Existing law requires the Insurance Commissioner to give, at least once each month, in each of the cities in which they have an office, qualifying examinations for agent licenses. Existing law requires every qualifying examination to be in writing and to be of sufficient scope to satisfy the commissioner that the applicant has sufficient knowledge of, and is reasonably familiar with, the insurance laws of this state and with the provisions, terms, and conditions of the insurance that may be transacted pursuant to the license sought, and that the applicant has a general and fair understanding of the obligations and duties of the holder of that license.

Existing law, until January 1, 2024, requires the examination for a life agent or accident and health or sickness agent license be provided in English and Spanish. Existing law also requires the commissioner to evaluate the Spanish exam and report the results , and specified information, to the Legislature.

This bill would require the examination for a license for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent to be provided in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog.

This bill would require the commissioner to report specified information, including the number of people taking the non-English exams, and first-time pass rate.

Existing law requires the Insurance Commissioner to give, at least once each month, in each of the cities in which they have an office, qualifying examinations for agent licenses. Existing law requires every qualifying examination to be in writing and to be of sufficient scope to satisfy the commissioner that the applicant has sufficient knowledge of, and is reasonably familiar with, the insurance laws of this state and with the provisions, terms, and conditions of the insurance that may be transacted pursuant to the license sought, and that the applicant has a general and fair understanding of the obligations and duties of the holder of that license.

Existing law, until January 1, 2024, requires the examination for a life agent or accident and health or sickness agent license be provided in English and Spanish. Existing law also requires the commissioner to evaluate the Spanish exam and report the results , and specified information, to the Legislature.

This bill would require the examination for a license for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent to be provided in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog.

This bill would require the commissioner to report specified information, including the number of people taking the non-English exams, and first-time pass rate.

Existing law requires the Insurance Commissioner to give, at least once each month, in each of the cities in which they have an office, qualifying examinations for agent licenses. Existing law requires every qualifying examination to be in writing and to be of sufficient scope to satisfy the commissioner that the applicant has sufficient knowledge of, and is reasonably familiar with, the insurance laws of this state and with the provisions, terms, and conditions of the insurance that may be transacted pursuant to the license sought, and that the applicant has a general and fair understanding of the obligations and duties of the holder of that license.

Existing law, until January 1, 2024, requires the examination for a life agent or accident and health or sickness agent license be provided in English and Spanish. Existing law also requires the Commissioner commissioner to evaluate the Spanish exam and report the results , and specified information, to the Legislature.

This bill would require the examination for a license for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent to be provided in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog.

This bill would require the Commissioner commissioner to report specified information, including the number of people taking the non-English exams, and first-time pass rate.

Existing law requires the Insurance Commissioner to give, at least once each month, in each of the cities in which they have an office, qualifying examinations for agent licenses. Existing law requires every qualifying examination to be in writing and to be of sufficient scope to satisfy the commissioner that the applicant has sufficient knowledge of, and is reasonably familiar with, the insurance laws of this state and with the provisions, terms, and conditions of the insurance that may be transacted pursuant to the license sought, and that the applicant has a general and fair understanding of the obligations and duties of the holder of that license.

Existing law, until January 1, 2024, requires the examination for a life agent or accident and health or sickness agent license be provided in English and Spanish. Existing law also requires the Commissioner to evaluate the Spanish exam and report the results , and specified information, to the Legislature.

This bill would require the examination for a license for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent to be provided in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog.

This bill would require the Commissioner to report specified information, including the number of people taking the non-English exams, and first-time pass rate.

 CONSENT  

Bill No: AB 451

Author: Calderon (D)

Amended: 4/20/23 in Assembly

Vote: 21

SENATE INSURANCE COMMITTEE: 7-0, 6/28/23

AYES: Rubio, Nguyen, Ashby, Jones, McGuire, Niello, Portantino

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 79-0, 4/27/23 (Consent) - See last page for vote

SUBJECT: Insurance: license examinations

SOURCE: California Department of Insurance

DIGEST:

This bill requires, beginning January 1, 2024, the examination for the license for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent to be provided in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog.

