Insurance Commissioner qualifications., the official text

An act to amend Section 12901 of the Insurance Code, relating to the Insurance Commissioner.

LEGISLATIVE COUNSEL'S DIGEST

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the commissioner’s qualifications and duties. Existing law requires the commissioner to be a person competent and fully qualified to perform the duties of the office and prohibits the commissioner from being an officer, agent, or employee of an insurer or directly or indirectly interested in an insurer or licensee, except as specified.
This bill would additionally require the commissioner, within 10 years before election, to have had at least 5 years of senior, management, or supervisory insurance experience in the private sector or a state or federal agency, as specified.

The people of the State of California do enact as follows:

SECTION 1.
Section 12901 of the Insurance Code is amended to read:
12901.
(a) The commissioner shall be a person competent and fully qualified to perform the duties of the office.
(b) The commissioner, a deputy, or an employee shall not, during the commissioner’s, deputy’s, or employee’s tenure of office, be an officer, agent, or employee of an insurer or directly or indirectly interested in an insurer or licensee under this code, except as either of the following:
(1) A policyholder.
(2) A spouse or blood relative of a person interested in an insurer or licensee.
(c) If the commissioner, a deputy, or an employee holds a license or permit issued under this code, that commissioner, deputy, or employee shall surrender it for cancellation within 10 days after appointment and qualification. Upon termination of the commissioner’s, deputy’s, or employee’s office or employment, that license or permit shall be reissued for the balance of the then current license or permit year without fee or penalty.
(d) Within 10 years before election, the commissioner shall have had at least 5 years of experience as either of the following:
(1) A manager or supervisor in the private sector working full time in areas within the department’s subject matter jurisdiction.
(2) A senior examiner or senior employee of a state or federal agency with regulatory responsibility over insurers or insurance agencies.