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ASSEMBLY BILL 2639 (CALDERON – 2000)

CHAPTER 1074, STATUTES OF 2000, AB 2639

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Insurance Code section 1623 was amended in 2000 following legislative approval of Assembly Bill 2639, which affected this section only.  (See Exhibit #1e)  This bill was introduced by Assembly member Tom Calderon at the request of the Mercury Insurance Group; the American Agents Alliance later replaced Mercury Insurance Group as sponsor of the bill.  (See Exhibits #1a; #6a and #6b, pages 3 and 4; and #8, page 1) 

Following its introduction on February 25, 2000, the Assembly and Senate Committees on Insurance considered the policy issues raised by the bill.  (See Exhibits #3 and #6)  Assembly Bill 2639 was amended on three occasions, all three times in the Assembly, before being approved by both Houses of the Legislature.  (See Exhibits #1b through #1d and #2)  Subsequent to legislative approval, Governor Gray Davis signed the measure on September 30, 2000, and it was recorded by the Secretary of State on that date as Chapter 1074 of the Statutes of 2000.  (See Exhibits #1e and #2)

The Senate Committee on Insurance analysis of Assembly Bill 2639 as last amended indicated that according to the sponsor, the American Agents Alliance, the purpose of this bill was to:

. . . “clarify that a licensed insurance broker shall be considered a broker at the time that he submits an application for insurance to an insurer and specifies on that application that the licensee is acting as an insurance broker pursuant to licensing by the State of California.”
(See Exhibit #6b, page 2)