DIVISION 3. THE INSURANCE COMMISSIONER [12900. - 13855.]
Division 3 enacted by Stats. 1935, Ch. 145.
§§ 12900–13855 · 123 sections
CHAPTER 1. Appointment, Qualification, and Offices §§ 12900–12907 · 10 sections
- § 12900 (a) The commissioner shall be elected by the people in the same time, place, and manner as the Governor not to exceed two four-year terms. (b) Should a vacancy…
- § 12901 The commissioner shall be a person competent and fully qualified to perform the duties of the office. Neither the commissioner nor any deputy or employee shall…
- § 12902 The annual salary of the commissioner is provided for by Chapter 6 of Part 1 of Division 3 of Title 2 of the Government Code.
- § 12903 The commissioner may employ actuarial, technical, and administrative assistants and clerks, as the commissioner may need to discharge in proper manner the…
- § 12903.1 (a) The commissioner may not accept, use, or in any manner benefit from payments or reimbursements made to the department for travel from any of the following:…
- § 12903.5 On the recommendation of the commissioner the Personnel Board may establish rates of compensation for insurance examiners engaged in examinations out of this…
- § 12904 In the administration of the provisions of this code and other insurance laws, the commissioner may purchase reports of financial and character reporting…
- § 12905 The commissioner shall maintain offices in Sacramento, Los Angeles, San Diego, and the San Francisco Bay area.
- § 12906 The governmental agency unit heretofore known as the Department of Insurance in the Business, Transportation and Housing Agency is hereby made an independent…
- § 12907 The following existing positions in the Department of Insurance shall be appointed by the Governor and are exempt from the state civil service system: (a)…
CHAPTER 2. Powers and Duties §§ 12919–13555 · 93 sections
ARTICLE 1. Generally §§ 12919–12938 · 35 sections
- § 12919 Communications to the commissioner or any person in the commissioner’s office in respect to any fact concerning the holder of, or applicant for, any…
- § 12920 The commissioner shall determine the sufficiency and validity of all securities required to be given by persons engaged, or to be engaged, in insurance…
- § 12920.5 In addition to and independent of any and all other proper causes for refusal by the commissioner to approve or accept any bond filed or presented for filing…
- § 12921 (a) The commissioner shall perform all duties imposed upon the commissioner by the provisions of this code and other laws regulating the business of insurance…
- § 12921.1 (a) The commissioner shall establish a program on or before July 1, 1991, to investigate complaints and respond to inquiries received pursuant to Section…
- § 12921.15 (a) On or before July 1, 1999, the commissioner shall prepare a written report, to be made available by the department to interested individuals upon written…
- § 12921.2 All public records of the department and the commissioner subject to disclosure under Division 10 (commencing with Section 7920.000) of Title 1 of the…
- § 12921.3 (a) The commissioner, in person or through employees of the department, shall receive complaints and inquiries, investigate complaints, prosecute insurers or…
- § 12921.4 (a) The commissioner shall, upon receipt of a written complaint with respect to the handling of an insurance claim or other obligation under a policy by an…
- § 12921.5 The commissioner may in person or through employees of the division meet with persons, organizations and associations interested in insurance for the purpose…
- § 12921.6 (a) (1) If no fee is designated in this code for the review of filings required to be made pursuant to this code, the commissioner may establish a fee to…
- § 12921.7 Notwithstanding any other provision of law, the following shall apply to the adoption by the commissioner of any regulation as an emergency regulation pursuant…
- § 12921.8 (a) The commissioner may do the following: (1) Issue a cease and desist order to a person who has acted in a capacity for which a license, registration, or…
- § 12921.9 (a) A letter or legal opinion signed by the Commissioner or the Chief Counsel of the Department of Insurance that was prepared in response to an inquiry from…
- § 12922 The commissioner shall, on or before the first day of August in each year, make a report to the Governor, the Legislature, and to the committees of the Senate…
- § 12922.5 (a) The commissioner shall convene a working group to identify, assess, and recommend risk transfer market mechanisms that: (1) Promote investment in natural…
- § 12923 (a) With respect to all classes of insurance (1) to (20), inclusive, as defined in Sections 101 to 120, inclusive, “actuary,” for the purposes of this section,…
- § 12923.5 (a) The Department of Managed Health Care and the Department of Insurance shall maintain a joint senior level working group to ensure clarity for health care…
- § 12924 (a) The commissioner may issue subpoenas and subpoenas duces tecum for witnesses to attend, testify, and produce documents before the commissioner, on any…
- § 12925 The commissioner shall keep and preserve in a permanent form a full record of the commissioner’s proceedings, including a concise statement of the condition of…
- § 12926 The commissioner shall require from every insurer a full compliance with all the provisions of this code.
