Insurance: omnibus.

(1) Existing law generally regulates insurance and creates the Department of Insurance, headed by the Insurance Commissioner. Existing law requires all public records of the department and the commissioner that are subject to disclosure under the California Public Records Act to be available for inspection and copying, as specified, at the offices of the department in the San Francisco Bay area, in the City of Los Angeles, and in the City of Sacramento. This bill would eliminate the reference to an office in the San Francisco Bay area and instead refer to the department's offices in the City of Oakland, the City of Los Angeles, and the City of Sacramento. (2) Existing law requires an insurer to deliver or mail to the named insured an offer of renewal or a notice of nonrenewal of a residential property insurance policy at least 45 days before the policy expiration, or 75 days before the policy expiration for a notice of nonrenewal for a policy that expires on or after July 1, 2020. Existing law provides that mailing a specified notice is complete when the notice is deposited in a facility regularly maintained by the United States Postal Service, in a sealed envelope, with postage paid, and addressed to the person at the last address that person provided to the person mailing the notice. Existing law extends the period of notice and any right or duty to respond to that mailed notice by 5 calendar days if the place of mailing or the recipient's address is within California, 10 calendar days if the place of mailing or the recipient's address is outside of California but within the United States, or 20 calendar days if the place of mailing or the recipient's address is outside of the United States. On and after July 1, 2022, this bill would provide that the above-described mailing requirements and extended response time periods apply to a timely offer of renewal or notice of nonrenewal of a residential property insurance. Existing law prohibits a notice of cancellation of a policy of workers' compensation insurance from being effective unless the notice complies with certain requirements, including that 10 days' or 30 days' prior written notice be given to the policyholder, depending on the reason for the cancellation. Under this bill, if the notice is mailed, the above-described mailing requirements and extended notice periods would apply. (3) Existing law regulates the types and amounts of investments that insurers may make. Existing law establishes the California Organized Investment Network (COIN) within the department to, among other things, pursue active measures to encourage insurers to make investments in California's underserved and low-to-moderate-income communities. Existing law authorizes a domestic incorporated insurer to make discretionary investments after investment of an amount equal to its required minimum paid-in capital in specified securities. Under existing law, those discretionary investments may include the purchase of, or loans upon, properties and securities, but are limited to the lesser of 5% of the insurer's admitted assets or 50% of the excess of admitted assets over the sum of capital paid up, liabilities, and a required surplus. This bill, until January 1, 2027, would increase that limitation if the commissioner has approved the amount and terms of the investment in advance and COIN has identified the investment in an investment opportunity bulletin or otherwise deemed it to be a qualified investment. The bill would require the commissioner to submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on or before December 31, 2025, regarding the investments made due to the increased limitation. (4) Existing law requires an insurer, who, in connection with any insurance contract providing liability insurance, provides a form for the purpose of making a claim against the insurer to include a statement indicating that it is a crime to knowingly present false or fraudulent claims for the payment of a loss. This bill would expand that provision to also apply to a form provided in connection with an application for liability insurance or for the purpose of making a change to an existing policy, and would require the form to also include a statement indicating that it is a crime to present false and fraudulent information to obtain or amend insurance coverage. The bill would make it a crime to make or cause to be made a knowingly false or fraudulent material statement or material representation for the purpose of obtaining or amending an insurance policy. Because the bill would create a new crime, the bill would impose a state-mandated local program. (5) Existing law, with respect to certain annuity contracts, establishes a formula to determine the interest rate used in determining minimum nonforfeiture amounts. This bill would revise the formula to determine the interest rate depending on whether the annuity contract was issued before January 1, 2022, or on or after that date. (6) Existing law authorizes the commissioner to bring a superior court action to enjoin a person who is violating or about to violate the Insurance Code. This bill would additionally authorize the commissioner to apply to the clerk of the superior court for a judgment to enforce an order requiring a person to pay a monetary penalty or reimburse the department for its prosecutorial costs. (7) Existing law requires a production agency license application filed by a corporation or limited liability company to contain the