ANALYSIS:

Existing law:

1. Requires insurance agents to be licensed by the California Department of Insurance (CDI) and requires that applicants pass a written examination to become licensed.
2. Requires the examination for a life agent or accident and health or sickness agent license be provided in English and Spanish.
3. Requires the Commissioner to evaluate the qualifying examination taken in Spanish and submit a report of the results to the Legislature no later than March 1, 2023. The report shall include, but not be limited to, all of the following:
   
4. The number of people taking the examination;
5. The pass rate, including a comparison between the comparable licensing examination taken in English;
6. The number of license holders that sat for the examination provided in Spanish and passed the examination that remain licensed; and,
7. The number of consumer complaints received and enforcement actions taken with regard to the license holders who passed the examination in Spanish. (Ins. Code Section 1677)

This bill:

1. Requires the Commissioner of CDI to include in the annual report:
2. The number of people taking the Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog examinations; and,
3. The first-time pass rate of the Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog examinations, including a comparison between the comparable licensing examination taken in English.

Background

According to the author, requiring CDI to administer license examinations in additional languages will provide further opportunities for non-English speakers to earn a living as insurance producers, while better serving non-English consumers who purchase insurance.

This bill allows for CDI to administer its license examinations in the five most spoken languages in California in addition to English: Spanish, Simplified Chinese, Tagalog, Vietnamese, and Korean and for property and casualty as well as for life and accident and health or sickness, in order to provide further opportunities for non-English speakers to earn a living as insurance producers and service non-English consumers who purchase insurance.

Related/Prior Legislation

AB 1899 (Calderon, Chapter 560, Statutes of 2016) required CDI to provide the license examinations for life, life-only, and accident and health agents in Spanish with a sunset date of January 1, 2024.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/14/23)

California Department of Insurance (source)

California Immigrant Policy Center

Coalition for Humane Immigrant Rights

OPPOSITION: (Verified 8/14/23)

None received

ARGUMENTS IN SUPPORT: According to the sponsor, the California Department of Insurance Spanish language examination program is set to sunset on January 1, 2024 unless this bill is signed to continue this current offering. This bill allows California to keep pace with the needs of its multilingual and multicultural insurance consumers by offering life, accident and health or sickness, and property and casualty license examinations in Spanish, Simplified Chinese, Vietnamese, and Korean, with the addition of Tagalog beginning July 1, 2024. Offering all insurance licenses in the top six spoken languages in California will better ensure every citizen has equal access to the protection provided by various insurance products and will provide further opportunities for non-English speakers to earn a living as insurance producers and service non-English consumers who purchase insurance.

Similarly, the Coalition for Humane Immigrant Rights argues that currently there is a lack of access in taking California insurance license examinations for non-English speaking individuals except those who speak Spanish and want to take a life or accident and health or sickness license examination. This bill creates opportunities for non-English speakers to earn a living as insurance producers and service non-English consumers who purchase insurance by requiring CDI to offer life, accident and health or sickness, and property and casualty license examinations in Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog.

ASSEMBLY FLOOR: 79-0, 4/27/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Jim Patterson

Prepared by: Jill Rice / INS. / (916) 651-4110

8/16/23 14:17:37

**** END ****

SENATE COMMITTEE ON INSURANCE

Senator Susan Rubio, Chair

2023 - 2024 Regular

Bill No: AB 451 Hearing Date: June 28, 2023

SUBJECT: Insurance: license examinations

DIGEST:

Requires, beginning January 1, 2024, the examination for the license for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent to be provided in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog.

ANALYSIS:

Existing law:

1. Requires insurance agents to be licensed by the California Department of Insurance (CDI) and requires that applicants pass a written examination to become licensed.
2. Requires the examination for a life agent or accident and health or sickness agent license be provided in English and Spanish.
3. Requires the Commissioner to evaluate the qualifying examination taken in Spanish and submit a report of the results to the Legislature no later than March 1, 2023. The report shall include, but not be limited to, all of the following:
   
4. The number of people taking the examination;
5. The pass rate, including a comparison between the comparable licensing examination taken in English;
6. The number of license holders that sat for the examination provided in Spanish and passed the examination that remain licensed; and,
7. The number of consumer complaints received and enforcement actions taken with regard to the license holders who passed the examination in Spanish. (Ins. Code Section 1677)

This bill:

1. Requires the Commissioner of CDI to include in the annual report:
2. The number of people taking the Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog examinations; and,
3. The first-time pass rate of the Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog examinations, including a comparison between the comparable licensing examination taken in English.

