Bill Text

Bill Information

Add To My Favorites | print page

AB-2456 Insurance: delegation of notice obligation: agents.(2011-2012)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
AB2456:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 2456


Introduced  by  Assembly Member Miller

February 24, 2012


An act to amend Section 769.55 of the Insurance Code, relating to insurance agents.


LEGISLATIVE COUNSEL'S DIGEST


AB 2456, as introduced, Miller. Insurance: delegation of notice obligation: agents.
Existing law provides that the obligation of an insurer to furnish any notice to its insured may be carried out by an insurer’s general agent, provided, however, that an insurer’s delegation of a notice obligation to a general agent shall not limit or negate the insurer’s responsibility or liability if the general agent fails to provide the required notice. A “general agent” is a licensed fire and casualty broker-agent who manages the transaction of one or more classes of insurance written by the insurer.
This bill would make technical, nonsubstantive changes to this provision.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 769.55 of the Insurance Code is amended to read:

769.55.
 (a) Notwithstanding any other provision of this code, for the purposes of Chapter 6 (commencing with Section 520) through Chapter 11 (commencing with Section 675), inclusive, of Part 1 of Division 1, the obligation of an insurer to furnish any notice to its insured required by law may be carried out by an insurer’s general agent, provided, however, that an insurer’s delegation of a notice obligation to a general agent shall not limit or negate the insurer’s responsibility or liability if the general agent fails to provide the required notice.

As

(b) As used in this section, “general agent” means a licensed fire and casualty broker-agent who, pursuant to a written contract with an admitted insurer, manages the transaction of one or more classes of insurance written by the insurer and has the power to (1) appoint, supervise, and terminate local agents, (2) accept or decline risks, and (3) collect premium moneys from producing broker-agents.

Nothing

(c) Nothing in this section shall provide an exemption from Article 5.4 (commencing with Section 769.80) to any a fire and casualty broker-agent who is otherwise subject to that article.