California 2017-2018 Regular Session Status: Enacted

AB 938 — Reinsurance.

Last action — Chaptered by Secretary of State - Chapter 202, Statutes of 2017.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 16, 2017. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 4 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law requires every insurer doing business in the state to make and file annual financial statements with the Insurance Commissioner, as specified. Existing law, for the purposes of those financial statements, allows a domestic insurer that cedes reinsurance to an assuming reinsurer to take a credit for the reinsurance as either an asset or a deduction from liability if the reinsurer meets specified requirements. If the reinsurer does not meet those requirements, existing law allows a credit for reinsurance to be taken either as an asset or a deduction from liability in an amount not exceeding the liabilities carried by the ceding insurer to the extent that the ceding insurer provides security in the form of funds or letters of credit, as specified. Existing law authorizes the commissioner to prescribe requirements consistent with those provisions, as specified. This bill would authorize the commissioner to adopt regulations applicable to reinsurance arrangements for certain life insurance policies, long-term care insurance policies, and annuities, as specified. The bill would authorize the commissioner, with regard to credit for reinsurance, to adopt by regulation, pursuant to specified provisions, specific additional requirements relating to or setting forth the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance arrangements for certain life insurance policies, long-term care insurance policies, and annuities, and the circumstances pursuant to which a credit described above would be reduced or eliminated. The bill would require that any regulations adopted by the Department of Insurance in accordance with this act be based upon, and consistent with, the current version of the model regulations adopted by the National Association of Insurance Commissioners, as provided. This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 202, Statutes of 2017.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3:30 p.m.

  4. In Assembly. Ordered to Engrossing and Enrolling.

  5. Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 2229.).

  6. Read second time. Ordered to Consent Calendar.

  7. From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar.

  8. In committee: Hearing postponed by committee.

  9. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (June 28). Re-referred to Com. on APPR.

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

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

  12. Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1618.).

  13. Read second time. Ordered to Consent Calendar.

  14. From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (May 10).

  15. Re-referred to Com. on APPR.

  16. Read second time and amended.

  17. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 19).

  18. Re-referred to Com. on INS.

  19. From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

  20. Re-referred to Com. on INS.

  21. From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

  22. Referred to Com. on INS.

  23. From printer. May be heard in committee March 19.

  24. Read first time. To print.

Sponsors

  • Cooley · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Cooley

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Consent Calendar 2nd (Urgency Clause)

Passed 38 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 33002
Democratic 5000
Total 38002
% of votes cast 95%0%0%5%
How each member voted (40)
Member Party Vote
Anderson — Yea
Bates — Yea
Hertzberg — Yea
Lara — Yea
Moorlach — Yea
Skinner — Not Voting
Vidak — Yea
Cannella — Yea
De León — Not Voting
Dodd — Yea
Allen — Yea
Glazer — Yea
Mitchell — Yea
Atkins — Yea
Portantino — Yea
Hernandez — Yea
Hill — Yea
Hueso — Yea
Beall — Yea
Bradford — Yea
Leyva — Yea
Mendoza — Yea
Monning — Yea
Morrell — Yea
Newman — Yea
Nielsen — Yea
Pan — Yea
Roth — Yea
Wieckowski — Yea
Wilk — Yea
Fuller — Yea
Galgiani — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Yea
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar

Passed 9 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 9004
Total 9004
% of votes cast 69%0%0%31%
How each member voted (13)
Member Party Vote
Hernandez — Yea
Lara — Yea
Mendoza — Yea
Mitchell — Not Voting
Portantino — Yea
Glazer — Yea
Hueso — Not Voting
Morrell — Yea
Newman — Yea
Roth — Yea
Galgiani — Yea
Beth Gaines — Not Voting
Bill Berryhill — Not Voting

Official roll call →

AB 938 COOLEY Consent Calendar Second Day

Passed 69 Yea · 0 Nay · 11 Other
Party YeaNayPresentNot Voting
Unaffiliated 49008
Democratic 13003
Republican 7000
Total 690011
% of votes cast 86%0%0%14%
How each member voted (80)
Member Party Vote
Acosta — Yea
Bloom — Yea
Brough — Yea
Harper — Yea
Mathis — Yea
Melendez — Yea
O'Donnell — Yea
Quirk — Yea
Steinorth — Yea
Thurmond — Yea
Weber — Yea
Eggman — Yea
Chu — Yea
Low — Yea
Gonzalez Fletcher — Yea
Mayes — Yea
Medina — Yea
Rodriguez — Yea
Ting — Yea
Burke — Yea
Salas — Yea
Frazier — Not Voting
Gray — Yea
Gomez — Yea
Bocanegra — Yea
Holden — Not Voting
Rubio — Yea
Jones-Sawyer — Yea
Kiley — Yea
Levine — Yea
Maienschein — Yea
McCarty — Yea
Mullin — Not Voting
Nazarian — Yea
Chau — Not Voting
Baker — Yea
Bigelow — Yea
Chiu — Yea
Chávez — Yea
Cooley — Yea
Obernolte — Yea
Rendon — Not Voting
Ridley-Thomas — Yea
Santiago — Not Voting
Voepel — Yea
Waldron — Yea
Wood — Yea
Cooper — Yea
Cunningham — Yea
Dababneh — Yea
Daly — Yea
Friedman — Not Voting
Gloria — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Mark Stone — Yea
Travis Allen — Yea
Aguiar-Curry, Cecilia M. Democratic Not Voting
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Not Voting
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gipson, Mike A. Democratic Not Voting
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea

Official roll call →

Do pass. To Consent Calendar.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 11000
Democratic 5000
Republican 1000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Bigelow — Yea
Bloom — Yea
Brough — Yea
Friedman — Yea
Gonzalez Fletcher — Yea
Gray — Yea
Bocanegra — Yea
Obernolte — Yea
Chau — Yea
Eggman — Yea
Eduardo Garcia — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Muratsuchi, Al Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Gallagher, James Republican Yea

Official roll call →

Subjects

healthcare
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 938 do?
Existing law requires every insurer doing business in the state to make and file annual financial statements with the Insurance Commissioner, as specified. Existing law, for the purposes of those financial statements, allows a domestic insurer that cedes reinsurance to an assuming reinsurer to take a credit for the reinsurance as either an asset or a deduction from liability if the reinsurer meets specified requirements. If the reinsurer does not meet those requirements, existing law allows a credit for reinsurance to be taken either as an asset or a deduction from liability in an amount not exceeding the liabilities carried by the ceding insurer to the extent that the ceding insurer provides security in the form of funds or letters of credit, as specified. Existing law authorizes the commissioner to prescribe requirements consistent with those provisions, as specified. This bill would authorize the commissioner to adopt regulations applicable to reinsurance arrangements for certain life insurance policies, long-term care insurance policies, and annuities, as specified. The bill would authorize the commissioner, with regard to credit for reinsurance, to adopt by regulation, pursuant to specified provisions, specific additional requirements relating to or setting forth the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance arrangements for certain life insurance policies, long-term care insurance policies, and annuities, and the circumstances pursuant to which a credit described above would be reduced or eliminated. The bill would require that any regulations adopted by the Department of Insurance in accordance with this act be based upon, and consistent with, the current version of the model regulations adopted by the National Association of Insurance Commissioners, as provided. This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors AB 938?
AB 938 is sponsored by Cooley.
What is the current status of AB 938?
This bill has been enacted into law. Introduced February 16, 2017. Enacted.
Where can I track AB 938?
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Last checked for changes 3 months ago · updated continuously

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