Bill Text: CA AB3154 | 2023-2024 | Regular Session | Introduced

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Bill Title: Motor vehicle liability insurance refusals.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-03-11 - Referred to Com. on INS. [AB3154 Detail]

Download: California-2023-AB3154-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 3154

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Introduced by Assembly Member Chen

February 16, 2024

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An act to amend Section 657 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 3154, as introduced, Chen. Motor vehicle liability insurance refusals.

Existing law generally regulates classes of insurance, including motor vehicle liability insurance. Existing law requires an admitted insurer licensed to issue motor vehicle liability policies or a licensed agent to provide, upon request as specified, a written explanation of a refusal to accept an application for, or refusal to issue, a motor vehicle liability policy. An insurer or agent who willfully violates this provision is guilty of a misdemeanor and is punishable by a fine not exceeding $1,000 for each violation.

This bill would increase that maximum penalty to $1,500 and would also make technical, nonsubstantive changes.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 657 of the Insurance Code is amended to read:

657.

 (a) Where any If an admitted insurer, licensed to issue motor vehicle liability policies as defined in Section 16450 of the Vehicle Code, or any a licensed insurance agent refuses to accept an application for such a motor vehicle liability policy or refuses to issue such a policy when a written application has been made, the refusing agent or refusing insurer shall furnish to the applicant for insurance a written statement explaining the reason or reasons relied upon for such action the refusal if within 30 days of such the refusal the applicant requests in writing, from the agent or insurer who has refused to accept the application or to issue the policy, such a written explanation. Such The statement shall be furnished within 30 days of receipt of such the request.

(b) Any An insurer or agent willfully violating any provisions of this section is guilty of a misdemeanor and is punishable by a fine not exceeding one thousand five hundred dollars ($1,000) ($1,500) for each violation thereof.

(c) There shall be no liability on the part of, and no cause of action of any nature shall arise against, the Insurance Commissioner or against any an insurer, its authorized representative, its agents, its employees, or any a firm, person person, or corporation furnishing to the insurer information as to the reasons for such a refusal, for any a statement made by any of them in any a written notice of reasons for refusing to accept the application or issue the policy or in any other communication, oral or written, specifying the reasons for such action the refusal or the providing of the information pertaining thereto, to the refusal, or for statements made or evidence submitted in any hearings conducted in connection therewith. with the refusal.