A recent bill proposed in the state of California would have a big impact on the online car insurance industry and the insurance tag businesses. The bill is being pushed by Assemblyman John Garamendi, who chairs the state Legislature’s Budget and Control Committee. Proponents of the bill argue that it is a free-market measure, saying that private-sector companies that contract with the state should deal with tag policy renewals themselves instead of state workers. The bill indicates the main financial advantage of the bill for online car tag renewals in urban localities will accrue mainly to a very small portion of currently Tag Agents. There are about thirteen hundred licensed Tag Agents. Learn more by visiting tag agents near me.
Assemblyman Garamendi claims that the bill is necessary because many County residents are exempt from meeting mandatory renewal deadlines due to economic hardship or financial mismanagement. The bill’s supporters say about thirteen thousand people are exempt, but the majority of counties have been impacted by the current economic downturn, according to the Department of Insurance. The bill would require that all licensed Tag Agents are certified and registered with the Department of Insurance before renewal can take place. A licensed agent has to receive an additional examination after certification to verify that he understands the pertinent laws and terms of his insurance policies. He also must undergo a background check. According to Taylor, all Tag Agents must now be fingerprinted and pass a background evaluation.
Proponents of the bill argue that the requirement for fingerprinting and criminal history records checks is unnecessary, unfair, and expensive. According to Taylor, this requirement is also being imposed on commercial establishments which employ non-licensed or unlicensed workers. Proponents of the bill argue that they only need one licensed agent to process about ten million claims a year, and that the fingerprinting and criminal history background checks will not affect that. According to Taylor, the problem lies with cities requiring two agents to process the same number of claims.