ASSEMBLY BILL 1700 (BEVERLY – 1969)
CHAPTER 1275, STATUTES OF 1969, AB 1700
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As enacted, Assembly Bill 1700 added Insurance Code sections 1215 through 1215.16, relating to insurance holding companies. (See Exhibit #1f) Assembly member Robert G. Beverly introduced the bill on April 7, 1969 at the request of the Department of Insurance and the insurance industry. (See Exhibits #1a; #8, documents A‑4 and A-6; and #9, document PE‑1)
While before the Assembly, the measure was heard in the Committee on Finance and Insurance and the Committee on Ways and Means. (See Exhibits #2 and #3) In the Senate, the bill was heard in the Committee on Insurance and Financial Institutions and the Committee on Finance. (See Exhibits #2 and #5) Assembly Bill 1700 was amended three times as it was considered by the Legislature. (See Exhibits #1b through #1d and #2) Assembly Bill 1700 was approved by the Legislature on August 8, 1969, signed by Governor Ronald Reagan on August 30, 1969, and enacted on that date as Chapter 1275 of the Statutes of 1969. (See Exhibits #1e, #1f and #2)
The Legislative Analyst’s analysis of the last amended version of Assembly Bill 1700 described the bill as follows:
This bill would enact the “Insurance Holding Company System Regulatory Act” and provide for the administration of that act by the Insurance Commissioner.
The bill defines terms used in the act. It permits domestic insurers to organize subsidiaries and to engage in transactions with subsidiaries. Provisions include conditions imposed on holding company systems and operating procedures required to be followed. Violations of the act are defined. Company registry is required. Permitted transactions are listed. Disciplinary action is specified. The commissioner is authorized to make rules.
(See Exhibit #6b)
In his letter to Governor Reagan, Assembly member Beverly explained the purpose of Assembly Bill 1700 as follows:
The bill creates the Insurance Holding Company System Regulatory Act and is one of the major pieces of legislation passed at this session.
The main purpose of the bill is to insure the continued solvency of an insurance company which is, or becomes, a part of a holding company system for the protection of its policy holders and the public.(See Exhibit #9, document PE-6)