Insurance.

Header changed from enrolled bill format (showing Assembly passage on September 4, 2025 and Senate passage on August 25, 2025) to chaptered format showing Chapter 558 and Governor approval on October 10, 2025.

Page headers changed from 'AB 487' to 'Ch. 558' throughout the document.

Text was reformatted with different line breaks and indentation to match the official chaptered layout, but no statutory language was added, removed, or altered.

New amendment to Insurance Code Section 11797 extends the State Compensation Insurance Fund board's discretionary investment authorizations (including money market mutual funds and up to 20% in specified investments) indefinitely, removing the January 1, 2027 expiration date.

Section 1652 fingerprint submission list was revised: removed 'life and disability analyst' (Section 32.5) and 'variable life and variable annuity agent' (Section 1758.1); consolidated the two surplus line broker entries into a single cargo owner/shipper agent entry; changed vehicle service contract reference from Section 12800 to Section 12815.

Section 824 (Broker definition) changed 'No authority to act as a broker may be implied' to 'No authority to act as a broker shall not be implied,' shifting from permissive to mandatory prohibition language (or potentially a drafting correction).

Throughout the bill, the term 'a stock agent' was corrected to 'stock agent' (removing erroneous article), and various redundant or garbled phrasing was cleaned up in Sections 845, 846, 847, 852, and 1757.1.

Section 847 bond amount format changed from 'five thousand dollars' to 'five thousand dollars ($5,000)' for clarity.

Removed line-by-line numbering format used in the amended version and replaced with standard enrolled bill formatting.

Added procedural enrollment headers including 'Passed the Assembly September 4, 2025,' 'Passed the Senate August 25, 2025,' and a blank Governor's receipt block.

Fixed multiple duplicated words throughout the text: 'privileges privileges' to 'privileges,' 'State state' to 'state,' 'association association' to 'association,' 'dollars, dollars ($5,000)' to 'dollars ($5,000),' 'engage engage' to 'engage,' and 'adjuster adjuster' to 'adjuster.'

Corrected grammar in Section 824 from 'No authority...may shall not be implied' to 'Authority to act as a broker shall not be implied.'

Simplified Section 852 language from 'has violated any provision of this article' to 'has violated this article.'

Removed the operative date provision '(d) This section shall become operative on July 1, 2023' from Section 1871.7, which prohibits employing runners, cappers, and steerers to procure insurance or workers' compensation clients.

In Section 10295.11 (insurance fraud civil actions), removed 'Attorney General' from the list of parties who may bring an action based on publicly disclosed information. Only the district attorney or commissioner can now bring such actions, narrowing enforcement authority.

In Section 12800, the definition of 'service contract administrator' was restructured to remove two limiting requirements: (1) the person must have been collecting, maintaining, or disbursing moneys for claims or repairs, and (2) the activities must relate to contracts where a seller located in California is the obligor. The new definition applies to any person who performs or arranges any of the listed activities, substantially broadening who is regulated.

In Section 1729.2, the 'background information' definition was clarified by removing a redundant word ('license') and fixing punctuation in the phrase about administrative actions regarding conduct for which a professional license was required but not possessed. Also removed 'company' from 'any company, person' since 'person' already encompasses entities.

Multiple drafting errors were corrected: 'to him or her the applicant' changed to 'to the applicant' in Section 1670; incorrect cross-reference 'subdivision (d) (a)' corrected to 'subdivision (a)' in Section 1800; duplicate articles removed ('An A health insurer' to 'A health insurer', 'No A court shall not' to 'A court shall not'); section numbering cleaned up; and 'his or her their' changed to 'their' in Section 12800.

The term 'agent' is replaced with 'stock agent' in multiple Insurance Code sections (822, 824, 825, 845, 845.5, 846, 847, 852, 859) to clarify that these provisions apply specifically to persons who sell securities for insurers or brokers, not all insurance agents.

Section 1729.2 expands the definition of 'background information' that licensees must report to include administrative actions regarding conduct for which a professional license was required but not possessed, and administrative or civil actions filed by government agencies alleging unlawful conduct.

New Sections 1757.1 and 1757.2 establish a limited license for cargo owner's or shipper's agents, authorizing them to procure cargo insurance only on behalf of the specific cargo owner or shipper for whom they are also arranging carriage of goods. The license fee is $29 per year and no qualifying exam is required.

Section 1670 (automatic denial of stalled applications) is expanded to additionally cover applications for bail agent, insurance adjuster, and public insurance adjuster licenses, which were previously not subject to the one-year automatic denial rule.

Blanket insurance provisions are expanded to include coverage of volunteers for colleges, schools, sports teams, camps, and similar entities, in addition to the previously covered students, teachers, employees, and participants.

Section 1652 (fingerprint submissions) is substantially rewritten to list 25 specific license types for which the commissioner must submit fingerprint images to the Department of Justice, including property/casualty licensees, bail agents, insurance adjusters, stock agents, and others.

Section 11103 (fraternal benefit societies) replaces 'agent' with 'individual insurance licensee' and allows part-time fraternal licensees to remain part-time until they file a new application and either pass the qualifying exam or demonstrate to the commissioner they will only remain part-time, rather than being automatically required to take the exam.

Section 1871.7 (anti-kickback/procurement fraud) adds an exception allowing a court to have jurisdiction when the district attorney or commissioner proceeds with an action brought by an interested person, in addition to actions brought directly by those officials or by original sources of information.

The bill now amends Sections 1670, 1729.2, 1800, 1871.7, 10123.13, 10123.1991, 10295.11, and 12800 in addition to the original Section 10270.2, expanding from one topic (blanket insurance) to at least five distinct regulatory areas.

Section 10270.2 (blanket insurance) retains the original volunteer coverage expansion for educational institutions and sports teams, and adds 'drug' expenses to the list of covered medical expenses for educational institution policies.

Section 1670 now includes bail, insurance adjuster, and public insurance adjuster license applications in the automatic denial provision for incomplete applications after one year.

Section 1729.2 expands the definition of 'background information' to include administrative actions regarding conduct or activity for which a professional or occupational license was required but not possessed, and administrative or civil actions filed by government or regulatory agencies alleging unlawful conduct, activity, or omission.

Section 1871.7 (insurance fraud via runners/cappers/steerers) shifts the primary government enforcement role from the Attorney General to the district attorney or Insurance Commissioner for civil actions based on publicly disclosed information. A court now lacks jurisdiction unless the DA or commissioner brings or proceeds with the action, or the plaintiff is an original source of the information.

Section 10123.13 requires health insurers to reimburse uncontested claims within 30 working days of receipt, with interest accruing at 10 percent per annum for late payment. Insurers must provide written notice identifying specific factual and legal reasons for contesting or denying claims within the same 30-working-day window.

The new health insurance claim payment provisions in Section 10123.13 include a sunset date of January 1, 2026, after which they are repealed.