BILL NUMBER: AB 2782AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 5, 2010 INTRODUCED BY Committee on Insurance (Solorio (Chair), Bradford, Carter, Feuer, Hayashi, Nava, and Torres) MARCH 3, 2010 An act to amend Sections 31, 33, 34, 1621, 1623, 1625, 1637, 1639, 1749, 1749.3, 1758.96, 1758.992, 1802.1, 1807.5, 1807.7, 1808, 1810.7, 1811, 14090, 14090.1, 15054, and 15059.1 of, to add Sections 1742.3, 1807.8, and 1807.9 to, and to repeal Section 1673 of, the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST AB 2782, as amended, Committee on Insurance. Insurance omnibus. (1) Existing law prohibits insurance agents, insurance brokers, and insurance solicitors from transacting in life insurance. This bill would also prohibit insurance agents, insurance brokers, and insurance solicitors from transacting in disability insurance, health insurance, and 24-hour care coverage. (2) Existing law provides that a fire and casualty licensee is a person authorized to act as an insurance agent, broker, or solicitor, and a fire and casualty broker-agent license is a license to make those insurance transactions. A fire and casualty licensee is authorized to transact 24-hour care coverage and any coverage that a personal lines licensee is authorized to transact. This bill would delete the authorization of a fire and casualty licensee to transact 24-hour care coverage and any coverage that a personal lines licensee is authorized to transact. This bill would divide the fire and casualty broker-agent license into 2 insurance license types: property broker-agent licenses, for insurance coverage on the direct or consequential loss or damage to property of every kind, and casualty broker-agent licenses, for insurance coverage against legal liability, including for death, injury, disability, or damage to real or personal property. (3) Existing law requires a minimum of 40 hours of prelicensing study as a prerequisite to qualification for a fire and casualty broker-agent license. This bill would require a minimum of 20 hours of prelicensing study as a prerequisite to qualification for a property broker-agent license, and a minimum of 20 hours of prelicensing study as a prerequisite to qualification for a casualty broker-agent license. (4) Existing law requires a fire and casualty broker agent to complete an annual minimum of 25 hours of continuing education for the first 4 years of his or her licensing, and after 4 years the licensee is required to complete a minimum of 24 hours of continuing education prior to license renewal, every 2 years. This bill would instead require the property or casualty broker-agent to complete 24 hours of continuing education prior to license renewal. (5) Existing law authorizes a person licensed as a fire and casualty broker-agent or a life licensee to transact disability insurance on behalf of an insurer which is authorized to transact disability insurance by filing a notice of appointment for that purpose. This bill would delete that provision. (6) Existing law authorizes the Insurance Commissioner, where a licensee has been found by the commissioner to have violated any provision of the code that would justify the suspension or revocation of a license held, or where a person is applying for a license and there exists grounds for the denial of the application by the commissioner, to after a hearing, revoke the license held or deny the application for an unrestricted license, and in lieu of an unrestricted license issue a restricted license. This bill would authorize the commissioner, without a hearing, to issue an order denying an application by a business entity for an unrestricted license and granting instead a restricted license. The bill would also authorize this action by the commissioner where a controlling person of the business entity, as defined, holds a restricted license. The bill would provide for a means by which the business entity would be authorized to request reconsideration of the commissioner's decision. The bill would require that if the commissioner determines that the business entity should have been granted an unrestricted license, the unrestricted license would be required to be granted retroactively. (7) Existing law authorizes licensed insurance agents, insurance brokers, and credit insurance agents to act as credit insurance agents for an authorized insurer with respect to certain kinds of insurance sold in connection with and incidental to a loan or other extension of credit, as specified. This bill would include in the definition of credit insurance guaranteed automobile protection insurance, as defined, and any other form of insurance declared by the commissioner to be credit insurance. (8) Existing law requires an insurer not to execute an undertaking of bail except by and through a person holding a bail license issued by the commissioner. Bail licenses are renewable annually by way of a notice of intention to keep licenses in force or applications for renewal of licenses filed on or before June 30th of each year. This bill would, commencing January 1, 2011, delete the notice of intention to keep licenses in force as a renewal method, and make bail licenses renewable every 2 years, as prescribed. (9) Existing law requires that insurance adjusters and public insurance adjusters be licensed by the commissioner. Adjuster licenses expire on May 31 of each even-numbered year. Licensees are required, if not exempt, to complete a minimum of 24 hours of continuing education, including ethics. This bill would change the expiration of those licenses to the day 2 years after the last calendar day of the month in which the initial license was issued. The bill would require licenses issued prior to January 1, 2011, to expire on May 31 of each even-numbered year. The bill also would require that 3 hours of the continuing education requirement consist of ethics. (10) This bill would make conforming and related changes and delete obsolete provisions. 