Insurance Code — Part 17 | INS — United States — California law | Esheria

Insurance Code

Part 17 of 23 · provisions 3,201–3,400

This section says the act is known as the Insurance Code.

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This section defines “underwriters’ corps” for this chapter. This chapter must not impair or interfere with the powers or duties of a municipality’s regular fire department. An owner of property cannot treat an underwriters’ corps act as a justification for abandoning the property. Certain domestic insurance-underwriter corporations may maintain an underwriter’s corps at their own expense if they meet the stated fire-prevention and local-business conditions. An underwriter’s corps may enter certain burning or fire-exposed buildings and may remove or protect property from fire or water damage while a fire is happening and immediately after.

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Provisions of Insurance Code

Showing 200 of 4,461

  1. 1800.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    This section defines “bail bond” for this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1800.4. As used in this chapter, the term “bail bond” includes any contract not executed by a surety insurer for or method of release of person arrested or confined on account of any actual or alleged violation of the provisions of any law of this or any other State or of any municipality in the State of California, including any release by means of cash or other property deposited in lieu of bail under the provisions of sections 1295 and 1298 of the Penal Code whereby the attendance in court when required by law and obedience to orders and judgment of any court by the person released is guaranteed. (Added by Stats. 1939, Ch. 361.)
  2. 1800.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    This chapter does not apply to certain bail undertakings involving licensed brokers or agents, insurers acting for insureds under automobile or liability policies, or bail undertakings and bail bonds authorized by Part 5, Division 2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1800.5. This chapter shall not affect the negotiation through a licensed broker or agent for, nor the execution or delivery of an undertaking of bail, executed by an insurer for its insured under a policy of automobile insurance or of liability insurance upon the automobile of the insured, nor shall this chapter affect the negotiation for, or the execution or delivery of an undertaking of bail or bail bond which is authorized by Part 5, Division 2 of this code. (Added by Stats. 1939, Ch. 361.)
  3. 1800.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The chapter does not limit a city or county’s power to adopt additional regulations that do not conflict with the chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1800.6. This chapter shall not limit the power of any city or county to enact other and further regulations concerning, and not in conflict with, the provisions of this chapter. (Amended by Stats. 1963, Ch. 1286.)
  4. 1800.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    An individual may execute or furnish a bail bond if no consideration is paid or allowed for it and the person does not violate Section 1800.75.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1800.7. Any individual person may execute or furnish a bail bond if no consideration is paid or allowed, directly or indirectly, by any person for the execution or furnishing thereof, provided such person does not in connection with such execution or furnishing violate Section 1800.75. (Amended by Stats. 1963, Ch. 1286.)
  5. 1800.75.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A person may not advertise or hold themselves out as doing bail bond business unless they have all licenses required by this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1800.75. No person shall advertise or hold himself out as engaging in the business of executing, delivering, or furnishing bail bonds or undertakings of bail whether or not for consideration without holding at the time thereof all proper licenses required by this chapter. (Added by Stats. 1963, Ch. 1286.)
  6. 1800.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    Permits required by this chapter are additional to any other permits or licenses required by law.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1800.8. The permits required by this chapter are in addition to any and all other permits or licenses required by law. (Added by Stats. 1939, Ch. 361.)
  7. 1801.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    This section says which kinds of bail licenses exist and states the section becomes operative on July 1, 2023.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1801. (a) Bail licenses are: (1) Bail agents’ licenses. (2) Bail permittees’ licenses. (3) Bail solicitors’ licenses. (4) Bail fugitive recovery agent licenses. (b) This section shall become operative on July 1, 2023. (Repealed (in Sec. 3) and added by Stats. 2022, Ch. 768, Sec. 4. (AB 2043) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.)
  8. 1802.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    This section sets licensing conditions for bail agents and bail fugitive recovery agents, including bond and insurance filings, a possible delay in implementation, and an exemption for some applicants with current coverage on file.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802. (a) A bail agent’s license by its terms permits the licensee to solicit, negotiate, and effect undertakings of bail on behalf of any surety insurer while there is in effect an unrevoked notice of appointment of such insurer filed pursuant to Section 1802.1. Such license shall not be issued unless and until there is filed with the commissioner a bond having an admitted surety insurer as surety thereon in the penal sum of one thousand dollars ($1,000), conditioned upon the proper application and disposal of all moneys collected or received by the bail agent, the bail agent’s solicitors licensed pursuant to the bail agent’s appointment, and the bail agent’s employees, in favor of the people of the State of California. (b) A bail fugitive recovery agent shall file all of the following with the commissioner: (1) A bond having an admitted surety insurer as surety thereon in the penal sum of one thousand dollars ($1,000). The surety bond required by this section shall allow persons to recover for actionable injuries, loss, or damage resulting from the willful or wrongful acts or omissions of the licensee and protects this state, its agents, officers, and employees from judgments against the licensee, and is further conditioned upon the faithful and honest conduct of the licensee. (2) (A) A policy of liability insurance that provides minimum limits of insurance of one million dollars ($1,000,000) for any one loss or occurrence due to either bodily injury or death, or property damage, or both. (B) The commissioner shall delay the implementation of subparagraph (A) if there is either a reasonable lack of availability or affordability, or both, of liability insurance for bail fugitive recovery agents. (c) Bail agents, bail permittees, and bail solicitors who apply for a bail fugitive recovery agent license are exempt from subdivision (b) if they have a current surety bond and liability insurance policy on file with the commissioner. (d) This section shall become operative on July 1, 2023. (Repealed (in Sec. 5) and added by Stats. 2022, Ch. 768, Sec. 6. (AB 2043) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.)
  9. 1802.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    Applicants for bail agent or bail fugitive recovery agent licenses must file a notice of appointment with the commissioner, and certain bail agents or permittees are exempt from the subdivision (b) filing rule if they already have qualifying surety appointments on file and authorization.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.1. (a) Every applicant for a license to act as a bail agent shall file with the commissioner a notice of appointment executed by a surety insurer or its authorized representative authorizing that applicant to execute undertakings of bail and to solicit and negotiate those undertakings on its behalf. Additional notices of appointment may be filed by other surety insurers, upon the payment for each additional notice of the fee specified in subdivision (a) of Section 1811, before the license is issued and thereafter, as long as the license remains in force. Each appointment shall, by its terms, continue in force until any of the following occur: (1) Termination of the bail agent’s license. (2) The end of the license term, if the fee provided in subdivision (f) of Section 1811 for filing a renewal application is not paid. (3) The filing of a notice of termination by the insurer, its representative, or by the bail agent. (b) Every applicant for a license to act as a bail fugitive recovery agent shall file with the commissioner a notice of appointment executed by a bail agent or surety insurer authorizing that applicant to act on behalf of, and pursuant to, the instructions of the appointing licenseholder. Additional notices of appointment may be filed by other bail agents or surety insurers upon the payment for each additional notice of the fee specified in subdivision (a) of Section 1811, before the license is issued and thereafter, as long as the license remains in force. Each appointment shall, by its terms, continue in force until any of the following occur: (1) Termination of the bail fugitive recovery agent’s license. (2) The end of the license term, if the fee provided in subdivision (f) of Section 1811 for filing a renewal application is not paid. (3) The filing of a notice of termination by the bail agent, the surety insurer, or the bail fugitive recovery agent. (c) Bail agents and bail permittees who apply for a bail fugitive recovery agent license are exempt from subdivision (b) if the bail agent or bail permittee has one or more surety appointments on file with the commissioner and the surety or sureties providing the appointments have authorized the bail agent or bail permittee to work under their authority as a bail fugitive recovery agent. (d) This section shall become operative on July 1, 2023. (Repealed (in Sec. 7) and added by Stats. 2022, Ch. 768, Sec. 8. (AB 2043) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.)
  10. 1802.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A qualifying bail licensee may use a name used by the prior business owner if the prior business was operated for at least two consecutive years.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.2. Any bail licensee who has purchased or succeeded to the bona fide business of another bail licensee shall be entitled to use a true or fictitious name used by his predecessor if the predecessor has conducted the business for a period of two consecutive years or more. (Added by Stats. 1984, Ch. 1063, Sec. 1.)
  11. 1802.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    This section says who may hold a bail fugitive recovery agent license and what licensees must do.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.3. (a) A bail fugitive recovery agent’s license, by its terms, permits the licensee to engage in the activities of a bail fugitive recovery agent as set forth in paragraph (4) of subdivision (a) of Section 1299.01 of the Penal Code. (b) A bail fugitive recovery agent licensee shall comply with the Bail Fugitive Recovery Persons Act (commencing with Section 1299) of the Penal Code. (c) Notwithstanding subdivision (b) of Section 1810, only natural persons may be licensed as bail fugitive recovery agents. (d) A bail fugitive recovery agent shall disclose on their license application and renewal to the department whether they are also a bail agent, permittee, or solicitor, and shall carry identification cards issued by the commissioner pursuant to Section 2077.1 of Chapter 5 of Title 10 of the California Code of Regulations. (e) All bail licensees shall not have been convicted of a felony unless the person is licensed pursuant to Section 1800. (Amended by Stats. 2025, Ch. 558, Sec. 16. (AB 487) Effective January 1, 2026.)
  12. 1802.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A bail permittee’s license allows the licensee to solicit, negotiate, issue, and deliver bail bonds, but the license cannot be issued until a $5,000 bond is filed with the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.5. A bail permittee’s license, by its terms, permits the licensee to solicit, negotiate, issue, and deliver bail bonds. The license shall not be issued unless and until there is filed with the commissioner a bond having an admitted surety insurer as surety thereon in the penal sum of five thousand dollars ($5,000), conditioned upon the proper application and disposal of all moneys collected or received by the bail permittee, his or her solicitors licensed pursuant to his or her appointment, and his or her employees, in favor of the people of the State of California. (Amended by Stats. 2006, Ch. 538, Sec. 459. Effective January 1, 2007.)
  13. 1802.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A holder of a bail permittee’s license may get a bail agent’s license by filing the proper documents, and does not need the additional bond mentioned in Section 1802.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.6. The holder of a bail permittee’s license may, upon filing of proper documents specified in Section 1802.1, receive a bail agent’s license without procuring the additional bond specified in Section 1802. (Amended by Stats. 1972, Ch. 618.)
  14. 1802.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    An applicant may deposit qualifying securities with the commissioner instead of posting a bond, if the securities are at least equal to the bond’s required penal sum. The commissioner must hold the securities in trust.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.7. Any applicant may deposit with the commissioner, in lieu of a bond required by this chapter, securities of the kind and character set forth in sections 1170 to 1175, and 1179 to 1240, in a sum not less than the required amount of the penal sum of said bond. Such securities shall be held in trust by the commissioner for the fulfillment of the same terms and conditions as in the case of a bond required by section 1802.5. (Added by Stats. 1939, Ch. 361.)
  15. 1802.71.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A bail license holder or former holder may replace deposited securities with a qualifying bond, if the commissioner approves it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.71. The holder, or former holder of a bail license, who has deposited with the commissioner securities in lieu of a bond as provided by Section 1802.7, may at any time substitute therefor a bond complying with the requirements of Section 1802, 1802.5, or 1803, as the case may be. Such a bond must embrace all liability theretofore existing or which may thereafter be incurred for the fulfillment of which the securities have been held, whether reported or unreported. The substitution of such a bond for securities shall be conditioned upon the approval of the commissioner. Upon receiving such approval and the filing of the bond, the applicant shall be permitted to withdraw the securities theretofore deposited on his behalf. (Amended by Stats. 1959, Ch. 599.)
  16. 1802.72.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A former holder of a bail license may apply to the commissioner for return of deposited securities, but only after three years have passed since surrendering the last bail license and if all licenses were surrendered.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.72. The former holder of any bail license, who has surrendered any and all licenses to the commissioner, and who has on deposit with the commissioner securities in lieu of bond as provided by Section 1802.7, may, not sooner than three years after the surrender of his last bail license apply to the commissioner for the return of the securities. (Added by Stats. 1957, Ch. 2048.)
  17. 1802.73.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    An applicant’s bail license application must be written, verified, and include specified information about licenses, counties of business, exoneration, discharge, and accounting of money received.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.73. The application shall be in writing, verified, and shall state: (a) The nature of all bail licenses held by the applicant and the period during which the applicant was authorized to transact bail business under each; (b) All of the counties in which the applicant transacted bail under the authority of each license; (c) That all bail transacted by applicant, and his solicitors and employees, if any, has been exonerated by order of court, and that his liability as surety on all bail transactions has been discharged; (d) The date upon which the last liability of the applicant on a bail transaction was fully exonerated and discharged; (e) That all moneys collected or received by the applicant, and his solicitors and employees, if any, have been paid to the person or persons entitled thereto and have in all respects been fully and properly accounted for. (Added by Stats. 1957, Ch. 2048.)
  18. 1802.74.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    The commissioner must publish a notice of an application to withdraw deposited securities for one week, and the applicant must pay the publication cost.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.74. The commissioner shall publish daily for one week in a newspaper of general circulation in each county in which the applicant transacted bail under any license, a notice of the application to withdraw the securities deposited with the commissioner in lieu of bond. The expense of the publication shall be borne by the applicant and the commissioner may require the applicant to pay it in advance. (Added by Stats. 1957, Ch. 2048.)
  19. 1802.75.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    The commissioner must examine the applicant’s books and records.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.75. The commissioner shall make an examination of the books and records of the applicant. The costs and expenses of the examination shall be paid by the commissioner out of funds appropriated for support of the Department of Insurance. (Added by Stats. 1957, Ch. 2048.)
  20. 1802.76.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    If the applicant does not pay the notice-publication expense within 30 days after the bill is presented, the commissioner must collect the costs from the deposited securities.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.76. Upon failure of the applicant to pay the expense of publication of notice within 30 days after the presentation of the bill therefor, the commissioner shall collect the costs out of the deposited securities. (Added by Stats. 1957, Ch. 2048.)
  21. 1802.77.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    The commissioner must return the applicant’s deposited securities if satisfied the applicant complied with its application representations, but may not return them until three years after the latest bond was issued or written.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1802.77. If the commissioner is satisfied from the application and the examination of the books and records of the applicant that the applicant has, in fact, complied with the representations made in his application, the commissioner shall deliver to the applicant the securities deposited; provided, however, the commissioner shall not deliver the securities to the applicant prior to the expiration of three years after the latest date on which a bond was issued or written by the applicant. (Added by Stats. 1957, Ch. 2048.)
  22. 1803.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    A bail solicitor may transact bail only when appointed and on file with the commissioner, and the applicant must file a $1,000 bond before the license is issued.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1803. A bail solicitor’s license, by its terms, permits the licensee to transact bail on behalf of and as the employee of the holder of the bail licenses therein designated while there is in effect and on file with the commissioner an unrevoked appointment of the solicitor by such license holder. In all matters respecting the transaction of bail, it shall be conclusively presumed that such solicitor acted on behalf of and pursuant to the instructions of the appointing license holder. A bail solicitor’s license shall not be issued until there is filed with the commissioner an appointment of such solicitor, effective upon issue of the license executed by the holder of a bail agent’s license or bail permittee’s license, or both such licenses. Such appointment shall state that the license holder appoints the solicitor and will employ him in the transaction of bail, until notice is filed with the commissioner revoking the appointment. Such appointment and license shall permit the bail solicitor to transact only the undertakings of bail or bail bonds which the license or licenses of the appointing license holder permits such license holder to transact. Before the issuance of a bail solicitor’s license, the applicant shall file a bond in the penal sum of one thousand dollars ($1,000) conditioned upon the proper application and disposal of all moneys collected or received by the solicitor, in favor of the people of the State of California. (Amended by Stats. 1953, Ch. 55.)
  23. 1804.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    An applicant for a bail license must file an application with the commissioner in the form and with the supporting documents the commissioner requires, and the application must be verified as in civil complaints. The commissioner must investigate licensees as the commissioner considers advisable.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1804. An applicant for bail license shall file with the commissioner an application in such form and having such supporting documents as the commissioner prescribes, except that the application shall be verified in the manner provided for verification of complaints in civil cases. The commissioner shall investigate the licensees in such manner and in respect to such matters as he deems advisable. (Added by Stats. 1937, Ch. 654.)
  24. 1805.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    The commissioner may refuse to issue a bail license until satisfied that the applicant meets listed reputation, honesty, experience, fitness, and residency conditions.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1805. The commissioner may decline to issue a bail license until he is satisfied that: (a) The applicant is of good business reputation and of good general reputation. (b) That the applicant has never been refused a license or had a license revoked by any public authority for reasons which indicated lack of honesty or integrity, or which show improper business practice on the part of the applicant. (c) That the applicant has an understanding of the obligations and duties of bail. (d) That the applicant has not participated in or been connected with any business transaction which, in the opinion of the commissioner tends to show unfitness to act in a fiduciary capacity or to maintain the standards of fairness and honesty required of a trustee or other fiduciary. (e) That the applicant has not willfully misstated any material fact in his application or procured a misstatement in the supporting documents thereof. (f) That there is no outstanding judgment against the applicant of conviction of a misdemeanor or felony denounced by this code, or one of the elements of which involves a misappropriation of money or property. (g) That the applicant has not committed an act forbidden by this code. (h) That the applicant is a fit and proper person to hold the license applied for. (i) The applicant has been a continuous resident of the State of California for at least two years. (Amended by Stats. 1965, Ch. 228.)
  25. 1806.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    The commissioner may suspend, revoke, or refuse to issue a license under this chapter if the holder is found not to be a fit or proper person.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1806. The commissioner may suspend, revoke or refuse to issue any license under this chapter whenever it is made to appear to him that the holder of such permit is not a fit or proper person to be permitted to continue to hold or receive such license. (Added by Stats. 1937, Ch. 654.)
  26. 1807.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    The commissioner may suspend or revoke a bail license for any reason that would justify denying the license.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1807. The commissioner may suspend or revoke any bail license for any cause for which he could deny such license. (Added by Stats. 1937, Ch. 654.)
  27. 1807.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    The commissioner generally cannot deny, suspend, or revoke a license without first giving the applicant or licensee a hearing on reasonable notice.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1807.5. Except as provided in Sections 1669 and 1738, the commissioner shall not deny, suspend, or revoke any license, issued under this article, without first granting a hearing, upon reasonable notice to the applicant or licensee, except that he may temporarily suspend a license for a period not exceeding 15 days pending the hearing. Where a hearing is held under this section the proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted pursuant to that chapter. (Amended by Stats. 2016, Ch. 304, Sec. 10. (AB 2884) Effective January 1, 2017.)
  28. 1807.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    Beginning January 1, 2011, licenses issued under this article must have a two-year term.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1807.7. Commencing on January 1, 2011, all licenses issued pursuant to this article shall be for a license term of two years. (Amended by Stats. 2010, Ch. 400, Sec. 20. (AB 2782) Effective January 1, 2011.)
  29. 1807.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    This section defines “license term” for bail licenses and states that licenses issued before January 1, 2011 expire on June 30 of each odd-numbered year.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1807.8. “License term” as used in this chapter means all of that two-year period beginning as described in subdivision (a) or (b) of Section 1807.9, as applicable, and ending on the day two years after the last calendar day of the month in which the initial license was issued. Licenses issued prior to January 1, 2011, shall expire on June 30 of each odd-numbered year. (Added by Stats. 2010, Ch. 400, Sec. 21. (AB 2782) Effective January 1, 2011.)
  30. 1807.9.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    This section defines when a “license year” starts and ends for individuals and entities in this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1807.9. “License year” as used in this chapter shall be determined for each individual and entity as follows: (a) Upon initial licensing, the license year starts on the date the license is issued. (b) Subsequently, each license year starts the first day of the month following the month in which the initial license was issued. (c) A license year ends the following calendar year on the last calendar day of the month in which the initial license was issued. (d) A license year for licenses issued prior to January 1, 2011, starts on July 1 and ends on June 30. (Added by Stats. 2010, Ch. 400, Sec. 22. (AB 2782) Effective January 1, 2011.)
  31. 1808.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    License renewal applications may be filed by the expiration date if the filing fee is paid.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1808. (a) Applications for renewal of licenses may be filed on or before the expiration date upon payment of the fees for filing specified in Section 1811. (b) Upon failure to file the application as provided in subdivision (a), the license shall expire on the first day of the next month, but the holder may file an application for a new license. Until that same month and day of the next succeeding year the fee shall be twice that specified in Section 1811 for the filing. (c) No application shall be deemed filed within the meaning of this section unless the document itself has been actually delivered to, and the proper fee for its filing has been paid at, the office of the commissioner during office hours, or unless both the document and the fee have been filed and remitted pursuant to Sections 11002 and 11003 of the Government Code. (Amended by Stats. 2010, Ch. 400, Sec. 23. (AB 2782) Effective January 1, 2011.)
  32. 1809.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    Unlawful-rebate laws do not apply to commissions or other consideration paid or exchanged between licensees under this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1809. The provisions of law relating to unlawful rebates shall not apply to commissions or other consideration paid or exchanged between licensees under this chapter, except that in such case the licensee who executes the undertaking or executes or delivers the bail bond shall, in all matters in respect thereto, be deemed the principal and all licensees otherwise connected with the transaction shall be deemed his agents in respect thereto. (Amended by Stats. 1939, Ch. 361.)
  33. 1810.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

