Legislative Update--Senate Insurance Committee

 

The Senate Insurance Committee initially had a long agenda of bills to hear this past Wednesday.  However, as negotiations continued on several bills, the hearing dates were pushed until after Spring Recess.  The committee heard the following two bills:

AB 125 (Committee on Insurance): This bill, an urgency measure, would clarify that a deductible required by an automobile insurance policy may be covered by guaranteed automobile protection (GAP) insurance and related contracts.  AB 125 corrects an error in last year's AB 2782 (Assembly Insurance Committee), Chapter 400, Statutes of 2010, omnibus bill and ensures that California law does not unreasonably frustrate the legitimate expectations of California consumers with respect to what "Gap" insurance extends to.

AB 125 passed the committee with a vote of 6-0.

SB 712 (Committee on Insurance): This bill would adopt the core provisions of the NAIC's Property and Casualty Actuarial Opinion Model law to support the California Insurance Department's continued accreditation.

SB 712 passed the committee with a vote of 6-0.