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. Section 31 of the Insurance Code is amended to read: 31. "Insurance agent" means a person authorized, by and on behalf of an insurer, to transact all classes of insurance other than life, disability, or health insurance, on behalf of an admitted insurance company. SEC. 2. Section 33 of the Insurance Code is amended to read: 33. "Insurance broker" means a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health with, but not on behalf of, an insurer. SEC. 3. Section 34 of the Insurance Code is amended to read: 34. "Insurance solicitor" means a natural person employed to aid a property and casualty broker-agent acting as an insurance agent or insurance broker in transacting insurance other than life, disability, or health. SEC. 4. Section 1621 of the Insurance Code is amended to read: 1621. An insurance agent is a person who transacts insurance, other than life, disability, or health insurance, on behalf of an admitted insurance company. The term "insurance agent" as used in this chapter does not include a life agent as defined in this article. SEC. 5. Section 1623 of the Insurance Code is amended to read: 1623. (a) An insurance broker is a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health insurance with, but not on behalf of, an admitted insurer. It shall be presumed that the person is acting as an insurance broker if the person is licensed to act as an insurance broker, maintains the bond required by this chapter, and discloses, in a written agreement signed by the consumer, all of the following: (1) That the person is transacting insurance on behalf of the consumer. (2) A description of the basic services the person will perform as a broker. (3) The amount of all broker fees being charged by the person. (4) If applicable, the fact that the person may be entitled to receive compensation from the insurer, directly or indirectly, for the consumer's purchase of insurance as a consequence of the transaction. (b) If a transaction involves both a retail broker and a wholesale intermediary broker, the wholesale intermediary broker shall be deemed to have satisfied its disclosure obligations under this section if it provides written disclosure to the retail broker of the criteria set forth in paragraphs (2), (3), and (4) of subdivision (a). (c) The presumption of broker status is rebutted as to any transaction in the admitted market in which any of the following is present: (1) The licensee is appointed, pursuant to Section 1704, as an agent of the insurer for the particular class or type of insurance being transacted. (2) The licensee has a written agreement with an insurer containing express terms that authorize the licensee to obligate the insurer without first obtaining notification from the insurer that the insurer has accepted, conditionally or unconditionally, the submitted risk. (3) The licensee is authorized, pursuant to a written agreement with an insurer, to appoint other licensees as agents of the insurer, pursuant to Section 1704. (4) The licensee is authorized, pursuant to a written agreement with an insurer, to pay claims on behalf of the insurer. (d) In all other cases, the presumption of broker status is rebutted based on the totality of the circumstances indicating that the broker-agent is acting on behalf of the insurer. (e) For purposes of this section, "totality of the circumstances" means evidence indicating whether a broker-agent was acting on behalf of the insurer or was acting on behalf of a third person. In determining the totality of circumstances, all relevant facts and circumstances shall be reviewed and the review is not limited to any particular fact or factors and this section does not require that any particular circumstance receive greater or lesser weight. SEC. 6. Section 1625 of the Insurance Code is amended to read: 1625. (a) A fire and casualty licensee is a person authorized to act as an insurance agent, broker, or solicitor, and a fire and casualty broker-agent license is a license so to act. (b) Licenses to act as a fire and casualty broker-agent under this chapter shall be of the following types: (1) Property, which shall entitle the licensee to transact insurance coverage on the direct or consequential loss or damage to property of every kind. (2) Casualty, which shall entitle the licensee to transact insurance coverage against legal liability, including that for death, injury, disability, or damage to real or personal property. SEC. 7. Section 1637 of the Insurance Code is amended to read: 1637. An organization may hold any license or licenses necessary to act in the following capacities under this chapter and no others: (a) A license to act as a life-only agent. (b) A license to act as an accident and health agent. (c) A license to act as a property broker-agent. (d) A license to act as a casualty