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Assembly Bill 923 (Scudder – 1931)

Chapter 277, Statutes of 1931

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As enacted, Assembly Bill 923 affected numerous sections of the Political Code, relating to the qualification, licensing and fees of insurance agents, brokers, and solicitors.  (See Exhibit #1e)  Assembly Bill 923 was introduced by Assembly member Hubert Scudder, among numerous other Assembly members.  (See Exhibit #1a)  Assembly member Scudder was in the business of insurance and represented Sonoma County.  (See Exhibit #4)  Assembly Bill 923 was a major bill reorganizing and revising the provisions of the Political Code pertaining to the qualification and licensing of insurance agents, brokers, and solicitors.  (See Exhibit #1e) 

Assembly Bill 923 was assigned to the Assembly and Senate Committees on Insurance where policy issues raised by the bill were considered.  (See Exhibit #2)  Four amendments were made to Assembly Bill 923.  (See Exhibits #1b through #1d and #2)  Subsequent to legislative approval, Governor James Rolph, Jr., signed the bill on May 8, 1931, and it was recorded by the Secretary of State on that day as Chapter 277 of the Statutes of 1931.  (See Exhibits #1e and #2)

Assembly Bill 923, as introduced, was summarized in the Legislative Digest, in part, as follows:

Amends §§ 633, 633a, adds §§ 633a-1-633a35, Pol. C., re insurance agents, brokers, solicitors.

Classifies insurance sales representatives, other than life, as agents, brokers, or solicitors.  Agent represents insurer, broker represents insured, solicitor is employee of broker or agent.

    Sets up examination licensing system.  Licenses without examination persons who have been agents or brokers during two years last passed.

    Bill permits agent or broker to effect contracts of insurance on his own behalf or that of his employer and to receive the commissions therefor but the total amount of such premiums in any one year must not exceed total amount of premiums on other contracts of insurance effected by him during the same period.
(See Exhibit #3, page 343)