Insurance.

The California Assembly Committee on Insurance proposes comprehensive updates to insurance industry regulations, modifying licensing requirements and expanding coverage options across multiple insurance sectors. The legislation revises terminology throughout the Insurance Code, replacing "agent" with "stock agent" for securities transactions and refining licensing processes for various insurance professionals.

The bill expands background check requirements for licensees, mandating disclosure of administrative actions related to professional licenses and regulatory investigations. It also broadens the definition of blanket insurance to include coverage for volunteers at educational institutions, sports organizations, and other eligible entities, while maintaining existing protections for students, employees, and participants.

For health insurance claims processing, the measure implements stricter timelines and higher penalties for delayed payments. Insurers must reimburse uncontested claims within 30 calendar days or face 15% annual interest charges, up from the current 10% rate. The legislation also requires automatic interest payments without claimant requests and adds penalties for non-compliance.

The State Compensation Insurance Fund receives expanded investment authority under the bill, allowing continued discretionary investments in specified securities and money market mutual funds. For part-time fraternal insurance licensees transitioning to full-time status, the measure establishes a structured examination process with clear timelines and requirements for maintaining licensure.