broker-agent. (e) A license to act as a cargo shipper's agent. (f) A license to act as a personal lines licensee. (g) A license to act as a credit insurance agent. (h) A license to act as a rental car agent. (i) A nonresident license to act as a limited lines licensee pursuant to subdivision (i) of Section 1639. (j) A license to act as a self-service storage agent. (k) A license to act as a limited lines automobile insurance agent. SEC. 8. Section 1639 of the Insurance Code is amended to read: 1639. The following types of licenses under this chapter may be issued to nonresidents: (a) A property broker-agent or a casualty broker-agent if the nonresident is duly licensed to transact those lines of insurance described in Section 1625, under the laws of the state, territory of the United States, or province of Canada where the resident license is maintained. (b) A personal lines broker-agent if the nonresident is duly licensed to transact those lines of insurance described in Section 1625.5, under the laws of the state, territory of the United States, or province of Canada where the resident license is maintained. (c) A life-only agent or an accident and health agent if the nonresident possesses a resident license in another state, territory of the United States, or province of Canada to transact life insurance or disability insurance. (d) A nonresident life-only agent may be granted authority to transact variable contracts if he or she has been granted that authority by the state where the resident license is maintained. (e) A surplus line broker and a special lines surplus broker if the nonresident holds that type of license in the state or territory of the United States where the resident license is maintained. (f) A credit insurance agent if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. (g) A rental car agent if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. (h) A cargo shipper's agent if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. (i) A limited lines license if the nonresident holds that type of license in the state, territory of the United States, or province of Canada where the resident license is maintained. As used in this section, "limited lines license" means any authority granted by the resident state that restricts the authority of the license to less than the total authority granted by any of the types of licenses identified in this section. (j) A self-service storage agent if the nonresident holds that type of license in the state, territory of the United States, or Province of Canada where the resident license is maintained. SEC. 9. Section 1673 of the Insurance Code is repealed. SEC. 10. Section 1742.3 is added to the Insurance Code, to read: 1742.3. (a) The commissioner may, without hearing, issue an order denying an application by a business entity for an unrestricted license and granting instead a restricted license. The commissioner may do so when a controlling person of the business entity, as defined in subdivision (b) of Section 1668.5, holds a restricted license. The commissioner may impose any reasonable restriction on the business entity's authority to transact insurance that is similar or related to the restriction imposed upon the controlling person. A description of the nature and scope of the restriction imposed upon the business entity shall be included in the commissioner's order. The business entity shall have no property right in the restricted license and the commissioner may, with or without hearing or cause, suspend or revoke the restricted license. The restricted license shall be issued in the normal course of business following the issuance of the order and shall remain in effect pending the outcome of any request for reconsideration and any decision following a hearing pursuant to that request. (b) The business entity may request reconsideration of the commissioner's decision to deny an unrestricted license within 30 days from the date that the decision is mailed to the entity.If the commissioner grantsIf the business entity requests a hearing on the request for reconsideration, the hearing shall be conducted pursuant to Article 10 (commencing with Section 11445.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code, and the business entity shall bear the burden of proving by clear and convincing evidence that an unrestricted license should have been granted instead of a restricted license. If the commissioner determines, after a hearing, that the business entity should have been granted an unrestricted license, the entity shall be granted that unrestricted license retroactive to the date of the granting of the restricted license. SEC. 11. Section 1749 of the Insurance Code is amended to read: 1749. The department shall require all new applicants for 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 to meet prelicensing education standards as follows: (a) Require a minimum of 20 hours of prelicensing study as a prerequisite to qualification for a property broker-agent license. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. Any additions to the minimum requirements provided by this section shall be approved by the curriculum board pursuant to Section 1749.1 and certified by the department. (b) Require a minimum of 20 hours of prelicensing study as a prerequisite to qualification for a casualty broker-agent license. