California Assembly Bill AB269 Latest Draft

 BILL NUMBER: AB 269AMENDED 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).