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SB-425 Insurance: life and disability file review.(2017-2018)

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Date Published: 03/21/2017 04:00 AM
SB425:v98#DOCUMENT

Amended  IN  Senate  March 20, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 425


Introduced by Senator Mendoza

February 15, 2017


An act to amend Section 10191.1 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


SB 425, as amended, Mendoza. Insurance: life and disability file review.
Existing law provides for the regulation of life and disability insurance by the Department of Insurance. Existing law authorizes the Insurance Commissioner, in order to streamline the department’s file review process for life and disability insurance forms, to develop and publish procedural requirements for file submission, guidelines and checklists that list and interpret applicable required and optional insurance statutes and regulations, and standard insurance contract language previously approved by the department.
This bill would state the intent of the Legislature to authorize the department to provide, when applicable, an expedited policy approval process, as specified. additionally authorize the commissioner to develop and publish an expedited policy form approval application.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 10191.1 of the Insurance Code is amended to read:

10191.1.
 (a) In order to streamline the department’s file review process for life and disability insurance forms, the commissioner may develop and publish all of the following:
(1) Procedural requirements for file submission.
(2) Guidelines and checklists that list and interpret applicable required and optional insurance statutes and regulations.
(3) Standard insurance contract language previously approved by the department.
(4) An expedited policy form approval application.
(b) Documented use of the published standards described in paragraphs (1) to (3), (4), inclusive, of subdivision (a) will enable the department to expedite its review process. In order to expedite file review, an expanded cover letter, in a format published by the department, shall be used to clearly document and demonstrate compliance with those standards.
(c) A publication developed pursuant to this section shall be made available on a dedicated page of the department’s Internet Web site.

(d)It is the intent of the Legislature to authorize the department to provide, when applicable, an expedited policy approval process similar to the process administered by the Interstate Insurance Product Regulation Compact, based on a review of the study described in paragraph (1) of subdivision (a) of Section 10191.5.