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. Any additions to the minimum requirements provided by this section shall be approved by the curriculum board pursuant to Section 1749.1 and certified by the department. (c) Require a minimum of 20 hours of prelicensing study as a prerequisite for qualification for a personal lines broker-agent license. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. Any additions to the minimum requirements provided by this section shall be approved by the curriculum board pursuant to Section 1749.1 and certified by the department. (d) Require a minimum of 20 hours of prelicensing study as a prerequisite for qualification for a life-only agent license. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. Any additions to the minimum requirements provided by this section shall be approved by the curriculum board pursuant to Section 1749.1 and certified by the department. (e) Require a minimum of 20 hours of prelicensing study as a prerequisite for qualification for a limited lines automobile insurance agent license. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. Any additions to the minimum requirements under this section shall be approved by the curriculum board pursuant to Section 1749.1 and certified by the department. (f) Require a minimum of 20 hours of prelicensing study as a prerequisite for qualification for an accident and health insurance agent license. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. Any additions to the minimum requirements under this section shall be approved by the curriculum board pursuant to Section 1749.1 and certified by the department. This curriculum shall also include instruction in workers' compensation and general principles of employers' liability. (g) In addition to the 20 hours of prelicensing education required to qualify for a license as a property broker-agent, casualty broker-agent, personal lines broker-agent, a life-only agent, or an accident and health agent, or the 20 hours of prelicensing education required to qualify for a license as a limited lines automobile insurance agent, the department shall require 12 hours of study on ethics and this code. Where an applicant seeks a license for more than one of the following license types: a fire and casualty broker-agent license, a personal lines broker-agent license, a life-only license, or an accident and health license, the applicant shall only be required to complete one 12-hour course on ethics and this code. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. (h) An applicant for a life-only agent license, an accident and health license, a personal lines broker-agent license, or a limited lines automobile insurance agent license, who is currently licensed as a nonresident in this state shall be required to complete only the course of study on ethics and this code, as required by this section. Additionally, any applicant for that license holding one or more of the designations specified in subdivisions (a) to (p), inclusive, of Section 1749.4 shall be exempted from any requirement for courses in general insurance that would otherwise be a condition of issuance of the license. (i) An applicant for a property broker-agent or casualty broker-agent license who is currently licensed as a nonresident in this state shall be required to complete only the course of study on ethics and this code, as required by subdivision (g). Additionally, any applicant for a license holding one or more of the designations specified in subdivisions (a) to (p), inclusive, of Section 1749.4, shall be exempted from any requirement for courses in general insurance that would otherwise be a condition of issuance of a license. (j) An applicant for a property broker-agent or casualty broker-agent license or both who is licensed as a personal lines agent shall complete a minimum of 20 hours of prelicensing study as a prerequisite for each of these licenses. The curriculum for satisfying this requirement shall be approved by the curriculum board and submitted to the commissioner for final approval. The applicant shall not be required to repeat any prelicensing requirements completed as a prerequisite to being licensed as a personal lines agent. (k) Review and approval of prelicensing courses not conducted in a classroom, as referenced in subdivisions (a) to (j), inclusive, shall include an evaluation of the safeguards in place to ensure that the student completing the course is the person enrolled in the course, methods used to monitor the students' attendance are adequate, methods for the student to interact with the entity providing the training exist, and methods used to record the times spent completing the course are adequate. (l) Prelicensing certificates of completion expire three years from the completion date of the course, whether or not a license is issued. SEC. 12. Section 1749.3 of the Insurance Code is amended to read: 1749.3. An individual licensed as a life-only agent or an accident and health agent and also licensed as a property or casualty broker-agent, or an individual only licensed as a property or casualty broker-agent, shall complete those courses, programs of instruction, or seminars approved by the commissioner for the type of license held. Completion of specified product training required in subdivision (d) of Section 1749.33, subdivision (b) of Section 1749.8, and paragraph (4) of subdivision (a) of Section 10234.93 may result in the completion