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ASSEMBLY BILL 775 (HAYDEN – 1973)

CHAPTER 543, STATUTES OF 1973, AB 775

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As enacted in 1973, Assembly Bill 775 amended and repealed several sections of the Insurance Code relating to licensing of insurance solicitors and travel insurance agents.  (See Exhibits #1b and #3)  Assembly member Richard D. Hayden introduced this legislation on March 15, 1973 at the request of the Department of Insurance and the Insurance Commissioner.  (See Exhibits #1a, #5, #6, document SP-1, and #7, documents PE-2 and PE-5)

Assembly Bill 775 was assigned to the Assembly Committee on Finance and Insurance and the Senate Committee on Insurance and Financial Institutions where policy issues raised by the bill were considered.  (See Exhibits #3 and #5)  No amendments were made to Assembly Bill 775.  (See Exhibit #2)  Subsequent to legislative approval, Governor Ronald Reagan signed the bill on September 17, 1973, and it was recorded by the Secretary of State as Chapter 543 of the Statutes of 1973.  (See Exhibits #1b and #2)

A digest of Assembly Bill 775 was provided in the Senate Policy Committee Analysis as it was heard on August 28, 1973:

ANALYSIS:  AB 775 simply revises the procedure for licensing insurance solicitors and travel insurance agents to parallel (conform) with that of life agents and insurance agents.

This bill provides for the license to be issued directly to the solicitors who would obtain appointment from employers in the same manner that insurance agents obtain appointment from insurers.
NOTE:  Presently, the license is issued to the employer of the solicitor, and must be surrendered and reissued each time the solicitor changes employers.

Also, the bill eliminates the requirement for the employer of a travel insurance agent to join in the application but would continue the practice of issuing the license directly to the agent.  Thus, when such agent changes employers, he would need merely to obtain a new appointment from the insurer.
(See Exhibit #5)