California Senate Bill SB748 Introduced / Bill

 BILL NUMBER: SB 748INTRODUCED BILL TEXT INTRODUCED BY Senator Gaines FEBRUARY 18, 2011 An act to amend Section 1749.85 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST SB 748, as introduced, Gaines. Insurance: replacement cost. Existing law requires the Insurance Commissioner to appoint a curriculum committee to develop prelicensing and continuing education curriculum, as specified. Existing law required the curriculum committee, in 2006, to make recommendations to the commissioner regarding instructing specified broker-agents and applicants for those broker-agent licenses in proper methods for estimating the replacement value of structures and of explaining various levels of coverage under a homeowners' insurance policy. This bill would require the curriculum committee to make recommendations to the commissioner regarding instructing specified broker-agents and applicants for those broker-agent licenses in proper methods for estimating the replacement cost of structures. Existing law prohibits a person who is not an insurer, underwriter, or actuary or other person identified by the insurer, or a licensed fire and casualty broker-agent, personal lines broker-agent, contractor, or architect from estimating the replacement value of a structure, or explaining various levels of coverage under a homeowners' insurance policy. The bill would instead prohibit a person who is not an insurer, underwriter, or actuary or other person identified by the insurer, or a licensed fire and casualty broker-agent, personal lines broker-agent, contractor, or architect from estimating the replacement cost of a structure. 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 1749.85 of the Insurance Code is amended to read: 1749.85. (a) The curriculum committee shall  , in 2006,  make recommendations to the commissioner to instruct fire and casualty broker-agents and personal lines broker-agents and applicants for fire and casualty broker-agent and personal lines broker-agent licenses in proper methods of estimating the replacement  value   cost  of structures, and of explaining various levels of coverage under a homeowners' insurance policy. Each provider of courses based upon this curriculum shall submit its course content to the commissioner for approval. (b) A person who is not an insurer underwriter or actuary or other person identified by the insurer, or a licensed fire and casualty broker-agent, personal lines broker-agent, contractor, or architect shall not estimate the replacement  value   cost  of a structure, or explain various levels of coverage under a homeowners' insurance policy. (c) This section shall not be construed to preclude licensed appraisers, contractors and architects from estimating replacement  value   cost  of a structure. (d) However, if the Department of Insurance, by adopting a regulation, establishes standards for the calculation of estimates of replacement  value   cost  of a structure by appraisers, then on and after the effective date of the regulation a real estate appraiser's estimate of replacement value   cost  shall be calculated in accordance with the regulation.