of more than the minimum of required continuing education hours. The minimum number of hours required is as follows: (a) Any licensee, as specified insubdivision (a)this section , shall satisfactorily complete 24 hours of instruction prior to renewal of the license. These hours of instruction may be completed at any time prior to renewal of the license. (b) An individual licensed as a property broker-agent or casualty broker-agent and as a life-only agent or an accident and health agent shall satisfy the requirements of this section by demonstrating completion of the courses, programs of instruction, or seminars approved by the commissioner for any of the license types listed insubdivision (a)this section . (c) A licensee shall not be required to comply with the requirements of this article if the licensee submits proof satisfactory to the commissioner that he or she has been a licensee in good standing for 30 continuous years in this state and is 70 years of age or older. This exemption shall not apply to those individuals licensed for the first time on or after January 1, 2010. SEC. 13. Section 1758.96 of the Insurance Code is amended to read: 1758.96. A person licensed pursuant to this article may act as a credit insurance agent for an authorized insurer only with respect to the kinds of insurance specified in this section sold in connection with and incidental to a loan or other extension of credit other than a loan in excess of sixty thousand dollars ($60,000) relating to or secured by real property where the repayment period does not exceed 10 years. The sale of credit insurance products as specified in this section in excess of sixty thousand dollars ($60,000) relating to or secured by real property where any compensation, fee, or commission is paid dependent on the placement of credit insurance, requires a license to act as an insurance agent or life agent pursuant to Section 1621 or 1622. (a) Credit life insurance. (b) Credit disability insurance. (c) Credit involuntary unemployment insurance or credit loss-of-income insurance. (d) Credit property insurance. (e) Guaranteed automobile protection (GAP) insurance. (f) Any other form of insurance declared by the commissioner to be subject to this section pursuant to subdivision (d) of Section 1758.992. SEC. 14. Section 1758.992 of the Insurance Code is amended to read: 1758.992. As used in this article, the following definitions have the following meanings: (a) "Enrollment" means the process of soliciting or accepting enrollments or applications from a debtor under a credit insurance policy, which includes informing the debtor of the availability of coverage, calculating the insurance charge, preparing and delivering the certificate of insurance or notice of proposed insurance, answering questions regarding the coverage, or otherwise assisting the debtor in making an informed decision whether or not to elect to purchase credit insurance. (b) "Creditor" means a lender of money or a vendor or lessor of goods, services, property, rights, or privileges, for which payment is arranged through a credit transaction, or any successor to the right, title, or interest of that lender, vendor, or lessor, and any affiliate, associate, subsidiary, subcontractor, director, officer, or employee of any of them or any other person in any way associated with any of them. (c) "Credit insurance agent license" means an agent license issued to an individual or organization for the enrollment and sale of credit insurance. (d) "Credit insurance" includes credit life insurance, credit disability insurance, credit involuntary unemployment insurance, credit loss-of-income insurance, credit property insurance, or guaranteed automobile protection (GAP) insurance. Credit insurance also includes any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the commissioner determines should be designated a form of credit insurance. The commissioner may adopt, pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, reasonable rules and regulations necessary to carry out this subdivision. (e) (1) "Credit life insurance" means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction, exclusive of any insurance procured at no expense to the debtor. Insurance shall be deemed procured at no expense to the debtor unless the cost of the credit transaction to the debtor varies depending on whether or not the insurance is procured. (2) "Credit disability insurance" means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled, as defined in the policy, exclusive of any insurance procured at no expense to the debtor. Insurance shall be deemed to have been procured at no expense to the debtor unless the cost of the credit transaction to the debtor varies depending on whether or not the insurance is procured. (f) "Credit involuntary unemployment insurance" or "credit loss-of-income insurance" means insurance issued to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is involuntarily unemployed, as defined in the policy. (g) "Credit property insurance" means insurance that provides coverage (1) on personal property pledged or offered as collateral for securing a personal or consumer loan, or (2) on personal property purchased under an installment sales agreement or through a consumer credit transaction, but does not include any insurance that provides theft, collision, liability, property damage, or comprehensive insurance coverage