    Verify source ↗

    Natural persons may be licensed, and a corporation may hold a license only if it meets specific ownership, staffing, disclosure, and approval requirements.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1810. (a) Natural persons can be licensed under this chapter. (b) A license may be held by a corporation, in which case all of the following requirements shall be met: (1) The application shall set forth the names of all officers and employees of the licensee who will be authorized to exercise the powers of the licensee under this chapter. Each of those persons shall be required to meet the requirements for licensure under this chapter, and disciplinary action may be taken against any of those persons, and the licensee, if any of those persons does any act that would be grounds for disciplinary action against a licensee. (2) The corporation may solicit or negotiate the execution or delivery of bail on behalf of surety insurers only through natural persons who hold individual licenses as bail agents. (3) One hundred percent of the shares of the corporation shall be held by licensed bail agents. (4) All shareholders, officers, and directors of the corporation shall be licensed bail agents, and shall be disclosed to the department. (5) Any sale or transfer of stock or other interest in the corporation shall require the prior approval of the department. The department shall approve or disapprove a request for approval within 60 days of receiving the completed request. (Amended by Stats. 1996, Ch. 628, Sec. 1. Effective January 1, 1997.)
  34. 1810.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner may not issue a bail license unless the applicant has taken and passed the required examination, subject to a stated exception for certain previously licensed persons.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1810.5. The commissioner shall not issue a bail license to any person unless and until the applicant takes and passes an examination given by the commissioner as provided in this chapter. This prohibition shall not apply with respect to persons who were licensed under this chapter during any part of the annual period terminating on the July 1st preceding the time to be covered by the license applied for. (Amended by Stats. 1949, Ch. 381.)
  35. 1810.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner must conduct or arrange a written examination for bail-license applicants at least twice a year.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1810.6. The commissioner shall conduct or arrange for written examination to be given at least twice a year upon questions proposed by the commissioner as to the qualifications of applicants to hold a bail license. The examination shall be of sufficient scope to satisfy the commissioner that the applicants have knowledge of, and are reasonably familiar with, the laws of this State relating to the giving of bail and the execution and delivery of undertakings of bail, and have a general and fair understanding of the obligations and duties of the holder of a bail license in respect to the conduct of business under each type of bail license. (Added by Stats. 1939, Ch. 361.)
  36. 1810.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    Applicants must complete specified classroom and arrest-course training to qualify for the exam, providers and the commissioner have approval/recordkeeping rules, and licensees must complete continuing education unless exempt.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1810.7. (a) In order to be eligible to take the examination required to be licensed under this chapter, the applicant shall have completed the following: (1) A minimum of 20 hours of classroom education in subjects pertinent to the duties and responsibilities of a bail licensee, including, but not limited to, all related laws and regulations, rights of the accused, ethics, and apprehension of bail fugitives. (2) (A) A 40-hour power of arrest course certified by the Commission on Peace Officer Standards and Training pursuant to Section 832 of the Penal Code. Completion of the course shall be for educational purposes only and not intended to confer the power of arrest of a peace officer or public officer, or agent of any federal, state, or local government, unless the person is so employed by a governmental agency. (B) This paragraph shall apply to both of the following: (i) A bail fugitive recovery agent, as described in paragraph (4) of subdivision (a) of Section 1299.01 of the Penal Code. (ii) A bail, as described in paragraph (2) of subdivision (a) of Section 1299.01 of the Penal Code, who hires, trains, or designates assignments for bail fugitive recovery agents. (b) The commissioner shall approve or disapprove an applicant to provide education for licensure as required by this section within 90 days of receipt of the applicant’s full and complete application. However, this 90-day period shall be tolled during the pendency of any investigation of the applicant by the commissioner for an alleged violation that would, if proven, result in the suspension, revocation, or denial of the provider’s approval to provide continuing education to bail agents as prescribed in Section 1813. Failure to disapprove an applicant within this period shall result in the automatic approval of the application. Approval shall be valid for two years. The commissioner may, at any time, disapprove any provider who is not qualified or whose course outlines are not approved, who is not of good business reputation, or who is lacking in integrity, honesty, or competency. A provider shall not provide education for licensure following the expiration of the two-year approval period unless the commissioner has renewed the provider’s approval. The commissioner shall, at the time of renewal, approve or disapprove the course outlines and schedule of classes to be provided. (c) Providers responsible for providing education for licensure under this chapter shall consult with the California State Sheriffs’ Association, the California District Attorneys Association, and the County Counsels’ Association of California prior to submission of the course outlines for approval by the commissioner, and these entities may respond within 30 days of receipt of a request for consultation from a provider. Providers shall maintain records of their requests for consultation and any responses from these entities, and make these records available to the department for review as requested. The bail license fee shall be increased, the amount of which shall be determined by the commissioner, which shall be deposited in the Insurance Fund for the purposes of recovering the administrative costs for meeting the conditions and purposes of this section. Providers of education or continuing education shall offer courses to all applicants at the same course fees. (d) Any person who falsely represents to the commissioner that compliance with this section has been met shall be subject, after notice and hearing, to the penalties and fines set out in Section 1814. (e) A licensee shall additionally complete in each two-year license term not less than 12 hours of continuing education in the subjects stated in subdivision (a) prior to renewal of the licensee’s license. (f) A licensee shall not be required to comply with the continuing education requirements of this section if the licensee submits proof satisfactory to the commissioner that the licensee has been a licensee in good standing for 30 continuous years in this state and is 70 years of age or older. (g) The commissioner may make reasonable rules and regulations necessary, advisable, and convenient for the administration and enforcement of this chapter. The rules and regulations may include a schedule establishing fees to be paid by an applicant seeking approval to act as a provider and to deliver courses under this section. Those fees shall be in an amount no greater than fees paid by applicants providing similar courses to other insurance agents licensed by the department, as specified in Section 1751.1. (h) Nothing in this chapter shall preclude completion of the bail agent or bail fugitive recovery agent continuing education requirements of this section through a course of instruction offered via the internet or correspondence. However, this subdivision shall not be construed to allow completion of the prelicensing education requirements of this section through a course of instruction. (i) Successful completion of the continuing education requirements by means of an internet or correspondence course shall require obtaining a passing grade of at least 70 percent on a written final examination. The final examination shall be open book and shall be graded by the approved provider. The provider shall issue certificates of completion only to those students who have passed the final examination. (j) This section shall become operative on July 1, 2023. (Repealed (in Sec. 10) and added by Stats. 2022, Ch. 768, Sec. 11. (AB 2043) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.)
  37. 1810.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner may give a temporary license to the executor or administrator of a deceased bail license holder’s estate, allowing that person to act for the estate for up to one year while the business is being wound up.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1810.8. (a) The commissioner may issue a temporary license to the executor or administrator of the estate of a deceased holder of a bail agent’s license, bail permittee’s license, or bail fugitive recovery agent’s license, permitting such party to act as such representative to exercise the rights and privileges of such a licenseholder for the purpose of conducting the business of the estate for a period of one year from and after the date of the death, pending, but not after, the disposal of the business. (b) This section shall become operative on July 1, 2023. (Repealed (in Sec. 12) and added by Stats. 2022, Ch. 768, Sec. 13. (AB 2043) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.)
  38. 1810.9.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner must issue a renewal license to a licensee if the licensee proves current licensure, pays the renewal fee, and completes the required continuing education.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1810.9. A renewal license shall be issued by the commissioner to a licensee upon proof of current licensure, payment of a renewal fee, and completion of the continuing education requirements as required by subdivision (a) of Section 1810.7. (Added by Stats. 1993, Ch. 515, Sec. 4. Effective January 1, 1994.)
  39. 1811.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner must charge and collect specified fees for bail-license-related applications, renewals, exams, bonds, name approvals, and amendments.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1811. For the commissioner’s services in connection with the filing of any application or request for any license under this chapter, the commissioner shall charge and collect the following fees: (a) For filing an application or request for bail agent’s license, three hundred eleven dollars ($311) per year. (b) For filing an application or request for bail solicitor’s license, three hundred eleven dollars ($311) per year. (c) For filing an application or request for bail permittee’s license, six hundred twenty-four dollars ($624). (d) For filing an application or request for bail fugitive recovery agent’s license, three hundred eleven dollars ($311) per year. (e) For filing an application for examination, or reexamination, sixty-two dollars ($62). (f) For a renewal application, a fee of ninety-four dollars ($94) per year. In the case of a bail agent with more than one valid notice of appointment on file, the fee to be charged pursuant to this subdivision shall be the fee provided herein multiplied by the number of insurers whose valid appointments are on file on the date the document is filed unless the bail agent in that document advises the commissioner of the agent’s intent to terminate the appointment of one or more of those insurers, in which event the fee shall be based upon the number of insurers remaining. (g) For a bail solicitor’s renewal application, a fee of ninety-four dollars ($94) per year. (h) For a bail permittee’s renewal application, a fee of three hundred ninety-four dollars ($394) per year. (i) For a bail fugitive recovery agent’s renewal application, a fee of ninety-four dollars ($94) per year. (j) At the time of filing an application for a license, if a qualifying examination is required for issue or in connection with the license, the fee for filing the first application to take the qualifying examination shall be paid at the time of filing application for the license. (k) For filing application or request for approval of a true or fictitious name pursuant to Section 1724.5, thirty-two dollars ($32), except that there shall be no fee when the name is contained in an original application. (l) For filing a bond required by this chapter, except when the bond constitutes part of an original application, twenty-eight dollars ($28). (m) For filing a first amendment to an application, fifteen dollars ($15). (n) For filing a second and each subsequent amendment to an application, thirty-two dollars ($32). (o) This section shall become operative on July 1, 2023. (Repealed (in Sec. 14) and added by Stats. 2022, Ch. 768, Sec. 15. (AB 2043) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.)
  40. 1812.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner may make reasonable rules to administer and enforce this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1812. The commissioner may make reasonable rules necessary, advisable, or convenient for the administration and enforcement of the provisions of this chapter. (Added by Stats. 1937, Ch. 654.)
  41. 1813.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner may suspend, revoke, or deny a license or certificate of authority after notice and hearing if the holder has violated this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1813. The commissioner, after notice and hearing, in accordance with the procedure provided in Article 13 (commencing with Section 1737) of Chapter 5 may suspend, revoke, or deny any license or certificate of authority issued pursuant to any provision of this code whenever he or she finds that the holder thereof has violated any provisions of this chapter. (Amended by Stats. 1982, Ch. 454, Sec. 104.)
  42. 1814.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    Violating any earlier provision of this chapter or any commissioner rule made under it is a public offense and can be punished by a fine, jail, imprisonment, or both.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1814. The violation of any foregoing provision of this chapter, or of any rule of the commissioner made pursuant thereto, is a public offense, punishable by fine not exceeding ten thousand dollars ($10,000), or by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or in the county jail not exceeding one year, or by both that fine and imprisonment. (Amended by Stats. 2011, Ch. 15, Sec. 211. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
  43. 1815.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner must publish and maintain a public website list of certain bail license holders and update it promptly when any license ends.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1815. (a) The commissioner shall publish and maintain a list of the names of holders of bail agents’ and bail permittees’ licenses and their solicitors and bail fugitive recovery agents’ licenses on the department’s public internet website, together with their license numbers and any other information with respect to the persons as the commissioner considers advisable. The commissioner shall promptly upon termination, for any cause, of any license, update the department’s public internet website. (b) This section shall become operative on July 1, 2023. (Repealed (in Sec. 16) and added by Stats. 2022, Ch. 768, Sec. 17. (AB 2043) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.)
  44. 1819.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A commissioner’s certificate stating facts found after a hearing under this chapter is prima facie evidence of those facts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1819. The certificate of the commissioner certifying any facts found after hearing held under this chapter shall be prima facie evidence of the facts set forth therein. (Added by Stats. 1939, Ch. 361.)
  45. 1820.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A licensee must prominently display the bail license in the licensee’s office.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1820. Every bail license shall be prominently displayed in the office of the licensee. (Added by Stats. 1939, Ch. 361.)
  46. 1821.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    The commissioner may not refuse a license unless proceedings are started under the cited Government Code chapter within 60 days after the completed application is filed.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1821. (a) A license shall not be refused by the commissioner without proceedings in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, being initiated within 60 days from the date of filing the completed application. (b) Sections 1724.5, 1733, 1734, 1735 and Articles 6 (commencing with Section 1666) and 13 (commencing with Section 1737) of Chapter 5 apply to persons licensed under this chapter, and “insurance agent” or “licensee”, as used in those provisions, include persons licensed under this chapter. (c) Subdivisions (a), (c), (e), (f), (g), and (h) of Section 1725.5 apply to persons licensed under this chapter, and “person” or “licensee,” as used in those provisions, include persons licensed under this chapter. (Amended by Stats. 2023, Ch. 204, Sec. 11. (AB 1140) Effective January 1, 2024.)
  47. 1822.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    A licensee or license applicant must tell the commissioner in writing if the business address changes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1822. A licensee or applicant for a license under this chapter shall notify the commissioner, in writing, of any change in the address from which he intends to conduct his business. (Added by Stats. 1957, Ch. 671.)
  48. 1823.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. )

