CLAIMS, LICENSING BILLS MOVE

The Senate Insurance Committee approved AB 393, the agent licensing bill, and AB 481, the claims bill, at a hearing on June 28. AB 393 would prohibit employees of insurance companies who do not have agent licenses from “effecting contracts of insurance,” but fails to define “effecting.” The bill was amended to allow those employees to make “clerical changes,” and directs the California Department of Insurance (CDI) to define what those changes would be. AB 481 would require the Insurance Commissioner to include restitution to policyholders in every settlement with the CDI where the commissioner has determined that the insurer failed to comply with fair claims settlement practices. The National Association of Independent Insurers (NAII) testified against both bills which are now headed to the Senate floor.

Topics Claims