AB 2884 Summary

• Requires affiliate transactions by insurance holding company systems to be consistent with the current NAIC Insurance Holding Company System Model Regulation Section 19, in addition to existing fair and reasonable standards.

• Expands grounds for denying insurance agent and broker licenses to include conviction of felony or misdemeanor (not just pleas of guilty or nolo contendere); prohibits persons who fail a license exam 10 times in 12 months from retaking exams for 12 months.

• Requires insurance agents and brokers advertising on the Internet to identify their name as filed with the commissioner (not disapproved fictitious names), state of domicile, principal place of business, and license number.

• Extends long-term care insurance rate history requirements from 4 preceding years to 9 preceding years in consumer rate guides; modifies rate increase filing requirements to include composite rate projections when necessary to maintain consistent premium rates.

• Adds Internet-accessible complaint response system authority for the Insurance Commissioner to distribute and receive complaint information from insurers, including claim files and supporting documents.