CA AB1442

Repeals and re-enacts Section 717 of the Insurance Code to reorganize provisions governing insurance commissioner consideration of applicant qualifications for certificates of authority.

Maintains existing standards for certificate of authority approval, including evaluation of capital, investments, financial stability, reinsurance, management integrity, ownership structure, claims practices, business methods, promotional history, and hazard to policyholders.

Requires the Department of Insurance to submit a report to the Legislature by September 1, 2024 detailing applicant approvals and denials over the preceding 10 years.

Report must include main reasons for certificate denials and recommendations for modernizing insurance regulations to accommodate innovation and increase market competition in California.