Background

According to the author, requiring CDI to administer license examinations in additional languages will provide further opportunities for non-English speakers to earn a living as insurance producers, while better serving non-English consumers who purchase insurance.

The Most Spoken Languages In California

https://www.worldatlas.com/articles/the-most-spoken-languages-in-california.html

AB 451 would allow for CDI to administer its license examinations in the six most spoken languages in California: Spanish, Simplified Chinese, Tagalog, Vietnamese, and Korean and for property and casualty as well as for life and accident and health or sickness, in order to provide further opportunities for non-English speakers to earn a living as insurance producers and service non-English consumers who purchase insurance.

Related/Prior Legislation AB 1899 (Calderon, Chapter 560, Statutes of 2016) required CDI to provide the license examinations for life, life-only, and accident and health agents in Spanish with a sunset date of January 1, 2024.

ARGUMENTS IN SUPPORT:

According to the sponsor, CDI, CDI’s Spanish language examination program is set to sunset on January 1, 2024 unless this bill is signed to continue this current offering. AB 451 would allow California to keep pace with the needs of its multilingual and multicultural insurance consumers by offering life, accident and health or sickness, and property and casualty license examinations in Spanish, Simplified Chinese, Vietnamese, and Korean, with the addition of Tagalog beginning July 1, 2024. Offering all insurance licenses in the top six spoken languages in California will better ensure every citizen has equal access to the protection provided by various insurance products and will provide further opportunities for non-English speakers to earn a living as insurance producers and service non-English consumers who purchase insurance.

Similarly, the Coalition on Humane Immigrant Rights argues that currently there is a lack of access in taking California insurance license examinations for non-English speaking individuals except those who speak Spanish and want to take a life or accident and health or sickness license examination. AB 451 creates opportunities for non-English speakers to earn a living as insurance producers and service non-English consumers who purchase insurance by requiring CDI to offer life, accident and health or sickness, and property and casualty license examinations in Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog.

SUPPORT:

California Department of Insurance

California Immigrant Policy Center

Coalition for Humane Immigrant Rights (CHIRLA)

OPPOSITION:

None Received

-- END --

Date of Hearing: April 19, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 451

Author:(Calderon) – As Introduced Ver:February 6, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Insurance Commissioner (IC) to provide the licensing examination for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog.

As part of its annual report to the Governor, the IC must include the number of people taking non-English language examinations and the first-time pass rate compared to the English language examination.

FISCAL EFFECT:

No cost to the Department of Insurance (CDI) to provide examinations in additional languages through December 1, 2027. CDI has an existing five-year contract with a third-party vendor that schedules and administers all licensee exams, including providing translated exams at no additional cost as part of the contract. Although this bill’s requirements will outlast the term of the existing contract, any future contract costs should also be minimal.

COMMENTS:

1. Purpose. According to the author, requiring CDI to administer license examinations in additional languages will provide further opportunities for non-English speakers to earn a living as insurance producers, while better serving non-English consumers who purchase insurance. This bill is sponsored by IC Ricardo Lara and supported by insurance industry associations.
2. Licensee Languages. CDI encourages licensees to add the language(s) the licensee speaks to their license record. This self-reported data shows the top six languages spoken by licensees are English, Spanish, Chinese, Vietnamese, Korean, and Tagalog.
3. Examination Languages. AB 1899 (Calderon), Chapter 560, Statutes of 2016, required, until January 1, 2024, the IC to provide the licensing examination for a life agent, life-only agent, and accident and health agent in English and Spanish. AB 1899 also required the IC to report performance metrics related to the Spanish language examination. CDI reports 2,161 Spanish language examinations were administered in 2021, which was approximately 4% of the total number administered that year. CDI has not seen any alleged fraud or consumer complaints regarding miscommunication with agents associated with this option, and concludes the option has been a valuable cost-free service offered to applicants. This bill permanently expands AB 1899 to also apply to property broker-agents and casualty broker-agents and include examinations in Simplified Chinese, Vietnamese, Korean, and Tagalog.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: March 22, 2023

