New law increases financial data protection for insurers
News: 2014 Press Release
SACRAMENTO, Calif. - AB 1234 (Levine), which maintains the confidentiality of state investigations and examinations that monitor the financial health of insurance companies, was signed into law by Governor Brown Friday. The new law protects insurer solvency by precluding the Department of Insurance from being forced to provide sensitive financial data when requested, and prohibits confidential information provided to the department from being admitted into evidence in a civil proceeding.
"Critical and confidential information necessary to ensure solvency of insurers is now better protected," said Commissioner Dave Jones. "The clarifications in this law will allow the department to ensure a fair and competitive marketplace which is solvent and safe for consumers. I would like to thank Governor Brown for signing AB 1234."
The California Department of Insurance sponsored the legislation to align California law and practices with the National Association of Insurance Commissioners (NAIC) Model Act.
In 2012, the California Department of Insurance sponsored successful legislation to adopt the NAIC's revised Holding Company Model Act which provided the Insurance Commissioner with the authority and regulatory tools to ensure effective regulation and oversight of insurance holding company systems. AB 1234 adds language to the Insurance Code on the confidentiality of investigations and examinations of insurance holding companies and their affiliates which allows their information to be properly disclosed.
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The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $289 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $394 million in claims and premiums. Please visit the Department of Insurance web site at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.