Bill Text: CA AB269 | 2015-2016 | Regular Session | Amended

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Bill Title: Basic property insurance: California FAIR Plan.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB269 Detail]

Download: California-2015-AB269-Amended.html

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BILL NUMBER: AB 269	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Waldron

                        FEBRUARY 10, 2015

   An act to amend Section  10095.5   10094
 of the Insurance Code, relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 269, as amended, Waldron. Basic property insurance: California
FAIR Plan.
   Under existing law, the California FAIR (fair access to insurance
requirements) Plan Association is a joint reinsurance association of
state insurers that is established to, among other things, assist
persons in securing basic property insurance for qualified property
for which insurance cannot be obtained through the normal insurance
market.  Existing law requires the association to establish
and maintain a toll-free telephone number through which persons may
receive assistance in applying for insurance.   Existing
law also establishes a governing committee for the association
consisting of 9 insurers elected annually. The governing committee
also includes nonvoting members including, one representative of
insurance agents, one representative of insurance brokers, one
representative of   surplus line brokers, and one
representative of the public, each appointed by the Governor. 

   This bill would make technical, nonsubstantive changes to those
provisions.  
   This bill would provide that the governing committee shall have 8
members, eliminating one voting member of the governing committee.
This bill would also provide for a second representative of the
public, to be appointed by the Governor. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 10094 of the  
Insurance Code   is amended to read: 
   10094.  Within 30 days after the effective date of this chapter,
with the approval of the commissioner, all insurers licensed to write
and engaged in writing in this state, on a direct basis, basic
property insurance or any component thereof in multiperil policies,
shall establish an industry placement facility, the California FAIR
Plan Association, to formulate and administer a program for the
equitable apportionment among  such   those
 insurers of basic property insurance  which 
 that  may be afforded persons having an interest in real or
tangible personal property who, after diligent effort  (as
  , as  specified in subdivision (a) of Section
 10093),   10093,  are unable to procure
 such   that  insurance through normal
channels from an admitted insurer or a surplus line broker. Each
 such  insurer, as a condition of its authority to
transact  such   these  kinds of insurance
in this state, shall participate in  such   the
 industry placement facility program in accordance with rules to
be established by a governing committee consisting of  nine
  eight  insurers elected annually in the manner to
be provided in the program. The governing committee shall, in
addition, have as nonvoting members one representative of insurance
agents, one representative of insurance brokers, one representative
of surplus line brokers, and  one representative 
 two representatives  of the public, each to be appointed by
the Governor. The governing committee may establish separate
classifications of written premiums for the purpose of equitable
 distribution   distribution,  but shall
not include premiums from automobile or farm risks. The program may
also provide, with the approval of the commissioner, for assessment
of all members in amounts sufficient to operate the facility, and may
establish maximum limits of liability to be placed through the
program, reasonable underwriting standards for determining
insurability of a risk, and commission to be paid to the licensed
producer designated by the applicant. 
  SECTION 1.    Section 10095.5 of the Insurance
Code is amended to read:
   10095.5.  (a) The association shall establish and maintain a
statewide toll-free "800" telephone number through which persons may
receive assistance in applying for insurance through the plan. The
association shall cause the number to be published in all general
distribution telephone directories in California.
   (b) An insurance agent or broker transacting basic property
insurance shall either assist persons in making application for
insurance through the plan or provide persons who desire that
insurance with the toll-free telephone number established pursuant to
subdivision (a).