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    Surety companies that write bail undertakings must keep collected agent funds in segregated in-state trust accounts, maintain those accounts in approved forms, and not pledge them as collateral.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 7. Bail Licenses [1800 - 1823] ( Chapter 7 added by Stats. 1937, Ch. 654. ) ## ARTICLE 1. Qualification and Licensing [1800 - 1823] ( Article 1 added by Stats. 1937, Ch. 654. ) ## 1823. All surety companies which execute undertakings of bail shall keep any moneys collected from agents licensed pursuant to this code as buildup or reserve funds in segregated trust accounts within the state. These accounts shall be maintained as any of the following: (a) A Federal Deposit Insurance Corporation (FDIC) insured account. (b) United States government bonds and treasury certificates or other obligations for which the faith of the United States is pledged for the payment of principal and interest. (c) Repurchase agreements collateralized by securities issued by the United States government. (d) A money market fund that limits its portfolio to those securities listed in subdivisions (a) and (b). The accounts described in this section shall not be hypothecated or offered as collateral. The accounts described in this section shall be used to satisfy the unfulfilled obligations of the undertakings of bail written by the agents from whom the moneys have been collected and to otherwise satisfy the unfulfilled obligations which may be owing to the surety by those agents. (Amended by Stats. 2000, Ch. 141, Sec. 1. Effective January 1, 2001.)
  49. 1831.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

    Verify source ↗

    This section exempts several listed people from this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1831. The following persons are exempt from this chapter: (a) Active members of the State Bar of California. (b) Any person who has passed all of the qualifying examinations necessary to become an associate of the Society of Actuaries. (c) An officer or employee of any bank or trust company who receives no compensation from sources other than the bank or trust company for activities connected with his employment which would otherwise subject him to this chapter. (d) Any person employed by an employer who on behalf of his or her employer or any employee of his or her employer transacts life or disability insurance with, but not on behalf of, an insurer; or, Advises his or her employer or any employee of his or her employer in any manner concerning life or disability insurance; if: (1) The employer receives no compensation by reason of such transactions or advice; and (2) Such person receives no compensation from any source other than his or her employer for such transactions and advice. (e) An investment advisor, as defined in Section 25009 of the Corporations Code, when acting in that capacity. (Amended by Stats. 1983, Ch. 962, Sec. 4.)
  50. 1832.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    Employees or officers of an insurer cannot get licensed as life and disability insurance analysts, and life insurers cannot pay those analysts commissions on insurance they transact in that role.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1832. An employee or officer of any insurer is not eligible for license as a life and disability insurance analyst. A life insurer shall not pay a life and disability insurance analyst any commission directly or indirectly, on any life or disability insurance transacted by and in the capacity as a life and disability insurance analyst. (Amended by Stats. 1983, Ch. 962, Sec. 5.)
  51. 1833.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    A license to act as a life insurance analyst may not be issued to a nonresident or to someone under 18 at the time of application.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1833. A license to act as life insurance analyst shall not be issued to any person not residing in this state, nor to any person who is under 18 years of age at the time of application. (Amended by Stats. 1971, Ch. 1748.)
  52. 1834.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    A license must be applied for in writing on a commissioner-prescribed form.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1834. Such license shall be obtained only on a written application on a form prescribed by the commissioner. The commissioner may decline to act upon an incomplete or defective application until amendments or an amended application are filed with him which complete the prescribed form and are properly executed. He may prescribe the form of such amendments or amended application. (Added by Stats. 1959, Ch. 4.)
  53. 1835.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    An applicant must answer, under oath, the commissioner’s interrogatories on commissioner-prepared forms.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1835. The applicant shall answer under oath such interrogatories as the commissioner himself or through his deputies propounds on forms prepared by the commissioner. (Added by Stats. 1959, Ch. 4.)
  54. 1836.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    A license cannot be issued until the commissioner is satisfied that the applicant meets the listed fitness and qualification requirements.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1836. A license shall not be issued until the commissioner has satisfied himself upon evidence presented and recorded as to the integrity of the applicant and that the applicant: (a) Is of good business reputation and of good general reputation. (b) Has a thorough knowledge of life or disability insurance. (c) Has not participated in or been connected with any business transaction which, in the opinion of the commissioner, tends to show unfitness to act in a fiduciary capacity or to maintain the standards of fairness and honesty required of a trustee or other fiduciary. (d) Has not willfully misstated any material fact in an application to the commissioner for a license or in a document filed in support of such an application, and has not obtained his or her license by concealment or knowing misrepresentation. (e) Is a fit and proper person to hold the license applied for. (f) Does not seek the license for the purpose of avoiding or preventing the operation or enforcement of the insurance laws of this state. (g) Has within 12 months preceding issuance of the license taken and passed the qualification examination provided in this article. (Amended by Stats. 1983, Ch. 962, Sec. 6.)
  55. 1837.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    The commissioner may refuse to issue a license to an applicant who has a disqualifying record or who has committed an act forbidden by this code.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1837. The commissioner may decline to issue a license if an applicant: (a) Has been refused a license or had a license revoked by any public authority for reasons which indicated lack of honesty or integrity or which showed improper business practice on the part of the applicant. (b) Has been convicted of a misdemeanor or felony denounced by this code or one of the elements of which involved the misappropriation of money or property. (c) Has committed an act forbidden by this code. (Added by renumbering Section 1887 by Stats. 1959, Ch. 753.)
  56. 1838.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    The commissioner cannot refuse a license on the specified basis without first giving the applicant notice and a hearing.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1838. A license shall not be refused by the commissioner on the basis of Section 1836, excepting subdivision (g), without hearing on notice to the applicant. The proceedings shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein. (Amended by Stats. 1983, Ch. 962, Sec. 7.)
  57. 1839.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    The commissioner must conduct or arrange a written examination for life and disability insurance analyst applicants at least twice a year.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1839. The commissioner shall conduct or arrange for a written examination, to be given at least twice a year upon questions prepared by the commissioner, as to the qualifications of the applicant to act as a life and disability insurance analyst. (Amended by Stats. 1983, Ch. 962, Sec. 7.5.)
  58. 1840.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    The examination must be broad enough to satisfy the commissioner that the applicant knows California life and disability insurance law and related contract terms and conditions, and understands life and disability insurance thoroughly.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1840. The examination shall be of sufficient scope to satisfy the commissioner that the applicant has sufficient knowledge of and is thoroughly familiar with the life and disability insurance laws of this state, and the provisions, terms, and conditions of life and disability insurance contracts written on residents of this state, and has a thorough and complete knowledge of life and disability insurance. (Amended by Stats. 1983, Ch. 962, Sec. 8.)
  59. 1841.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    Licensees and applicants must file their true and fictitious business names with the commissioner, update changes after licensing, and a licensee may not keep using a name after written notice from the commissioner.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1841. Every individual and organization licensee, and every applicant for such a license, under this chapter shall file with the commissioner in writing the true name of the individual or organization, and also all fictitious names under which he or she conducts or intends to conduct his or her business, and after licensing shall file with the commissioner any change in or discontinuance of those names. The commissioner may, in writing, disapprove the use of any true or fictitious name (other than the bona fide natural name of an individual) by any licensee on any ground set forth in Section 1724.5. A licensee may not use a true or fictitious name after being notified by the commissioner in writing that the use is contrary to this section. If the commissioner determines that there are facts in mitigation in connection with the continued use of the name, the commissioner may permit its use for a specified reasonable period of time if, in connection therewith, he or she imposes such conditions as will protect the public and achieve the purposes of this section. Any such permission, and any such conditions, shall be in writing. (Repealed and added by Stats. 1983, Ch. 962, Sec. 9.5.)
  60. 1842.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    This section sets license-related fees for life and disability insurance analysts and requires the first qualifying-exam application fee to be paid at the same time as the license application fee.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1842. (a) The provisions of Chapter 5 (commencing with Section 1621) concerning the license period and the procedure and time for filing applications for renewal of licenses and for filing notices of intention to keep licenses in force applicable to life agents are applicable to licenses authorized by this chapter except that participation in the applications or notices by an admitted insurer is not required. (b) The fee for filing an application for the issuance or renewal of a license to act as a life and disability insurance analyst or a notice of intention to keep the license in force is two hundred eighty-three dollars ($283). As respects life and disability insurance analysts all references in Section 1718 to fees shall be deemed to be this fee. The fee for filing application to take the qualifying examination for life and disability insurance analyst is one hundred forty-one dollars ($141) and the fee for filing the first application to take the qualifying examination must be paid at the same time the application for issuance of the license is paid. The fees specified in this section shall be paid in advance, and shall be determined by multiplying the number of natural persons to be licensed, or to be named on or added to a license, by the amounts specified in this section as to each license, multiplied by the number of license years in the period of the license applied for, or the remaining period of the existing license counting any initial fractional license year of the period as one year for that purpose. (Amended by Stats. 2017, Ch. 534, Sec. 50. (AB 1699) Effective January 1, 2018.)
  61. 1842.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    An organization may hold a license to act as a life and disability insurance analyst if its governing documents do not forbid that activity.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1842.1. (a) An organization may hold a license to act as a life and disability insurance analyst. An organization is not eligible for license under this chapter if its articles of incorporation or association or agreement of copartnership forbid it to act in the capacity for which a license is sought. (b) Only the following natural persons are eligible to be named under an organizational license under this chapter: (1) Any general partner or employee of a copartnership. (2) Any member, officer, or employee of an association. (3) Any officer or employee of the corporation. (c) Except as otherwise provided in this chapter, whenever reference is made in this chapter to an applicant for a license, the reference includes each natural person who applies to be named on the license of an organization, and wherever reference is made to a person that has been licensed, that reference shall also apply to a person named to act in such capacity under the license of an organization. (Added by Stats. 1983, Ch. 962, Sec. 11.)
  62. 1843.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    This section makes several other Insurance Code provisions apply to licensees and applicants for a license under this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1843. The provisions of Sections 780, 781, 782 and 784, Article 6.5 (commencing with Section 790) of Chapter 2, and Article 13 (commencing with Section 1737) of Chapter 5 are applicable to licensees and applicants for license under this chapter. (Amended by Stats. 1983, Ch. 962, Sec. 12.)
  63. 1844.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    A person may not act, offer to act, or assume to act as a life and disability insurance analyst unless licensed by the commissioner, or after the license has been suspended or revoked, unless court review proceedings are pending.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1844. Any person who acts, offers to act, or assumes to act, as a life and disability insurance analyst when not licensed by the commissioner as provided by this article, or after the license granted to him or her has been suspended or revoked, unless proceedings are pending in the courts to review the act of the commissioner, is guilty of a misdemeanor, punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one year or by both such fine and imprisonment. (Amended by Stats. 1983, Ch. 962, Sec. 12.3.)
  64. 1845.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    A person may not act, offer to act, or hold out as a life and disability insurance analyst if doing so violates Section 1844.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1845. Any person who acts, offers to act or assumes to act as a life and disability insurance analyst in violation of Section 1844 is guilty of a public nuisance and may be enjoined from so doing pursuant to Section 12928.6. (Amended by Stats. 1983, Ch. 962, Sec. 12.5.)
  65. 1846.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    A licensee or license applicant must notify the commissioner in writing when the business address changes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1846. A licensee or applicant for a license under this article shall notify the commissioner, in writing, of any changes in the address from which he intends to conduct his business. (Added by Stats. 1959, Ch. 4.)
  66. 1848.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    Licensed persons may not charge fees for certain insurance-related services, and any fee received must be based on a signed written agreement.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1848. A person licensed pursuant to this chapter shall not charge a fee for any service which is customarily associated with the solicitation of insurance sales or the servicing of insurance contracts written by the licensee or contracts for which the licensee is receiving compensation from the insurer. A licensee shall not receive any fee unless that fee is based upon a written agreement signed by the party to be charged. The agreement shall include a statement that information and services concerning insurance policies may be obtained directly from the insurer without cost, a statement outlining the services to be performed for which a fee is to be charged, and the fee to be charged. Additionally, if the licensee is also licensed pursuant to Chapter 5 (commencing with Section 1621), there shall be a statement in the agreement indicating that the licensee is so licensed and, as such, receives commissions for the sale of products. A copy of every such agreement shall be retained by the licensee for not less than three years after the services have been fully performed. (Added by Stats. 1983, Ch. 962, Sec. 13.)
  67. 1849.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. )

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    The department may publish rules on qualifications for a life and disability insurance analyst license, and applicants are not eligible unless they were licensed for five years before the exam as both a life-only and an accident and health licensee.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 8. Life and Disability Insurance Analysts [1831 - 1849] ( Heading of Chapter 8 amended by Stats. 1983, Ch. 962, Sec. 3.5. ) ## 1849. The department may, from time to time, publish rules and regulations regarding the initial and continuing qualifications to obtain the life and disability insurance analyst license. No person shall be eligible for a life and disability insurance analyst license unless for five years preceding the date of the examination, he or she has been licensed as both a life-only and accident and health licensee pursuant to paragraphs (1) and (2) of subdivision (a) of Section 1626. (Amended by Stats. 2008, Ch. 300, Sec. 15. Effective January 1, 2009.)
  68. 1850.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. )

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    This section defines “casualty insurance” for this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. ) ## 1850.4. In this chapter “casualty insurance” means all classes of insurance to which the provisions of this chapter are applicable and which are included within Sections 105, 107, 108, 110, 112, 113, 115, and, when written by insurers not admitted to transact fire or marine insurance, Sections 111, 114, 116, 118 and 120. (Amended by Stats. 1949, Ch. 426.)
  69. 1850.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. )

