Insurance: certificate of authority.

Existing law prohibits a person from transacting any class of insurance business in this state without first being admitted for that class. Under existing law, admission is secured by procuring a certificate of authority from the Insurance Commissioner. Existing law requires the commissioner, before granting a certificate of authority or amended certificate of authority to any applicant, to consider the qualifications of the applicant, as specified, and to issue a certificate of authority upon consideration of all relevant qualifications, unless the commissioner makes a finding that the applicant is materially deficient in respect to one or more of the specified qualifications. This bill would, on or before September 1, 2024, require the department to provide a report to the Legislature on the number of applicants approved and denied in the preceding 10 years, the reasons for denying the certificates of authority, and recommendations on how to accommodate innovation and allow for more competition in California's insurance market.