Insurance: fees and charges.

Existing law authorizes the Insurance Commissioner to increase or decrease the fees set forth in the Insurance Code, as necessary, to allow the Department of Insurance to meet the appropriation authorized by the annual Budget Act. Any increase or decrease in fees is required to be made in accordance with certain requirements, and the increase in fees is prohibited from exceeding 10% without the prior approval of the Legislature. Existing law authorizes the department to make a single annual increase or decrease in fees, on a fiscal year basis, at any time during the year, provided it is announced by a bulletin issued at least 90 days prior to the effective date of that increase or decrease. The bulletin is required to be sent to all affected parties and to both houses of the Legislature. Existing law authorizes that fee increase or decrease to be rescinded by a majority vote of both houses of the Legislature, not later than 60 days after the issuance of the bulletin announcing the increase or decrease, except as provided. This bill would delete the provision requiring that the bulletin be sent to both houses of the Legislature and would instead require the bulletin be sent to the Assembly Committee on Insurance and the Senate Committee on Insurance. The bill would also update and codify various fees, including, but not limited to, application, licensing, renewal, and filing fees. Existing law provides the means by which an insurer may redomesticate its principal place of business to this state or redomesticate to any other state in which it is admitted to transact the business of insurance, including, but not limited to, seeking the approval of the commissioner, paying a fee, and filing a notice of intent to redomesticate with the Secretary of State, as provided. Existing law defines "redomestication" as the transfer of an insurer's place of incorporation from another state to this state or from this state to another state. This bill would require an insurer redomesticating to this state to file articles of incorporation, as provided, and would require an insurer redomesticating to another state to file a statement and designation and a statement of redomestication, as specified. The bill would delete the requirement to file a notice of intent to redomesticate and would authorize the commissioner to write a letter to the insurer confirming that the redomestication has been approved. Existing law provides that the filing fee for a license to act as a surplus line broker is $1,000 every 2 years, or for any initial fractional license year. For an individual licensed as a surplus line broker who only transacts on behalf of a surplus line broker organization, the filing fee is $500 every 2 years, or for any initial fractional license year. This bill would delete those provisions. This bill would also delete obsolete provisions and would make technical and conforming changes.