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2008 SUMMARY OF NEW STATE LAWS - CALIFORNIA

California State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

AB 1115

85

Accident Reports

Provide that no peace officer, member of the Department of the California Highway Patrol, or firefighter shall be required to report any accident in which he or she is involved while operating any employer-leased or employer-rented vehicle, in the performance of his or her duty during the hours of his or her employment, to any person who has issued that peace officer, member of the Department of the California Highway Patrol, or firefighter a private automobile insurance policy. Effective date: July 10, 2008.

AB 1165

749

DUI Suspension

Authorizes the DMV to administratively suspend a driver's license for one year under a zero tolerance standard. Also authorizes law enforcement to issue a notice of suspension and impound the vehicle of a person who is driving with a blood-alcohol concentration of 0.01 percent or greater while on court-ordered post-DUI probation. Effective date: January 1, 2009.

AB 1699

29

Surplus Lines Brokers

Increases the filing fee for a licensee to act as a surplus line broker and an individual licensed as a surplus line broker who only transacts on behalf of a surplus line broker organization. Authorizes the Insurance Department to collect the fees. Repeals licensure requirement for individual surplus lines brokers. Provides for surplus line broker training. Requires that each person who is responsible for the discharge of licensee duties at each surplus line brokers office be licensed. Effective date: June 13, 2008.

AB 1874

322

State Compensation Insurance Fund

Increases the number of members on the board of directors of the State Compensation Insurance Fund from five to 11. Effective date: January 1, 2009.

AB 2091

193

Workers' Compensation

Requires a study analyzing and making recommendations regarding continued access to prescription drugs and pharmacy services by injured workers. Effective date: July 28, 2008.

AB 2143

445

Insurance Fraud Fee

Extends the insurance fraud assessment fee charged to insurers to January 1, 2015. Effective date: September 27, 2009.

AB 2273

97

Total Loss Certificate

Authorizes insurers and salvage pools to request the DMV to issue a nonrepairable certificate, if they are unable to obtain the properly endorsed certificate of ownership or other evidence of ownership acceptable to the Department within 30 days following oral or written acceptance by the owner of an offer of an amount in settlement of a total loss. Effective date: January 1, 2009.

AB 2335

66

Building Permits

Creates a single provision that combines and modifies existing building permit forms, declarations, and notice to the property owner and expands the acknowledgments property owners are required to make. Effective date: July 3, 2008.

AB 2272

672

Motorcycles

Changes the definition of a motorcycle, deleting the existing weigh limitation of 1500 pounds. It also removes a separate definition for electrically-powered vehicles. Effective date: January 1, 2009.

AB 2688

42

Motor Vehicle Reports

Allows an insurer to obtain the required motor vehicle operator report from a subscribing loss underwriting exchange carrier, or from the Department of Motor Vehicles. Effective date: January 1, 2009.

AB 2731

78

State Regulation

Change that definition of "qualified custodian" to include each of those same entities that is either domiciled and has a principal place of business in this state, or is a national banking association with a trust office located in this state. Effective date: January 1, 2009.

AB 2738

467

Construction Contracts

Deletes the provisions applicable to construction contracts entered into on or after January 1, 2008, that purport to indemnify the general contractor or contractor not affiliated with the builder. The bill would revise the provisions applicable to contracts entered into after January 1, 2006, to instead apply to contracts entered into after January 1, 2009. Effective date: January 1, 2009.

AB 2956

304

Producer Licensing

Revises the statutory definitions relating to producer licenses to distinguish between the acts of an insurance agent and the acts of a broker. The bill provides for a presumption of broker status under specified conditions where a person on behalf of another person transacts insurance with, but not on behalf of, an admitted insurer. The bill further provides that the presumption may be rebutted if any one of certain factors (e.g. the licensee is appointed as an agent of the insurer for that class of insurance) is present or if the "totality of the circumstances" indicates that the licensee is acting on behalf of the insurer. Effective date: January 1, 2009.

SB 28

270

Wireless Communication Device

Prohibits a person from driving a motor vehicle using an electronic wireless communication device to write, send or read a text-based communication. Effective date: January 1, 2009.

SB 133

280

Title Insurance

Prohibits a person from being employed as a title marketing representative unless he or she holds a valid certificate of registration as a title marketing representative issued by the commissioner for a 3-year period. Effective date: January 1, 2009.

SB 1145

344

State Compensation Insurance Fund

Makes the board of directors of State Compensation Insurance Fund subject to the Open Meetings Act and the California Public Records Act with a number of exceptions. The bill also requires the board of directors of SCIF to appoint a president, a chief financial officer, a chief operating officer, a chief information technology officer, a chief investment officer, a chief risk officer and a general counsel. Effective date: January 1, 2009.

SB 1190

392

Interlock Ignition Device

Lowers from 0.20 percent to 0.15 percent the level of alcohol in a person's blood that a court is required to consider in determining whether the person must install a certified ignition interlock device in that person's vehicle. Effective date: January 1, 2009.

SB 1279

351

Electronic Records

Provides that the Department of Insurance may maintain records in electronic form and handle transactions electronically to the extent not prohibited by law. Effective date: January 1, 2009.

SB 1371

526

Auto Repairs

Prohibits insurers from capping paint and materials charges and defines "capping" as offering or paying an amount unrelated to a methodology used in determining paint and material charges that is accepted by automobile repair shops and insurers. Effective date: January 1, 2009.

SB 1388

404

Ignition Interlock Devices

Requires that a person immediately install an ignition interlock device on all owned vehicles for one to three years under specified circumstances (e.g. being convicted of driving a vehicle when his or her license has been suspended or revoked for conviction of dui within a 10-year period). Effective date: July 1, 2009.

SB 1467

407

Guarantee Association

Provides that all meetings of the board of governors of the guarantee association and its investment and audit committees shall be open and public and all persons shall be permitted to attend, as specified. Effective date: September 27, 2008.

SB 1567

414

Global Positioning System

Specifies where a GPS device is to be mounted on a motor vehicle. Effective date: January 1, 2009.

SB 1613

357

Wireless Communication Devices

Prohibits the use of wireless telephones while driving unless the telephone is designed and configured to allow hands-free listening and talking operation, and is used in that manner while driving. Effective date: July 1, 2008.

SB 1668

367

Fire Safety

Requires the State Fire Marshal to prepare and adopt regulations establishing minimum requirements for the prevention of fire, and for the protection of life and property against fire and panic, for any laboratory or research and any development facility that stores, handles, or uses regulated hazardous materials. Effective date: September 27, 2008.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.