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<ns0:Id>20250SB__102399INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-10</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Laird</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>SENATE</ns0:House>
<ns0:Name>Laird</ns0:Name>
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<ns0:Title> An act to amend Section 753 of the Insurance Code, relating to insurance. </ns0:Title>
<ns0:RelatingClause>insurance</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Insurance: unlawful financial benefits.</ns0:Subject>
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<html:p>Existing law creates the Department of Insurance to regulate the business of insurance. Existing law makes it a crime for a person engaging in the practice of processing, presenting or negotiating claims for policies of insurance to offer, deliver, receive or accept consideration, as specified, as compensation for the referral or procurement of clients or cases, among others. Existing law makes it unlawful for an insurance agent or broker to receive financial benefit from an automobile repair facility, or other specified consideration, for referring insureds to the facility for vehicle repairs covered under certain specified insurance policies issued by the agent or broker.</html:p>
<html:p>This bill would make technical, nonsubstantive changes to these provisions.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
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<ns0:FiscalCommittee>NO</ns0:FiscalCommittee>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 753 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
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<ns0:Num>753.</ns0:Num>
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(a)
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It is unlawful for an insurance agent or broker, or an insurance solicitor employed thereby, to receive a financial benefit from an automobile repair facility or
other form of direct or indirect consideration from a person for referring insureds to that person or that person’s designee for vehicle repairs covered under the automobile comprehensive coverage, property damage coverage, or automobile collision coverage, of an insurance policy issued through the insurance agent or broker or by an insurer represented by the insurance agent.
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(b)
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Subdivision (a) applies with respect to commercial and noncommercial policies of automobile insurance.
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(c)
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For purposes of this section, “financial benefit” means the receiving of
a commission or gratuity, discount on repair costs, free repairs, or employment by a repair facility.
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