Prior Legislation

California Legislature

AB 1639 (Duvall)

AB 1639 (Duvall), would require California residents who are selling surplus line/special lines' surplus line insurance to be individually licensed by the Department of Insurance, instead of being licensed under, or on behalf of, a business entity.California surplus line brokers are currently having difficulty obtaining nonresident licenses in other states because they do not have an individual surplus line broker's license. This bill passed in the Assembly and is pending floor action in the Senate.

AB 522 (Duvall)

AB 522 (Duvall),would delete the sunset provision on the right of personal lines policy applicants and policyholders to sign the D-1 disclosure notice five days after being provided evidence of insurance. The bill was amended to add a provision allowing brokers to extend existing surplus line policies by 90-days without having to make an SLA filing. This provision would not allow any changes in coverage, terms, conditions or limits. Any additional premium charged for the extension would be determined pro rata, based on the same rate of premium as the existing surplus line policy. The bill passed in the Assembly and is pending hearing in the Senate Banking, Finance and Insurance Committee.

AB 1051 (Carter)

AB 1051 (Carter), would exempt governmental agencies from existing prohibitions on the purchase of nonadmitted insurance when purchased for the purpose of financing environmental remedial work authorized by a court order. The bill is pending in the Assembly Insurance Committee. This bill passed in the Assembly and is pending hearing in the Senate Banking, Finance and Insurance Committee.

AB 796 (Coto)

AB 796 (Coto), would delete an inaccurate statement in statute (CIC Sec. 1765.1) regarding the presumption that securities valued by the NAIC Securities Valuation Office (SVO) are automatically considered "readily marketable" assets, unless there is evidence to the contrary. This bill has passed the Assembly and was heard in the Senate Appropriations Committee on July 2.

United States Congress

HR 1065 & S 929

HR 1065 & S 929, The Nonadmitted and Reinsurance Reform Act - calls for a uniform 50-state system of surplus line premium tax allocation on multi-state policies, and home state regulation of surplus line transactions, participation in the national producer database, uniform standards for surplus line insurer eligibility, streamlined regulation of commercial purchases, and a compact on multi-state premium tax allocation. The bill passed in the House by unanimous vote but was referred to the Senate Committee on Banking, Housing, and Urban Affairs and no action has been taken.

HR 1081 & S 618

HR 1081 & S 618, The Insurance Industry Competition Act of 2007 - would amend the McCarran-Ferguson Act to make the Federal Trade Commission Act, as it relates to areas other than unfair methods of competition, applicable to the business of insurance to the extent that such business is not regulated by state law. The House bill has multiple committee referrals and the Senate bill is pending in the Judiciary Committee. The Senate held hearings on the bill in March 2007 but no further action has been taken.

S 40

S 40, National Insurance Act of 2007 - would authorize the issuance of Federal charters and licenses for carrying on the sale, solicitation, negotiation, and underwriting of insurance or any other insurance operations, to provide a comprehensive system for the Federal regulation and supervision of national insurers and national agencies, to provide for policyholder protections in the event of an insolvency or the impairment of a national insurer, and for other purposes. The bill is pending in the Senate Committee on Banking, Housing, and Urban Affairs.