in any automobile or any other self-propelled vehicle that is designed primarily for operation in the air or on the highways, waterways, or sea, and its operating equipment, or that is necessitated by reason of the liability imposed by law for damages arising out of the ownership, operation, maintenance, or use of those vehicles. However, that excluded insurance does include single interest coverage on any of those vehicles that insures the interest of the creditor in the same manner as collateral secures a loan. (h) (1) "Guaranteed automobile protection" (GAP) insurance means insurance in which a person agrees to indemnify a vehicle purchaser or lessee for any of the difference between the actual cash value of the insured's vehicle at the time of an unrecovered theft or total loss and the amount owed on the vehicle pursuant to the terms of a loan, lease agreement, or installment sales contract used to purchase or lease the vehicle. GAP insurance may also include a promise to pay up to five thousand dollars ($5,000) to an insured, in addition to the sum needed to indemnify the insured for the difference between the actual cash value and the outstanding debt, to purchase or lease another vehicle. (2) GAP insurance does not include, and no insurance license of any type under this code is required to offer, any of the following: (A) A promise contained in a conditional sales contract for the sale of a vehicle by a licensed motor vehicle dealer or a promise contained in a lease agreement for the lease of a vehicle by a licensed motor vehicle dealer or leasing company to waive all or a portion of the difference between the actual cash value of the insured's vehicle at the time of an unrecovered theft or total loss and the amount owed on the vehicle pursuant to the terms of a loan, lease agreement, or installment sales contract used to purchase or lease the vehicle. (B) A promise by a lender as part of a debt obligation to purchase or lease a vehicle in which the lender agrees to waive all or a portion of the difference between the actual cash value of the insured's vehicle at the time of an unrecovered theft or total loss and the amount owed on the vehicle pursuant to the terms of a loan, lease agreement, or installment sales contract used to purchase or lease the vehicle. (C) Coverage under subparagraphs (A) and (B) may not include a promise to pay money to a vehicle purchaser or lessee in addition to waiving the difference between the actual cash value and the amount owed. SEC. 15. Section 1802.1 of the Insurance Code is amended to read: 1802.1. Every applicant for a license to act as a bail agent shall file with the commissioner a notice of appointment executed by a surety insurer or its authorized representative authorizing that applicant to execute undertakings of bail and to solicit and negotiate those undertakings on its behalf. Additional notices of appointment may be filed by other surety insurers, upon the payment for each additional notice of the fees specified in subdivision (a) of Section 1811, before the license is issued and thereafter, as long as the license remains in force. Each appointment shall, by its terms, continue in force until any of the following occur: (a) Termination of the bail agent's license. (b) The end of the license term, if the fee provided in subdivision (e) of Section 1811 for filing a renewal application is not paid. (c) The filing of a notice of termination by the insurer, its representative, or by the bail agent. SEC. 16. Section 1807.5 of the Insurance Code is amended to read: 1807.5. Except as provided in Sections 1669 and 1738, the commissioner shall not suspend or revoke any license, issued under this article, without first granting a hearing, upon reasonable notice to the applicant, except that he may temporarily suspend a license for a period not exceeding 15 days pending the hearing. Where a hearing is held under this section the proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted pursuant to that chapter. SEC. 17. Section 1807.7 of the Insurance Code is amended to read: 1807.7. Commencing on January 1, 2011, all licenses issued pursuant to this article shall be for a license term of two years. SEC. 18. Section 1807.8 is added to the Insurance Code, to read: 1807.8. "License term" as used in this chapter means all of that two-year period beginning as described in subdivision (a) or (b) of Section 1807.9, as applicable, and ending on the day two years after the last calendar day of the month in which the initial license was issued. Licenses issued prior to January 1, 2011, shall expire on June 30th of each odd numbered year. SEC. 19. Section 1807.9 is added to the Insurance Code, to read: 1807.9. "License year" as used in this chapter shall be determined for each individual and entity as follows: (a) Upon initial licensing, the license year starts on the date the license is issued. (b) Subsequently, each license year starts the first day of the month following the month in which the initial license was issued. (c) A license year ends the following calendar year on the last calendar day of the month in which the initial license was issued. (d) A license year for licenses issued prior to January 1, 2011, starts on July 1st and ends on June 30th. SEC. 20. Section 1808 of the Insurance Code is amended to read: 1808. (a) Applications for renewal of licenses may be filed on or before the expiration