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    This section defines “wilful” or “wilfully” for this chapter as acting with actual knowledge or belief that the act or omission is a violation, and with specific intent to commit it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. ) ## 1850.5. In this chapter “wilful” or “wilfully” in relation to an act or omission which constitutes a violation of this chapter means with actual knowledge or belief that such act or omission constitutes such violation and with specific intent to commit such violation. (Added by Stats. 1947, Ch. 805.)
  70. 1851.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. )

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    This chapter applies to insurance on risks or operations in the state, but several categories are excluded.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. ) ## 1851. The provisions of this chapter shall apply to all insurance on risks or on operations in this state, except: (a) Reinsurance, other than joint reinsurance to the extent stated in Article 5 (commencing with Section 1856). (b) Life insurance. (c) Insurance of vessels or craft, their cargoes, marine builders’ risks, marine protection and indemnity, or other risks commonly insured under marine, as distinguished from inland marine, insurance policies. Inland marine insurance shall be deemed to include insurance now or hereafter defined by statute, or by interpretation thereof, or if not so defined or interpreted, by ruling of the commissioner or as established by general custom of the business, as inland marine insurance. (d) Title insurance. (e) Disability insurance. (f) Workers’ compensation insurance and insurance of any liability of employers for injuries to, or death of, employees arising out of, and in the course of, employment when this insurance is incidental to, and written in connection with, the workers’ compensation insurance issued to the same employer and covering the same employer interests. (g) Insurance transacted by county mutual fire insurers or county mutual fire reinsurers. (Amended by Stats. 2012, Ch. 786, Sec. 38. (AB 2303) Effective January 1, 2013.)
  71. 1851.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. )

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    This section makes certain workers’ compensation insurance risk classifications, premium rates, and rating systems subject to this chapter, except where other sections provide otherwise.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 1. Purpose and Scope of Chapter [1850.4 - 1851.1] ( Article 1 added by Stats. 1947, Ch. 805. ) ## 1851.1. Notwithstanding subdivision (f) of Section 1851 or any other provision of law and except as and to the extent otherwise provided in Section 1854.5 and 11753.3, any classification of risks and premium rates or system of rating for insurance covering employers against their liability for compensation or damages under the United States Longshoremen’s and Harbor Workers’ Compensation Act (33 U.S.C. 901, et seq.) shall be subject to the provisions of this chapter. (Amended by Stats. 1978, Ch. 813.)
  72. 1853.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2. Making and Use of Rates [1853.5 - 1853.9] ( Article 2 added by Stats. 1947, Ch. 805. )

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    Certain admitted insurers may act together on specified rating, forms, underwriting, investigation, data, and research matters.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2. Making and Use of Rates [1853.5 - 1853.9] ( Article 2 added by Stats. 1947, Ch. 805. ) ## 1853.5. With respect to any matters pertaining to the making of rates or rating systems, the preparation or making of insurance policy or bond forms, underwriting rules, surveys, inspections and investigations, the furnishing of loss or expense statistics or other information and data, or carrying on of research, two or more admitted insurers having a common ownership or operating in this State under common management or control, are hereby authorized to act in concert between or among themselves the same as if they constituted a single insurer, and to the extent that such matters relate to co-surety bonds, two or more admitted insurers executing such bonds are hereby authorized to act in concert between or among themselves the same as if they constituted a single insurer. (Added by Stats. 1947, Ch. 805.)
  73. 1853.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2. Making and Use of Rates [1853.5 - 1853.9] ( Article 2 added by Stats. 1947, Ch. 805. )

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    Admitted insurers may make certain casualty-insurance agreements, but they must submit them in writing to the commissioner for approval.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2. Making and Use of Rates [1853.5 - 1853.9] ( Article 2 added by Stats. 1947, Ch. 805. ) ## 1853.8. Agreements may be made among admitted insurers with respect to the equitable apportionment among them of casualty insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods, and with respect to the use of reasonable rate modifications for such insurance, such agreements to be subject to the approval of the commissioner. All such agreements shall be submitted in writing to the commissioner for his consideration and approval, together with such information as he may reasonably require. The commissioner shall approve only such agreements as are found by him to contemplate (a) the use of rates which meet the standards prescribed by this chapter and (b) activities and practices that are not unfair, unreasonable or otherwise inconsistent with the provisions of this chapter. At any time after such agreements are in effect the commissioner may review the practices and activities of the adherents to such agreements and if after a hearing upon not less than 10 days notice to such adherents he finds that any such practice or activity is unfair or unreasonable, or is otherwise inconsistent with the provisions of this chapter, he may issue a written order to the parties to any such agreement specifying in what respects such act or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter and requiring the discontinuance of such activity or practice. For good cause, and after hearing upon not less than 10 days notice to the adherents thereto, the commissioner may revoke approval of any such agreement. (Added by Stats. 1947, Ch. 805.)
  74. 1853.9.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2. Making and Use of Rates [1853.5 - 1853.9] ( Article 2 added by Stats. 1947, Ch. 805. )

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    Certain insurance rating and advisory organizations may operate in the state only if they comply with the chapter’s applicable provisions, and insurers may not belong to noncompliant organizations.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2. Making and Use of Rates [1853.5 - 1853.9] ( Article 2 added by Stats. 1947, Ch. 805. ) ## 1853.9. Upon compliance with the provisions of this chapter applicable thereto any rating organization, advisory organization, and any group, association or other organization of admitted insurers which engages in joint underwriting or joint reinsurance through such organization or by standing agreement among the members thereof, may conduct operations in this State. As respects insurance risks or operations in this State, no insurer shall be a member or subscriber of any such organization, group or association that has not complied with the provisions of this chapter applicable to it. (Added by Stats. 1947, Ch. 805.)
  75. 1853.95.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2.5. Making and Use of Rates—Insurance of Properties Being Purchased From Department of Veterans Affairs [1853.95 - 1853.97] ( Article 2.5 added by Stats. 1950, 1st Ex. Sess., Ch. 19. )

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    Admitted insurers may enter agreements with the Department of Veterans Affairs to provide insurance for property being purchased from the department, on special rates and forms determined reasonable by the Director of Veterans Affairs.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2.5. Making and Use of Rates—Insurance of Properties Being Purchased From Department of Veterans Affairs [1853.95 - 1853.97] ( Article 2.5 added by Stats. 1950, 1st Ex. Sess., Ch. 19. ) ## 1853.95. Admitted insurers are hereby expressly authorized to enter into agreements with the Department of Veterans Affairs with respect to the furnishing of insurance covering property being purchased from such department pursuant to Chapter 3, Division 4 of the Military and Veterans Code or the Veterans’ Farm and Home Purchase Act of 1943, at special rates and forms for such insurance as are determined by the Director of Veterans Affairs to be reasonable. (Added by Stats. 1950, 1st Ex. Sess., Ch. 19.)
  76. 1853.96.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2.5. Making and Use of Rates—Insurance of Properties Being Purchased From Department of Veterans Affairs [1853.95 - 1853.97] ( Article 2.5 added by Stats. 1950, 1st Ex. Sess., Ch. 19. )

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    Insurers may use the specified rates and forms when doing so under the relevant agreements.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2.5. Making and Use of Rates—Insurance of Properties Being Purchased From Department of Veterans Affairs [1853.95 - 1853.97] ( Article 2.5 added by Stats. 1950, 1st Ex. Sess., Ch. 19. ) ## 1853.96. The use of such rates and forms by insurers pursuant to such agreements is hereby expressly permitted, and the provisions of Section 1852 are not applicable thereto. (Added by Stats. 1950, 1st Ex. Sess., Ch. 19.)
  77. 1853.97.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2.5. Making and Use of Rates—Insurance of Properties Being Purchased From Department of Veterans Affairs [1853.95 - 1853.97] ( Article 2.5 added by Stats. 1950, 1st Ex. Sess., Ch. 19. )

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    An insurer may choose to treat automobile liability insurance and automobile physical damage insurance as one line for rate filing purposes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 2.5. Making and Use of Rates—Insurance of Properties Being Purchased From Department of Veterans Affairs [1853.95 - 1853.97] ( Article 2.5 added by Stats. 1950, 1st Ex. Sess., Ch. 19. ) ## 1853.97. Automobile liability insurance and automobile physical damage insurance may, at the option of the insurer, be considered a single line for rate filing purposes. (Added by Stats. 1994, Ch. 1113, Sec. 1. Effective January 1, 1995.)
  78. 1855.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. )

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    An advisory organization may not operate in this state until it files specified organizational documents and contact information with the commissioner, must promptly report changes, and must not engage in unfair or unreasonable practices.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. ) ## 1855. No advisory organization shall conduct its operations in this State unless and until it has filed with the commissioner (a) a copy of its constitution, articles of incorporation, agreement or association, and of its by-laws, or rules and regulations governing its activities, all duly certified by the custodian of the originals thereof, (b) a list of its members and subscribers, and (c) the name and address of a resident of this State upon whom notices or orders of the commissioner or process may be served. Every such advisory organization shall notify the commissioner promptly of every change in its constitution, its articles of incorporation, agreement or association, and of its by-laws, rules and regulations governing the conduct of its business; its list of members and subscribers; and the name and address of the resident of this State designated by it upon whom notices or orders of the commissioner or process affecting such organization may be served. No such advisory organization shall engage in any unfair or unreasonable practice with respect to such activities. (Added by Stats. 1947, Ch. 805.)
  79. 1855.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. )

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    The Legislature states that this article is intended to promote competition in insurance and make it easier for consumers to compare insurance coverage by allowing insurance advisory organizations to develop common forms and policy materials for use by insurers in California.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. ) ## 1855.1. It is the intent of the Legislature in enacting this article to promote competition in the insurance business and provide a means whereby insurance consumers can more easily comparison shop for insurance coverage by allowing insurance advisory organizations to develop and draft for use by all insurers in California common forms, coverages, endorsements, and manuals for insurance policies and bonds. (Amended by Stats. 1991, Ch. 880, Sec. 4.)
  80. 1855.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. )

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    An advisory organization must file specified organizational documents and member information with the commissioner before operating, and must promptly report material changes later.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. ) ## 1855.2. As used in this article, “advisory organization” means every group, association, or other organization of insurers, whether located within or outside of this state, that develops and prepares policy or bond forms, or manuals, for use by admitted insurers, carries on research relative to the development and preparation of policy and bond forms, and acts in an advisory, as distinguished from a ratemaking, capacity. Every advisory organization shall, prior to operation, file with the commissioner (a) a copy or its constitution, its articles of agreement or association, or its certificate of incorporation, and its bylaws, rules, and regulations governing its activities, (b) a list of its members, and (c) the name and address of a resident of this state upon whom notices or orders of the commissioner or process issued at his or her direction may be served. Every advisory organization shall thereafter promptly notify the commissioner of every material change in the documents required to be filed with the commissioner. (Amended by Stats. 1991, Ch. 880, Sec. 5.)
  81. 1855.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. )

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    Two or more insurers may cooperate and act together as members of an advisory organization for certain insurance form and research activities.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. ) ## 1855.3. Two or more insurers may cooperate with and act in concert with others as members of an advisory organization with respect to any matters pertaining to the preparation or making of insurance policy or bond forms, or manuals, or carrying on of research relative to the preparation and development of policy or bond forms, or manuals. (Amended by Stats. 1991, Ch. 880, Sec. 6.)
  82. 1855.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. )

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    Advisory organization members and subscribers may use its forms or manuals, but they generally may not agree to adhere to them or to violate antitrust or unfair business practice laws.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. ) ## 1855.4. Members and subscribers of advisory organizations may use the policy or bond forms, or manuals, of advisory organizations, either consistently or intermittently, but, except for insurers having common ownership or management, shall not agree with each other or others to adhere thereto or violate the antitrust or unfair business practice laws. The fact that two or more admitted insurers are members or subscribers of an advisory organization, or the fact that they use, either consistently or intermittently, the policy or bond forms, or manuals, prepared by an advisory organization, shall not be sufficient evidence, alone or in conjunction with each other, to support a finding either that an agreement to adhere to those forms or manuals exists or that an insurer or advisory organization is violating the antitrust or unfair business practice laws. These facts may be used only for the purpose of supplementing or explaining other evidence of the existence of an agreement to adhere to those forms or manuals or the existence of the violation of the antitrust or unfair business practice laws. No act, agreement, or practice involving the activities of an advisory organization, an insurer’s participation in those activities, or the use of an advisory organization’s products or services shall be found to be unfair or unreasonable under this code because it is uncompetitive unless proven by a preponderance of the evidence that the act, agreement, or practice violates the antitrust or unfair business practice laws. Findings of this nature that are made in support of an order or regulation of the commissioner shall be determined and enforced under Article 7 (commencing with Section 1858) of this chapter. As used in this section, “antitrust laws” means Part 2 (commencing with Section 16600) of the Business and Professions Code, and “unfair business practice laws” means Part 3 (commencing with Section 17500) of the Business and Professions Code. (Amended by Stats. 1996, Ch. 1002, Sec. 1. Effective September 29, 1996. [)
  83. 1855.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. )

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    Advisory organizations may prepare and distribute certain insurance forms and manuals only if they submit them in writing to the commissioner before use. The commissioner must approve qualifying materials, may review and disapprove them after a hearing, and may revoke approval for good cause. If the commissioner does not act within 90 days, the submission is deemed approved.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 4. Advisory Organizations [1855 - 1855.5] ( Article 4 added by Stats. 1947, Ch. 805. ) ## 1855.5. (a) An advisory organization may prepare and distribute insurance policy or bond forms, and manuals, including policy writing rules, rating plans, classification codes and descriptions, territory codes and descriptions, prospective loss costs, and rules that include factors and relativities such as increased limits factors, classification relativities, or similar factors, if, prior to being used by insurers, they are submitted in writing to the commissioner for his or her consideration and approval, together with any information the commissioner may reasonably require. All of these documents shall be available for public inspection at the office of the commissioner. The commissioner shall approve advisory organization policy forms or bond forms, or manuals, that are not found by him or her to be unfair, unreasonable, or violate the provisions of this code, including Sections 1861.02 and 1861.05. (b) Upon submission of any advisory organization policy forms or bond forms, or manuals, the commissioner may review them, and if after a hearing, at which representatives of consumers and other interested parties may participate, upon not less than 10 days’ notice to an advisory organization he or she finds that the contents of policy forms or bond forms, or manuals, are unfair or unreasonable, or violate the provisions of this code, he or she may issue a written order to the advisory organization specifying in what respect the contents of the policy forms, bond forms, or manuals, are unfair or unreasonable or violate the provisions of this code and disapprove the use of the forms or manuals. (c) Notwithstanding the provisions of this section, if the commissioner fails to act within 90 days of the submission of a proposed policy or bond form, or manual by an advisory organization, the policy or bond form, or manual, shall be deemed approved. (d) For good cause, and after a hearing, at which representatives of consumers and other interested parties may participate, upon not less than 10 days’ notice to the advisory organization, the commissioner may revoke approval of any policy form or bond form or manual only upon his or her finding grounds that would permit disapproval of the policy or bond form, or manual, if submitted for approval at the time of the revocation hearing. (e) Nothing in this chapter shall be interpreted to allow an advisory organization to set or establish rates or to issue any manual that contains final rates for any insurance coverage, policy endorsement, or bond. (Amended by Stats. 1996, Ch. 1002, Sec. 2. Effective September 29, 1996. [)
  84. 1856.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 5. Joint Underwriting and Joint Reinsurance [1856- 1856.] ( Article 5 added by Stats. 1947, Ch. 805. )

