Insurance.
- Updates insurance terminology by replacing 'agent' with 'stock agent' across multiple code sections.
- Expands background check requirements to include unlicensed professional conduct and regulatory actions.
- Removes fingerprinting requirements for certain insurance license applicants including surplus line brokers.
- Increases penalties for insurance fraud and strengthens claims processing timelines with higher interest rates.
The California Assembly Committee on Insurance has put forward comprehensive legislation to modernize insurance industry terminology and enhance regulatory oversight. The bill replaces the term "agent" with "stock agent" throughout the Insurance Code when referring to individuals selling securities, while expanding background check requirements and refining licensing procedures.
The legislation modifies claims processing timelines for health insurance, reducing the standard reimbursement period from 30 working days to 30 calendar days and increasing the interest rate on delayed payments from 10% to 15% annually. Insurance companies must now provide detailed explanations when contesting or denying claims, including specific factual and legal bases for their decisions.
The bill expands the definition of background information that licensees and applicants must report to include administrative actions related to unlicensed professional activities and regulatory investigations of alleged misconduct. It also updates regulations for limited licenses, particularly for cargo insurance agents, and revises provisions for part-time fraternal insurance licensees regarding examination requirements and status changes. New restrictions on marketing accelerated death benefits prevent their misrepresentation as long-term care insurance, while modified vehicle service contract regulations clarify coverage parameters and administrative responsibilities.
 Anna CaballeroD Senator | Committee Member |  Not Contacted | |
 Roger NielloR Senator | Committee Member | Not Contacted | |
 Brian JonesR Senator | Committee Member | Not Contacted | |
 Susan RubioD Senator | Committee Member | Not Contacted | |
 Josh BeckerD Senator | Committee Member | Not Contacted |
- Updates insurance terminology by replacing 'agent' with 'stock agent' across multiple code sections.
- Expands background check requirements to include unlicensed professional conduct and regulatory actions.
- Removes fingerprinting requirements for certain insurance license applicants including surplus line brokers.
- Increases penalties for insurance fraud and strengthens claims processing timelines with higher interest rates.
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The California Assembly Committee on Insurance has put forward comprehensive legislation to modernize insurance industry terminology and enhance regulatory oversight. The bill replaces the term "agent" with "stock agent" throughout the Insurance Code when referring to individuals selling securities, while expanding background check requirements and refining licensing procedures.
The legislation modifies claims processing timelines for health insurance, reducing the standard reimbursement period from 30 working days to 30 calendar days and increasing the interest rate on delayed payments from 10% to 15% annually. Insurance companies must now provide detailed explanations when contesting or denying claims, including specific factual and legal bases for their decisions.
The bill expands the definition of background information that licensees and applicants must report to include administrative actions related to unlicensed professional activities and regulatory investigations of alleged misconduct. It also updates regulations for limited licenses, particularly for cargo insurance agents, and revises provisions for part-time fraternal insurance licensees regarding examination requirements and status changes. New restrictions on marketing accelerated death benefits prevent their misrepresentation as long-term care insurance, while modified vehicle service contract regulations clarify coverage parameters and administrative responsibilities.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 78 | 0 | 1 | 79 | PASS |
Anna CaballeroD Senator | Committee Member | Not Contacted | |
Roger NielloR Senator | Committee Member | Not Contacted | |
Brian JonesR Senator | Committee Member | Not Contacted | |
Susan RubioD Senator | Committee Member | Not Contacted | |
Josh BeckerD Senator | Committee Member | Not Contacted |