names and addresses of all stockholders or members who own 10% or more of the stock or membership interests and the names and addresses of the managers, officers, and directors of the corporation or company, as applicable. Existing law requires a licensed corporation or limited liability company to file written notice with the commissioner of any changes, except for address changes, to this information. Existing law authorizes the commissioner to deny an application for a production agency license, or suspend or revoke an organization's permanent license, for specified reasons, including that the applicant or controlling person has been convicted of a specified crime. This bill would require the above-described notice of changes to be sent to the commissioner within 30 days from the date that the licensed corporation or limited liability company learns of a change. The bill would authorize the commissioner to deny an application for a production agency license, or suspend or revoke an organization's permanent license, if the applicant or controlling person has been found liable by clear and convincing evidence in a civil action involving allegations of elder or dependent abuse, oppression, fraud, malice, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty. (8) The Insurance Adjuster Act regulates the licensing of insurance adjusters. Existing law requires an applicant for an insurance adjuster license to file a $2,000 surety bond with the Insurance Commissioner. In lieu of a surety bond, an applicant may deposit $2,000 cash with the state or show evidence of a $2,000 deposit in a specified account. Under the act, an insurance adjuster's license is immediately suspended if they fail to maintain the bond. A person who violates these provisions of the act is guilty of a misdemeanor. Under the act, as well as the Public Insurance Adjusters Act, which regulates the licensing of public insurance adjusters, the commissioner may suspend or revoke an insurance adjuster license if the commissioner determines the licensee has committed a specified crime, and a plea or verdict of guilty or a conviction following a plea of nolo contendere is deemed to be a conviction for these purposes. This bill would exempt from the above-described surety bond requirements a licensed insurance adjuster, or an employee of a licensee, who adjusts claims on behalf and under the direction of a licensee who is qualified as a manager and has filed a surety bond or certificate of insurance. The bill would also exempt from these requirements a licensed insurance adjuster, an employee of a licensee, or a qualified manager who adjusts claims for an association, organization, partnership, limited liability company, or corporation that has filed a surety bond or certificate of insurance. The bill would require a surety bond or certificate of insurance to provide the names of all licensed insurance adjusters, employees, or qualified managers who may perform duties under that surety bond or certificate of insurance on a form provided by the commissioner, and to make any changes within 30 days in the manner required by the commissioner. The bill would require a license to be immediately suspended for a failure to maintain the names related to a surety bond or certificate, as specified. By increasing the duties relating to surety bonds under the act, this bill would expand an existing crime, thereby imposing a state-mandated local program. This bill would specify, for purposes of suspending or revoking a license under the Insurance Adjuster Act or the Public Insurance Adjusters Act, that a plea or verdict of guilty or a plea of nolo contendere is deemed to be a conviction. (9) Existing law generally regulates disability insurance policy provisions and excludes from these requirements provisions in life insurance, endowment, or annuity contracts that provide specified additional benefits, including special surrender benefits and accelerated death benefits. This bill would also exclude a life insurance contract provision providing a terminal illness benefit from disability insurance policy requirements. The bill would define a "terminal illness benefit" to mean a provision, endorsement, or rider added to a life insurance policy that provides for the advance payment of any part of the death proceeds, payable upon the occurrence of a terminal illness. (10) Existing law establishes the State Compensation Insurance Fund to be administered by a board of directors for the purpose of transacting workers' compensation insurance and other public employment-related insurances. Existing law requires the board to invest and reinvest all moneys in the State Compensation Insurance Fund in excess of current requirements in the same manner as is authorized in certain provisions applicable to private insurance carriers. Existing law, until January 1, 2025, authorizes the board to invest or reinvest an aggregated maximum of 20% of the moneys that are in excess of the admitted assets over the liabilities and required reserves in specified investments, including the stock of certain corporations and specified mortgage-related investment instruments. This bill would extend that investment authorization until January 1, 2027. The bill, until January 1, 2027, would also authorize the State Compensation Insurance Fund to make discretionary investments in properties and securities, and to invest in money market mutual funds, as specified. (11) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.