Bill Text: CA AB1608 | 2009-2010 | Regular Session | Introduced
Bill Title: Motor vehicle insurance: special assessments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-21 - Referred to Com. on INS. [AB1608 Detail]
Download: California-2009-AB1608-Introduced.html
BILL NUMBER: AB 1608 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Garrick
JANUARY 8, 2010
An act to amend Section 1872.81 of the Insurance Code, relating to
motor vehicle insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 1608, as introduced, Garrick. Motor vehicle insurance: special
assessments.
Existing law imposes on an insurer a $0.30 special purpose
assessment on each vehicle insured under an insurance policy issued
in this state by the insurer. Existing law specifies that $0.20 of
each $0.30 special purpose assessment shall be used to fund specified
consumer service functions of the Department of Insurance relating
to motor vehicle insurance. Existing law further specifies that the
remaining $0.10 of each $0.30 assessment shall be used to fund the
improvement of certain consumer functions of the department.
This bill would instead require that the amount of the special
purpose assessment be determined by the commissioner, and that the
amount shall not exceed $0.30 per insured vehicle. The bill would
require that 66.7% of the special purpose assessment be used to fund
specified consumer service functions of the Department of Insurance,
relating to motor vehicle insurance. The remaining 33.3% of the
special purpose assessment would be used to fund the improvement of
certain consumer functions of the department, relating to motor
vehicle insurance.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1872.81 of the Insurance Code is amended to
read:
1872.81. (a) In addition to the special purpose assessment
imposed pursuant to Section 1872.8, an insurer doing business in this
state shall pay to the commissioner an annual
special purpose assessment of to be
determined by the commissioner, but not to exceed thirty cents
($0.30) , for each vehicle insured under an insurance
policy it issues in this state, for expenditure as follows:
(1) An amount equivalent to twenty cents ($0.20)
66.7 percent of the special purpose assessment
imposed per insured vehicle by this subdivision shall be used for the
purpose of paying for consumer service functions of the department
that are related to automobile insurance. The revenues under this
paragraph shall be used to improve service to consumers through the
rating and underwriting services bureau, the claims services bureau,
the investigations bureau, or any successor bureaus of the department
that may assume the consumer service functions of these bureaus, and
legal services in support of these bureaus. The department shall
develop a plan for the use of the revenues available under this
paragraph for the purposes authorized, and shall submit the plan to
the Assembly and Senate Committees on Insurance.
(2) An amount equivalent to ten cents ($0.10)
33.3 percent of the special purpose assessment imposed per
insured vehicle by this subdivision shall be used for the purpose of
improving consumer functions of the department related to automobile
insurance. Revenues available under this paragraph shall be used to
improve consumer functions through one or more of the following:
(A) The rating and underwriting services bureau.
(B) The claims services bureau.
(C) The investigations bureau.
(D) Any successor bureau of the department that may assume
automobile insurance consumer functions of these bureaus, and legal
services in support of these bureaus. These revenues also may be used
for improving the ability of the department to respond to consumer
complaints and information requests through the department's
toll-free telephone number, and for improving the ability of the
department to offer information about automobile insurance rates to
the public. The department shall develop a plan for the use of the
revenues available under this paragraph for the purpose authorized,
and shall submit the plan to the Assembly and Senate Committees on
Insurance.
(3) Notwithstanding paragraph (2), the Department of Insurance,
after January 1, 2006, and the Department of Motor Vehicles, after
that date, may propose to the budget committees of the Legislature a
proposed use of up to five cents ($0.05) of the ten-cent
($0.10) 33.3 percent apportionment of the
special purpose assessment levied pursuant to paragraph (2) related
to informing consumers about the existence of any low-cost automobile
insurance program authorized in law pursuant to Section 11629.7 or
other statutes that also establish a program of the type identified
in Section 11629.7. Funds for this purpose shall not be expended
without prior budget approval. The total amount of funds authorized
to both departments in total, or to one department in total, for this
purpose shall not exceed five cents ($0.05) per insured vehicle
. The departments shall explain, with as much specificity as
is reasonably possible, the objectives for the use of the funds and
quantitative criteria by which the Legislature may evaluate the
effectiveness of the department's use of funds.
(b) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
