Store Research
Senate Bill 1039 (Johnston – 1991)
Chapter 686, Statutes of 1991
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Insurance Code sections 769.80, et. seq., were enacted in 1991 following legislative passage of Senate Bill 1039. (See Exhibit #1f) Senate member Patrick Johnston introduced this measure on March 8, 1991 which enacted the Managing General Agents Act on March 8, 1991. (See Exhibit #1a) The Department of Insurance sponsored this measure as a result of the National Association of Insurance Commissioners (NAIC) Model Act concerning the regulation of managing general agents. (See Exhibits #3; #4, document SP-1; and #14, document PE-2)
Senate Bill 1039 was assigned to the Senate Committee on Insurance, Claims, and Corporations where policy issues raised by the bill were considered. (See Exhibit #3) After approval by that Committee, the Senate Committee on Appropriations examined its fiscal ramifications. (See Exhibit #2) The Senate amended the bill on May 8 and 22, 1991. (See Exhibits #1b and #1c) Senate Bill 1039 was approved by the Senate and forwarded to the Assembly on June 9, 1991. (See Exhibit #2)
While in the Assembly, the Committee on Insurance considered the policy issues raised by the bill. (See Exhibit #7) Two amendments were made to Senate Bill 1039 by the Assembly, on July 10 and August 26, 1991. (See Exhibits #1d and #1e)
The Senate approved the Assembly amendments and forwarded Senate Bill 1039 to the Governor on September 25, 1991. Governor Pete Wilson signed the bill on October 7, 1991, and it was recorded by the Secretary of State on October 9, 1991 as Chapter 686 of the Statutes of that year. (See Exhibits #1f and #2)
A summary of Senate Bill 1039 was produced by the Department of Finance in its Enrolled Bill Report, which stated:
SB 1039 would enact the Managing General Agents Act to regulate persons and organizations who manage or negotiate specified insurance contracts on behalf of insurers.
(See Exhibit #14, document PE-5)