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    Insurance groups that do joint underwriting or joint reinsurance must file specified organizational information with the commissioner and must not engage in unfair or unreasonable practices.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 5. Joint Underwriting and Joint Reinsurance [1856- 1856.] ( Article 5 added by Stats. 1947, Ch. 805. ) ## 1856. Every group, association or other organization of insurers which engages in joint underwriting or joint reinsurance through such group, association or organization or by standing agreement among the members thereof shall file with the commissioner (a) a copy of its constitution, its articles of incorporation, agreement or association, and of its by-laws, rules and regulations governing its activities, all duly certified by the custodian of the originals thereof, (b) a list of its members, and (c) the name and address of a resident of this State upon whom notices or orders of the commissioner or process may be served. Every such group, association or other organization shall notify the commissioner promptly of every change in its constitution, its articles of incorporation, agreement or association, and of its by-laws, rules and regulations governing the conduct of its business; its list of members; and the name and address of the resident of this State designated by it upon whom notices or orders of the commissioner or process affecting such group, association or organization may be served. No such group, association or organization shall engage in any unfair or unreasonable practice with respect to such activities. (Added by Stats. 1947, Ch. 805.)
  85. 1857.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. )

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    Insurers and related insurance organizations must keep reasonable records and make them available for commissioner examination in California; data advisory committees help review commissioner requests, and advisory organizations generally may not share an individual insurer’s information with others.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. ) ## 1857. (a) Every insurer or advisory organization and every group, association, or other organization of insurers that engages in joint underwriting or joint reinsurance shall maintain reasonable records, of the type and kind reasonably adapted to its method of operation, of its experience or the experience of its members and of the data, statistics, or information collected or used by it in connection with the rates, rating plans, rating systems, underwriting rules, policy or bond forms, surveys, or inspections made or used by it so that those records will be available at all reasonable times to enable the commissioner to determine whether that organization, insurer, group, or association, and, in the case of an insurer, every rate, rating plan, and rating system made or used by it, complies with the provisions of this chapter applicable to it. The maintenance of those records in the office of an organization of which an insurer is a member or subscriber shall be sufficient compliance with this section for any insurer maintaining membership or subscribership in that organization, to the extent that the insurer uses the rating plans, rating systems, or underwriting rules of that organization. The records shall be maintained in an office within this state or shall be made available for examination or inspection within this state by the commissioner at any time upon reasonable notice. (b) There are established data advisory committees to assist the commissioner in making special calls for one or more lines or types of insurance to which this chapter applies that are commercial insurance as defined in Section 675.5 and to make available the types of reasonable records that subdivision (a) requires insurers, and advisory organizations to maintain and make available. No data advisory committee shall have any authority to veto, amend, or alter any request for the reporting of records or information by the commissioner, but shall only provide advice to the commissioner relative to methods and efficiency in the collection of records and information as set forth in subdivision (c). (c) Each data advisory committee shall review all proposed industrywide requests for records and information by the commissioner at least one time but shall not review substantially the same request made on a recurring or ad hoc basis in the future. No later than 10 business days after receipt of each proposal, the data advisory committee may advise the commissioner as to both of the following: (1) Whether the desired records and information are already available in other forms or are being maintained by one or more insurance advisory organizations that may be able to provide the records and information to the commissioner on a more efficient and cost-effective basis. (2) Whether the format and contents of the proposal are likely to elicit useful information and make recommendations as to changes in the format or contents of the proposal. If the data advisory committee cannot reach unanimous agreement on its advice to the commissioner, any member may provide his or her own advice. Any written advice to the commissioner by the advisory committee and by individual members shall be submitted simultaneously. (d) Each data advisory committee shall consist of the following members: (1) The commissioner or his or her representative. (2) A representative of the department’s statistical unit. (3) No more than three representatives from advisory organizations operating under this article that maintain insurer records for the lines or types of insurance that are the subject of the call. (4) Three representatives from various sizes of insurers chosen by the commissioner that underwrite diverse risks for the lines or types of insurance that are subject to the call. (5) At least one but not more than two qualified consumer representatives chosen by the commissioner. As used in this section, “qualified consumer representative” means a person who has experience with the collection, use, and analysis of insurance data and who can show that he or she represents the interests of consumers as demonstrated by, but not limited to, a history of that type of representation in administrative, legislative, or judicial proceedings. Any group, association, or insurer that represents persons described in paragraphs (1) to (5), inclusive, may submit to the commissioner the names of those persons for consideration of appointment to the advisory committee. (e) Each data advisory committee shall meet telephonically. Members of an advisory committee shall receive no compensation. (f) An insurer may fulfill any obligation to maintain, record, or report information under Article 6.5 (commencing with Section 1857.7) by reporting records required by subdivision (a) to an advisory organization that maintains the insurer’s records with those records of other insurers and reports the aggregate records of insurers to the department according to reasonable schedules approved by the commissioner. The aggregate reports shall be made available by the commissioner for public inspection at the department, but shall not disclose the information of an individual insured, insurer, or insurer group. (g) Upon a request made by any person to the commissioner in conjunction with an insurer’s pending rate application, the advisory organization shall, within five business days, send to the commissioner the information in its possession regarding the individual insurer that Article 6.5 (commencing with Section 1857.7) specifically requires to be submitted with those filings. The information sent to the commissioner under this subdivision shall be available for public inspection at the department. (h) Except as otherwise permitted or required by this section, no advisory organization shall provide an individual insurer’s information to any other insurer, person, or organization, other than rates, rating systems, and rating plans that have been filed with the commissioner and are available for public inspection at the department. (i) The commissioner may adopt rules necessary to implement this section. (j) Nothing in subdivisions (b) to (i), inclusive, shall be construed to affect any of the following: (1) Any authority granted to the commissioner under this code to obtain aggregate or individual insurer data or policy records from advisory organizations or insurers. (2) Any industrywide data reporting requirements and standards that might exist in this chapter. (3) The right of any person under any provision of this code, including Section 1861.07, to obtain and inspect at the department the aggregate or individual records of insurers maintained by advisory organizations. (Amended by Stats. 1998, Ch. 725, Sec. 2. Effective January 1, 1999.)
  86. 1857.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. )

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    The commissioner must examine each licensed rating organization at least every five years and can examine certain other insurer organizations as reasonably necessary.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. ) ## 1857.1. The commissioner shall, at least once every five years, and may as often as may be reasonable and necessary, make or cause to be made an examination of each licensed rating organization, and he may, as often as may be reasonable and necessary, make or cause to be made an examination of any advisory organization or group, association or other organization of insurers which engages in joint underwriting or joint reinsurance. In lieu of any such examination the commissioner may accept the report of an examination made by the insurance supervisory official of another state. In examining any organization, group or association pursuant to this section the commissioner shall ascertain whether such organization, group or association, and, in the case of a rating organization, any rate or rating system made or used by it, complies with the requirements and standards of this chapter applicable to it. (Added by Stats. 1947, Ch. 805.)
  87. 1857.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. )

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    The commissioner may, at any reasonable time, examine admitted insurers covered by this chapter to check compliance with the chapter’s requirements and standards.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. ) ## 1857.2. The commissioner may, at any reasonable time, make or cause to be made an examination of every admitted insurer transacting any class of insurance to which the provisions of this chapter are applicable to ascertain whether such insurer and every rate and rating system used by it for every such class of insurance complies with the requirements and standards of this chapter applicable thereto. Such examination shall not be a part of a periodic general examination participated in by representatives of more than one state. (Added by Stats. 1947, Ch. 805.)
  88. 1857.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. )

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    Certain officers, managers, agents, and employees of an organization, group, association, or insurer must produce specified books, records, accounts, documents, agreements, data, statistics, and information when examined under oath.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. ) ## 1857.3. The officers, managers, agents and employees of any such organization, group, association or insurer may be examined at any time under oath and shall exhibit all books, records, accounts, documents or agreements governing its method of operation, together with all data, statistics and information of every kind and character collected or considered by such organization, group, association or insurer in the conduct of the operations to which such examination relates. (Added by Stats. 1947, Ch. 805.)
  89. 1857.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. )

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    An organization, group, association, or insurer being examined must pay the reasonable cost of that examination.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6. Records and Examinations [1857 - 1857.4] ( Article 6 added by Stats. 1947, Ch. 805. ) ## 1857.4. The reasonable cost of any examination authorized by this article shall be paid by the organization, group, association or insurer to be examined. (Added by Stats. 1947, Ch. 805.)
  90. 1857.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6.5. Recording and Reporting of Loss and Expense Experience [1857.7 - 1857.9] ( Article 6.5 added by Stats. 1978, Ch. 676. )

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    An application under Section 1861.05(b) must include specified loss, premium, reserve, income, and expense information.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6.5. Recording and Reporting of Loss and Expense Experience [1857.7 - 1857.9] ( Article 6.5 added by Stats. 1978, Ch. 676. ) ## 1857.7. The application referred to in subdivision (b) of Section 1861.05 shall include, but shall not be limited to, all of the following information: (1) Premiums written. (2) Premiums earned. (3) Unearned premiums. (4) The dollar amount of claims paid. (5) The number of outstanding claims. (6) Net loss reserves for outstanding claims excluding claims incurred but not reported. (7) Net loss reserves for claims incurred but not reported. (8) Losses incurred as a percentage of premiums earned. (9) Net investment gain or loss and other income or gain or loss allocated to products liability lines. (10) Net income before federal and foreign income taxes. (11) Expenses incurred including loss adjustment expense, commission and brokerage expense, other acquisition expense and general expense. (Amended by Stats. 1994, Ch. 530, Sec. 1. Effective January 1, 1995.)
  91. 1857.9.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6.5. Recording and Reporting of Loss and Expense Experience [1857.7 - 1857.9] ( Article 6.5 added by Stats. 1978, Ch. 676. )

