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CA AB315

Bill

Status

Passed

7/15/2011

Primary Sponsor

Jose Solorio

Click for details

Origin

State Assembly

2011-2012 Session

AI Summary

  • Revises California surplus line insurance laws to align with federal Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, effective July 21, 2011
  • Redefines "home state insured" and creates "commercial insured" category with net worth, revenue, and employment thresholds; requires commercial insureds to have qualified risk managers and pay over $100,000 in annual premiums
  • Establishes eligibility requirements for nonadmitted insurers including minimum capital and surplus of $45 million (or $30-50 million for certain entities), trust account requirements, financial documentation, and California agent for service of process
  • Requires surplus line brokers to conduct diligent search for coverage from admitted insurers before placing with nonadmitted insurers, with exemptions for commercial insureds who request surplus line coverage in writing
  • Maintains 3% premium tax on surplus line insurance while excluding certain specialized coverages and implementing standardized reporting requirements for brokers and direct purchasers

Legislative Description

Surplus line brokers.

Last Action

Chaptered by Secretary of State - Chapter 83, Statutes of 2011.

7/15/2011

Committee Referrals

Appropriations6/8/2011
Insurance6/2/2011
Rules5/19/2011
Appropriations4/13/2011
Insurance2/24/2011

Full Bill Text

No bill text available