Laws and Regulations - 1999 Legislation

Last Update: October 27, 1999

Assembly Bill 413 (Brewer)
Special Lines' Surplus Line Brokers

Introduced on February 12, 1999 by Assemblywoman Marilyn C. Brewer (R-70).

Status: October 25, 1999 Still pending in the Assembly Committee on Insurance and may be reconsidered next year.

This bill permits special lines surplus line brokers to be referred to as "special lines brokers" in order to limit confusion between those producers that may place business with non-admitted insurers on the Commissioner's List of Eligible Surplus Line Insurers (LESLI), and those allowed to place special lines of insurance where the non-admitted insurer is not required to be on the LESLI.

Back to Top

Senate Bill 896 (Speier)
Auditing Premium Tax Returns

Introduced on February 25, 1999 by Senator Jackie Speier (D-8).

Status: June 3, 1999, Failed to receive a two-thirds majority vote required for passage. Refused further consideration on the Senate floor, but may be reconsidered next year.

Existing law imposes a tax upon the gross premiums of insurance and provides for the processing and auditing of tax returns by the DOI and for the issuing of deficiency assessments and the processing of petitions and refunds by the State Board of Equalization (SBE). This bill would transfer those tax return processing and auditing duties of the DOI to the SBE, and would appropriate an unspecified amount from the General Fund for the purpose of funding the SBE's performance of the transferred audit duties for the 1999-2000 fiscal year.

Back to Top

Assembly Bill 478 (Cox)
Surplus Line Brokers Certificates

Introduced on February 18, 1999 by Assemblyman Dave Cox (R-5).

Status: Enacted. Chapter 255, Statutes of 1999. Becomes effective January 1, 2000.

Provides a statutory distinction between certificates of insurance referred to in Insurance Code Section 384 and surplus line broker certificates referred to in Section 1764 and 1764.1 of the Code.

Existing law requires certificates evidencing the placement of insurance with an eligible non-admitted insurer to be in the name of the issuing surplus line broker and to contain specified provisions and disclosures. Existing law requires a certificate of insurance or verification of insurance provided as evidence of insurance in lieu of an actual policy of insurance to contain specified statements relating to the fact the certificate or verification is not an insurance policy, and does not amend, extend, or alter the coverage afforded by the policies listed in the certificate or verification. This bill would exempt certificates evidencing the placement of insurance with an eligible non-admitted insurer from the latter requirements.

This bill will also require that every non-admitted insurer provide a list of all California surplus line brokers authorized by the insurer to issue policies on its behalf in California, and any additions to or deletions from that list.

Back to Top

Assembly Bill 1081 (Calderon)
Pre-Answer Bonds

Introduced on February 25, 1999 by Assemblyman Thomas Calderon (D-58).

Status: Enacted. Chapter 498, Statutes of 1999. Becomes effective January 1, 2000.

Eliminates a sunset date on a statute governing exceptions to when a non-admitted insurer must post a pre-answer bond. 

Back to Top