Bill Text: CA AB2279 | 2013-2014 | Regular Session | Amended

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

---

Bill Title: Insurance: life agents.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-07-09 - Chaptered by Secretary of State - Chapter 108, Statutes of 2014. [AB2279 Detail]

Download: California-2013-AB2279-Amended.html

---

BILL NUMBER: AB 2279	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 21, 2014

   An act to amend  Section   Sections 1676 and
 1749.01 of the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2279, as amended, Hagman. Insurance: life agents. 
   Existing law does not require an applicant for a life-only license
or a life-only license limited to the payment of funeral and burial
expenses, who is limited by the terms of a written agreement with an
insurer that has filed on that life-only agent's behalf a notice of
appointment with the commissioner to transact only specific life
insurance policies or annuities having an initial face amount of
$15,000 or less that are designated by the purchaser for the payment
of funeral and burial expenses, to take the full life agent
examination to obtain a license. 
   This bill would raise the initial face value of those life
insurance policies or annuities to $20,000 or less.  
   Existing law requires licensed life agents and applicants for
licensure as a life agent to meet certain education standards unless
they are limited by the terms of a written agreement with an insurer
to transact only specified life insurance policies or annuities
having an initial face value of $15,000 or less that are designated
by the purchaser for the payment of funeral and burial expenses.
 
   This bill would raise the initial face value of those life
insurance policies or annuities to $20,000 or less.  
   Under existing law, applicants for a license as a property
broker-agent, casualty broker-agent, limited lines automobile
insurance agent, personal lines broker-agent, life-only agent, or
accident and health agent are required to meet specified prelicensing
education requirements and postlicensing continuing education
requirements. A life agent who is limited by the terms of a written
agreement with an insurer to transact only specific life insurance
policies or annuities that have an initial face amount of $15,000 or
less that are designated by the purchaser for the payment of funeral
and burial expenses is not required to meet those education
requirements.  
   This bill would make technical, nonsubstantive changes to that
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

   SECTION 1.    Section 1676 of the  
Insurance Code   is amended to read: 
   1676.  (a) Except as set forth in Sections 1675 and 1679, the
commissioner shall not issue a permanent license pursuant to this
chapter to an applicant therefor unless the applicant has within the
12-month period next preceding the date of issue of the license taken
and passed the qualifying examination for that license. This section
shall not apply to a person licensed as a property broker-agent or
as a casualty broker-agent who applies for a license as a personal
lines broker-agent.
   (b) An application for both the life-only and accident and health
license types shall meet the requirement in subdivision (a) by
passing one examination covering subjects pertaining to both license
types. These applicants shall pay the fee for a life agent, as
specified in paragraph  (2)  (4)  of
subdivision (a) of Section 1751.
   (c) An applicant for a life-only license pursuant to Section 1626
or a life-only license limited to the payment of funeral and burial
expenses who is limited by the terms of a written agreement with an
insurer  which   that  has filed on that
life-only agent's behalf a notice of appointment with the
commissioner to transact only specific life insurance policies or
annuities having an initial face amount of  fifteen thousand
dollars ($15,000)   twenty thousand dollars ($20,000)
 or less that are designated by the purchaser for the payment of
funeral and burial expenses, shall not be required to take the full
life agent examination to obtain a license. The applicant shall be
required to take an examination developed to test their knowledge of
topics relevant to the type of policies that they are restricted to
sell.
   SECTION 1.   SEC. 2.   Section 1749.01
of the Insurance Code is amended to read:
   1749.01.  Sections 1749 and 1749.3 shall not apply to a life agent
who is limited by the terms of a written agreement with the insurer,
which filed on that life agent's behalf a notice of appointment with
the commissioner, to transact only specific life insurance policies
or annuities that have an initial face amount of  fifteen
thousand dollars ($15,000)   twenty thousand dollars
($20,000)  or less that are designated by the purchaser for the
payment of funeral and burial expenses. The commissioner may require
the insurer appointing those life agents to certify as to the
limitations of the agents' representation.