COMPLAIN WITH THOSE ORDERS THE
SENATE HAS MADE NECESSARY
ADJUSTMENTS TO NORMAL PRACTICES
IN ORDER TO ENSURE THAT THE
PUBLIC CONTINUES TO HAVE ACCESS
TO THE LEGISLATIVE PROCESS WE
ARE HOLDING A HEARING HERE IN
THE CAPITAL I ASKED ALL MEMBERS
OF THE COMMITTEE. A TO BE
PRESENT IN THE CHAMBER SO WE CAN
ESTABLISH A QUORUM AND BEGIN OUR
HEARING TO ALLOW THE PUBLIC
ACCESS WE HAVE ADMITTED MEMBERS
OF THE PUBLIC IN THE HEARING
ROOMS TO THE EXTENT THAT SOCIAL
DISTANCING REQUIREMENTS ALLOW
AND WILL BE USING A
TELECONFERENCE- IS FOR THOSE
INDIVIDUALS WHO WISH TO TESTIFY
TODAY. FOR ALL INDIVIDUALS
WISHING TO PROVIDE PUBLIC
COMMENT THE PARTICIPANT TOLL
FREE NUMBER AND ACCESS CODE IS
POSTED ON OUR COMMITTEE WEBSITE
IT WILL BE DISPLAYED ON THE
SCREEN AND I WILL ANNOUNCE IT
NOW. TODAY'S PARTICIPANT NUMBER
IS. 844-291-4185 AND THE ACCESS
CODE IS FOUR SIX SIX THREE NINE
SIX EIGHT. FOR DETAILED
INSTRUCTIONS ON HOW THE
TELECONFERENCES TO MARKS PLEASE
REFER TO THE SENATE ANDORRA
COMMITTEE WEBSITE WHEN WE MOVED
TO PUBLIC COMMENTS YOU WILL BE
PROMPTED BY MODERATOR TO DIAL
AND THEN PRESSED ZERO. TWO DIE
ONE THEN PRESS ZERO FOR SUPPORT
IN OPPOSITION. PRESS THIS ONLY
ONE TIME AND WAIT PATIENTLY FOR
THE OPERATOR TO ASSIGN YOU A
LINE NUMBER. THIS CAN BE SHORT A
SHORT WAIT ONCE YOU RECEIVE YOUR
LINE NUMBER YOU'LL WAIT. IN THE
QUEUE FOR THE MODERATOR TO CALL
YOUR LINE NUMBER AT THAT TIME
YOU WILL BE AND MUTED AND YOU
ARE NOW READY TO ADDRESS THE
COMMITTEE. PLEASE NOTE THAT IN
ORDER FOR US TO HEAR YOU CAN TO
CLEARLY AND AVOID ACOUSTIC
FEEDBACK. YOU MUST MEET THE
DEVICE YOU'RE WATCHING THE BIG
SCREEN IN PRIOR TO GIVING
TESTIMONY OVER THE PHONE. IT IS
IMPORTANT THAT WE HEAR FROM YOU.
THANK YOU FOR YOUR PATIENCE I
WILL MAINTAIN DECORUM DURING THE
HEARING. **** CUSTOMARY. ANYONE
WHO'S DISRUPTIVE MAY BE REMOVED
FROM THAT REMOTE MEETING SERVICE
FOR HAVE THEIR CONNECTIONS NEW
DEBTS. WE HAVE TWO BILLS ON
TODAY'S AGENDA OUT ONE OF WHICH
IS PROPOSED FOR CONSENT BEFORE
WE BEGIN LET'S ESTABLISH A
QUORUM MISTER CONSULTANT PLEASE
CALL THE ROLL. RUBIO ISN'T RUBIO
PRESENT JONES JONES HERE
ARCHULETA ARTILLERY HERE EIGHT.
BATES HERE FORTUS DOT. START
HERE GLAZER. WHAT'S UP. HUESO
HERE OUR DAUGHTER. MELENDEZ
PORTANTINO PORTANTINO HERE PROF. IT'S A QUORUM HAS BEEN
ESTABLISHED FIRST WE WILL TAKE A
VOTE ON CONSENT CALENDAR THE
CONSENT CALENDAR CONTAINS SB
TWELVE FORTY TO THE COMMITTEES
OMNIBUS BILL DO I HAVE A MOTION
MOVED BY SENATOR- JONES.
CONSULTING PLEASE CALL THE ROLL
. RUBIO HI RUBIO I JONES. THE
JONES I ARCHULETA ARCHULETA HI
BATES. BATES I OR JUST. DODD.