ASSEMBLY COMMITTEE ON INSURANCE

Lisa Calderon, Chair

ABPCA Bill Id:AB 451 (

Author:Calderon) – As Introduced Ver:February 6, 2023

SUBJECT: Insurance: license examinations

SUMMARY: Requires the examination for the license for a life agent, accident and health or sickness agent, property broker-agent, and casualty broker-agent to be provided in English, Spanish, Simplified Chinese, Vietnamese, Korean, and, commencing July 1, 2024, Tagalog. Specifically, this bill:

1. Requires the Commissioner of the California Department of Insurance (CDI) to include in the annual report:
2. The number of people taking the Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog examinations; and,
3. The first-time pass rate, including a comparison between the comparable licensing examination taken in English.

EXISTING LAW:

1. Requires the examination for a life agent or accident and health or sickness agent license be provided in English and Spanish. (Insurance (Ins.) Code Section 1677)
2. Requires the Commissioner to evaluate the qualifying examination taken in Spanish and submit a report of the results to the Legislature no later than March 1, 2023. The report shall include, but not be limited to, all of the following:
   
3. The number of people taking the examination,
4. The pass rate, including a comparison between the comparable licensing examination taken in English,
5. The number of license holders that sat for the examination provided in Spanish and passed the examination that remain licensed; and,
6. The number of consumer complaints received and enforcement actions taken with regard to the license holders who passed the examination in Spanish. (Ins. Code Section 1677)
7. Requires insurance agents to be licensed by CDI and requires that an applicant pass a written examination to become licensed.

FISCAL EFFECT: Unknown.

COMMENTS:

1. Background: AB 1899 was signed into law and became effective on January 1, 2017. This legislation required CDI to offer life and accident/health agent license examinations in Spanish from January 1, 2018 to January 1, 2024. This measure eliminates the sunset date and expands the languages the examination is offered in. CDI contracts with a third- party vendor to provide these examinations in additional languages.

According to CDI, in 2021, there were 2,161 Spanish language license examination administered, which was approximately 4% of the total license examinations administered that year. By offering these exams in Spanish, CDI has not seen any alleged fraud or consumer complaints regarding miscommunication with agents associated with this option, rather, according to CDI, it has proved to be a valuable service offered at no cost to the applicant.

California has the largest Hispanic and Asian populations in the United States with the top languages spoken being English, Spanish, Chinese, Vietnamese, Korean, and Tagalog. While many other states currently offer insurance license examinations in Spanish for several years, some states have also recently offered license examinations in Simplified Chinese.

In addition, CDI does encourage its licensees to add the language(s) that they speak to their license record. As a result of this self-reported data, the top six languages for the 482,205 present producer licensees of the Department are English, Spanish, Chinese, Vietnamese, Korean, and Tagalog.

Existing law also remains unnecessarily limited to Spanish language life and/or accident and health or sickness, and life-limited to the payment of funeral and burial expenses license examinations despite California’s diverse population and state mandate to obtain automobile insurance for licensed drivers and homeowners’ insurance for property owners, both of which are sold by property and casualty insurance agents which are not currently part of the Spanish-language examination program.

AB 451 would allow for CDI to administer its license examinations in Spanish, Simplified Chinese, Vietnamese, Korean, and Tagalog for property and casualty as well as for life and accident and health or sickness, in order to provide further opportunities for non-English speakers to earn a living as insurance producers and service non-English consumers who purchase insurance.

1. Previous Legislation: AB 1899 (Calderon, Chapter 560, Statutes of 2016) required CDI to provide the license examinations for life, life-only, and accident and health agents in Spanish with a sunset date of January 1, 2024.

REGISTERED SUPPORT / OPPOSITION:

Support

American Council of Life Insurers
American Property Casualty Insurance Association
Association of California Life and Health Insurance Companies
California Agents & Health Insurance Professionals (CAHIP)
California Department of Insurance
Coalition for Humane Immigrant Rights (CHIRLA)
Independent Insurance Agents & Brokers of California, INC.
National Association of Insurance and Financial Advisors - California

Opposition

None on file.

Analysis Prepared by: Kathleen O'Malley / INS. / (916) 319-2086