California governor signs insurance billsPosted On: Sep. 22, 2022 10:16 AM CST
California Gov. Gavin Newsom signed insurance bills that will affect insurance agent licensing and bonding procedures.
S.B. 1242 requires mandatory training that agents and brokers must complete to receive or renew a license, including at least one hour of study on insurance fraud. The law also requires them to report suspected fraudulent applications for coverage to the Department of Insurance and to report to the insurer suspected fraud on an active policy.
A.B. 2154 aims to simplify the bonding authority for California Insurance Guarantee Association, the state’s backstop against insolvent insurers, and provides a statutory mechanism for CIGA to impose a surcharge on new licensees and current licensees that begin writing a new line of business.
The CIGA board of directors is required to report specific information to insurance committees in both the Senate and Assembly upon request if the board asks the California Infrastructure and Economic Development Bank to issue bonds to pay claim obligations.
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