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AB-2366 Benefit and relief associations.(2013-2014)

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Amended  IN  Assembly  March 28, 2014

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 2366


Introduced by Assembly Member Bocanegra

February 21, 2014


An act relating to benefit and relief associations. to add Section 11408 to the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 2366, as amended, Bocanegra. Benefit and relief associations: Insurance Commissioner. associations.
Existing law prohibits a firemen’s, policemen’s, or peace officer’s benefit and relief association from operating or doing business in the state without a certificate of authority issued by the Insurance Commissioner.
This bill would authorize the commissioner to receive and investigate formal written complaints made against a holder of a certificate of authority, as specified, and would authorize the commissioner, after providing notice and an opportunity for a hearing, to suspend or rescind the certificate if a complaint cannot be resolved in a timely manner.

Existing law provides for the regulation of insurers by the Department of Insurance. Existing law directs the Insurance Commissioner to enforce the execution of laws regulating the business of insurance. Existing law excludes firemen’s, policemen’s, and peace officers’ benefit and relief associations meeting certain requirements from state laws relating to insurance.

This bill would express the intent of the Legislature to enact legislation to provide increased authority to the Insurance Commissioner to regulate public safety member benefit and relief associations.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 11408 is added to the Insurance Code, to read:

11408.
 (a) (1) Notwithstanding any other law, the commissioner may receive and investigate formal written complaints made against a holder of a certificate of authority issued under Section 11401.
(2) In implementing this section, the commissioner may hold a hearing or request any necessary documentation, including, but not limited to, financial statements or legal documentation in an effort to resolve the complaint.
(b) If a complaint cannot be resolved in a timely manner, the commissioner may, after providing adequate notice and an opportunity for a hearing, do either of the following:
(1) Suspend the certificate of authority issued under Section 11401, which shall prohibit the association from adding any additional members until the complaint or violation is corrected.
(2) Rescind the certificate of authority issued under Section 11401.
(c) This section shall not be construed in a manner that conflicts with the Employee Retirement Income Security Act of 1974 (Public Law 93-406).

SECTION 1.

It is the intent of the Legislature to enact legislation to provide increased authority to the Insurance Commissioner to regulate public safety member benefit and relief associations.