Insurance Commissioner Jones Applauds Governor's Signing of Surplus Lines Bill
News: 2011 Press Release
Insurance Commissioner Dave Jones today applauded Governor Jerry Brown for signing legislation, sponsored by the Department of Insurance, which allows California to implement provisions in a new federal surplus lines insurance law. California, like all other states, had until July 20, 2011 to enact surplus lines insurance provisions to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to avert federal preemption. The enactment of AB 315 by the required deadline averted disruption in the state's surplus lines insurance market and the potential loss of business in California's admitted insurance market.
"I applaud the Legislature and the Governor for working together to ensure the urgent enactment of this bill," said Commissioner Jones. "I look forward to continuing to work in cooperation with other state regulators, industry, and interested parties in implementing the new law."
AB 315, authored by Assembly Insurance Committee Chair Jose Solorio, provides a common definition of "home state insured," authorizes the collection of tax on 100% of the premium of California home state insured policies, and conforms surplus eligibility and broker licensing requirements to the new federal standards, among other things.
"Enacting this bill is vital for maintaining the integrity of California's surplus line insurance market," Commissioner Jones said.
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 $469 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.