§ 7071.21. — 7071.21. (Added by Stats. 2018, Ch. 514, Sec. 2.)

California § 7071.21.

• Jurisdiction: California
• Code BPC: Business and Professions Code - BPC
• Div. 3.: DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY
• Ch. 9.: CHAPTER 9. Contractors
• Art. 5.: ARTICLE 5. Licensing

Text

(a)
An insurer providing a licensee commercial general liability insurance, construction defect insurance, or professional liability insurance shall report to the registrar within 30 days of all or a portion of the insurer’s payment of a civil action judgment, settlement payment, or arbitration award, that meets all of the requirements of Section 7071.20, against the licensee all of the following:
(1)
The name and license number of the licensee.
(2)
The claim or file number.
(3)
The amount or value of the judgment, settlement payment, or
arbitration award.
(4)
The amount paid by the insurer.
(5)
The identity of the payee.
(b)
(1)
The registrar or a designee shall review the reports required by this section. The registrar or designee shall return the
report to the licensee and take no further action if, upon review, the registrar or a designee finds any of the following:
(A)
The facts of the reportable event would not substantiate an allegation that a licensee has violated this chapter.
(B)
There are reasonable grounds to believe that the public interest is sufficiently served by the existing resolution or disposition of the reportable event as reached by the parties to the action or by the court.
(C)
Disciplinary action is unnecessary.
(2)
Any report returned to a licensee pursuant to this subdivision shall be deemed to be a complaint resolved in favor of the licensee and the facts underlying the event
as reported by the licensee shall not be subject to further review by the board, except upon receipt of an independent complaint involving the same underlying facts.
(3)
If additional information is necessary to make the determination required by paragraph (1), the registrar or designee shall keep and regard the report as a complaint that shall be subject to Sections 7090 and 7091. The disclosure of any complaint referred to investigation pursuant to this section shall comply with the public disclosure provisions of Section 7124.6.
(c)
Except as provided in paragraphs (1) and (2) of subdivision (b), nothing in this section is intended to limit the registrar’s authority on his or her motion, or upon the verified written complaint of
another, to investigate the actions of a contractor as specified in Section 7090.

Legislative History

Added by Stats. 2018, Ch. 514, Sec. 2. (SB 1465) Effective January 1, 2019.