date upon payment of the fees for filing specified in Section 1811. (b) Upon failure to file the application as provided in subdivision (a), the license shall expire on the first day of the next month, but the holder may file an application for a new license. Until that same month and day of the next succeeding year the fee shall be twice that specified in Section 1811 for the filing. (c) No application shall be deemed filed within the meaning of this section unless the document itself has been actually delivered to, and the proper fee for its filing has been paid at, the office of the commissioner during office hours, or unless both the document and the fee have been filed and remitted pursuant to Sections 11002 and 11003 of the Government Code. SEC. 21. Section 1810.7 of the Insurance Code is amended to read: 1810.7. (a) In order to be eligible to take the examination required to be licensed under this chapter, the applicant shall have completed not less than 12 hours of classroom education in subjects pertinent to the duties and responsibilities of a bail licensee, including, but not limited to, all related laws and regulations, rights of the accused, ethics, and apprehension of bail fugitives. Additionally, a licensee shall complete in each two-year license term not less than 12 hours of continuing education in these subjects prior to renewal of his or her license. (b) The commissioner shall approve or disapprove an applicant to provide education for licensure as required by this section within 90 days of receipt of the applicant's full and complete application. However, this 90-day period shall be tolled during the pendency of any investigation of the applicant by the commissioner for an alleged violation that would, if proven, result in the suspension, revocation, or denial of the provider's approval to provide continuing education to bail agents as prescribed in Section 1813. Failure to disapprove an applicant within this period shall result in the automatic approval of the application. Approval shall be valid for two years. The commissioner may, at any time, disapprove any provider who is not qualified or whose course outlines are not approved, who is not of good business reputation, or who is lacking in integrity, honesty, or competency. A provider shall not provide education for licensure following the expiration of the two-year approval period unless the commissioner has renewed the provider's approval. The commissioner shall, at the time of renewal, approve or disapprove the course outlines and schedule of classes to be provided. (c) Providers responsible for providing education for licensure under this chapter shall consult with the California State Sheriffs' Association, the California District Attorneys Association, and the County Counsels Association of California prior to submission of the course outlines for approval by the commissioner, and these entities may respond within 30 days of receipt of a request for consultation from a provider. Providers shall maintain records of their requests for consultation and any responses from these entities, and make these records available to the department for review as requested. The bail license fee shall be increased, the amount of which shall be determined by the commissioner, which shall be deposited in the Insurance Fund for the purposes of recovering the administrative costs for meeting the conditions and purposes of this section. Providers of education or continuing education shall offer courses to all applicants at the same course fees. (d) Any person who falsely represents to the commissioner that compliance with this section has been met shall be subject, after notice and hearing, to the penalties and fines set out in Section 1814. (e) A licensee shall not be required to comply with the continuing education requirements of this section if the licensee submits proof satisfactory to the commissioner that he or she has been a licensee in good standing for 30 continuous years in this state and is 70 years of age or older. (f) The commissioner may make reasonable rules and regulations necessary, advisable, and convenient for the administration and enforcement of this chapter. The rules and regulations may include a schedule establishing fees to be paid by an applicant seeking approval to act as a provider and to deliver courses under this section. Those fees shall be in an amount no greater than fees paid by applicants providing similar courses to other insurance agents licensed by the department, as specified in Section 1751.1. (g) Nothing in this chapter shall preclude completion of the bail agent continuing education requirements of this section through a course of instruction offered via the Internet or correspondence. However, this subdivision shall not be construed to allow completion of the prelicensing education requirements of this section through a course of instruction. (h) Successful completion of the continuing education requirements by means of an Internet or correspondence course shall require obtaining a passing grade of at least 70 percent on a written final examination. The final examination shall be open book and shall be graded by the approved provider. The provider shall issue certificates of completion only to those students who have passed the final examination. SEC. 22. Section 1811 of the Insurance Code is amended to read: 1811. For his services in