CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 637Introduced by Assembly Member FloraFebruary 13, 2025 An act to amend Section 1072 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 637, as introduced, Flora. Withdrawal of insurers. Existing law generally regulates insurance and creates the Department of Insurance, headed by the Insurance Commissioner. Existing law requires the commissioner to examine the books and records of an insurer, and if the commissioner finds no outstanding liabilities to residents of this state and other specified conditions, the commissioner is required to cancel the insurers certificates of authority and permit the insurer to withdraw. This bill would make nonsubstantive, technical changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1072 of the Insurance Code is amended to read:1072. The commissioner shall make, or cause to be made by the insurance authority of the State where the insurer is organized, an examination of the books and records of the insurer. If, upon such examination, he the commissioner finds that the insurer has no outstanding liabilities to residents of this State and no policies in favor of the residents of this State uncanceled or the primary liabilities under which have not been reinsured and assumed by another admitted insurer, as required by Section 1071.5, he the commissioner shall cancel the insurers certificates of authority, if unexpired, and he shall permit the insurer to withdraw. The commissioner may, in his their discretion, waive any or all of the above requirements if, after such examination, he the commissioner finds it to be in a solvent condition. The cost and expense of all such examinations shall be paid as prescribed in Section 736.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 637Introduced by Assembly Member FloraFebruary 13, 2025 An act to amend Section 1072 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 637, as introduced, Flora. Withdrawal of insurers. Existing law generally regulates insurance and creates the Department of Insurance, headed by the Insurance Commissioner. Existing law requires the commissioner to examine the books and records of an insurer, and if the commissioner finds no outstanding liabilities to residents of this state and other specified conditions, the commissioner is required to cancel the insurers certificates of authority and permit the insurer to withdraw. This bill would make nonsubstantive, technical changes to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 637
Introduced by Assembly Member FloraFebruary 13, 2025
Introduced by Assembly Member Flora
February 13, 2025
An act to amend Section 1072 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 637, as introduced, Flora. Withdrawal of insurers.
Existing law generally regulates insurance and creates the Department of Insurance, headed by the Insurance Commissioner. Existing law requires the commissioner to examine the books and records of an insurer, and if the commissioner finds no outstanding liabilities to residents of this state and other specified conditions, the commissioner is required to cancel the insurers certificates of authority and permit the insurer to withdraw. This bill would make nonsubstantive, technical changes to these provisions.
Existing law generally regulates insurance and creates the Department of Insurance, headed by the Insurance Commissioner. Existing law requires the commissioner to examine the books and records of an insurer, and if the commissioner finds no outstanding liabilities to residents of this state and other specified conditions, the commissioner is required to cancel the insurers certificates of authority and permit the insurer to withdraw.
This bill would make nonsubstantive, technical changes to these provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 1072 of the Insurance Code is amended to read:1072. The commissioner shall make, or cause to be made by the insurance authority of the State where the insurer is organized, an examination of the books and records of the insurer. If, upon such examination, he the commissioner finds that the insurer has no outstanding liabilities to residents of this State and no policies in favor of the residents of this State uncanceled or the primary liabilities under which have not been reinsured and assumed by another admitted insurer, as required by Section 1071.5, he the commissioner shall cancel the insurers certificates of authority, if unexpired, and he shall permit the insurer to withdraw. The commissioner may, in his their discretion, waive any or all of the above requirements if, after such examination, he the commissioner finds it to be in a solvent condition. The cost and expense of all such examinations shall be paid as prescribed in Section 736.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 1072 of the Insurance Code is amended to read:1072. The commissioner shall make, or cause to be made by the insurance authority of the State where the insurer is organized, an examination of the books and records of the insurer. If, upon such examination, he the commissioner finds that the insurer has no outstanding liabilities to residents of this State and no policies in favor of the residents of this State uncanceled or the primary liabilities under which have not been reinsured and assumed by another admitted insurer, as required by Section 1071.5, he the commissioner shall cancel the insurers certificates of authority, if unexpired, and he shall permit the insurer to withdraw. The commissioner may, in his their discretion, waive any or all of the above requirements if, after such examination, he the commissioner finds it to be in a solvent condition. The cost and expense of all such examinations shall be paid as prescribed in Section 736.
SECTION 1. Section 1072 of the Insurance Code is amended to read:
### SECTION 1.
1072. The commissioner shall make, or cause to be made by the insurance authority of the State where the insurer is organized, an examination of the books and records of the insurer. If, upon such examination, he the commissioner finds that the insurer has no outstanding liabilities to residents of this State and no policies in favor of the residents of this State uncanceled or the primary liabilities under which have not been reinsured and assumed by another admitted insurer, as required by Section 1071.5, he the commissioner shall cancel the insurers certificates of authority, if unexpired, and he shall permit the insurer to withdraw. The commissioner may, in his their discretion, waive any or all of the above requirements if, after such examination, he the commissioner finds it to be in a solvent condition. The cost and expense of all such examinations shall be paid as prescribed in Section 736.
1072. The commissioner shall make, or cause to be made by the insurance authority of the State where the insurer is organized, an examination of the books and records of the insurer. If, upon such examination, he the commissioner finds that the insurer has no outstanding liabilities to residents of this State and no policies in favor of the residents of this State uncanceled or the primary liabilities under which have not been reinsured and assumed by another admitted insurer, as required by Section 1071.5, he the commissioner shall cancel the insurers certificates of authority, if unexpired, and he shall permit the insurer to withdraw. The commissioner may, in his their discretion, waive any or all of the above requirements if, after such examination, he the commissioner finds it to be in a solvent condition. The cost and expense of all such examinations shall be paid as prescribed in Section 736.
1072. The commissioner shall make, or cause to be made by the insurance authority of the State where the insurer is organized, an examination of the books and records of the insurer. If, upon such examination, he the commissioner finds that the insurer has no outstanding liabilities to residents of this State and no policies in favor of the residents of this State uncanceled or the primary liabilities under which have not been reinsured and assumed by another admitted insurer, as required by Section 1071.5, he the commissioner shall cancel the insurers certificates of authority, if unexpired, and he shall permit the insurer to withdraw. The commissioner may, in his their discretion, waive any or all of the above requirements if, after such examination, he the commissioner finds it to be in a solvent condition. The cost and expense of all such examinations shall be paid as prescribed in Section 736.
1072. The commissioner shall make, or cause to be made by the insurance authority of the State where the insurer is organized, an examination of the books and records of the insurer. If, upon such examination, he the commissioner finds that the insurer has no outstanding liabilities to residents of this State and no policies in favor of the residents of this State uncanceled or the primary liabilities under which have not been reinsured and assumed by another admitted insurer, as required by Section 1071.5, he the commissioner shall cancel the insurers certificates of authority, if unexpired, and he shall permit the insurer to withdraw. The commissioner may, in his their discretion, waive any or all of the above requirements if, after such examination, he the commissioner finds it to be in a solvent condition. The cost and expense of all such examinations shall be paid as prescribed in Section 736.