New law improves rate filing review process
News: 2015 Press Release
SACRAMENTO, Calif. - Governor Brown signed Assembly Bill 387 today, authored by Assembly Member Kevin McCarty. Co-sponsored by Insurance Commissioner Dave Jones, the law will ultimately improve the department's ability to review and approve disability policy filings more effectively and completely in the specified timeframe. California Department of Insurance and the Association of California Life and Health Insurance Companies. The law extends the period of time allowed for the department to review and approve policy forms and any associated risks and premium rates from 30 to 120 calendar days.
The new law will also authorize the Commissioner to develop and publish new guidelines on the department's public website for the purpose of streamlining and expediting the department's file review process for life and disability insurance forms. Providing clear guidelines for insurers to follow when submitting policies for approval, coupled with increasing the amount of time to review and approve policies, will improve the overall process and reduce confusion for consumers and the industry.
The new law also requires the requesting of an independent study to examine and compare California law with standards set forth in the Interstate Insurance Product Regulation Compact. This study would examine important consumer protections established under current law for annuity, life insurance, disability income, and long‐term care insurance products.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 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 website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.