DODD AYE GLAZER. HUESO. HUESO I
ARE DONALD. MELENDEZ PORTANTINO
. PORTANTINO AYE ROTH. ROTH HI.
THE BILL HAS A VOTE. WE HAVE
EIGHT WHAT'S THE ROLE REMAIN
OPEN FOR ABSENT MEMBERS AT THIS
TIME I WOULD LIKE TO VICE INVITE
VICE CHAIR JONES TO PRESIDE AS I
WILL BE PRESENTING. MY BILL. SB
TEN FORTY THANK YOU. THANK YOU
MADAM CHAIR MEMBERS ARE ONLY
PRESENTATION TODAY IS SB TEN
FORTY BY CHAIR RUBIO- JUST SO
THAT EVERYBODY ON THE ON THE
COMMITTEE KNOWS IT HAS A SUPPORT
SUPPORT RECOMMENDATION AND WE
WILL BE. ONE OF ACT. OKAY WE ARE
GOING TO ALLOW- CHAIR RUBIO TWO
NOW PLEASE ENTER BILL. AND IF
OUR OUR WITNESSES QUEUING UP FOR
THIS IF THEY CAN BE READY WE'RE
GOING TO TRY TO MOVE THIS
QUICKLY THANK YOU. MANAGER THANK
YOU THANK YOU GOOD MORNING MR
VICE CHAIRMAN MEMBERS I'M
HONORED TODAY TO PRESENT SB TEN
FORTY. WHEN IT COMES TO
PROTECTING CONSUMERS I AM ALWAYS
HAPPY TO COLLABORATE WITH
INSURANCE COMMISSIONER RICARDO
LARA AND I'M ALSO THING FOR THAT
FOR THE DEPARTMENT OF INSURANCE
FOR SPONSORING THIS BILL. I WILL
START BY STATING THAT I WILL BE
ACCEPTING THE COMMITTEES
AMENDMENTS THAT WILL ENSURE
VICTIMS RECEIVE RESTITUTION
PRIOR TO PENALTIES BEING LEVIED
AND CLARIFIED THAT EXISTING
EXEMPTION FOR SURPLUS LINES
BROKERS. REMAIN MEMBERS I'M SURE
ALL OF US HAVE RECEIVED THESE
ANNOYING POP UP PHONE CALLS
WROBEL CALLS ABOUT CAR WARRANTY
INSURANCE WE HAVE BEEN TRYING TO
REACH YOU ABOUT YOUR EXTENDED
WARRANTY THESE CALLS ARE AN
ATTEMPT TO LOWER AN UNSUSPECTING
VICTIMS. AND POTENTIALLY-
SCANNED THEM THIS IS A LEGAL
UNFORTUNATELY FAR TOO MANY OF
OUR VULNERABLE FAMILIES BOB
VICTIM TO THESE TYPES OF SCAMS
THAT LEAVE THEM FINANCIALLY
DEVASTATED AND WITHOUT INSURANCE
THIS BILL ALLOWS THE
COMMISSIONER TO ORDER
RESTITUTION ON BEHALF OF
CONSUMERS WHO FALL VICTIM TO
FRAUD. BY UNLICENSED INDIVIDUALS
THIS BILL EMPOWERS CONSUMERS TO
GET THEIR MONEY BACK UNDER
EXISTING LAW AN AGENT OR BROKER
CALIFORNIA MUST BE LICENSED BY
THE DEPARTMENTOF INSURANCE THE
DEPARTMENT HAS THE AUTHORITY TO
REVOKE THE LICENSE FROM ANY
INDIVIDUAL WHO HARMS THE
CONSUMER OR CAN OTHERWISE
SANCTION THEM FOR BAD BEHAVIOUR.
