement, unless otherwise determined, an insurer would have an obligation to ask whether a child seat was in use by a child during an accident or was in the vehicle at the time of a loss that is covered by the policy, and must replace the child seat or reimburse the claimant for the costs of buying a new child seat if it was in use by a child during the accident or if it sustained a covered loss while in the vehicle. Existing law requires the Department of Insurance to display public pleadings, orders, or documents relating to a formal enforcement action against a licensee on its Internet Web site, as specified. This bill would require the department to remove any pleading, order, or document from, or post a clarifying statement on, its Internet Web site regarding any displayed pleading, order, or document when the relevant enforcement action against a licensee is withdrawn, as specified. This bill would also make changes to obsolete cross-references in insurance provisions.

Bill Text

• Chaptered 10/11/09 - Chaptered Current pdf October 11, 2009
• Enrolled 09/03/09 - Enrolled pdf September 03, 2009
• Amended 07/15/09 - Amended Senate pdf July 15, 2009
• Amended 07/02/09 - Amended Senate pdf July 02, 2009
• Introduced 02/17/09 - Introduced pdf February 17, 2009
• AB299 View text html

Action History

1. October 11, 2009

   Chaptered by Secretary of State - Chapter 234, Statutes of 2009.

2. October 11, 2009

   Approved by the Governor.

3. September 08, 2009

   Enrolled and to the Governor at 4:15 p.m.

4. September 01, 2009

   Senate amendments concurred in. To enrollment. (Ayes 77. Noes 1. Page 2848.)

5. August 27, 2009

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77.

6. August 27, 2009

   Read third time, passed, and to Assembly. (Ayes 38. Noes 0. Page 1977.)

7. August 24, 2009

   Ordered to Special Consent Calendar.

8. August 19, 2009

   Read second time. To third reading.

9. August 18, 2009

   From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

10. July 15, 2009

    Read second time, amended, and re-referred to Com. on APPR.

11. July 14, 2009

    From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 9).

12. July 06, 2009

    (Page 1586.)

13. July 06, 2009

    Joint Rule 62(a) suspended.

14. July 02, 2009

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., F. & I.

15. July 01, 2009

    In committee: Hearing postponed by committee.

16. May 21, 2009

    Referred to Com. on B., F. & I.

17. May 11, 2009

    In Senate. Read first time. To Com. on RLS. for assignment.

18. May 11, 2009

    Read third time, passed, and to Senate. (Ayes 78. Noes 1. Page 1350.)

19. April 27, 2009

    Read second time. To third reading.

20. April 23, 2009

    From committee: Do pass. (Ayes 16. Noes 0.) (April 22).

21. April 01, 2009

    From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 9. Noes 0.) (April 1).

22. March 04, 2009

    Referred to Com. on INS.

23. February 18, 2009

    From printer. May be heard in committee March 20.

24. February 17, 2009

    Read first time. To print.

Sponsors

• Committee on Insurance · Primary

Votes

Subjects