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    Insurers must file annual reporting information for designated insurance classes, unless an exemption applies. The department must keep the data for at least three years, and the information is generally confidential.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 6.5. Recording and Reporting of Loss and Expense Experience [1857.7 - 1857.9] ( Article 6.5 added by Stats. 1978, Ch. 676. ) ## 1857.9. (a) An insurer doing business in this state, except as provided by subdivision (f), shall report the information specified by the commissioner that is collected by a licensed advisory organization on an annual basis for each class of insurance designated in the prior calendar year by the commissioner pursuant to subdivision (b) for policies issued or issued for delivery in California. The commissioner shall waive the requirements of this subdivision for any information that has been provided to the Insurance Services Office by the insurer, if the Insurance Services Office provides the information to the commissioner on or before the date on which the insurer is required to file the statement. (b) No later than October 1 of each year the commissioner shall designate those classes of insurance, as defined by the Insurance Services Office, that are generally unavailable or unaffordable in California, or for which there have been unusually great premium increases, or in the case of any class of liability insurance, for which reinsurance is generally unavailable or unaffordable in the state or for which there have been unusually great reinsurance premium increases. The factors the commissioner shall consider in making this determination shall include, but are not limited to, the following: (1) Consumer complaints. (2) Rate complaints. (3) Surveillance by the department. (4) Market conduct. (c) Insurers shall not be required to report under this section information required to be reported under Sections 1857.7, 1864, 11555.2, and 12963. (d) The department shall retain the information reported pursuant to this section for a period of no less than three years. (e) Insurers that are members of the same insurance group may aggregate the information required by this section in a single report. (f) The reports required by this section shall not be applicable to any insurer that has been established for less than three years or can demonstrate upon application to the commissioner that its market share is less than 1 percent of the coverage for which the commissioner seeks information. However, the commissioner may deny the exemption application if he or she reasonably determines (1) that the aggregate data, when reported, is less than 60 percent of the written premium volume for the class, or (2) that unless the insurer reported its data, the aggregate data reported would not be statistically credible or reasonably complete and informative. An insurer that has been exempted by the commissioner from reporting shall, upon request of the commissioner, report the information required by subdivision (a) to cover the three most recent calendar years, in accordance with subdivision (g). In no event shall any insurer that has reported data for a calendar year pursuant to this section be required to report that same data in a subsequent year. (g) The reports required by this section shall be filed on a form provided by the commissioner no later than May 1 of the calendar year following the year for which the information is reported. (h) The department shall adopt regulations implementing this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code, except that for the purposes of Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2 of the Government Code, any regulations adopted under this section shall be deemed to be necessary for the immediate preservation of the public peace, health and safety, or general welfare. These regulations shall remain in effect for 180 days. The regulations may require insurers to report the information required by subdivision (d) by categories other than those used by the Insurance Services Office. (i) The information provided pursuant to subdivision (a) shall be confidential and not revealed by the department, except that the commissioner may publish an analysis of the data in aggregate form or in a manner which does not disclose confidential information about identified insurers or insureds. (j) An insurer may fulfill its obligation to file or submit the experience, data, statistics, or other information listed in or designated under the terms of this section by reporting its records in the manner provided by Section 1857 to a licensed advisory organization that maintains the insurer’s records and those of other insurers, makes the insurer’s records available for examination and inspection by the commissioner or reports the records of an insurer to the department upon a specific request of the commissioner, and reports the aggregate records of insurers to the department according to reasonable schedules approved by the commissioner. The reports of aggregate records shall not disclose the information of any individual insured, insurer, or insurer group. (Amended by Stats. 1997, Ch. 350, Sec. 2. Effective January 1, 1998.)
  92. 1858.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    An aggrieved person may file a written complaint or request a public hearing with the commissioner about an insurer’s rate, rating plan, rating system, or underwriting rule.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858. (a) Any person aggrieved by any rate charged, rating plan, rating system, or underwriting rule followed or adopted by an insurer or rating organization, may file a written complaint with the commissioner requesting that the commissioner review the manner in which the rate, plan, system, or rule has been applied with respect to the insurance afforded to that person. In addition, the aggrieved person may file a written request for a public hearing before the commissioner, specifying the grounds relied upon. (b) The commissioner shall advise the insurer or rating organization that a complaint has been filed against it and the nature of the complaint and provide the insurer or rating organization with an opportunity to respond to the complaint. (c) If the commissioner has information concerning a similar complaint, he or she may deny the request for a public hearing until a determination is made or a public hearing is held on the similar complaint or may consolidate similar complaints for determination or public hearing. If he or she believes, after review and investigation of the facts alleged in the complaint and the facts alleged in any response to the complaint, that probable cause for the complaint does not exist or that the complaint is not made in good faith, he or she shall so advise the complainant and shall deny any request made for a public hearing. If he or she believes, after review and investigation of the facts alleged in the complaint and the facts alleged in any response to the complaint, that probable cause for the complaint does exist, that the complaint charges a violation of this chapter, and that the complainant would be aggrieved if the violation is proven, he or she shall proceed as provided in Section 1858.1 unless the complaint was accompanied by a request for public hearing, in which case he or she shall proceed as provided in Section 1858.2. (d) Nothing in this section prohibits or limits the right of any aggrieved person, either prior to or in conjunction with the filing of a written complaint with the commissioner under this section, from requesting an insurer or rating organization to review the manner in which the rate, plan, system, or rule has been applied with respect to the insurance afforded to that person. (Amended by Stats. 1987, Ch. 1289, Sec. 1.)
  93. 1858.01.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    When a written insurance complaint is filed, the commissioner must review and investigate it and decide whether there is probable cause of a violation; if a public hearing is requested, the commissioner must also grant or deny that request within the stated time limits.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.01. (a) Whenever a written complaint has been filed with the commissioner, the commissioner shall review and investigate the matter complained of as provided by Section 1858 and shall make a determination whether there is probable cause to believe that a violation of this chapter has occurred. This determination shall be made within a reasonable time, but in no event more than 60 days after the complaint regarding a policy in a personal line of insurance or 90 days in the case of a policy in a class of commercial insurance is filed unless the complainant consents to a greater time or unless the complainant enters into informal conciliation of the complaint. The time and location of the conciliation shall be mutually agreeable to the complainant and to the insurer. (b) Whenever a written complaint is accompanied by written request for a public hearing, the commissioner shall review and investigate the matter complained of as provided in Section 1858 and shall grant or deny the request for a public hearing within a reasonable time, but in no event more than 90 days when the complaint is regarding a policy in a personal line of insurance or 120 days in the case of a policy in a class of commercial insurance, unless the complainant consents to a greater time or unless the complainant enters into informal conciliation of the complaint. The time and location of the conciliation shall be mutually agreeable to the complainant and to the insurer. (c) In the event the complainant enters into informal conciliation of the complaint, the time set forth in subdivisions (a) and (b) for making a determination or for granting or denying a request for a public hearing shall be tolled for up to 10 working days until informal conciliation results in resolution of the complaint or informal conciliation is ended without resolution of the complaint. Should informal conciliation fail to result in resolution of the complaint, the commissioner shall review the facts presented by the complainant and the insurer or rating organization, together with the facts alleged in the complaint and any response to the complaint, to determine whether probable cause exists to believe that a violation of this chapter has occurred. (d) For purposes of this subdivision, “personal insurance” means all coverages combined in private passenger automobile insurance policies as those policies are described in Section 660 and all forms combined in property or multiperil insurance policies as those policies are described in Section 675. (e) For purposes of this subdivision, “commercial insurance” means any class, as defined by the Insurance Services Office of commercial insurance and any class of insurance designated under subdivisions (b) and (c) of Section 1857.9. (Added by Stats. 1987, Ch. 1289, Sec. 1.5.)
  94. 1858.02.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    The commissioner may use informal conciliation to resolve complaints, require the parties to meet and confer, and keep related communications confidential, while still being able to report the results.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.02. (a) The commissioner may seek resolution of a complaint by informal conciliation at any time and may require the complainant and insurer or rating organization to meet and confer for the purposes of resolving the matter complained of by informal conciliation. The commissioner may decline to find probable cause for a complaint and may deny a request for a public hearing if the complainant refuses to enter into informal conciliation at the commissioner’s request. Likewise, the commissioner may find probable cause for a complaint and may act to hold a public hearing, whether or not a request for a public hearing accompanied the complaint, if the insurer or rating organization refuses to enter into informal conciliation at the commissioner’s request. (b) Communications to the commissioner in respect to resolution of a complaint by informal conciliation shall be made to him or her in official confidence within the meaning of Sections 1040 and 1041 of the Evidence Code and shall not be disclosed by the commissioner. However, the commissioner may report on the results of informal conciliation. (Added by Stats. 1987, Ch. 1289, Sec. 1.6.)
  95. 1858.05.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    If a complaint about medical malpractice insurance is filed with the commissioner under Section 1858, the commissioner must, within 30 days, either deny the hearing by order or proceed under Sections 1858.1 or 1858.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.05. Whenever a written complaint and request for hearing with the commissioner has been filed pursuant to Section 1858, and the complaint concerns medical malpractice insurance, the commissioner shall within 30 days either by order deny the hearing or proceed as provided in Sections 1858.1 or 1858.2. The complainant may petition the court for an order to compel compliance with this section. (Added by Stats. 1975, 2nd Ex. Sess., Ch. 2.)
  96. 1858.07.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    Using a rate, rating plan, or rating system in violation of this chapter can trigger a civil penalty; the commissioner decides and imposes the penalty, unless the rate or system was approved for use.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.07. (a) Any person who uses any rate, rating plan, or rating system in violation of this chapter is liable to the state for a civil penalty not to exceed five thousand dollars ($5,000) for each act, or, if the act or practice was willful, a civil penalty not to exceed ten thousand dollars ($10,000) for each act. The commissioner shall have the discretion to establish what constitutes an act. However, when the issuance, amendment, or servicing of a policy or endorsement is inadvertent, all of those acts shall be a single act for the purpose of this section. (b) The penalty imposed by this section shall be imposed by and determined by the commissioner as provided by Section 1858.3, except that no penalty shall be imposed by the commissioner if a person has used any rate, rating plan, or rating system that has been approved for use by the commissioner in accordance with the provisions of this chapter. The penalty imposed by this section is appealable by means of any remedy provided by Section 12940 or by Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 1989, Ch. 726, Sec. 1. Effective September 25, 1989.)
  97. 1858.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    If the commissioner finds possible noncompliance, the commissioner must send written notice and allow at least 10 days to fix it. The affected insurer or related organization may request a public hearing, seek informal conciliation, or enter a consent order.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.1. If after examination of an insurer, rating organization, advisory organization, or group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance, or upon the basis of other information, or upon sufficient complaint as provided in Section 1858, the commissioner has good cause to believe that the insurer, organization, group, or association, or any rate, rating plan or rating system made or used by any such insurer or rating organization, does not comply with the requirements and standards of this chapter applicable to it, he or she shall give notice in writing to that insurer, organization, group, or association stating therein in what manner and to what extent that noncompliance is alleged to exist and specifying therein a reasonable time, not less than 10 days thereafter, in which that noncompliance may be corrected, and specifying therein the amount of any penalty that may be due under Section 1858.07. An insurer, organization, group, or association served with that notice of noncompliance may, within the time specified therein, (a) establish to the satisfaction of the commissioner that the noncompliance does not exist, or (b) request a public hearing, notice of which shall be given at least 30 days prior to the date set for hearing, or (c) enter into an informal conciliation with the commissioner and any complainant making a complaint pursuant to Section 1858 to resolve the matter complained of, or (d) enter into a consent order with the commissioner to correct the specified noncompliance within a period of time specified in the consent order, and to pay any penalty due under Section 1858.07. A consent order shall provide that in the event the noncompliance is not corrected within the time specified therein that, in addition to any penalty due under Section 1858.07, a money penalty of not to exceed ten thousand dollars ($10,000) shall attach and be collected by the commissioner for each day the violation of the consent order continues. This money penalty shall not exceed in the aggregate the sum of one hundred thousand dollars ($100,000) plus the penalty due under Section 1858.07. In addition to or in lieu of the procedure provided herein the commissioner may proceed with a public hearing as provided in Section 1858.2. For the purposes of this section, the failure to pay any penalty imposed pursuant to Section 1858.07 which has become final shall constitute a violation of a notice of noncompliance or of a consent order issued under this section. (Amended by Stats. 1989, Ch. 726, Sec. 2. Effective September 25, 1989.)
  98. 1858.15.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    An examination under Section 1858.1 must be handled promptly and finished within a reasonable time. If it arises from a written complaint and hearing request about medical malpractice insurance, the complainant may ask the court to order compliance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.15. Once commenced, an examination pursuant to Section 1858.1 shall be promptly conducted and concluded within a reasonable time. If the examination is being conducted as the result of a written complaint and request for hearing filed pursuant to Section 1858, and the complaint concerns medical malpractice insurance, the complainant may petition the court for an order to compel compliance with this section. (Added by Stats. 1975, 2nd Ex. Sess., Ch. 2.)
  99. 1858.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    The commissioner must hold a public hearing in certain noncompliance cases and may hold one if informal conciliation is refused. The commissioner must give at least 30 days’ notice, mail notice to the complainant in some cases, and issue a decision or order within 60 days after submission for decision.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.2. (a) If the insurer, organization, group, or association does not make those changes as may be necessary to correct the noncompliance specified in the notice issued under Section 1858.1, or if the insurer, organization, group, or association has failed to establish to the satisfaction of the commissioner that the noncompliance does not exist, the commissioner shall hold a public hearing by mailing a notice to that insurer, organization, group, or association not less than 30 days prior to the date set for hearing specifying the matters to be considered at the hearing. (b) In the event that the insurer and complainant resolve the matter and the insurer has consented to a rating modification, then that modification shall apply to other policyholders underwritten by the insurer for that class of insurance. (c) If the insurer, organization, group, or association has refused to enter into informal conciliation at the request of the commissioner, the commissioner may hold a public hearing, whether or not the complaint was accompanied by a request for a public hearing, by mailing a notice to the insurer, organization, group, or association not less than 30 days prior to the date set for hearing specifying the matters to be considered at the hearing. (d) If a hearing noticed under subdivisions (a) and (c) is based upon a complaint made pursuant to Section 1858, the commissioner shall also mail notice to the complainant not less than 30 days prior to the date set for hearing specifying the matters to be considered at the hearing. (e) If upon sufficient complaint as provided in Section 1858 and upon review and investigation of the complaint, the commissioner has good cause to believe that the insurer, organization, group, or association, or any rate, rating plan, or rating system made or used by that insurer or rating organization, does not comply with the requirements and standards of this chapter applicable to it, the commissioner shall hold a public hearing by mailing a notice to the complainant and to the insurer, organization, group, or association not less than 30 days prior to the date set for hearing specifying the matters to be considered at the hearing. (f) Within 60 days of submission of a matter for decision following a public hearing thereon pursuant to this section, the commissioner shall issue his or her decision or order. (g) With respect to public hearings under this section, the commissioner may at his or her discretion, grant preference to a hearing in which the complainant has reached the age of 70 years. (Amended by Stats. 1989, Ch. 1176, Sec. 1.)
  100. 1858.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    After a hearing, the commissioner can order an insurer or related rating organization to stop using a violating rate or rating system, require other corrective action, and impose daily penalties for noncompliance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.3. If after a hearing pursuant to Section 1858.2 the commissioner finds: (a) That any rate, rating plan, or rating system violates the provisions of this chapter applicable to it, he or she shall issue an order to the insurer or rating organization which has been the subject of the hearing specifying in what respects that violation exists and stating when, within a reasonable period of time, the further use of that rate or rating system by that insurer or rating organization in contracts of insurance made thereafter shall be prohibited. The commissioner may, in addition to that order, direct the insurer or rating organization to take such other corrective action as he or she may deem necessary and proper. (b) That an insurer, rating organization, advisory organization, or a group, association or other organization of insurers which engages in joint underwriting or joint reinsurance, is in violation of the provisions of this chapter applicable to it other than the provisions dealing with rates, rating plans, or rating systems, he or she may issue an order to that insurer, organization, group, or association which has been the subject of the hearing specifying in what respects that violation exists and requiring compliance within a reasonable time thereafter. (c) Any order of the commissioner issued pursuant to subdivision (a) shall specify the amount of the penalty due under Section 1858.07, and any order issued pursuant to subdivision (a) or (b) shall provide that, in addition, a money penalty of not to exceed ten thousand dollars ($10,000) shall attach and be collected by the commissioner for each day such person fails to comply within the time specified therein with the provisions of that order in the same manner as that provided in Section 1858.1. This penalty shall not exceed in the aggregate the sum of one hundred thousand dollars ($100,000) plus any penalty due under Section 1858.07. (Amended by Stats. 1989, Ch. 726, Sec. 3. Effective September 25, 1989.)
  101. 1858.35.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    Each year by May 1, the commissioner must report complaint counts and outcomes to the Legislature and Governor. The commissioner may also make recommendations and may share complaint information only in aggregate, not for a specific complaint against a specific insurer or rating organization.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.35. On or before May 1 of each year, the commissioner shall submit a report to the Legislature and the Governor stating the number and type of complaints received under this article and the status and disposition of these complaints. The commissioner may make any recommendations for improving the efficiency and effectiveness of complaint handling under this article. No information shall be provided under this section pertaining to a specified complaint against a specific insurer or rating organization. However, the commissioner may report that information in the aggregate. (Amended by Stats. 1989, Ch. 1381, Sec. 1.)
  102. 1858.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    The commissioner must suspend or revoke the license or certificate of authority of a rating organization or insurer that does not comply with the commissioner’s order on time.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.4. In addition to other penalties provided in this code, the commissioner shall suspend or revoke, in whole or in part, the license of any rating organization or the certificate of authority of any insurer with respect to the class or classes of insurance specified in that order, which fails to comply within the time limited by that order or any extension thereof which the commissioner may grant, with an order of the commissioner lawfully made by him or her pursuant to Section 1858.3 and effective pursuant to Section 1858.6. (Amended by Stats. 1987, Ch. 1289, Sec. 5.)
  103. 1858.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    Proceedings about denial, suspension, or revocation of a license or certificate of authority must follow Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code, unless this chapter says otherwise; the commissioner has the powers given there.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.5. Except as otherwise provided in this chapter, all proceedings in connection with the denial, suspension or revocation of a license or certificate of authority under this chapter shall be conducted in accordance with the provisions of Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted to him therein. (Added by Stats. 1947, Ch. 805.)
  104. 1858.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    Commissioner actions under this chapter are reviewable by the courts, and most such actions cannot take effect until after notice, with additional delay if review is filed.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.6. Any finding, determination, rule, ruling or order made by the commissioner under this chapter shall be subject to review by the courts of the State and proceedings on review shall be in accordance with the provisions of the Code of Civil Procedure. In such proceedings on review, the court is authorized and directed to exercise its independent judgment on the evidence and unless the weight of the evidence supports the findings, determination, rule, ruling or order of the commissioner, the same shall be annulled. Notwithstanding any other provision of law to the contrary, a petition for review of any such finding, determination, rule or order, may be filed at any time before the effective date thereof. No such finding, determination, rule, or order shall become effective before the expiration of 20 days after notice and a copy thereof are mailed or delivered to the person affected, and any finding, determination, rule, or order of the commissioner so submitted for review shall not become effective for a further period of 15 days after the petition for review is filed with the court. The court may stay the effectiveness thereof for a longer period. (Amended by Stats. 1949, Ch. 174.)
  105. 1858.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. )

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    If the commissioner decides a rate is excessive or not excessive, the commissioner must explain the basis in writing to a complainant who asks in writing.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 7. Hearings, Procedure and Judicial Review [1858 - 1858.7] ( Article 7 added by Stats. 1947, Ch. 805. ) ## 1858.7. Whenever the commissioner determines that a rate is excessive or not excessive, he shall, upon the written request of any complainant, disclose the basis upon which such rate was determined to be excessive or not excessive in writing to the complainant. (Added by Stats. 1978, Ch. 180.)
  106. 1859.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 8. Penalties [1859 - 1859.1] ( Article 8 added by Stats. 1947, Ch. 805. )

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    This section prohibits persons, insurers, and organizations from withholding information or giving false or misleading information when it would affect insurance rates, rating systems, or premiums.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 8. Penalties [1859 - 1859.1] ( Article 8 added by Stats. 1947, Ch. 805. ) ## 1859. No person, insurer or organization shall wilfully withhold information from, or knowingly give false or misleading information to, the commissioner or to any rating organization, advisory organization, insurer or group, association or other organization of insurers, which will affect the rates, rating systems or premiums for the classes of insurance to which the provisions of this chapter are applicable. (Added by Stats. 1947, Ch. 805.)
  107. 1859.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 8. Penalties [1859 - 1859.1] ( Article 8 added by Stats. 1947, Ch. 805. )

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    If a person or other listed entity does not comply with a final order of the commissioner under this chapter, it can face a civil penalty; willful noncompliance allows a higher penalty, and a willful violation is a misdemeanor.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 8. Penalties [1859 - 1859.1] ( Article 8 added by Stats. 1947, Ch. 805. ) ## 1859.1. (a) Any person, insurer, organization, group, or association who fails to comply with a final order of the commissioner under this chapter shall be liable to the state in an amount not exceeding fifty thousand dollars ($50,000) but if the failure is willful he or she or it shall be liable to the state in an amount not exceeding two hundred fifty thousand dollars ($250,000) for the failure. That penalty shall be in addition to any penalty arising under Section 1858.07. The commissioner shall collect the amount so payable and may bring an action in the name of the people of the State of California to enforce collection. These penalties may be in addition to any other penalties provided by law. (b) A willful violation of this chapter by any person is a misdemeanor. (Amended by Stats. 1989, Ch. 726, Sec. 4. Effective September 25, 1989.)
  108. 1860.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. )

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    This section says the chapter does not prohibit or regulate insurer payments of dividends, savings, or unabsorbed premium deposits to policyholders, members, or subscribers.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. ) ## 1860. Nothing in this chapter shall be construed to prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers. A plan for the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers shall not be deemed a rating plan or system. (Added by Stats. 1947, Ch. 805.)
  109. 1860.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. )

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    Acts, actions, or agreements made under this chapter are exempt from violation, prosecution, or civil proceedings under other state laws that do not specifically refer to insurance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. ) ## 1860.1. No act done, action taken or agreement made pursuant to the authority conferred by this chapter shall constitute a violation of or grounds for prosecution or civil proceedings under any other law of this State heretofore or hereafter enacted which does not specifically refer to insurance. (Added by Stats. 1947, Ch. 805.)
  110. 1860.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. )