THIS BILL WOULD NOT CHANGE THE
PROCESS FOR LICENSED AGENTS AND
BROKERS THE DEPARTMENT WILL
CONVENE AN ADMINISTRATIVE
HEARING AND IF AN INDIVIDUAL IS
FOUND TO HAVE VIOLATED THE
INSURANCE CODE- APPLICABLES
STANDARDS OF CONDUCT THE
DEPARTMENT CAN HELP CONSUMERS
RECOVER DAMAGES. THE DEPARTMENT
WILL NEED TO FIRST SANCTIONED
INDIVIDUAL EITHER WITH A CEASE
AND DESIST ORDER OR MONETARY
PENALTY ALL OF THIS IS SUBJECT
TO JUDICIAL REVIEW THIS BILL IS
CRITICALLY IMPORTANT TO OUR
CONSUMERS HAS BROUGHT SUPPORT
AND NO OPPOSITION. I
RESPECTFULLY ASK FOR YOUR
IPHONE. THE YOU SEEN RUBIO WILL
NOW MOVE ON TO WITNESSES TO
TESTIFY IN SUPPORT. WE HAVE TWO
WITNESSES ON THE LINE- TO SPEAK
TO US THIS THIS MORNING WE'RE
GOING TO GO FIRST YOU
COMMISSIONER RICARDO LARA FROM
THE DEPARTMENT OF INSURANCE AND
FOLLOWED BY MR ROBERT MAKE
HENRY. I COMMISSIONER ARE YOU ON
THE LINE. I AM ALL RIGHT YOU
HAVE THE FLOOR. THANK YOU GOOD
MORNING TO RUBIO BASTAR JONES
THE MEMBERS OF THE COMMITTEE
INSURANCE COMMISSIONER NICOLETTA
HERE THE SPONSOR OF SB TEN FORTY
ALLEGED THANKS CENTER RUBIO FOR
HER LEADERSHIP IN OFFERING THIS
VERY IMPORTANT CONSUMER
PROTECTION MEASURE THAT WOULD
HELP MAKE IT EASIER FOR VICTIMS
OF INSURANCE DAMS TO RECOUP
THEIR LOSSES AND DIRECTLY
RECEIVE PAYMENT FOR. ILLEGAL
UNLICENSED INSURANCE SCAM AS YOU
HEARD SB TEN FORTY AUTHORIZES
THE INSURANCE COMMISSIONER TO
ORDER PEOPLE TO. SELL INSURANCE
TO UNSUSPECTING CONSUMERS
WITHOUT THE NECESSARY LICENSE
WHO IN TURN PAY RESTITUTION TO
THEIR VICTIMS MY DEPARTMENT HAVE
DISCOVERED NUMEROUS INSTANCES OF
INSURANCE PREMIUMS THAT
EMBEZZLEMENT AND FRAUD BY
UNLICENSED INSURANCE OTHERS WHO
SPECIFICALLY TARGET MOBILE
COMMUNITIES SUCH AS OUR SENIORS
OUR IMMIGRANT COMMUNITIES THAT
HISTORICALLY UNDERREPRESENTED
COMMUNITIES. IN MANY CASES SMALL
BUSINESSES ARE LEFT WITHOUT
INSURANCE COVERAGE AND BUSINESS
OWNERS LIVELIHOODS ARE PUT AT
RISK I'LL GIVE YOU A QUICK
EXAMPLE OF THIS YEAR AND THE
LICENSE NUMBER OF INSURANCE WAS
SENTENCED TO FOUR YEARS IN
PRISON AFTER BEING CONVICTED OF
DEFRAUDING THREE VICTIMS OUT OF
THEIR ONE POINT FOUR MILLION
DOLLARS- THE UNLICENSED THAT
SUMMER ALSO PROVIDED VICTIMS
WITH FRAUDULENT CERTIFICATES OF
INSURANCE. LEADING THEM TO
BELIEVE THEY ACTUALLY HAVE
LEGITIMATE INSURANCE TODAY- I
CAN ORDER I'M LICENSE INSURANCE
DOLLARS TO SEASON TWO AND TO PAY
UP TO A FIVE THOUSAND DOLLARS
PER DAY UNDER CURRENT LAW BUT I
