The stunning defeat of SB 938 was due in large part to the incredible outpouring of opposition organized by IBA West members. IBA West has lead the effort to defeat SB 938 over the last several months with highly effective legislative advocacy directed by John Norwood, Norwood and Mattoch, expert legal counsel provided by Steve Young, IBA West General Counsel and an amazing grassroots response organized by Shirley Rosenberg, IBA West grassroots coordinator. Over 2,300 letters were sent to members of the committee. Senator Speier’s staff said they took almost 900 phone calls from agents and brokers on one day. While this bill may be dead, IBA West remains vigilant on this issue and has recently filed opposition to the departments’ revised regulations seeking to do much of the same outline in SB938. Agents and brokers interested in getting involved or who more information on this critical issue can visit IBA West.com or http://www.agentbroker411.com
I would like to set the record straight as to IBAWest’s opposition to SB938:
The bill which originally included language similar to Insurance Commissioner John Garamendi’s pending disclosure regulations, was amended by the Senate Banking, Finance and Insurance Committee to create a form that would have required data on each quote solicited, various forms of compensation and whether the producer was acting on behalf of the client.
While WIAA opposed both versions of the bill, IBA West’s lobbyist, John Norwood, testified the disclosure form was a step in the RIGHT DIRECTION. (IBA West, in contrast to other producer groups, has stated for months that brokers need to disclose all forms of compensation.) WIAA lobbyist Mike D’Arelli then told the committee WIAA would oppose any attempt to create more disclosure duties, by legislation or regulation, until the California Department of Insurance identifies what wrongdoing cannot be addressed under existing law.
Representatives of the American Agents Alliance, Personal Insurance Federation of California and other industry groups later echoed D’Arelli’s comments in testimony before the committee. D’Arelli pledged that if the department identifies relevant wrongdoing the CDI does not have the authority to remedy under existing law, WIAA members would â€Åâ€Ŕroll up their sleeves†and work with the CDI and the Legislature to find a solution. After the four-hour committee hearing, only two of the 11 members of the committee voted for the bill, while five opposed it and four abstained.
Along with thwarting the department’s original set of regulations, the defeat of SB 938 is one of many victories agents and brokers will need to combat attempts to create more disclosure duties. The bill was later granted reconsideration and could be heard in the next few weeks. If so, there’s no guarantee the four legislators who abstained, all Democrats, won’t all vote for passage, which could be enough to get SB 938 out of committee. Meanwhile, WIAA will focus on the pending regulations; WIAA and the Alliance will submit a formal objection May 2 to the newest version of them.
Garamendi is just another politician. He continues to grandstand and posture for gubernatorial election. Time to recall this guy and get someone in office that truly understands and cares about the insurance industry — both buyers and sellers!
It is clear that IBA West would throw their own mother under the bus. IBA wanted to work WITH the DOI just as the other email pointed out. Patricia, Steve Young and Norwood don’t want what is best for anyone but themselves…tell the truth Patricia…you never fought this until you were forced to..you are not telling the entire truth. There is a reason members like me are no longer members…Steve Young is the main reason..how many times has he said one thing and done another. Doesn’t his buddy Tomashoff work for the DUI.
Is the DRE going to make realestate agents make less commission because of the price of homes in California. I think not. Will the the DOC make a retailer lower their prices, I think not. Why should we be any different………………….. Garamendi should tell us what his fees and contributions are. Ha Ha.
Finally someone in Sacramento has sent Garamendi packing on one of his imaginary pet issues. …BUT what will he try next? Do we have the time to keep looking over our backs, waiting for him to shoot again. “Stop running, you’ll only die tired.” RECALL GARAMENDI!!!!
The stunning defeat of SB 938 was due in large part to the incredible outpouring of opposition organized by IBA West members. IBA West has lead the effort to defeat SB 938 over the last several months with highly effective legislative advocacy directed by John Norwood, Norwood and Mattoch, expert legal counsel provided by Steve Young, IBA West General Counsel and an amazing grassroots response organized by Shirley Rosenberg, IBA West grassroots coordinator. Over 2,300 letters were sent to members of the committee. Senator Speier’s staff said they took almost 900 phone calls from agents and brokers on one day. While this bill may be dead, IBA West remains vigilant on this issue and has recently filed opposition to the departments’ revised regulations seeking to do much of the same outline in SB938. Agents and brokers interested in getting involved or who more information on this critical issue can visit IBA West.com or http://www.agentbroker411.com
Dr….ama…..tic….ally expand the powers of the Insurance Commissioner, be it for to be sucking on Nipple Rings too.
Lack of statistical support against insurance producers is not acceptable! I agree.
Hurray !!!! The people have spoken.
I am very pleased by this outcome. What a great state we do live in.
http://www.wequoteyouinsurance.com
I would like to set the record straight as to IBAWest’s opposition to SB938:
The bill which originally included language similar to Insurance Commissioner John Garamendi’s pending disclosure regulations, was amended by the Senate Banking, Finance and Insurance Committee to create a form that would have required data on each quote solicited, various forms of compensation and whether the producer was acting on behalf of the client.
While WIAA opposed both versions of the bill, IBA West’s lobbyist, John Norwood, testified the disclosure form was a step in the RIGHT DIRECTION. (IBA West, in contrast to other producer groups, has stated for months that brokers need to disclose all forms of compensation.) WIAA lobbyist Mike D’Arelli then told the committee WIAA would oppose any attempt to create more disclosure duties, by legislation or regulation, until the California Department of Insurance identifies what wrongdoing cannot be addressed under existing law.
Representatives of the American Agents Alliance, Personal Insurance Federation of California and other industry groups later echoed D’Arelli’s comments in testimony before the committee. D’Arelli pledged that if the department identifies relevant wrongdoing the CDI does not have the authority to remedy under existing law, WIAA members would â€Åâ€Ŕroll up their sleeves†and work with the CDI and the Legislature to find a solution. After the four-hour committee hearing, only two of the 11 members of the committee voted for the bill, while five opposed it and four abstained.
Along with thwarting the department’s original set of regulations, the defeat of SB 938 is one of many victories agents and brokers will need to combat attempts to create more disclosure duties. The bill was later granted reconsideration and could be heard in the next few weeks. If so, there’s no guarantee the four legislators who abstained, all Democrats, won’t all vote for passage, which could be enough to get SB 938 out of committee. Meanwhile, WIAA will focus on the pending regulations; WIAA and the Alliance will submit a formal objection May 2 to the newest version of them.
Garamendi is just another politician. He continues to grandstand and posture for gubernatorial election. Time to recall this guy and get someone in office that truly understands and cares about the insurance industry — both buyers and sellers!
It is clear that IBA West would throw their own mother under the bus. IBA wanted to work WITH the DOI just as the other email pointed out. Patricia, Steve Young and Norwood don’t want what is best for anyone but themselves…tell the truth Patricia…you never fought this until you were forced to..you are not telling the entire truth. There is a reason members like me are no longer members…Steve Young is the main reason..how many times has he said one thing and done another. Doesn’t his buddy Tomashoff work for the DUI.
Is the DRE going to make realestate agents make less commission because of the price of homes in California. I think not. Will the the DOC make a retailer lower their prices, I think not. Why should we be any different………………….. Garamendi should tell us what his fees and contributions are. Ha Ha.
Im very pleased with this!
Finally someone in Sacramento has sent Garamendi packing on one of his imaginary pet issues. …BUT what will he try next? Do we have the time to keep looking over our backs, waiting for him to shoot again. “Stop running, you’ll only die tired.” RECALL GARAMENDI!!!!
Thanks, Matt. At least there are two of us who agree! Bill