Bill Text: CA AB2596 | 2023-2024 | Regular Session | Amended
Bill Title: Life insurers: certificate of exemption revocation: notice.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-01 - Re-referred to Com. on INS. [AB2596 Detail]
Download: California-2023-AB2596-Amended.html
|
Amended
IN
Assembly
March 21, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2596
| Introduced by Assembly Member Lee |
February 14, 2024 |
An act relating to government operations. to amend Section 10499 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2596, as amended, Lee.
Government operations. Life insurers: certificate of exemption revocation: notice.
Existing law generally regulates classes of insurance, including life insurance and annuities. Existing law prohibits the transaction of life or disability insurance by anyone other than a corporation, unless the person has a valid and unrevoked certificate of exemption issued by the Insurance Commissioner. Existing law authorizes a certificate to be procured from the commissioner by filing specified documents, including articles of incorporation, bylaws, and a statement of financial condition and income, as the commissioner finds necessary to make their determination. Existing law requires the commissioner to issue a certificate of exemption to an applicant if the commissioner finds that the applicant has met applicable requirements, and that the applicant is not formed, conducted, or operated for
profit or as a commercial insurance enterprise for the benefit of any group or person rather than the relatively equal benefit of its members. Existing law authorizes the commissioner, at any time, to notify a person possessing a certificate of exemption that the commissioner has grounds to believe the person has violated the Insurance Code or is not operating in strict conformity with the documents filed with the commissioner as a basis of its application for the certificate of exemption. Existing law requires the notice to fix the time of the hearing at no less than 15 days and no more than 60 days after the date of notice.
This bill would decrease the maximum amount of time a hearing may be fixed after the date of notice to no more than 45 days.
Existing law establishes the Government Operations Agency, which consists of several departments, including the Department of General Services. Existing law requires the department to develop and enforce policy and procedures and institute or cause the institution of those investigations and proceedings as it deems proper to assure effective operation of all functions performed by the department and to conserve the rights and interests of the state.
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, continues into existence a local agency formation commission in each county to encourage the orderly formation and development of local agencies based upon local conditions and circumstances, among other things.
This bill would state the intent of the Legislature to enact
legislation related to government operations.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 10499 of the Insurance Code is amended to read:10499.
The commissioner may at any time notify any person possessing a certificate of exemption that the commissioner has grounds to believe that it is violating any of the applicable provisions of this code or is not operating in strict conformity with the documents filed with the commissioner as a basis of its application for the certificate of exemption. The notice shall fix the time and place for hearing at which the person notified may appear and show cause why the commissioner should not revoke its certificate of exemption. The time fixed shall not be less than 15 nor more thanAt the time and place specified in the notice and order to show cause, the commissioner shall hold a hearing at which the possessor of a certificate of exemption may present evidence to show that it is not violating any applicable provision of this code, and that it is operating in conformity with the documents which were filed as a basis for the certificate of exemption. If after the hearing the commissioner finds the evidence shows that the operations of the person are in violation of any of the applicable provisions of this code, or are in violation of the documents upon which its application for certificate of exemption was based, the commissioner shall revoke the certificate of exemption and the person whose certificate of exemption is thus revoked shall cease the transaction of life and disability insurance until it procures a new certificate of exemption or a certificate of authority under other provisions of this code.
This article does not prevent the commissioner from acting and bringing proceedings under Article 14 (commencing with Section 1010) of Chapter 1 of Part 2 of Division 1, if grounds exist for the institution of such proceedings with respect to any person transacting life or disability insurance either with or without a certificate of exemption.
It is the intent of the Legislature to enact legislation related to government operations.
