Insurance Commissioner Dave Jones Applauds Passage Of SB 1448 By California Legislature
News: 2012 Press Release
Insurance Commissioner Dave Jones today announced that the California State Legislature has passed SB 1448, authored by Senate Insurance Committee Chairman Ron Calderon (D-Montebello), with unanimous bipartisan support. The bill is sponsored by Commissioner Jones and the California Department of Insurance and updates California's Insurance Holding Company System Regulatory Act.
"Insurance Holding Company Systems are vast and complex." Commissioner Jones said. "SB 1448 ensures that the Insurance Commissioner and the Department of Insurance have the authority and regulatory tools needed to evaluate the risks that non-insurance entities pose to an insurer in the holding company system."
"This bill is the product of cooperative discussions among the Legislature, Department of Insurance, and Industry Representatives," said Senator Ron Calderon. "I'm proud to have authored such a significant bill built on a common goal of protecting consumers by enhancing the oversight of insurance holding company systems."
The need for insurance regulators to have greater authority to evaluate the risks that non-insurance entities pose to an insurer in a holding company system was intensified by the Wall Street financial crisis in 2008. In response, the NAIC updated its Insurance Holding Company Systems Model Laws and Regulations and SB 1448 brings these changes into California law. One principal provision in the bill would require the controlling person of the holding company system to disclose an enterprise risk. Enterprise risk is any situation involving one or more affiliates of an insurer that, if not quickly corrected, would adversely affect the financial condition of the insurer. The bill would also authorize the Insurance Commissioner to participate in "supervisory colleges." These colleges are meetings of international regulators for internationally active insurance groups to share financial and operational information.
SB 1448 now goes to Governor Jerry Brown for his consideration.
"I urge Governor Jerry Brown to sign this bill that will enable the Department of Insurance to continue to protect California consumers to the best of our ability," 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 $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.