- § 12926.1 (a) In any matter involving compliance with or enforcement of any of the provisions of this code or the other laws of this state involving any entity subject…
- § 12926.2 (a) As used in this section, “extraordinary circumstances” means circumstances outside of the control of a licensee that severely and materially affect the…
- § 12927 All statements, estimates, percentages, payments, and calculations, required by this code to be made, either by the commissioner or insurers, shall be made on…
- § 12928 Whenever the commissioner ascertains that any insurer or any of its agents, officers or employees or any other person is guilty of violating any of the penal…
- § 12928.5 Whenever facts exist by reason of which, under any provision of this code, or other laws the commissioner may suspend, revoke, or deny any license or…
- § 12928.6 (a) Whenever the commissioner believes, from evidence satisfactory to the commissioner, that a person is violating or about to violate this code or an order or…
- § 12928.7 (a) The commissioner may order a respondent to provide restitution for a loss arising from the respondent’s conduct. If the facts and equity permit, with a…
- § 12929 Irrespective of any provision in any law of this state the commissioner, pursuant to this code, has been and is authorized to correct: by amendment, by partial…
- § 12930 Offenses under this code, or under other laws relating to insurers, shall be prosecuted and tried in all respects as provided in the Penal Code for public…
- § 12931 (a) Service of legal process, notices, or other papers described in or referred to by Section 1452, 1605, 1610, 1612, 11104, or 11105 may be made upon the…
- § 12935 (a) The commissioner, by January 1, 1997, shall develop and make available to the general public, in the two most common non-English languages spoken in the…
- § 12936 (a) (1) Escheated funds deposited in the Insurance Fund pursuant to subdivision (a) of Section 1523 of the Code of Civil Procedure shall be transferred to the…
- § 12937 (a) Escheated funds deposited in the Insurance Fund pursuant to subdivision (b) of Section 1517 of the Code of Civil Procedure shall be available for…
- § 12938 Notwithstanding any other provision of law, the department shall make available for public inspection and publish on its Internet Web site all of the…
ARTICLE 1.1. The California Community Development Financial Institution Tax Credit Program §§ 12939–12939.2 · 3 sections
- § 12939 The Legislature finds and declares all of the following: (a) There are specialized financial institutions in California that are specifically dedicated to, and…
- § 12939.1 (a) The department, California Organized Investment Network (COIN), or any successor thereof, shall require the CDFIs receiving tax credit investments pursuant…
- § 12939.2 (a) The commissioner may establish and appoint a California Organized Investment Network Advisory Board. (b) For purposes of this section, all of the following…
ARTICLE 2. Review of Commissioner’s Acts § 12940 · 1 section
- § 12940 The acts and orders of the commissioner are subject to such review, or other action by a court of competent jurisdiction, as is permitted or authorized by law.
ARTICLE 3. Procuring Information on Policies §§ 12950–12960 · 10 sections
- § 12950 Any person interested as owner, assignee, pledgee or payee, of any policy and desiring any information about such policy, may apply to the commissioner for a…
- § 12951 If the records of his office show the facts or information desired, the commissioner shall prepare his certificate reciting such facts or information. If his…
- § 12952 In such affidavit the insurer shall make a full, true and correct statement of all the desired facts and information in its possession, regardless of the…
- § 12953 If such insurer neglects or refuses to make and deliver such affidavit to the commissioner within ninety days from the date of the delivery of the order by the…
- § 12954 Immediately after receiving such affidavit from an insurer the commissioner shall certify such affidavit to the applicant. Such affidavit so certified by the…
- § 12955 If a loss is sustained under a policy of insurance and such policy has been lost or destroyed, all rights of every kind and nature, the time for the…
- § 12956 Forms of policies filed with the commissioner and writings in respect thereto shall be open to public inspection except where, in his judgment, the public…
- § 12957 The commissioner shall not withdraw approval of a previously approved policy, except upon those grounds as, in the commissioner’s opinion, would authorize…
- § 12959 (a) On January 1, 1990, and on every January 1, thereafter, the commissioner shall publish and distribute a comparison of insurance rates report for those…
- § 12960 The commissioner shall, by February 1, 2023, distribute a bulletin soliciting rate applications from insurers to account for the change to the financial…
ARTICLE 3.5. Reporting §§ 12962–12969 · 6 sections
- § 12962 The commissioner shall report to the Governor, the Legislature, and to the committees of the Senate and Assembly having jurisdiction over insurance all of the…
- § 12963 Each insurer transacting insurance, as defined in Sections 108 and 116, covering liability for any public entity, as defined in Section 811.2 of the Government…
- § 12965 The data and other information required to be filed or reported under this article may be transmitted by electronic media or data transmision to the receiver’s…
- § 12967 (a) (1) The department shall develop and implement a coordinated approach to gather, review, and analyze the archives of insurers and other archives and…
- § 12968 (a) Every pleading issued by the commissioner to initiate a formal enforcement action under this code against a licensee or applicant, and every order issued…
- § 12969 An order or pleading posted on the department’s internet website that is related to a disciplinary proceeding or enforcement action under this code against a…
ARTICLE 4. Fees §§ 12970–12980 · 20 sections
- § 12970 The commissioner shall require the payment in advance of a fee for copying microfilm records in the amount of thirty cents ($0.30) per page.
