(1) Existing law generally regulates the business of insurance in the state, including the issuance of securities. Existing law defines an agent to mean every person employed or appointed by an insurer or broker who sells a security in this state for compensation.
This bill would update the term "agent" to "stock agent" and would make conforming changes.
(2) Existing law requires the Insurance Commissioner to submit to the Department of Justice fingerprint images and related information as specified by statute for specified applicants applying for a license, including a surplus line broker, a life and disability analyst, and a variable life and variable annuity agent.
This bill would delete the provisions requiring the commissioner to submit fingerprint images and related information for the above-listed individuals.
(3) Existing law establishes the powers and duties of the Department of Insurance and the Insurance Commissioner. Existing law requires an application for specified licenses, including a production agency license, to be automatically denied without prejudice to the filing of a new application for the license, except in specified circumstances, if the applicant does not fully qualify for and receives the license on a permanent basis or is denied the issuance of the license, as specified.
This bill would additionally include applications for bail, insurance adjuster, or public insurance adjuster licenses.
(4) Existing law requires an insurance licensee or applicant for a license to notify the commissioner when any of their background information changes after the application has been submitted or the license has been issued. For this purpose, existing law defines "background information" to include an administrative action regarding a professional or occupational license, among other things.
This bill would expand the definition for "background information" to also include an administrative action regarding conduct or activity for which a professional or occupational license was required, but not possessed, and an administrative or civil action filed by, or on behalf of, a government or regulatory agency alleging any unlawful conduct, activity, or omission.
(5) Existing law authorizes a limited license to be issued to a natural person or to an organization that acts an agent on behalf of cargo owners or shippers, or both.
This bill would update these provisions to clarify a limited license may be issued to an agent acting on behalf of the cargo owner, cargo shipper, or both. The bill would make conforming changes.
(6) Existing law permits blanket insurance to be issued to a college, school, or other institution of learning, or a sports team, camp, sponsor, or proprietor of a sports team, providing benefits to students, teachers, or employees, or sports team participants, campers, employees, officials, supervisors, or persons responsible for their support, for death or dismemberment resulting from accident, or for hospital, medical, surgical, or nursing expenses resulting from accident or sickness, as specified. Existing law defines "blanket insurance" for purposes of these provisions.
This bill would expand the groups for which blanket insurance may be issued to include coverage of volunteers for the entities described above.
(7) Existing law prohibits knowingly employing runners, cappers, steerers, or other persons to procure clients or patients to perform or obtain services or benefits under workers' compensation coverage or a contract of insurance or that will be the basis for a claim against an insured individual or their insurer. Existing law authorizes a district attorney, the Insurance Commissioner, or an interested person to bring a civil action for a violation of that provision. Existing law requires the district attorney or commissioner, for actions brought by an interested person, to either proceed with the action, in which case the action would be conducted by the district attorney or commissioner or to notify the court that it declines to take over the action, in which case the person bringing the action has the right to conduct the action. Existing law prohibits a court from having jurisdiction over an action under these provisions based upon the public disclosure of allegations or transactions in a criminal, civil, or administrative hearing in a legislative or administrative report, hearing, audit, or investigation, or from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information.
This bill would instead prohibit a court from having jurisdiction, unless the action is brought by the district attorney or commissioner, the district attorney or commissioner proceeds with an action brought by an interested person, or the person bringing the action is an original source of the information.
(8) Existing law exempts agents of a fraternal benefit society from specified examination requirements if they meet specified conditions, including that the agent was in the service of the society on March 1, 1945, and was licensed to represent the society on January 1, 1952, and continuously thereafter, or the agent does not devote substantially full time to the sale of life or disability insurance. Existing law requires the society to notify the commissioner if a licensed part-time agent later devotes substantially full time to the sale of that insurance. Existing law establishes examination and fee parameters and requires that licensees pass the examination before a specified deadline. If the person fails to pass the exam within the specified timeline, existing law authorizes the person to be licensed as a fraternal benefit agent only if they file a new application and meet specified conditions, including that they take and pass the qualifying exam.
This bill would replace the term "agent" with the term "individual insurance licensee" and clarify that this section applies to individual part-time fraternal insurance licensees. The bill would additionally allow the part-time fraternal insurance licensee to remain part time until they file for a new application and either take and pass the examination, or demonstrate to the commissioner that they will only remain part time.
(9) This bill would make additional technical changes to eliminate outdated references and correct other errors.

Statutes affected:
AB 487: 10270.2 INS
02/10/25 - Introduced: 10270.2 INS
02/25/25 - Amended Assembly: 1670 INS, 1670 INS, 1729.2 INS, 1729.2 INS, 1800 INS, 1800 INS, 1871.7 INS, 1871.7 INS, 10123.1991 INS, 10123.1991 INS, 10270.2 INS, 10295.11 INS, 10295.11 INS, 12800 INS, 12800 INS
03/10/25 - Amended Assembly: 1670 INS, 1729.2 INS, 1800 INS, 1871.7 INS, 10123.1991 INS, 10270.2 INS, 10295.11 INS, 12800 INS
05/28/25 - Amended Assembly: 822 INS, 822 INS, 824 INS, 824 INS, 825 INS, 825 INS, 845 INS, 845 INS, 845.5 INS, 845.5 INS, 846 INS, 846 INS, 847 INS, 847 INS, 852 INS, 852 INS, 859 INS, 859 INS, 1652 INS, 1652 INS, 1670 INS, 1729.2 INS, 1757.1 INS, 1757.1 INS, 1757.2 INS, 1757.2 INS, 1800 INS, 1802.3 INS, 1802.3 INS, 1871.7 INS, 10270.2 INS, 10295.11 INS, 11103 INS, 11103 INS, 12800 INS