CANNOT ORDER THOSE UNLICENSED
SELLERS TO REPAY CONSUMERS FOR
LOTS THEY SUFFERED. SUCH HAVE
DIRECT PREMIUMS MISAPPROPRIATED-
AND FINANCIAL LOSSES THAT THE
CONSUMER EXPERIENCE WHEN THEY
BELIEVE THEY WERE OTHERWISE
COVERED BY INSURANCE SO IN MOST
CASES ARE THE HARM CONSUMER IS
NEVER REPAID AND THE MONEY WAS I
ILLEGALLY STOLEN THROUGH
UNLICENSED INSURANCE FRAUD- SB
TEN. FORTY SIX TO CHANGE THIS BY
GRANTING VISAS COMMISSION WITH
THE AUTHORITY TO ORDER
RESTITUTION. TO CONSUMERS SO
JUST WANNA- AGAIN. JUST MAKE IT
EASIER FOR VICTIMS OF A SURE
SCAMS GET BACK TO MONEY THEY
LOCK AGAIN I JUST WANT TO CHAIR
HER STAFF FOR THE ON THIS. AND
BORDER COULD CABARET WITH
INTERESTED. AT DISPOSAL FOR TO
THE PROP. I RESPECTFULLY FOR
IDLE ON THIS MEASURE. AND HERE
VIRTUALLY WITH TODAY- WELL AS MR
BY MARK HENRY A- CONSUMER LIVING
IN TOWN HALL WHO WILL SICK TO
MY- BY AN UNLICENSED FOUNDER OF
THE IN. THE FUTURE YOUR STORE
THANK YOU AGAIN FOR YOUR
CONSIDERATION MEMBERS. THANK YOU
COMMISSIONER YOU'VE CONVINCED
ME. MISTER MCENERY. YES YOU MAY
BEGIN. GOOD MORNING MY NAME IS
ROBERTS MATERNITY AND I AM A
SMALL BUSINESS OWNER FROM FRONT
OF THE CALIFORNIA. IN JANUARY
TWENTY NINETEEN I PAID THREE
THOUSAND SIX HUNDRED FIFTY EIGHT
DOLLARS FOR INSURANCE COVERAGE
FOR MY BUSINESS FROM SOMEONE
THAT I BELIEVE TO BE A LICENSED
INSURANCE AGENT. IN MARCH TWENTY
NINETEEN AFTER NOT RECEIVING A
COPY OF ON. CURRENT POLICY AND
HAVING MY BUSINESS LIFE THAN
FLOOD STRANDED BECAUSE OF THEIR
I CONTACTED THE CALIFORNIA
DEPARTMENT OF INSURANCE WHAT IS
THAT. THROUGH THE DEPARTMENT'S
INVESTIGATION I LEARNED THAT THE
PERSON I PAID THE MONEY. WHO WAS
NOT A LICENSED INSURED INSURANCE
AGENT AND THAT HE HAD STOLEN MY
MONEY. UNLIKE AGE ONCE PROSECUTE
FOR DEALING FROM ME AND OTHER
INDIVIDUALS. THAT I HAVE NOT
RECEIVED TWENTY NINE CHAU
COMPENSATION FOR MONEY DOLLARS
ABOVE THE STOLEN FROM. I SUPPORT
AB TEN FORTY BECAUSE IT WOULD
ENABLE THE CALIFORNIA DEPARTMENT
OF INSURANCE TO STAY FINANCIAL
RESTITUTION FOR VICTIMS. SUCH AS
MYSELF THANK YOU. TWO WITNESSES
IN SUPPORT WHICH WILL BE BRING
BACK SHORTLY FOLLOWED BY
WITNESSES IN OPPOSITION WE'RE
GOING TO COME INTO THE SENATE
CHAMBER IF THERE'S ANYBODY IN
THE GALLERY WISHING TO SUPPORT
THIS MEASURE. IT LOOKS LIKE
THERE IS NO ONE I WILL NOW GO TO
WITNESSES WAITING TO TESTIFY ON
THE TELECONFERENCE OF HIS
MODERATOR WE PLEASE PROP
INDIVIDUALS WAITING TO TESTIFY
IN SUPPORT OF S. B. TEN FORTY.
