AB 2323: Insurance: covered communications.

Existing law establishes the Department of Insurance, an independent department, headed by the Insurance Commissioner. Existing law requires the commissioner to perform all duties imposed by the Insurance Code and other laws regulating the business of insurance. Existing law provides that communications to the commissioner or a person in the commissioners office concerning the holder of, or applicant for, a certificate or license issued under the Insurance Code are made to the commissioner in official confidence. Existing law requires the commissioner to receive complaints and inquiries, investigate complaints, and prosecute insurers or production agencies, if appropriate. Existing law allows the commissioner to meet with persons or entities interested in the enforcement of insurance laws and the dissemination of information regarding insurance laws to the public.

This bill would prohibit a covered communication, as defined, between the commissioner or a commissioner appointee, as defined, and an interested party, as defined, unless the covered communication is disclosed and made public, as specified, with a report to be published on the departments internet website. The bill would define covered communication for these purposes to mean any oral or written communication between the commissioner or a commissioner appointee and an interested person about a matter within the commissioners jurisdiction that does not occur in a public hearing or other official proceeding, or on the official record of the proceeding on the matter. The bill would prohibit the commissioner or a commissioner appointee from making, or using their official position to influence, a decision in which a covered communication has not been disclosed, as specified, and would make a violation subject to a $7,500 civil fine and other costs. The bill would make related findings and a declaration. The bill would repeal these provisions on January 1, 2025.