New Law Affects Agents & Brokers

AB 393 to Eliminate Unlicensed Entities Signed into law 9/5/00 by Governor Gray Davis, Assembly Bill 393 is anticipated by California insurance agents to eliminate ambiguities that have allowed unlicensed entities to sell insurance to state residents. The American Insurance Association (AIA) and the National Association of Independent Insurers (NAII) had opposed the bill because it goes against a provision in the NAIC's Producer Licensing Model Act, which allows unlicensed agents to engage in transactions with existing policyholders. The AIA and NAII argued that non-licensed insurance comp...