THANK YOU MISTER CHAIR IF YOU
WOULD LIKE TO TESTIFY IN SUPPORT
OF. SB TEN FORTY PLEASE PRESS
ONE ZERO AT THIS TIME. EIGHTEEN
T. OPERATOR WILL QUICKLY OUT.
GIVE YOUR LIFE A NUMBER THEN
PLACE YOU BACK INTO THE QUEUE
CAN PLEASE PRESS ONE ZERO. THE
PUBLIC TESTIMONY FOR SB TEN
FORTY THANK YOU. THE FINAL
REMINDER PLEASE PRESS ONE ZERO
AT THIS TIME IF YOU WOULD LIKE
TO TESTIFY IN SUPPORT. FOR SB
TEN FORTY. NOBODY IS GIVING UP
MISTER CHAIR. THANK YOU MR MARI
WILL MOVE NOW TO WITNESSES IN
OPPOSITION WE WILL RECOGNIZE
FIRST THE SENATE GALLERY IF
THERE'S ANYBODY IN THE GALLERY
WISHING TO SPEAK AGAINST SB TEN
FORTY THING NO ONE MISTER
MODERATOR PLEASE OPEN THE PHONE
LINES FOR WITNESSES IN
OPPOSITION TO SB TEN FORTY. I
WOULD LIKE TO EXPRESS OPPOSITION
FOR SB TEN FORTY PLEASE PRESS
ONE ZERO AT THIS TIME. ONE ZERO
IF YOU WOULD LIKE TO TESTIFY IN
OPPOSITION TO SB TEN FORTY. I
NOBODY IS QUEUING UP GEN THANK
YOU MR MARI WILL CLOSE PUBLIC
TESTIMONY ON SB TEN FORTY WILL
OPEN UP THE FLOOR FOR MEMBERS TO
MAKE A MOTION FOR APPROVAL FOR
THIS BILL. MOTION TO APPROVE
SENATE ARCHULETA CENTER BATES
BOTH MAKE A MOTION- MADAM CHAIR
WOULD YOU LIKE TO CLOSE. UP FOR
A SHOT THANK YOU I THINK THE
INSURANCE COMMISSIONER WE GOT A
LOT AS WELL AS THE DEPARTMENT
FOR SPONSORING THIS BILL AND I
RESPECTFULLY ASK FOR NINE BILLS
THANK YOU THANK YOU THE BILL'S
BEEN MOVED BY CENTER ARCHULETA-
THE MOTION IS DUE PASS BUT FIRST
AMENDED REFER TO SENATE
JUDICIARY MISTER CONSULTANT
PLEASE CALL THE ROLL. RUBIO
RUBIO I JONES I DON'T I
ARCHULETA MODULA I BATES EIGHT
HI FORTIS DOT. DODD AYE GLAZER.
HUESO HUESO HI HER TADO FURTADO
HI MELENDEZ PORTANTINO
PORTANTINO AYE ROTH ROTH HI.
BILL HAS NINE VOTES. ALL BUT ON
ALL WE'RE GONNA PUT THE BILL ON
CALL BUT- THAT INCLUDES ALL THE
BILLS THAT NEED TO BE PRESENTED
THE CHAIR WILL TAKE OVER THE
REMAINING OF THE MEETING. THANK
OF AYE SIR JOHN'S- WE'RE NOW
NEARING THE END OF OUR HEARING
WILL HAVE SEVERAL BILLS ON CALL
IF ALL MEMBERS COULD PLEASE
RETURN TO THE HEARING
IMMEDIATELY. WE CAN FINISH
LIFTING THE CALL HERE TODAY.
MISTER CONSULTANT PLEASE LET THE
CALL ON CONSENT SB TWELVE FORTY
TWO OMNIBUS. PLEASE CALL THE
ROLL OR JUST. HURGHADA HER TITLE
I MELENDEZ. BILL HAS NINE VOTES
THE BILL HAS NINE VOLTS I WILL.
KEEP IT ON CALL WILL NOW GO ON
TO SB TEN FORTY RUBIO AREN'T
MISTER CONSULTANCIES CALL THE
ROLL. OR JUST GLAZER. MELENDEZ.
OKAY I WILL BE PUTTING THAT BACK
ON CALL THANK YOU.
WE ARE LIFTING CALLS ONCE AGAIN
OPT FOR CONSENT SB TWELVE FORTY
TWO A MEMBERS BILL CONSULTANT
PLEASE CALL THE ROLL. FORTIS
GLAZER MELENDEZ. THE BILL HAS
NINE VOTES THE BILL AS NINE ZERO
WE WILL NOW MOVE ON TO SB TEN
FORTY. BILL SB TWELVE FORTY TWO
IS OUT NINE ZERO WILL NOW MOVE
ON TO THE NEXT ONE SB TEN FORTY
RUBIO CONSULTANT PLEASE CALL THE
ROLL. FORGES LASER MELENDEZ NINE
VOTES THE BILL HAS NINE NINE
BOTH THE BILL IS OUT THANK YOU
TO ALL THE INDIVIDUALS WHO
PARTICIPATED IN PUBLIC TESTIMONY
TODAY IF YOU WERE NOT ABLE TO
TESTIFY TODAY PLEASE SUBMIT YOUR
COMMENTS OR SUGGESTIONS IN
WRITING TO THE COMEDIAN ON
INSURANCE OR VISIT OUR WEBSITE
YOUR COMMENTS AND SUGGESTIONS
ARE VERY IMPORTANT TO US AND WE
WANT TO MAKE SURE IT'S RECORDED
IN THE OFFICIAL RECORD THANK
YOU. FOR YOUR PATIENCE AND
PARTICIPATION THE SENATE
COMMITTEE ON INSURANCE IS
ADJOURNED.