AB 1065 — Insurance transactions: notice: electronic transmission.

Summary

Existing law, the Uniform Electronic Transactions Act, applies to electronic records and electronic signatures of a transaction, and generally prohibits a record or signature from being denied legal effect or enforceability solely because it is in electronic form. Existing law exempts from that act specific transactions. Existing law, commencing January 1, 2021, would exempt specified notices regarding the cancellation, expiration, and replacement of insurance policies from that act. This bill would instead make those notices subject to the act indefinitely. Existing law authorizes an insurer to provide notices of insurance transactions by electronic transmission, if the insurer complies with specified requirements, including that the insurer acquires the consent of the person to opt in to receive the notice by electronic transmission. Existing law, commencing on January 1, 2021, excepts from this electronic transmission authorization any written record that is required to be given or mailed that relates to the business of life insurance. This bill would repeal that exception, thereby indefinitely authorizing written records relating to the business of life insurance to be provided by electronic transmission if the insurer complies with the specified requirements. Existing law, until January 1, 2021, requires a licensee who is required to transmit a record by return receipt, registered mail, certified mail, signed written receipt of delivery, or other method of delivery evidencing actual receipt by the person, and who transmits that record electronically, to maintain a process or system that demonstrates proof of delivery and actual receipt of the record. Under existing law, until January 1, 2021, a licensee who transmits a notice of lapse, nonrenewal, cancellation, or termination of an insurance product electronically is also required to demonstrate that proof of delivery. This bill would eliminate the January 1, 2021 sunset date, thereby making those proof of delivery and actual receipt requirements apply indefinitely. Existing law authorizes the Department of Insurance to suspend a licensee from providing records by electronic transmission if there is a pattern or practices that demonstrate the licensee has failed to comply with specified requirements regarding those records. Existing law authorizes a licensee to appeal the suspension, as specified. This bill would instead require the Insurance Commissioner, when the commissioner has reason to believe that a licensee has been or is engaged in conduct that violates those requirements, to issue a statement of charges to the licensee and to provide the licensee with a hearing, as specified. The bill would authorize the licensee to obtain a review of the order of the commissioner by making a specified filing in court. The bill would additionally subject any licensee who violates a cease and desist order regarding these requirements to specified civil penalties or a suspension or revocation of a licensee's license, if the licensee knew or reasonably should have known it was in violation of the cease and desist order. This bill would require the commissioner, on or before January 1, 2022, to submit a report to the Governor and to the committees of the Senate and Assembly having jurisdiction over insurance and the judiciary, regarding insurer compliance with laws governing electronic transmissions of insurance transactions.

Bill Text

• Chaptered 09/05/19 - Chaptered Current pdf September 05, 2019
• Enrolled 08/23/19 - Enrolled pdf August 23, 2019
• Amended 07/11/19 - Amended Senate pdf July 11, 2019
• Amended 06/27/19 - Amended Senate pdf June 27, 2019
• Introduced 02/21/19 - Introduced pdf February 21, 2019
• AB1065 View text html

Action History

1. September 05, 2019

   Chaptered by Secretary of State - Chapter 235, Statutes of 2019.

2. September 05, 2019

   Approved by the Governor.

3. August 27, 2019

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

4. August 22, 2019

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 2799.).

5. August 19, 2019

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 21 pursuant to Assembly Rule 77.

6. August 19, 2019

   Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2203.).

7. August 13, 2019

   Read second time. Ordered to third reading.

8. August 12, 2019

   From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

9. July 11, 2019

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

10. July 10, 2019

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (July 9).

11. June 27, 2019

    Read second time and amended. Re-referred to Com. on JUD.

12. June 26, 2019

    From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 13. Noes 0.) (June 26).

13. June 12, 2019

    In committee: Hearing postponed by committee.

14. April 24, 2019

    Referred to Coms. on INS. and JUD.

15. April 08, 2019

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

16. April 08, 2019

    Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 1079.)

17. April 04, 2019

    Read second time. Ordered to third reading.

18. April 03, 2019

    From committee: Do pass. (Ayes 14. Noes 0.) (April 3).

19. March 07, 2019

    Referred to Com. on INS.

20. February 22, 2019

    From printer. May be heard in committee March 24.

21. February 21, 2019

    Read first time. To print.

Sponsors

• Marc Berman · Primary

Votes

Subjects