Bill Text: CA SB136 | 2013-2014 | Regular Session | Introduced
Bill Title: Insurance: brokers and agents: notice of appointment.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB136 Detail]
Download: California-2013-SB136-Introduced.html
BILL NUMBER: SB 136 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Gaines
JANUARY 28, 2013
An act to amend Section 1704 of the Insurance Code, relating to
insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 136, as introduced, Gaines. Insurance: brokers and agents:
notice of appointment.
Existing law prohibits any person acting as a licensee from acting
as an agent of an insurer unless the insurer has filed with the
Insurance Commissioner a notice of appointment, as specified.
Existing law also requires that specified agents acting in the
capacity of an insurance solicitor have filed on his or her behalf
with the commissioner a notice of appointment, as specified. Existing
law requires that each appointment, by its terms, continue in force
until the occurrence of a specified event.
This bill would make technical, nonsubstantive changes to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1704 of the Insurance Code is amended to read:
1704. (a) Any A person acting as a
licensee under this chapter shall not act as an agent of an insurer
unless the insurer has filed with the commissioner a notice of
appointment, executed by the insurer, appointing the licensee as the
insurer's agent. Every property broker-agent, casualty broker-agent,
personal lines broker-agent, or limited lines automobile insurance
agent acting in the capacity of an insurance solicitor shall have
filed on his or her behalf with the commissioner a notice executed by
an insurance agent or insurance broker appointing and agreeing to
employ the solicitor as an employee within this state. Additional
notices of appointment may be filed by other insurers before the
license is issued and thereafter as long as the license remains in
force. The authority to transact insurance given to a licensee by an
insurer, property broker-agent, casualty broker-agent, personal lines
broker-agent, or limited lines automobile insurance agent, as the
case may be, by appointment shall be effective as of the date the
notice of appointment is signed. That authority to transact shall
apply to transactions occurring after that date and for the purpose
of determining the insurer's, property broker-agent's, casualty
broker-agent's, personal lines broker-agent's, or limited lines
automobile insurance agent's liability for acts of the appointed
licensee. No notice of appointment of a life agent, property
broker-agent, casualty broker-agent, personal lines broker-agent,
limited lines automobile insurance agent, or travel insurance agent
shall be filed under this subdivision unless the licensee being
appointed has consented to that filing. Each appointment made under
this subdivision shall , by its terms ,
continue in force until:
(1) The cancellation or expiration of the license applied for or
held at the time the appointment was filed.
(2) The filing of a notice of termination by the insurer or
employing property broker-agent or casualty broker-agent, or by the
appointed life agent, property broker-agent, casualty broker-agent,
travel insurance agent, or insurance solicitor.
(b) Upon the termination of all appointments, or all endorsements
naming the licensee on the license of an organization licensee, and
the cancellation of the bond required pursuant to Section 1662 if
acting as a broker, the permanent license shall not be canceled, but
shall become inactive. It may be renewed pursuant to Section 1718. It
may be reactivated at any time prior to its expiration by the filing
of a new appointment pursuant to this section, Section 1707, and
Section 1751.3, or the filing of a new bond pursuant to Section 1662.
An inactive license shall not permit its holder to transact any
insurance for which a valid, active license is required.
(c) Upon the termination of all appointments of a person licensed
under a certificate of convenience, that certificate shall be
canceled and shall be returned by its lawful custodian to the
commissioner.
(d) A property broker-agent or a casualty broker-agent appointing
an insurance solicitor pursuant to this section, if a natural person,
shall be the holder of a permanent license to act as such a
broker-agent or the holder of a certificate of convenience so to act
issued pursuant to either subdivision (a) or (b) of Section 1685. If
the property broker-agent or the casualty broker-agent is an
organization, it shall be the holder of a permanent license.
(e) The filing of an incomplete or deficient action notice with
the department shall require the filing of an amended, complete
action notice, together with the payment of the fee therefor
specified in subdivision (l) of Section 1751.
(f) A notice of appointment appointing a solicitor may be filed by
a second or subsequent property broker-agent or casualty
broker-agent. The broker-agent seeking to appoint the solicitor shall
enter into an agreement with all other property broker-agents and
casualty broker-agents with whom the insurance solicitor has an
existing appointment. The agreement shall govern how the
broker-agents will determine on which property broker-agent's or
casualty broker-agent's behalf the solicitor is working when dealing
with individuals who are customers of none of the property
broker-agents and casualty broker-agents with whom the solicitor has
an appointment. If the agreement does not identify which broker-agent
or broker-agents are liable for the act of the solicitor, all
property broker-agents and casualty broker-agents with whom the
solicitor is appointed at the time of the act shall be jointly and
severally liable for that act.
