BILL NUMBER: AB 2779	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Insurance (Solorio (Chair), Bradford,
Carter, Feuer, Hayashi, Nava, and Torres)

                        MARCH 3, 2010

   An act to amend Sections 11623 and 11629.79 of the Insurance Code,
relating to automobile insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2779, as introduced, Committee on Insurance. California
Automobile Assigned Risk Plan.
   Existing law provides for an assigned risk plan for automobile
insurance. Existing law requires the Insurance Commissioner to
administer and operate the plan as authorized by law and creates an
advisory committee with which the commissioner is required to consult
on a regular basis with respect to policy matters affecting the
operation of the plan.
   This bill would require the advisory committee to annually
recommend to the commissioner numeric goals for the California
Assigned Risk Plan to increase the number of uninsured drivers who
will become insured pursuant to specified programs. The bill would
also delete related obsolete provisions.
   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 11623 of the Insurance Code is amended to read:

   11623.  (a) To assist the commissioner in carrying out the
purposes of this article, an advisory committee composed of 15
members is created. The commissioner shall administer and operate the
plan as authorized by law. The commissioner shall consult with the
advisory committee on a regular basis on policy matters affecting the
operation of the plan.
   Eight members representing subscribing insurers shall be elected
annually by subscribing insurers. The commissioner shall appoint the
noninsurer members. Four members shall represent the public. Two
members shall represent producers. The remaining member is the
commissioner or his or her designee.
   All insurer representatives shall be salaried employees. At least
two insurer representatives shall be employed by insurers having
their principal headquarters located in California. At least two
insurer representatives shall represent companies who have average
annual automobile liability premiums in California below one hundred
million dollars ($100,000,000) in the prior three years. At least one
insurer representative shall represent an insurer with average
annual automobile liability premiums in California exceeding one
hundred million dollars ($100,000,000) in the prior three years. At
least one insurer representative shall represent an insurer with
average annual automobile liability premiums in California exceeding
seven hundred million dollars ($700,000,000) in the prior three
years.
   Public members shall be paid two hundred fifty dollars ($250) per
meeting and shall be reimbursed all reasonable expenses incurred.
   The commissioner shall remove members for nonattendance. Unless
satisfactory excuse is made in writing to the commissioner in a
timely manner, nonattendance shall mean the failure to appear at more
than two regularly scheduled meetings in a 12-month period. Should
the member who is removed represent a company or agency, another
representative from the company or agency may not be appointed for a
period of not less than two years.
   The advisory committee with the approval of the commissioner shall
appoint a manager to carry out the purposes of this article, employ
sufficient personnel to provide services necessary to the operation
of the plan, and contract for the provision of statistical and
actuarial services.
   The cost of the plan, including any personnel and contracting
costs, shall be fairly apportioned among the subscribing insurers to
whom assignments may be made. The costs associated shall be directly
attributable to the management of the plan and directly related to
its programs. In consultation with the advisory committee, the
commissioner shall develop, issue, and adopt regulations to carry out
the purposes of this article.
   (b) Notwithstanding this act, which changes the status of the
governing committee to that of an advisory committee, the committee
shall have the right to retain counsel of its choice pursuant to a
selection process adopted by the committee and the right and
necessary standing to bring and defend actions in judicial and
administrative proceedings related to the plan in the name of the
plan, with all powers attendant thereto including the right to retain
consultants, counsel, and expert witnesses of its choice. 
   (c) The advisory committee shall annually recommend to the
commissioner numeric goals for the California Assigned Risk Plan to
increase the number of uninsured drivers who will become insured for
the following year pursuant to the assigned risk plan codified in
this article and the low-cost automobile insurance program codified
in Article 5.5 (commencing with Section 11629.7). 
  SEC. 2.  Section 11629.79 of the Insurance Code is amended to read:

   11629.79.  (a) The program for the County of Los Angeles and the
City and County of San Francisco is authorized to commence operations
on January 1, 2000, but shall be fully operational no later than
July 1, 2000.
   (b) To this end, the commissioner, in consultation with the
California Automobile Assigned Risk Plan, shall adopt regulations to
implement the provisions of this article within 60 days of its
effective date.  The regulations shall be adopted as
emergency regulations in accordance with Chapter 3.5 (commencing with
Section 11340) of the Government Code, and for purposes of that
chapter, the adoption of the regulations shall be considered by the
Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare. 
   (c) The program for the Counties of Alameda, Fresno, Orange,
Riverside, San Bernardino, and San Diego shall commence operations on
April 1, 2006, and shall be made operational in all other counties
of California according to the discretion of the commissioner. The
commissioner, in consultation with the California Automobile Assigned
Risk Plan, shall adopt regulations to implement the expansion of the
program to these counties.  The regulations shall be adopted
as emergency regulations in accordance with Chapter 3.5 (commencing
with Section 11340) of the Government Code, and for purposes of that
chapter, the adoption of the regulations shall be considered by the
Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare.