AB 1391 Summary

• Risk retention groups licensed on or after January 1, 2015 must maintain a board with a majority of independent directors, limit material service provider contracts to 5 years, and establish an audit committee with at least 3 independent board members.

• Motor vehicle insurance policy cancellation notice requirements unified to require minimum 20 days' notice prior to effective date for all cancellations, eliminating separate rules for policies less than 60 days old.

• Continuing education requirements for insurance agents and brokers expanded to include 3 hours of ethics training prior to license renewal for personal lines broker-agents, limited lines automobile insurance agents, life-only agents, and accident and health agents.

• Life agents selling annuities must complete 8 hours of training before initial solicitation and 4 hours prior to each renewal; completion of initial 8-hour training does not satisfy the separate 4-hour renewal requirement.

• Underwritten title companies authorized to apply for withdrawal from California insurance market under the same procedures available to other admitted insurers.