California Assembly Bill AB565 Introduced / Bill

 BILL NUMBER: AB 565INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Cooley FEBRUARY 24, 2015 An act to amend Section 10191 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST AB 565, as introduced, Cooley. Insurance contracts. Existing law authorizes the Insurance Commissioner to promulgate, from time to time as conditions warrant, after notice and hearing, reasonable rules and regulations, and amendments and additions to those rules and regulations, as are necessary or advisable in order to establish and maintain a procedure for the filing and approval of specified documents prior to their issuance, delivery, or use in this state. This bill would make technical, nonsubstantive changes to this 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 10191 of the Insurance Code is amended to read: 10191. (a) The commissioner may, from time to time as conditions warrant, after notice and hearing, promulgate  such  reasonable rules and regulations, and amendments and additions  thereto,   to those rules and regulations,  as are necessary or advisable, to establish and maintain a procedure for the filing and approval of documents, as defined in this section, prior to their issuance, delivery, or use in this state, in lieu of the requirements of submission, filing, or approval for the documents presently provided in Section 10205, 10205.5, 10205.6, 10225, 10270, 10270.1, 10270.57, 10270.9, 10270.91, 10270.92, 10270.93, 10290, 10292, 11066, 11069,  11513, 11513.1, 11513.2, 11515,  or 11658. For purposes of this section, "document" includes, but is not limited to, every form of contract, insurance policy, application, rider, endorsement, amendment, insert policy page, certificate, or other evidence or notice of insurance, fill-in material, schedules of rates and classifications of risks, and any modification to any document, which is subject to the requirements of any of the  enumerated sections.   sections described in this subdivision.  (b) Any  such  rule or regulation shall be promulgated in accordance with the procedure provided in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (c) In promulgating any  such  rule or regulation, the commissioner may give consideration to the following circumstances: (1) Whether all  such  documents, the submission, filing, or approval of which is governed by any of the  foregoing enumerated sections,   sections described in subdivision (a),  or only a portion  thereof   of those documents  described in the rule or regulation, shall be subject  thereto.   to the rule or regulation.  (2) Whether certain documents or portions  thereof   of those documents  should be regulated in respect of submission, filing, or approval in a fashion differing from similar requirements applicable to other documents. (3) Whether varying procedures may be made applicable among admitted insurers in respect of the submission, filing or approval predicated, in whole or in part, upon  such   the following  factors  as   :   (A)  the age and size of the submitting insurer,  (B)  the period of its licensing in this state for the class or classes of insurance represented by the documents,  (C)  the nature and number of prior submissions of similar documents and the disposition  thereof   of those prior submissions  by the commissioner,  (D)  and similar criteria  which   that  is relevant to a determination that the submitting insurer has demonstrated compliance with all applicable statutes, rules, and regulations relating to documents comprising prior submissions. (d) In promulgating any  such  rules and regulations, the commissioner shall, so far as practical, describe or define certain provisions: (1)  which   that  the commissioner will authorize without review when accompanied by a certification prescribed by him or her by rule, and (2)  which   that  the commissioner will under no circumstances approve. (e) The commissioner shall establish a period of time, not shorter than one year, during which any change in the provisions  which   that  pursuant to subdivision (d), he or she has provided he or she will under no circumstances approve, will not apply to policies filed prior to the effective date of the change. (f) Except as otherwise provided in this  section   section,  any document approved by the commissioner pursuant to rules and regulations authorized by this section may have its approval withdrawn in accordance with subdivision (d) of Section 10291.5 or Section 12957, whichever is applicable.