NAII Asks Calif. Gov. Davis to Veto Market Exams Bill

September 20, 2000

On Sept. 15, the National Association of Independent Insurers (NAII) sent a letter to California Governor Gray Davis asking him to veto SB 1805, a bill that would mandate all adopted Department of Insurance market conduct exams be made public, rather than leaving that discretion to the insurance commissioner.

SB 1805 would require the new California insurance commissioner to disclose all adopted market conduct exam reports, leaving him little flexibility in regulating insurer conduct and mediating disputes. Current law allows the insurance commissioner to decide whether to make reports public on a case-by-case basis.

According to Sam Sorich, vice president and western regional manager for NAII, SB 1805 was rushed through the session with little deliberation and needs “more serious consideration.” This bill originally pertained to alcoholic beverages, but was amended to include the market conduct disclosure provisions in the final hours of the legislative session. The Senate Insurance Committee first reviewed the bill at a brief hearing just three hours before the session’s close.

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