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AB-1591 Insurance Commissioner: legislative reporting.(2019-2020)

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Date Published: 09/12/2019 09:00 PM
AB1591:v97#DOCUMENT

Enrolled  September 12, 2019
Passed  IN  Senate  September 06, 2019
Passed  IN  Assembly  September 09, 2019
Amended  IN  Senate  August 30, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1591


Introduced by Assembly Member Cooley

February 22, 2019


An act to add Section 12964 to the Insurance Code, relating to the Insurance Commissioner.


LEGISLATIVE COUNSEL'S DIGEST


AB 1591, Cooley. Insurance Commissioner: legislative reporting.
Existing law generally regulates the business of insurance in the state. Existing law provides for the powers and duties of the Insurance Commissioner, including the duty to annually report specified insurer data to the Governor, the Legislature, and the committees of the Senate and the Assembly with jurisdiction over insurance. Existing law requires an insurer doing business in California to file specified certain statements with the National Association of Insurance Commissioners (NAIC), grants NAIC specified immunities when collecting data as an agent of the Insurance Commissioner, and requires various NAIC standards to be met.
This bill would require the Insurance Commissioner to provide a regular presentation on the NAIC accreditation process to the committees of the Senate and the Assembly with jurisdiction over insurance, and would require the presentation to meet specified criteria. The bill would require the department to include the information presented in a written report provided to relevant legislative committees and posted to the department’s internet website, as specified. The bill would authorize the department to coordinate with NAIC to have NAIC make a presentation at its national meeting in lieu of the commissioner’s presentation if certain criteria are met, including that the department reports specified information in writing to relevant legislative committees annually or at least once during a legislative session.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares that the purpose of this act is to ensure that the National Association of Insurance Commissioners (NAIC) and the National Council of Insurance Legislators (NCOIL) are properly supported so insurance public policymakers are kept informed concerning issues that are dependent on legislative authority for their positive resolution and that are being debated by state regulators. This act will amend the Insurance Code to require the Insurance Commissioner to make a presentation, or coordinate with NAIC to make a presentation, to inform members of key policy and fiscal committees at least every other year of the status and activities of NAIC and the role of legislation incorporating existing or future NAIC policy adoptions. Finally, to support the informed exercise of legislative delegation in insurance regulation, this act will require the Insurance Commissioner to support more informed participation by key policy and budget legislators in NAIC and NCOIL processes.

SEC. 2.

 Section 12964 is added to the Insurance Code, to read:

12964.
 (a) During an even-numbered year or the first year of a legislative session, the commissioner shall appear before the committees of the Senate and Assembly with jurisdiction over insurance to provide a presentation on the National Association of Insurance Commissioners (NAIC) accreditation process. The commissioner may also provide the presentation to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, or both as determined by the Senate Committee on Rules or the Assembly Committee on Rules. The presentation shall do all of the following:
(1) Provide an overview of the role of the delegation of legislative authority in policy development that enables the NAIC accreditation process to function.
(2) Provide an explanation of standards and processes by reference, including citations to the relevant sections of state law that reflect NAIC accreditation standards or incorporation of existing NAIC rules, standards, or processes by reference.
(3) Identify laws that may authorize future NAIC changes to be operative in this state without additional legislative authorization. These laws shall be identified in a stand-alone format that highlights the future delegation authority as it appears in existing law or regulations.
(4) Provide an overview of the minimum NAIC accreditation standards for laws and regulations, regulatory practices and procedures, and organizational and personnel practices. The commissioner shall provide an overview of the specific laws and regulations the accreditation standard specifies, the intended purpose of each, when each was adopted by the NAIC and the state, and any changes to the standards since the last presentation provided to the Legislature pursuant to this section.
(b) The presentation may be made at a hearing held jointly with the relevant policy and budget committees of the Senate and the Assembly.
(c) The department shall include the information presented pursuant to subdivision (a) in a written report that shall be provided to the committees of the Senate and the Assembly having jurisdiction over insurance either annually or at least once during a legislative session and posted to the department’s internet website either annually or at least once during a legislative session.
(d) In lieu of the presentation required pursuant to subdivision (a), the department may coordinate with NAIC to have NAIC conduct a similar training session during NAIC national meeting if the following criteria are met:
(1) The information covered in the training is provided in writing.
(2) The training is open to the public.
(3) The department reports the following information in writing to the committees of the Senate and the Assembly with jurisdiction over insurance either annually or at least once during a legislative session and posts the information to the department’s internet website either annually or at least once during a legislative session:
(A) The nature of the department’s NAIC participation.
(B) The number of department staff attending NAIC meetings.
(C) The key policy issues of interest to the state for which department staff are participating in development.
(D) The positions the department is advocating for the key policy issues of interest to the state.