Bill Text: CA AB1899 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance: production agents: license examinations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-24 - Chaptered by Secretary of State - Chapter 560, Statutes of 2016. [AB1899 Detail]

Download: California-2015-AB1899-Amended.html

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BILL NUMBER: AB 1899	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2016
	AMENDED IN ASSEMBLY  MARCH 16, 2016

INTRODUCED BY   Assembly Member Calderon

                        FEBRUARY 11, 2016

   An act to  amend   amend, repeal, and add
 Section 1677 of the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1899, as amended, Calderon. Insurance: production agents:
license examinations.
   Existing law requires the Insurance Commissioner to give, at least
once each month, in each of the cities in which he or she has an
office, qualifying examinations for production agent licenses.
Existing law requires every qualifying examination for a production
agent license to be in writing and to be of sufficient scope to
satisfy the commissioner that the applicant has sufficient knowledge
of, and is reasonably familiar with, the insurance laws of this state
and with the provisions, terms, and conditions of the insurance that
may be transacted pursuant to the license sought, and that the
applicant has a general and fair understanding of the obligations and
duties of the holder of that license.
   This bill,  commencing January 1, 2018,  
from January 1, 2018, to January 1, 2024,  would require the
examination for a license as a life agent, life-only agent, and
accident and health agent be provided in English and Spanish. 
The bill would require the Insurance Commissioner to evaluate the
qualifying examination taken in Spanish and submit a report to the
Legislature by March 1, 2023, as provided. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares that it is essential
that all of the state's residents have access to vital health
services that can prolong and enhance their lives, and that state
government continues to take reasonable and effective actions that
will facilitate access to these services.
  SEC. 2.  Section 1677 of the Insurance Code is amended to read:
   1677.  (a)  Every   Each  qualifying
examination for a license pursuant to this chapter shall be in
writing and shall be of sufficient scope to satisfy the commissioner
that the applicant has sufficient knowledge of, and is reasonably
familiar with, the insurance laws of this state and with the
provisions, terms, and conditions of the insurance that may be
transacted pursuant to the license sought, and that the applicant has
a general and fair understanding of the obligations and duties of
the holder of that license.
   (b) On and after January 1, 2018, the examination for a license as
a life agent, life-only agent, and accident and health agent shall
be provided in English and Spanish. 
   (c) The commissioner shall evaluate the qualifying examination
taken in Spanish and submit a report of the results to the
Legislature no later than March 1, 2023. The report shall be
submitted in compliance with Section 9795 of the Government Code and
shall include, but not be limited to, all of the following: 

   (1) The number of people taking the examination.  
   (2) The pass rate, including a comparison between the comparable
licensing examination taken in English.  
   (3) The number of licenseholders that sat for the examination
provided in Spanish and passed the examination that remain licensed.
 
   (4) The number of consumer complaints received and enforcement
actions taken with regard to the licenseholders who passed the
examination in Spanish.  
   (d) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date. 
   SEC. 3.    Section 1677 is added to the  
Insurance Code   , to read:  
   1677.  (a) Each qualifying examination for a license pursuant to
this chapter shall be in writing and shall be of sufficient scope to
satisfy the commissioner that the applicant has sufficient knowledge
of, and is reasonably familiar with, the insurance laws of this state
and with the provisions, terms, and conditions of the insurance that
may be transacted pursuant to the license sought, and that the
applicant has a general and fair understanding of the obligations and
duties of the holder of that license.
   (b) This section shall become operative on January 1, 2024.