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    This section says chapter 9 controls its own administration and enforcement, and other insurance laws or code provisions do not apply unless they expressly say they do and specifically identify the sections they are meant to supplement or modify.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. ) ## 1860.2. The administration and enforcement of this chapter shall be governed solely by the provisions of this chapter. Except as provided in this chapter, no other law relating to insurance and no other provisions in this code heretofore or hereafter enacted shall apply to or be construed as supplementing or modifying the provisions of this chapter unless such other law or other provision expressly so provides and specifically refers to the sections of this chapter which it intends to supplement or modify. (Added by Stats. 1947, Ch. 805.)
  111. 1860.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. )

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    This section says several listed code sections also apply to administering, enforcing, and interpreting this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 9. Miscellaneous [1860 - 1860.3] ( Article 9 added by Stats. 1947, Ch. 805. ) ## 1860.3. The provisions of the following sections of this code shall be applicable to the administration, enforcement and interpretation of this chapter: Sections 1 to 41, both inclusive, 100 to 121, both inclusive, 620, 621, 700, 701, 704, 730 to 737, both inclusive, 12903, 12904, 12919, 12921, 12921.5, 12924 to 12926, both inclusive, 12928, 12930, and 12974 to 12977, both inclusive. (Amended by Stats. 1955, Ch. 677.)
  112. 1861.01.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Insurers must lower certain insurance charges by at least 20%, and later rate changes need commissioner approval.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.01. Insurance Rate Rollback. (a) For any coverage for a policy for automobile and any other form of insurance subject to this chapter issued or renewed on or after November 8, 1988, every insurer shall reduce its charges to levels which are at least 20% less than the charges for the same coverage which were in effect on November 8, 1987. (b) Between November 8, 1988, and November 8, 1989, rates and premiums reduced pursuant to subdivision (a) may be only increased if the commissioner finds, after a hearing, that an insurer is substantially threatened with insolvency. (c) Commencing November 8, 1989, insurance rates subject to this chapter must be approved by the commissioner prior to their use. (d) For those who apply for an automobile insurance policy for the first time on or after November 8, 1988, the rate shall be 20% less than the rate which was in effect on November 8, 1987, for similarly situated risks. (e) Any separate affiliate of an insurer, established on or after November 8, 1987, shall be subject to the provisions of this section and shall reduce its charges to levels which are at least 20% less than the insurer’s charges in effect on that date. (Added November 8, 1988, by initiative Proposition 103.)
  113. 1861.02.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    This section sets rules for auto insurance rates and Good Driver Discount policies, including required rating factors, a minimum discount, and limits on when insurers may refuse coverage.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.02. (a) Rates and premiums for an automobile insurance policy, as described in subdivision (a) of Section 660, shall be determined by application of the following factors in decreasing order of importance: (1) The insured’s driving safety record. (2) The number of miles he or she drives annually. (3) The number of years of driving experience the insured has had. (4) Those other factors that the commissioner may adopt by regulation and that have a substantial relationship to the risk of loss. The regulations shall set forth the respective weight to be given each factor in determining automobile rates and premiums. Notwithstanding any other provision of law, the use of any criterion without approval shall constitute unfair discrimination. (b) (1) Every person who meets the criteria of Section 1861.025 shall be qualified to purchase a Good Driver Discount policy from the insurer of his or her choice. An insurer shall not refuse to offer and sell a Good Driver Discount policy to any person who meets the standards of this subdivision. (2) The rate charged for a Good Driver Discount policy shall comply with subdivision (a) and shall be at least 20 percent below the rate the insured would otherwise have been charged for the same coverage. Rates for Good Driver Discount policies shall be approved pursuant to this article. (3) (A) This subdivision shall not prevent a reciprocal insurer, organized prior to November 8, 1988, by a motor club holding a certificate of authority under Chapter 2 (commencing with Section 12160) of Part 5 of Division 2, and that requires membership in the motor club as a condition precedent to applying for insurance from requiring membership in the motor club as a condition precedent to obtaining insurance described in this subdivision. (B) This subdivision shall not prevent an insurer that requires membership in a specified voluntary, nonprofit organization, which was in existence prior to November 8, 1988, as a condition precedent to applying for insurance issued to or through those membership groups, including franchise groups, from requiring that membership as a condition to applying for the coverage offered to members of the group, provided that it or an affiliate also offers and sells coverage to those who are not members of those membership groups. (C) However, all of the following conditions shall be applicable to the insurance authorized by subparagraphs (A) and (B): (i) Membership, if conditioned, is conditioned only on timely payment of membership dues and other bona fide criteria not based upon driving record or insurance, provided that membership in a motor club may not be based on residence in any area within the state. (ii) Membership dues are paid solely for and in consideration of the membership and membership benefits and bear a reasonable relationship to the benefits provided. The amount of the dues shall not depend on whether the member purchases insurance offered by the membership organization. None of those membership dues or any portion thereof shall be transferred by the membership organization to the insurer, or any affiliate of the insurer, attorney-in-fact, subsidiary, or holding company thereof, provided that this provision shall not prevent any bona fide transaction between the membership organization and those entities. (iii) Membership provides bona fide services or benefits in addition to the right to apply for insurance. Those services shall be reasonably available to all members within each class of membership. Any insurer that violates clause (i), (ii), or (iii) shall be subject to the penalties set forth in Section 1861.14. (c) The absence of prior automobile insurance coverage, in and of itself, shall not be a criterion for determining eligibility for a Good Driver Discount policy, or generally for automobile rates, premiums, or insurability. (d) An insurer may refuse to sell a Good Driver Discount policy insuring a motorcycle unless all named insureds have been licensed to drive a motorcycle for the previous three years. (e) This section shall become operative on November 8, 1989. The commissioner shall adopt regulations implementing this section and insurers may submit applications pursuant to this article which comply with those regulations prior to that date, provided that no such application shall be approved prior to that date. (Amended by Stats. 2015, Ch. 348, Sec. 14. (AB 1515) Effective January 1, 2016. Note: This section was added on Nov. 8, 1988, by initiative Prop. 103.)
  114. 1861.025.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    A person may qualify to purchase a Good Driver Discount policy only if the person meets the listed driving-history criteria.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.025. A person is qualified to purchase a Good Driver Discount policy if he or she meets all of the following criteria: (a) He or she has been licensed to drive a motor vehicle for the previous three years. (b) During the previous three years, he or she has not done any of the following: (1) Had more than one violation point count determined as provided by subdivision (a), (b), (c), (d), (f), or (j) of, or paragraph (1) of subdivision (i) of, Section 12810 of the Vehicle Code, but subject to the following modifications: (A) For the purposes of this section, the driver of a motor vehicle involved in an accident for which he or she was principally at fault that resulted only in damage to property shall receive one violation point count, in addition to any other violation points that may be imposed for this accident. (B) If, under Section 488 or 488.5, an insurer is prohibited from increasing the premium on a policy on account of a violation, that violation shall not be included in determining the point count of the person. (C) If a violation is required to be reported under Section 1816 of the Vehicle Code, or under Section 784 of the Welfare and Institutions Code, or any other provision requiring the reporting of a violation by a minor, the violation shall be included for the purposes of this section in determining the point count in the same manner as is applicable to adult violations. (2) Had more than one dismissal pursuant to Section 1803.5 of the Vehicle Code that was not made confidential pursuant to Section 1808.7 of the Vehicle Code, in the 36-month period for violations that would have resulted in the imposition of more than one violation point count under paragraph (1) if the complaint had not been dismissed. (3) Was the driver of a motor vehicle involved in an accident that resulted in bodily injury or in the death of any person and was principally at fault. The commissioner shall adopt regulations setting guidelines to be used by insurers for the determination of fault for the purposes of this paragraph and paragraph (1). (c) During the period commencing on January 1, 1999, or the date 10 years prior to the date of application for the issuance or renewal of the Good Driver Discount policy, whichever is later, and ending on the date of the application for the issuance or renewal of the Good Driver Discount policy, he or she has not been convicted of a violation of Section 23140, 23152, or 23153 of the Vehicle Code, a felony violation of Section 23550 or 23566, or former Section 23175 or, as those sections read on January 1, 1999, of the Vehicle Code, or a violation of Section 191.5 or subdivision (a) of Section 192.5 of the Penal Code. (d) Any person who claims that he or she meets the criteria of subdivisions (a), (b), and (c) based entirely or partially on a driver’s license and driving experience acquired anywhere other than in the United States or Canada is rebuttably presumed to be qualified to purchase a Good Driver Discount policy if he or she has been licensed to drive in the United States or Canada for at least the previous 18 months and meets the criteria of subdivisions (a), (b), and (c) for that period. (Amended by Stats. 2015, Ch. 348, Sec. 15. (AB 1515) Effective January 1, 2016.)
  115. 1861.03.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Insurance business is generally subject to California’s other business laws, and auto insurance cancellation or nonrenewal notices are effective only for specified reasons.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.03. (a) The business of insurance shall be subject to the laws of California applicable to any other business, including, but not limited to, civil rights laws (Sections 51 to 53, inclusive, of the Civil Code), and the antitrust and unfair business practices laws (Parts 2 (commencing with Section 16600) and 3 (commencing with Section 17500) of Division 7 of the Business and Professions Code). (b) Nothing in this section shall be construed to prohibit (1) any agreement to collect, compile and disseminate historical data on paid claims or reserves for reported claims, provided such data is contemporaneously transmitted to the commissioner, (2) participation in any joint arrangement established by statute or the commissioner to assure availability of insurance, (3) any agent or broker, representing one or more insurers, from obtaining from any insurer it represents information relative to the premium for any policy or risk to be underwritten by that insurer, (4) any agent or broker from disclosing to an insurer it represents any quoted rate or charge offered by another insurer represented by that agent or broker for the purpose of negotiating a lower rate, charge, or term from the insurer to whom the disclosure is made, or (5) any agents, brokers, or insurers from utilizing or participating with multiple insurers or reinsurers for underwriting a single risk or group of risks. (c) (1) Notwithstanding any other provision of law, a notice of cancellation or nonrenewal of a policy for automobile insurance shall be effective only if it is based on one or more of the following reasons: (A) nonpayment of premium; (B) fraud or material misrepresentation affecting the policy or insured; (C) a substantial increase in the hazard insured against. (2) This subdivision shall not prevent a reciprocal insurer, organized prior to November 8, 1988, by a motor club holding a certificate of authority under Chapter 2 (commencing with Section 12160) of Part 5 of Division 2, and which requires membership in the motor club as a condition precedent to applying for insurance, from issuing an effective notice of nonrenewal based solely on the failure of the insured to maintain membership in the motor club. This subdivision shall also not prevent an insurer which issues private passenger automobile coverage to members of groups that were in existence prior to November 8, 1988, whether membership, franchise, or otherwise, and to those who are not members of groups from issuing an effective notice of nonrenewal for coverage provided to the insured as a member of the group based solely on the failure of the insured to maintain that membership if (i) the insurer offers to renew the coverage to the insured on a nongroup basis, or (ii) to transfer the coverage to an affiliated insurer. The rates charged by the insurer or affiliated insurer shall have been adopted pursuant to this article. However, all of the following conditions shall be applicable to that insurance: (A) Membership, if conditioned, is conditioned only on timely payment of membership dues and other bona fide criteria not based upon driving record or insurance, provided that membership in a motor club may not be based on residence in any area within the state. (B) Membership dues are paid solely for and in consideration of the membership and membership benefits and bear a reasonable relationship to the benefits provided. The amount of the dues shall not depend on whether the member purchases insurance offered by the membership organization. None of those membership dues or any portion thereof shall be transferred by the membership organization to the insurer, or any affiliate of the insurer, attorney-in-fact, subsidiary, or holding company thereof, provided that this provision shall not prevent any bona fide transaction between the membership organization and those entities. (C) Membership provides bona fide services or benefits in addition to the right to apply for insurance. Those services shall be reasonably available to all members within each class of membership. Any insurer that violates subparagraphs (A), (B), or (C) shall be subject to the penalties set forth in Section 1861.14. (Amended by Stats. 2018, Ch. 776, Sec. 13. (AB 3250) Effective January 1, 2019. Note: This section was added on Nov. 8, 1988, by initiative Prop. 103.)
  116. 1861.04.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    On request, the commissioner must give consumers a comparison of the rate in effect for each personal line of insurance for every insurer, and may charge a reasonable fee to cover costs.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.04. Full Disclosure of Insurance Information. (a) Upon request, and for a reasonable fee to cover costs, the commissioner shall provide consumers with a comparison of the rate in effect for each personal line of insurance for every insurer. (Added November 8, 1988, by initiative Proposition 103.)
  117. 1861.05.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Insurers seeking to change a rate must file a complete application with the commissioner, and the commissioner must give public notice and follow hearing and approval timing rules.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.05. Approval of Insurance Rates. (a) No rate shall be approved or remain in effect which is excessive, inadequate, unfairly discriminatory or otherwise in violation of this chapter. In considering whether a rate is excessive, inadequate or unfairly discriminatory, no consideration shall be given to the degree of competition and the commissioner shall consider whether the rate mathematically reflects the insurance company’s investment income. (b) Every insurer which desires to change any rate shall file a complete rate application with the commissioner. A complete rate application shall include all data referred to in Sections 1857.7, 1857.9, 1857.15, and 1864 and such other information as the commissioner may require. The applicant shall have the burden of proving that the requested rate change is justified and meets the requirements of this article. (c) The commissioner shall notify the public of any application by an insurer for a rate change. The application shall be deemed approved sixty days after public notice unless (1) a consumer or his or her representative requests a hearing within forty-five days of public notice and the commissioner grants the hearing, or determines not to grant the hearing and issues written findings in support of that decision, or (2) the commissioner on his or her own motion determines to hold a hearing, or (3) the proposed rate adjustment exceeds 7% of the then applicable rate for personal lines or 15% for commercial lines, in which case the commissioner must hold a hearing upon a timely request. In any event, a rate change application shall be deemed approved 180 days after the rate application is received by the commissioner (A) unless that application has been disapproved by a final order of the commissioner subsequent to a hearing, or (B) extraordinary circumstances exist. For purposes of this section, “received” means the date delivered to the department. (d) For purposes of this section, extraordinary circumstances include the following: (1) Rate change application hearings commenced during the 180-day period provided by subdivision (c). If a hearing is commenced during the 180-day period, the rate change application shall be deemed approved upon expiration of the 180-day period or 60 days after the close of the record of the hearing, whichever is later, unless disapproved prior to that date. (2) Rate change applications that are not approved or disapproved within the 180-day period provided by subdivision (c) as a result of a judicial proceeding directly involving the application and initiated by the applicant or an intervenor. During the pendency of the judicial proceedings, the 180-day period is tolled, except that in no event shall the commissioner have less than 30 days after conclusion of the judicial proceedings to approve or disapprove the application. Notwithstanding any other provision of law, nothing shall preclude the commissioner from disapproving an application without a hearing if a stay is in effect barring the commissioner from holding a hearing within the 180-day period. (3) The hearing has been continued pursuant to Section 11524 of the Government Code. The 180-day period provided by subdivision (c) shall be tolled during any period in which a hearing is continued pursuant to Section 11524 of the Government Code. A continuance pursuant to Section 11524 of the Government Code shall be decided on a case by case basis. If the hearing is commenced or continued during the 180-day period, the rate change application shall be deemed approved upon the expiration of the 180-day period or 100 days after the case is submitted, whichever is later, unless disapproved prior to that date. (Amended by Stats. 1993, Ch. 646, Sec. 1. Effective October 1, 1993. Applicable as prescribed by Stats. 1992, Ch. 1257, Sec. 3, as amended by Sec. 2 of Ch. 646. Note: This section was added on Nov. 8, 1988, by initiative Prop. 103.)
  118. 1861.055.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    The commissioner must adopt hearing regulations within 120 days after enactment, and the administrative law judge must issue a decision within 30 days after the record closes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.055. (a) The commissioner shall adopt regulations governing hearings required by subdivision (c) of Section 1861.05 on or before 120 days after the enactment of this section. Those regulations shall, at the minimum, include timelines for scheduling and commencing hearings, and procedures to prevent delays in commencing or continuing hearings without good cause. (b) The sole remedy for failure by the commissioner to adopt the regulations required by subdivision (a) within the prescribed period or to abide by those regulations once adopted shall be a writ of mandate by any aggrieved party in a court of competent jurisdiction to compel the commissioner to adopt those regulations, or commence or resume hearings. (c) Nothing in this section shall preclude the commissioner from commencing hearings required by subdivision (c) of Section 1861.05 prior to adopting the regulations required by this section. (d) The administrative law judge shall render a decision within 30 days of the closing of the record in the proceeding. (Added by Stats. 1990, Ch. 1583, Sec. 1. Effective September 30, 1990.)
  119. 1861.06.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Public notice under this article must be distributed to the news media and to any member of the public who asks to be placed on a mailing list.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.06. Public notice required by this article shall be made through distribution to the news media and to any member of the public who requests placement on a mailing list for that purpose. (Added November 8, 1988, by initiative Proposition 103.)
  120. 1861.07.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Information given to the commissioner under this article must be open to public inspection, and two specified code provisions do not apply to it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.07. All information provided to the commissioner pursuant to this article shall be available for public inspection, and the provisions of Section 7929.000 of the Government Code and Section 1857.9 of the Insurance Code shall not apply thereto. (Amended by Stats. 2021, Ch. 615, Sec. 306. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  121. 1861.08.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Insurance-rate hearings must generally follow Government Code Chapter 5, with specific exceptions for administrative law judges, the commissioner’s decision-making, and discovery.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.08. Hearings shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, except that: (a) Hearings shall be conducted by administrative law judges for purposes of Sections 11512 and 11517, chosen under Section 11502 or appointed by the commissioner. (b) Hearings are commenced by a filing of a notice in lieu of Sections 11503 and 11504. (c) The commissioner shall adopt, amend, or reject a decision only under Section 11518.5 and subdivisions (b), (c), and (e) of Section 11517 and solely on the basis of the record as provided in Section 11425.50 of the Government Code. (d) Notwithstanding Section 11501, Section 11430.30 and subdivision (b) of Section 11430.70 shall not apply in these hearings. (e) Discovery shall be liberally construed and disputes determined by the administrative law judge as provided in Section 11507.7 of the Government Code. (Amended by Stats. 1996, Ch. 390, Sec. 10. Effective August 19, 1996. Operative July 1, 1997, by Sec. 11 of Ch. 390. Note: This section was added on Nov. 8, 1988, by initiative Prop. 103.)
  122. 1861.09.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Judicial review must follow Section 1858.6. A decision to hold a hearing is not a final order, but a decision not to hold a hearing is final.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.09. Judicial review shall be in accordance with Section 1858.6. For purposes of judicial review, a decision to hold a hearing is not a final order or decision; however, a decision not to hold a hearing is final. (Added November 8, 1988, by initiative Proposition 103.)
  123. 1861.10.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Any person may participate in certain insurance-rate proceedings, challenge commissioner actions under this article, and enforce its provisions. If a person represents consumers and makes a substantial contribution, the commissioner or a court must award reasonable advocacy and witness fees and expenses, and those costs are paid by the applicant when the advocacy is in response to a rate application. Eligibility requests and findings must be posted on the Department of Insurance website during the eligibility period.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.10. Consumer Participation. (a) Any person may initiate or intervene in any proceeding permitted or established pursuant to this chapter, challenge any action of the commissioner under this article, and enforce any provision of this article. (b) The commissioner or a court shall award reasonable advocacy and witness fees and expenses to any person who demonstrates that (1) the person represents the interests of consumers, and, (2) that he or she has made a substantial contribution to the adoption of any order, regulation, or decision by the commissioner or a court. Where such advocacy occurs in response to a rate application, the award shall be paid by the applicant. (c) All requests for a finding of eligibility to seek compensation and all findings of eligibility, as described in Section 2662.2 of Title 10 of the California Code of Regulations, shall be published on the Department of Insurance Internet Web site during the eligibility period. (Amended by Stats. 2012, Ch. 100, Sec. 1. (AB 2406) Effective January 1, 2013. Note: This section was added on Nov. 8, 1988, by initiative Prop. 103.)
  124. 1861.11.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    If the commissioner finds insurers have substantially withdrawn from a covered insurance market and a market assistance plan would not be enough, the commissioner must establish a joint underwriting authority.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.11. Emergency Authority. In the event that the commissioner finds that (a) insurers have substantially withdrawn from any insurance market covered by this article, including insurance described by Section 660, and (b) a market assistance plan would not be sufficient to make insurance available, the commissioner shall establish a joint underwriting authority in the manner set forth by Section 11891, without the prior creation of a market assistance plan. (Added November 8, 1988, by initiative Proposition 103.)
  125. 1861.12.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    An insurer may issue insurance coverage on a group plan, and group rates are not treated as unfairly discriminatory if they are averaged broadly among people insured under the plan.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.12. Group Insurance Plans. Any insurer may issue any insurance coverage on a group plan, without restriction as to the purpose of the group, occupation or type of group. Group insurance rates shall not be considered to be unfairly discriminatory, if they are averaged broadly among persons insured under the group plan. (Added November 8, 1988, by initiative Proposition 103.)
  126. 1861.13.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    This article applies to insurance on risks or operations in this state, except the kinds listed in Section 1851.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.13. Application. This article shall apply to all insurance on risks or on operations in this state, except those listed in Section 1851. (Added November 8, 1988, by initiative Proposition 103.)
  127. 1861.137.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Credit insurance rates must be filed with the commissioner before use in this state, may be used immediately after filing, and must not be excessive, inadequate, or unfairly discriminatory.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.137. (a) Notwithstanding Section 1861.13, credit insurance shall not be subject to Sections 1861.01 and 1861.05. However, any rate for credit insurance shall be filed with the commissioner before it may be used in this state, and that rate may be used immediately upon filing with the commissioner. (b) The rates for credit insurance shall not be excessive, inadequate, unfairly discriminatory, or otherwise in violation of this chapter, except Sections 1861.01 and 1861.05. (Added by Stats. 1990, Ch. 1032, Sec. 4.)
  128. 1861.14.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Violations of this article are subject to penalties in Section 1859.1, and the commissioner may suspend or revoke an insurer’s certificate of authority if the insurer does not comply with this article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.14. Enforcement & Penalties. Violations of this article shall be subject to the penalties set forth in Section 1859.1. In addition to the other penalties provided in this chapter, the commissioner may suspend or revoke, in whole or in part, the certificate of authority of any insurer which fails to comply with the provisions of this article. (Added November 8, 1988, by initiative Proposition 103.)
  129. 1861.15.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    Certain insurers must offer and sell specified minimum automobile liability coverage to eligible good driver discount applicants, and must disclose the required coverage amounts when soliciting or renewing policies.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.15. (a) An insurer issuing policies as described in subdivision (a) of Section 660, shall, as a condition of obtaining and maintaining a certificate of authority to transact the business of insurance in this state, offer to persons who qualify for a good driver discount pursuant to Sections 1861.02 and 1861.025, automobile liability coverage in the minimum financial responsibility coverage amounts specified in subdivision (a) of Section 16056 of the Vehicle Code, and sell that coverage to those who request it. (b) In soliciting the issuance or renewal of a policy of automobile liability insurance, an insurer, broker, agent, or any other employee of the insurer shall disclose to persons eligible for a good driver discount the minimum financial responsibility coverage amounts required pursuant to Section 16056 of the Vehicle Code, and that the insurer is legally required to furnish coverage in those minimum amounts, if requested. (c) Nothing in this section shall be construed to affect any obligation imposed on any insurer by law to offer and sell any other kind or amount of insurance. (d) This section does not apply to any insurer that, on November 7, 1988, did not offer to sell a minimum financial responsibility policy as described in subdivision (a) and that did not write more than 1 percent of the private passenger automobile liability policies in effect on November 7, 1988. (Added by Stats. 1990, Ch. 1185, Sec. 1. Effective September 24, 1990.)
  130. 1861.16.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. )

