Bill Text: CA AB725 | 2009-2010 | Regular Session | Enrolled

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Bill Title: Auto insurance: low-cost automobile insurance.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Vetoed) 2010-01-14 - Consideration of Governor's veto stricken from file. [AB725 Detail]

Download: California-2009-AB725-Enrolled.html

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BILL NUMBER: AB 725	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2009
	AMENDED IN SENATE  JUNE 22, 2009
	AMENDED IN ASSEMBLY  MAY 4, 2009
	AMENDED IN ASSEMBLY  MARCH 25, 2009

INTRODUCED BY   Assembly Members Jones and Torres
   (Coauthors: Assembly Members Block, Blumenfield, Hall, Ma, Price,
and Portantino)
   (Coauthors: Senators DeSaulnier and Florez)

                        FEBRUARY 26, 2009

   An act to amend Sections 11629.7 and 11629.84 of the Insurance
Code, relating to auto insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 725, Jones. Auto insurance: low-cost automobile insurance.
   Existing law establishes, within the California Automobile
Assigned Risk Plan, a low-cost automobile insurance program. Existing
law establishes the low-cost automobile insurance program in several
specified counties and makes the expansion to all other counties in
California subject to a determination of need made by the Insurance
Commissioner following a public meeting, as specified. Existing law
provides for the issuance of automobile liability policies pursuant
to this program under specified terms and conditions, and provides
that a policy so issued satisfies specified requirements regarding
financial responsibility. Existing law provides that the low-cost
automobile insurance program shall remain in effect only until
January 1, 2011.
   This bill would name the program the "Martha Escutia and Jackie
Speier low-cost automobile insurance program."
   The bill would also provide that the low-cost automobile insurance
program would remain in effect until January 1, 2016.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11629.7 of the Insurance Code is amended to
read:
   11629.7.  (a) There is established, within the California
Automobile Assigned Risk Plan established under Section 11620, the
Martha Escutia and Jackie Speier low-cost automobile insurance
program for all counties in California.
   (b)  For the purpose of making the low-cost automobile insurance
program operational in all counties of California, pursuant to
subdivision (a), a low-cost automobile insurance program shall
commence operations in the Counties of Alameda, Fresno, Orange,
Riverside, San Bernardino, and San Diego, effective April 1, 2006,
and shall be made operational in all other counties of California
based upon a determination of need made by the commissioner. Program
outreach shall focus primarily on those counties which have the
highest number of uninsured drivers or the highest percentage of
uninsured drivers or the highest percentage of low-income
individuals. In making the determination of need for each county, the
commissioner shall consider each of the following:
   (1) The number or percentage of motorists within the county who
are uninsured.
   (2) The number or percentage of residents within the county who
are low income.
   (3) The availability of affordable automobile insurance options
for the county's low-income residents within the private automobile
insurance marketplace.
   (c) (1) After making the initial determination of need, the
commissioner shall, as soon as is practicable, hold a public meeting
in that county.
   (2) The public meeting required by paragraph (1) shall be held not
for the consideration of rates, but for the public discussion of the
need and desirability of the program for the consumers of the
county. Within 30 days after the public meeting, the commissioner
shall make public his or her final determination of whether a need
for the program exists within the county. A separate hearing shall be
held for the consideration of rates pursuant to Section 11629.72.
   (d) The commissioner, after a public hearing, shall approve or
issue a reasonable plan for the equitable apportionment, among
insurers required to participate in the California Automobile
Assigned Risk Plan established under Section 11620, of persons
residing in the counties or cities and counties set forth in
subdivisions (a) and (b) who are eligible to purchase through the
program established in each county or city and county a low-cost
automobile insurance policy, as described in Section 11629.71. The
program shall be conducted in conjunction with the California
Automobile Assigned Risk Plan established under Section 11620.
  SEC. 2.  Section 11629.84 of the Insurance Code is amended to read:

   11629.84.  This article shall remain in effect only until January
1, 2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.