Insurance: low-cost automobile insurance: sales.

(1) Existing law establishes within the California Automobile Assigned Risk Plan a low-cost automobile insurance program in order to provide a means for eligible consumers to buy automobile insurance, as specified. This bill would authorize a California Automobile Assigned Risk Plan (plan) certified producer to accept and process an application to purchase low-cost automobile insurance policies through an Internet Web site, as provided. The bill would require the plan to coordinate with the Department of Insurance in order to develop a system for receiving and assigning policies issued through Internet Web sites, and would provide that the plan may request, and the department may include in its plan submitted to the Legislature the use of $50,000 from the department's existing consumer outreach fund for the sole purpose of implementing these provisions. The bill would require the plan, subject to the approval of the Insurance Commissioner, to establish and maintain, or contract with an entity, by way of an open bidding process, to establish and maintain, an Internet Web site to refer or assign, at the consumer's option, persons to certified agents or brokers, for the purchase of a low-cost automobile insurance policy. The bill would also provide that the plan may request and the department may include in its plan submitted to the Legislature, that up to $100,000 from the department's existing consumer outreach fund be made available for development of the Primary California Low-Cost Auto Web Site. This bill would prohibit a low-cost automobile insurance policy applicant from being required to provide a copy of his or her, or other household member's, driver's license, if the department finds another suitable means of verifying the driver's licensure. (2) Existing law requires the Department of Motor Vehicles to suspend, cancel, or revoke the registration of a vehicle if the financial responsibility requirements have not been met. Existing law requires the department, prior to suspending, canceling, or revoking the registration of a vehicle, to notify the vehicle owner of its intent to suspend, cancel, or revoke the registration, and to provide in the notification document in plain, boldface type not less than 12 point in size, and in both English and Spanish, a statement that a program offering affordable automobile insurance to low-income households has been established. This bill would revise this statement and rename the program as "California Low-Cost Auto Insurance" and would require that the statement include an Internet Web site address, a toll-free telephone number, and eligibility requirements for applicants.