connection with the filing of any application or request for any license under this chapter, the commissioner shall charge and collect the following fees: (a) For filing an application or request for bail agent's license, one hundred eighteen dollars ($118) per year. (b) For filing an application or request for bail solicitor's license, one hundred eighteen dollars ($118) per year. (c) For filing an application or request for bail permittee's license, two hundred thirty-six dollars ($236). (d) For filing an application for examination, or reexamination, twenty-four dollars ($24). (e) For a renewal application, a fee of thirty-five dollars ($35) per year. In the case of a bail agent with more than one valid notice of appointment on file, the fee to be charged pursuant to this subdivision shall be the fee provided herein multiplied by the number of insurers whose valid appointments are on file at the date the document is filed unless the bail agent in that document advises the commissioner of his intent to terminate the appointment of one or more of those insurers, in which event the fee shall be based upon the number for insurers remaining. (f) For a bail solicitor's renewal application, a fee of thirty-five dollars ($35) per year. (g) For a bail permittee's renewal application, a fee of one hundred forty-eight dollars ($148) per year. (h) At the time of filing an application for a license, if a qualifying examination is required for issue or in connection with the license, the fee for filing the first application to take the qualifying examination shall be paid at the time of filing application for the license. (i) For filing application or request for approval of a true or fictitious name pursuant to Section 1724.5, twelve dollars ($12), except that there shall be no fee when the name is contained in an original application. (j) For filing a bond required by this chapter, except when the bond constitutes part of an original application, ten dollars ($10). (k) For filing a first amendment to an application, six dollars ($6). ( l ) For filing a second and each subsequent amendment to an application, twelve dollars ($12). SEC. 23. Section 14090 of the Insurance Code is amended to read: 14090. Every license, branch office certificate, and pocket card issued pursuant to this chapter shall expire on the day two years after the last calendar day of the month in which the initial license was issued. Licenses issued prior to January 1, 2011, shall expire on May 31 of each even-numbered year. To renew an unexpired license or certificate, the licensee shall, on or before the date on which it would otherwise expire, apply for renewal on a form prescribed by the commissioner, and pay the renewal fee prescribed by this chapter. On renewal, the evidence of renewal of the license or certificate as the commissioner may prescribe, and renewal pocket cards for the persons mentioned in Section 14034, shall be issued to the licensee. SEC. 24. Section 14090.1 of the Insurance Code is amended to read: 14090.1. (a) An individual who holds an insurance adjuster license and who is not exempt under subdivision (b) of this section shall satisfactorily complete a minimum of 24 hours, of which three hours are to be in ethics, of continuing education courses pertinent to the duties and responsibilities of an insurance adjuster license reported to the insurance commissioner on a biennial basis in conjunction with his or her license renewal cycle. (b) This section does not apply to either of the following: (1) A licensee not licensed for one full year prior to the end of the applicable continuing education biennium. (2) A licensee holding a nonresident insurance adjuster license who has met the continuing education requirements of his or her designated resident state. SEC. 25. Section 15054 of the Insurance Code is amended to read: 15054. Every license, branch office certificate, and pocket card issued pursuant to this chapter shall expire on the day two years after the last calendar day of the month in which the initial license was issued. Licenses issued prior to January 1, 2011, shall expire on May 31 of each even-numbered year. To renew an unexpired license or certificate, the licensee shall, on or before the date on which it would otherwise expire, apply for renewal on a form prescribed by the commissioner, and pay the renewal fee prescribed by this chapter. On renewal, the evidence of renewal of the license or certificate as the commissioner may prescribe, and renewal pocket cards for the persons mentioned in Section 15022 shall be issued to the licensee. SEC. 26. Section 15059.1 of the Insurance Code is amended to read: 15059.1. (a) An individual who holds a public insurance adjuster license and who is not exempt under subdivision (b) shall satisfactorily complete a minimum of 24 hours, of which three hours are to be in ethics, of continuing education courses pertinent to the duties and responsibilities of a public insurance adjuster license, to be reported to the insurance commissioner on a biennial basis in conjunction with his or her license renewal cycle. (b) This section shall not apply to: (1) A licensee not licensed for one full year prior to the end of the applicable continuing education biennium. (2) A licensee holding a nonresident public insurance adjuster license who has met the continuing education requirements of his or her designated state or residence.