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ASSEMBLY BILL 689 (LANCASTER – 1979)

CHAPTER 550, STATUTES OF 1979, AB 689

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Insurance Code sections 1704, 1718 and 1751 were amended, and section 1717.5 was added to the Insurance Code in 1979 following legislative passage of Assembly Bill 689, which affected these four sections only.  (See Exhibit #1d)  This bill was introduced on March 1, 1979 by Assembly member Bill Lancaster at the request of the Department of Insurance.  (See Exhibits #1a and #12, document PE-5)

Assembly Bill 689 was assigned to the Assembly Committee on Finance, Insurance, and Commerce and the Senate Committee on Insurance and Financial Institutions where policy issues raised by the bill were considered.  (See Exhibits #3 and #6)  The fiscal ramifications of the bill were considered by the Assembly Committee on Ways and Means and the Senate Committee on Finance.  (See Exhibits #2 and #5) 

Two amendments were made to Assembly Bill 689.  (See Exhibits #1b, #1c and #2)  Subsequent to legislative approval, Governor Edmund G. Brown, Jr., signed the bill on September 10, 1979, and it was recorded by the Secretary of State on that day as Chapter 550 of the Statutes of 1979.  (See Exhibits #1d and #2)


Background on this measure was provided in the analysis of the Assembly Committee on Finance, Insurance, and Commerce.  (See Exhibit #3, pages 1 and 2)  This analysis noted that the purpose of Assembly Bill 689 was:

. . . to give the Insurance Commissioner the flexibility to streamline the department’s licensing procedures and to increase certain filing fees so that such fees will cover actual processing costs.
(See Exhibit #3, page 2)