California Insurance Commissioner Harry Low applauded Gov. Gray Davis for signing Assembly Bill 2984, which will help the California Department of Insurance (CDI) to preserve California’s high licensing standards from federal preemption and will assist in the electronic filing of license applications.
AB 2894 was sponsored by the CDI in response to the federal Gramm-Leach- Bliley Act of 1999, which attempts to establish uniform producer licensing laws and provide mechanism for multi-state licensing on insurance producers.
“This new law will allow the California Insurance Commissioner and the Department of Insurance to maintain jurisdiction over the California insurance marketplace,” said Low. “Governor Davis and the Legislature have made sure that California has the authority it needs to protect consumers and policyholders in our state.”
The legislation was also necessary to facilitate the regulation of banks and other depository institutions selling insurance products, which would be preempted without this legislation.
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