- § 12970.1 In addition to all other fees required for furnishing copies of instruments or documents filed in his office, the commissioner shall require the payment, in…
- § 12972 The commissioner shall require the payment of one dollar ($1), in advance, as a fee for attaching the commissioner’s seal of office to any paper or document…
- § 12973 The commissioner shall require, in advance, as a fee for issuing certificates when the fee is not otherwise specified, the following amounts: (a) Twenty-two…
- § 12973.5 The commissioner shall charge and collect, in advance, the following fees: (a) For filing any application for a license, permit, or certificate of authority…
- § 12973.6 If a check in payment of a tax, fee, or penalty is not paid by the bank on which it is drawn on its first presentation, the commissioner shall charge and…
- § 12973.7 Where provision for fees or charges for documents, transcripts, or other materials which may be furnished by the commissioner is not specifically made in this…
- § 12973.9 Whenever by the provisions of this code a form of policy or certificate and any endorsement, rider, application, amendment, fill-in material, classification of…
- § 12975 Whenever, by the provisions of this code a duty, right, privilege, or power is imposed or conferred upon the commissioner, but it is provided that the expense…
- § 12975.1 All examination expense moneys collected by the Department of Insurance under the provisions of Sections 736, 1061, and 1857.4 are hereby appropriated to the…
- § 12975.5 The commissioner may, in any investigation or hearing the commissioner conducts, take or cause to be taken the deposition of any witness residing within or…
- § 12975.7 (a) All moneys received by the commissioner in payment of lawful fees or reimbursements pursuant to this code shall be transmitted to the Treasurer to be…
- § 12975.8 (a) The Insurance Fund shall, in addition to the funds specified in Section 12975.7, consist of all of the following: (1) All moneys appropriated to the fund…
- § 12975.9 (a) The Seismic Safety Account is hereby created as a special account within the Insurance Fund. Moneys in the account are available, upon appropriation by the…
- § 12976 All fines, forfeitures, taxes, assessments, restitution, and penalties provided for in this code shall be due and payable on the demand of the commissioner. If…
- § 12976.5 (a) On and after January 1, 1994, and before January 1, 1995, every insurer whose annual taxes exceed fifty thousand dollars ($50,000) shall make payment by…
- § 12977 The commissioner may authorize the refund of money received or collected by the department in payment for the filing of applications for licenses, permits or…
- § 12978 (a) Notwithstanding any other law, the commissioner may increase or decrease the fees set forth in this code, as necessary, to allow the department to meet the…
- § 12979 Notwithstanding the provisions of Section 12978, the commissioner shall establish a schedule of filing fees to be paid by insurers to cover any administrative…
- § 12980 The Financial Responsibility Penalty Account is hereby created in the General Fund. Moneys in the account shall be expended, upon appropriation therefor, for…
ARTICLE 5. Fee Oversight §§ 12990–12995 · 6 sections
- § 12990 The department shall adopt an accounting system, as recommended by the State Auditor in Report No. 93030, that will allow the department to accurately identify…
- § 12991 On and after October 1, 1995, the department may not levy any fee or fees under Section 736 or 12979 unless the fees are created in compliance with Sections…
- § 12992 (a) The department shall determine the actual cost of providing each examination as authorized under Section 730 and following. The department shall then set…
- § 12993 The department shall provide the schedule of fees created under Section 12992, as well as the justification that the fees are based on the actual cost of the…
- § 12994 On or before October 1, 1995, the department shall publish a schedule of all fees levied under Sections 736 and 12979. The fees shall be calculated in…
- § 12995 (a) Notwithstanding any other provision of this code, all uncontested departmental billings for services or assessments authorized herein, which are not paid…
ARTICLE 7. Suspension of Privilege of Appearing or Practicing Before the Commissioner §§ 13500–13505 · 6 sections
- § 13500 The commissioner may deny, temporarily or permanently, the privilege of appearing or practicing before the department in any way to any person, other than an…
- § 13501 Any person whose license to practice as an accountant, actuary, or other expert has been revoked or suspended in any state, territory, district, commonwealth,…
- § 13502 (a) An application for reinstatement of a person permanently suspended or disqualified under Section 13500 may be made at any time, and the applicant may, in…
- § 13503 Any person appearing or practicing before the commissioner who has been the subject of an order, judgment, decree, or finding relevant to Section 13501 shall…
- § 13504 Any proceeding brought under any section of this article shall not preclude a proceeding under any other section.
