California’s Insurance Commissioner Dave Jones today applauded Governor Jerry Brown for signing legislation, sponsored by the Department of Insurance, which allows California to implement provisions in a new federal surplus lines insurance law.
California, like all other states, had until July 20, 2011 to enact surplus lines insurance provisions to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to avert federal preemption. The enactment of AB 315 by the required deadline averted disruption in the state’s surplus lines insurance market and the potential loss of business in California’s admitted insurance market, Jones said.
AB 315, authored by Assembly Insurance Committee Chair Jose Solorio, provides a common definition of “home state insured,” authorizes the collection of tax on 100% of the premium of California home state insured policies, and conforms surplus eligibility and broker licensing requirements to the new federal standards, among other things.
“Enacting this bill is vital for maintaining the integrity of California’s surplus line insurance market,” Commissioner Jones said.
Source: California Department of Insurance.
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