California Assembly Bill AB1591

California 2019-2020 Regular Session

• Introduced: 2/22/19
• Refer: 3/14/19
• Report Pass: 4/24/19
• Refer: 4/24/19
• Report Pass: 5/1/19
• Engrossed: 5/9/19
• Refer: 5/9/19
• Refer: 5/22/19
• Report Pass: 6/26/19
• Refer: 6/26/19
• Refer: 7/8/19
• Report Pass: 8/30/19
• Enrolled: 9/9/19
• Vetoed: 9/27/19

Caption

Insurance Commissioner: legislative reporting.

Impact

The bill aims to ensure that key legislators remain informed about the activities of the NAIC and the legislative actions associated with current and future insurance policies. By requiring biennial presentations, it reinforces the need for accountability and transparency in the state's insurance regulatory framework. This change is aimed at enhancing cooperation between the NAIC, state regulators, and lawmakers, thereby supporting effective policymaking in the insurance sector.

Summary

Assembly Bill 1591, introduced by Assembly Member Cooley, amends the Insurance Code to enhance legislative oversight of the insurance industry through more structured reporting requirements. Specifically, it mandates that the Insurance Commissioner provide presentations to legislative committees regarding the accreditation process of the National Association of Insurance Commissioners (NAIC). These presentations are intended to improve understanding among policymakers about the standards and procedures governing insurance practices and the role that delegation of authority plays in this context.

Sentiment

Overall, the sentiment around AB 1591 appears to be supportive among those who value legislative oversight and regulatory accountability. Legislators and other stakeholders likely see this as a positive step toward ensuring that the insurance industry is regulated effectively and that legislative committees are well-equipped to make informed decisions. However, some may argue about the practicality and frequency of the reporting, questioning whether such requirements could lead to bureaucratic overhead.

Contention

While the bill itself is largely focused on improving communication and oversight, there may be concerns among some stakeholders regarding the balance between effective regulation and the administrative burden it imposes. Additionally, it could invite debates around the adequacy of existing regulatory frameworks versus the need for additional legislative intervention, thus potentially highlighting differing opinions on the best approach to insurance regulation.