California Assembly Passes Agent-Broker Bill

By | May 28, 2008

The California Assembly passed a bill that would help to clarify when an insurance professional is acting in the capacity of a broker versus an agent. The Assembly voted in favor of AB 2956 by a margin of 60-6. The measure now is in the Senate Rules Committee waiting to be assigned to the Senate Insurance Committee.

AB 2956 will clarify the duties of an agent versus those of a broker.
The bill would provide that an insurance agent is a person who transacts insurance other than life, disability or health insurance
on behalf of an admitted insurance company. The bill “would establish a rebuttable presumption, subject to exception, that a person is acting as an insurance broker if the application shows that the person is acting as an insurance broker and is licensed to act as an insurance broker in the state in which the application is submitted. The bill would specify the grounds for rebutting the presumption,” the bill text states.

The Alliance of Insurance Agents and Brokers, Insurance Brokers and Agents of the West, and Western Insurance Agents Association support the bill.

Topics California Agencies

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Latest Comments

  • June 2, 2008 at 3:40 am
    Phil Agent with No Fees says:
    I really dont care what surveys say because the relationship I have with my customers has provided me with an 86.3 retention ratio and referrals that make it possible that I d... read more
  • June 2, 2008 at 3:22 am
    Preferred broker says:
    Yes, I have thought about it every time I read JD Powers where the consumer lists insurance agents just below used car salesman...makes it real difficult to fight legislation ... read more
  • June 2, 2008 at 11:02 am
    Phil says:
    Hey genius...if you dont charge any fees, they aint a factor....ever thought about that

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