Bill Text: CA SB716 | 2011-2012 | Regular Session | Introduced

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Bill Title: Insurance: surplus lines insurers: reinsurance.

Spectrum: Slight Partisan Bill (Democrat 5-3)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB716 Detail]

Download: California-2011-SB716-Introduced.html

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BILL NUMBER: SB 716	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Insurance (Senators Calderon (Chair),
Anderson, Corbett, Correa, Gaines, Lowenthal, Price, and Wyland)

                        FEBRUARY 18, 2011

   An act relating to insurance, and declaring the urgency thereof,
to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 716, as introduced, Committee on Insurance. Insurance: surplus
lines insurers: reinsurance.
   Existing law regulates the business of insurance with regard to
surplus lines insurers and reinsurance.
   This bill would declare that it is the intent of the Legislature
to reconcile California surplus lines and reinsurance law with the
recent changes to federal law to minimize any possibly adverse
effects of preemption by the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.


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

  SECTION 1.  The Legislature declares its intent that:
   (a) It is appropriate for the protection of insureds, insurers,
and the public generally, that appropriate rules and standards exist
pertaining to reinsurance and the recognition of credit for
reinsurance based upon appropriate standards for solvency.
   (b) It is appropriate for the protection of insureds and the
public generally that surplus lines insurers are appropriately
overseen to the end that commerce is encouraged and the public
protected
   (c) The Dodd-Frank Wall Street Reform and Consumer Protection Act
(Public Law 111-203) was signed into law on July 21, 2010, and
includes provisions pertinent to both state surplus lines regulation
and reinsurance, including language that can preempt certain state
laws.
   (d) To minimize any possible adverse effect upon the citizens of
California, it is the intent of the Legislature to reconcile
California surplus lines and reinsurance law with the recent changes
to federal law to minimize any possibly adverse effects of
preemption.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to ensure that the salutary effects of harmonizing
California law with the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 can be achieved at the earliest possible time,
it is necessary that this act take effect immediately.