- § 13505 All hearings held under this article shall be closed to the public, unless the commissioner on the commissioner’s own motion, or at the request of a party,…
ARTICLE 8. Insurance Payment Intercept Program §§ 13550–13555 · 6 sections
- § 13550 (a) An insurer shall cooperate with the Department of Child Support Services to identify claimants who are also obligors who owe past-due child support and…
- § 13551 Notwithstanding any other law, an insurer or insurance company, its directors, agents, and employees, an insured individual on whose behalf the company makes a…
- § 13552 (a) Data obtained pursuant to this article shall only be used for the purpose of identifying claimants who are also obligors who owe past-due child support. If…
- § 13553 (a) An insurer may satisfy its obligation to identify and report a claimant who owes past-due child support through the use of a central reporting…
- § 13554 For the purposes of this article, “central reporting organization” means a third-party service that automates the claims identifying process or provides…
- § 13555 This article shall become operative on January 1, 2020.
CHAPTER 3. Conciliation §§ 13600–13601 · 2 sections
- § 13600 The department shall provide any person who files a complaint pursuant to Section 678.5, with the option of submitting any dispute involving cancellation or…
- § 13601 Nothing in this chapter shall preclude an insured or other aggrieved party from pursuing any available alternative remedy in lieu of conciliation or from…
CHAPTER 4. Holocaust Era Insurance Registry §§ 13800–13807 · 8 sections
- § 13800 This chapter shall be known and may be cited as the Holocaust Victim Insurance Relief Act of 1999.
- § 13801 The Legislature finds and declares the following: (a) During World War II, untold millions of lives and property were destroyed. (b) In addition to the many…
- § 13802 For purposes of this chapter, the following definitions shall apply: (a) “Holocaust victim” means any person who was persecuted during the period of 1929 to…
- § 13803 The commissioner shall establish and maintain within the department a central registry containing records and information relating to insurance policies, as…
- § 13804 (a) Any insurer currently doing business in the state that sold life, property, liability, health, annuities, dowry, educational, or casualty insurance…
- § 13805 Any insurer that knowingly files information about a policy required by this chapter that is false shall, with respect to that policy, be liable for a civil…
- § 13806 The commissioner shall suspend the certificate of authority to conduct insurance business in the state of any insurer that fails to comply with the…
- § 13807 The commissioner shall adopt rules to implement this chapter within 90 days of its effective date. The rules shall be adopted as emergency regulations in…
CHAPTER 5. Slavery Era Insurance Policies §§ 13810–13813 · 4 sections
- § 13810 The commissioner shall request and obtain information from insurers licensed and doing business in this state regarding any records of slaveholder insurance…
- § 13811 The commissioner shall obtain the names of any slaveholders or slaves described in those insurance records, and shall make the information available to the…
- § 13812 Each insurer licensed and doing business in this state shall research and report to the commissioner with respect to any records within the insurer’s…
- § 13813 Descendants of slaves, whose ancestors were defined as private property, dehumanized, divided from their families, forced to perform labor without appropriate…
CHAPTER 6. Affordable Housing Insurance Coverage Study §§ 13850–13855 · 6 sections
- § 13850 The Legislature finds and declares all of the following: (a) Hundreds of thousands of affordable homes have been built across California to meet the needs of…
- § 13851 (a) (1) The Department of Insurance shall conduct a study of the property, liability, and builders’ risk insurance coverages available to affordable housing…
- § 13852 In conducting the study described in subdivision (a) of Section 13851, the department shall do all of the following: (a) Collect information necessary to…
- § 13853 (a) The department shall submit a report on the study described in subdivision (a) of Section 13851 to the Senate Committee on Insurance and the Assembly…
- § 13854 Implementation of this chapter is contingent upon an appropriation by the Legislature for purposes of this chapter in the annual Budget Act or another statute.
- § 13855 This chapter shall remain in effect only until January 1, 2031, and as of that date is repealed.