California Insurance Company Oversight Law Signed

California Gov. Jerry Brown has marked Assembly Bill 553, which builds up new oversight went for lessening the quantity of insurance agency insolvencies. 

Stomach muscle 553 was composed by Assemblyman Tom Daly, D-Anaheim, and was supported by Insurance Commissioner Dave Jones and by protection industry partners.

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AB 553 improves oversight of the corporate governance of insurers by aligning state law with new and improved standards developed by the National Association of Insurance Commissioners in two key areas:

Improved oversight of the corporate governance policies and practices of insurance companies; including their board management structure, code of conduct, and risk-management processes.

Preserved national system of state-based insurance regulation by clarifying the role of state insurance departments as group-wide supervisors over multi-national insurance groups, as part of the Insurance Holding Company System Regulator Act.

"As the biggest protection market in the nation, California is again driving the route in enhancing the regulation of insurance agencies," Jones said in an announcement. "Stomach muscle 553 incorporates a criticalness provision so California can have these new purchaser insurance devices set up as quickly as time permits. I'd like to express gratitude toward Assembly Member Daly for creating this vital bill." 

Stomach muscle 553 was endorsed by the Assembly and Senate collectively. The bill produces results quickly.