Bill Text: CA AB2279 | 2013-2014 | Regular Session | Chaptered

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Bill Title: Insurance: life agents.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-07-09 - Chaptered by Secretary of State - Chapter 108, Statutes of 2014. [AB2279 Detail]

Download: California-2013-AB2279-Chaptered.html

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BILL NUMBER: AB 2279	CHAPTERED
	BILL TEXT

	CHAPTER  108
	FILED WITH SECRETARY OF STATE  JULY 9, 2014
	APPROVED BY GOVERNOR  JULY 9, 2014
	PASSED THE SENATE  JUNE 26, 2014
	PASSED THE ASSEMBLY  MAY 15, 2014
	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 21, 2014

   An act to amend Sections 1676 and 1749.01 of the Insurance Code,
relating to insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2279, Hagman. Insurance: life agents.
   Existing law does not require an applicant for a life-only license
or a life-only license limited to the payment of funeral and burial
expenses, who is limited by the terms of a written agreement with an
insurer that has filed on that life-only agent's behalf a notice of
appointment with the commissioner to transact only specific life
insurance policies or annuities having an initial face amount of
$15,000 or less that are designated by the purchaser for the payment
of funeral and burial expenses, to take the full life agent
examination to obtain a license.
   This bill would raise the initial face value of those life
insurance policies or annuities to $20,000 or less.
   Existing law requires licensed life agents and applicants for
licensure as a life agent to meet certain education standards unless
they are limited by the terms of a written agreement with an insurer
to transact only specified life insurance policies or annuities
having an initial face value of $15,000 or less that are designated
by the purchaser for the payment of funeral and burial expenses.
   This bill would raise the initial face value of those life
insurance policies or annuities to $20,000 or less.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1676 of the Insurance Code is amended to read:
   1676.  (a) Except as set forth in Sections 1675 and 1679, the
commissioner shall not issue a permanent license pursuant to this
chapter to an applicant therefor unless the applicant has within the
12-month period next preceding the date of issue of the license taken
and passed the qualifying examination for that license. This section
shall not apply to a person licensed as a property broker-agent or
as a casualty broker-agent who applies for a license as a personal
lines broker-agent.
   (b) An application for both the life-only and accident and health
license types shall meet the requirement in subdivision (a) by
passing one examination covering subjects pertaining to both license
types. These applicants shall pay the fee for a life agent, as
specified in paragraph (4) of subdivision (a) of Section 1751.
   (c) An applicant for a life-only license pursuant to Section 1626
or a life-only license limited to the payment of funeral and burial
expenses who is limited by the terms of a written agreement with an
insurer that has filed on that life-only agent's behalf a notice of
appointment with the commissioner to transact only specific life
insurance policies or annuities having an initial face amount of
twenty thousand dollars ($20,000) or less that are designated by the
purchaser for the payment of funeral and burial expenses, shall not
be required to take the full life agent examination to obtain a
license. The applicant shall be required to take an examination
developed to test their knowledge of topics relevant to the type of
policies that they are restricted to sell.
  SEC. 2.  Section 1749.01 of the Insurance Code is amended to read:
   1749.01.  Sections 1749 and 1749.3 shall not apply to a life agent
who is limited by the terms of a written agreement with the insurer,
which filed on that life agent's behalf a notice of appointment with
the commissioner, to transact only specific life insurance policies
or annuities that have an initial face amount of twenty thousand
dollars ($20,000) or less that are designated by the purchaser for
the payment of funeral and burial expenses. The commissioner may
require the insurer appointing those life agents to certify as to the
limitations of the agents' representation.