Today's Law As Amended

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AB-1734 Insurance: Conservation and Liquidation Office.(2011-2012)

As Amends the Law Today


 Section 1035.1 is added to the Insurance Code, to read:

 (a) The commissioner, through the Conservation and Liquidation Office shall, on a quarterly basis, develop a report of allowed claims for corporations, limited liability companies, limited liability partnerships, and partnerships. The report shall include the name and address of the claimant and the amount of the allowed claim. The commissioner shall, upon receipt of a written request, provide this report to any bona fide investment company seeking to purchase claims. Claims covered by the California Insurance Guarantee Association or the California Life and Health Insurance Guarantee Association that are worth less than five hundred thousand dollars ($500,000) and claims that relate to workers’ compensation shall not be included in the report.
(b) After a claim has been allowed in a proceeding under this article, the Conservation and Liquidation Office shall contact the claimant via a written notice of determination that shall include a statement of the average time from when a claim is allowed to when a claim is paid in the liquidation process. The notice shall provide an opt-out clause to the reporting process described in subdivision (a), with instructions for exercising that clause for those corporations, limited liability companies, limited liability partnerships, and partnerships that choose not to have their allowed claims reported. A corporation that chooses to opt out of the reporting process may retract that decision at any time and thereafter have the claim information reported pursuant to subdivision (a).
(c) Upon receipt of notice that a claim, allowed in a proceeding under this article, has been assigned to another party, the receiver, the commissioner, or the Conservation and Liquidation Office, as applicable, shall, within 30 days, change the payee designation to reflect the claim purchaser, request further information relating to the claim assignment request, or reject the claim.
(d) The Conservation and Liquidation Office shall not accept a claim assignment request 30 days or less before distribution of the claim or 60 days after the claim distribution has been made.
(e) The claim purchaser shall be responsible for ensuring that the assignor from whom it purchases the claim has the legal authority to assign the claim. The Conservation and Liquidation Office shall be held harmless from and indemnified against any harm or economic loss suffered by the claim purchaser due to misrepresentation by the assignor.
(f) The office may charge a fee to the party requesting reassignment of the claim for the processing of the reassignment. The fee shall be in an amount not to exceed the reasonable costs of administering the reassignment, and in no case shall the fee exceed two hundred fifty dollars ($250).