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    This section requires certain insurers to pay commissions fairly on minimum financial responsibility policies, requires sale and offering of certain good driver discount policies within common ownership groups, allows interim rating plans in some cases, and lets the commissioner adopt implementing regulations.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 9. Rates and Rating and Other Organizations [1850.4 - 1861.16] ( Chapter 9 added by Stats. 1947, Ch. 805. ) ## ARTICLE 10. [Reduction and Control of Insurance Rates] [1861.01 - 1861.16] ( Article 10 added November 8, 1988, by initiative Proposition 103, Sec. 3. ) ## 1861.16. (a) An insurer issuing a policy described in subdivision (a) of Section 660 by or through an insurance agent where a commission is paid, directly or indirectly, to that agent shall, when issuing a policy in the minimum financial responsibility coverage amount as required by Section 1861.15, pay a commission on the same terms and on the same percentage basis to that agent as for any higher amount of policy coverage sold by that agent. In no case shall the percentage amount of commission paid to that agent for a policy of minimum financial responsibility coverage be less than the percentage commission paid to that agent on any higher level of policy coverage issued by that insurer. (b) An agent or representative representing one or more insurers having common ownership or operating in California under common management or control shall offer, and the insurer shall sell, a good driver discount policy to a good driver from an insurer within that common ownership, management, or control group, which offers the lowest rates for that coverage. This requirement applies notwithstanding the underwriting guidelines of any of those insurers or the underwriting guidelines of the common ownership, management, or control group. Nothing in this subdivision shall require an insurer to offer and sell a good driver discount policy that the insurer would otherwise not be required to offer and sell in accordance with paragraph (3) of subdivision (b) of Section 1861.02. As used in this subdivision, “representative” means any person who offers or prepares premium quotations on behalf of either an insurer or any entity acting directly or indirectly on behalf of an insurer. This subdivision shall not be construed to either permit a representative to transact insurance, or to exempt a representative who does transact insurance from the licensing provisions of this code. (c) (1) Notwithstanding subdivision (b), insurers having common ownership and operating in California under common control are not required to sell good driver discount policies issued by other insurers within the common ownership group if the commissioner determines that the insurers satisfy each of the following conditions: (A) The business operations of the insurers are independently managed and directed. (B) The insurers do not jointly develop loss or expense statistics or other data used in ratemaking, or in the preparation of rating systems or rate filings. (C) The insurers do not jointly maintain or share loss or expense statistics, or other data used in ratemaking or in the preparation of rating systems or rate filings. This condition shall not apply if the data is generally available to the industry through a nonaffiliated third party and is obtained from that third party. (D) The insurers do not utilize each others’ marketing, sales, or underwriting data. (E) The insurers act independently of each other in determining, filing, and applying base rates, factors, class plans, and underwriting rules, and in the making of insurance policy forms. (F) The insurers’ sales operations are separate. (G) The insurers’ marketing operations are separate. (H) The insurers’ policy service operations are separate. (2) Notwithstanding Senate Bill 1 of the 2003–04 Regular Session (Chapter 241 of the Statutes of 2003), the federal Gramm-Leach-Bliley Act (Public Law 106-102), and the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 and following), the sharing of information between insurers as described in subparagraphs (A) to (H), inclusive, of paragraph (1) shall be more restrictive than may otherwise be permissible pursuant to those acts. (d) Except to the extent restricted by subdivision (c) or any regulation adopted to implement subdivision (c), this section shall not be interpreted to restrict the right of an insurer or holding company to use aggregate data of its affiliated insurers having common ownership or operating in California under common control. (e) Nothing in subdivision (c) is intended to amend, alter, or supersede other sections of this code, or other laws of this state, regarding any right of an insurer or holding company to use aggregate data of its affiliated insurers having common ownership or operating in California under common control. (f) The commissioner may adopt regulations to implement this section. (g) An insurer that is required by this section or Section 1861.02 to offer and sell good driver discount policies to good drivers to whom it did not sell those policies prior to November 8, 1988, due to driving safety record or vehicle type may file and, upon the approval of the commissioner, implement an interim rating plan for those applicants until the rating plan required by subdivision (a) of Section 1861.02 is adopted, provided that the insurer has timely filed an automobile insurance rating plan in compliance with subdivision (a) of Section 1861.02, and that plan has not been approved. An insurer may file an interim plan prior to the operative date of subdivision (b). The commissioner shall notify the public of any application by an insurer for an interim rating plan. The public notice shall meet the requirements of Section 1861.06. The application shall be deemed approved 60 days after public notice unless (1) a consumer or his or her representative requests a hearing within 45 days of public notice and the commissioner grants the hearing, or determines not to grant the hearing and issues written findings in support of that decision, or (2) the commissioner on his or her own motion determines to hold a hearing. If the commissioner grants a request for a hearing or determines on his or her own motion to hold a hearing on the application for an interim rating plan, but does not approve or disapprove the proposed interim rating plan within the later of 30 days from the date the commissioner grants a request or determines to hold the hearing or January 1, 1991, the interim rating plan may be used until the time that the commissioner issues a decision. If an interim rate or proposed interim rate is greater than the rate ultimately approved, the insurer shall refund to its applicable policyholders, in proportion to the amount of premium paid by each, the difference between the total amount earned and the amount to which the insurer is entitled under the rate ultimately approved, together with interest at the rate of 10 percent per year. In lieu of a refund, the insurer may provide a credit to the policyholder if the amount due is less than three dollars ($3). (h) Nothing contained in subdivision (b) or (c) shall be construed to expand, limit, or modify the requirements of subdivision (b) of Section 1861.02. (i) A violation of this section by any insurer shall subject it to the penalties provided by Section 1861.14. (Amended by Stats. 2004, Ch. 787, Sec. 1. Effective January 1, 2005.)
  131. 1862.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10. Child Care Insurance Act [1862 - 1864] ( Chapter 10 added by Stats. 1985, Ch. 1362, Sec. 3. )

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    The Legislature states that this chapter is intended to support liability insurance for day care operators and improve the availability, stability, affordability, and supply of day care services.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10. Child Care Insurance Act [1862 - 1864] ( Chapter 10 added by Stats. 1985, Ch. 1362, Sec. 3. ) ## 1862. It is the intent of the Legislature in enacting this chapter to assure the availability, stability, and affordability of liability insurance for operators of day care in this state, and to provide the residents of this state an adequate, safe, affordable, and plentiful market of day care services. (Added by Stats. 1985, Ch. 1362, Sec. 3. Effective October 1, 1985.)
  132. 1863.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10. Child Care Insurance Act [1862 - 1864] ( Chapter 10 added by Stats. 1985, Ch. 1362, Sec. 3. )

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    This section defines key terms used in the chapter, including “Commissioner,” “Net direct premiums,” “Insurer,” and “Family day care provider.”

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10. Child Care Insurance Act [1862 - 1864] ( Chapter 10 added by Stats. 1985, Ch. 1362, Sec. 3. ) ## 1863. Unless the provision or context otherwise requires, the following definitions govern the construction of this chapter: (a) “Commissioner” means the Insurance Commissioner of this state. (b) “Net direct premiums” means gross direct premiums written on liability insurance in this state, including the liability portion of the multiperil policies and of automobile insurance policies, less return premiums and any surplus premium deposits. “Net direct premiums” shall not mean any reinsurance premiums or premiums for ocean marine insurance. (c) “Insurer” means any person who undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event, and shall include reciprocals and interinsurance exchanges. (d) “Family day care provider” means those persons licensed pursuant to Section 1596.78 or 1596.79 of the Health and Safety Code. (Added by Stats. 1985, Ch. 1362, Sec. 3. Effective October 1, 1985.)
  133. 1864.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10. Child Care Insurance Act [1862 - 1864] ( Chapter 10 added by Stats. 1985, Ch. 1362, Sec. 3. )

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    Insurers writing child care liability insurance in this state must file claims-experience reports with the commissioner when requested, no more than annually, using the commissioner’s form.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10. Child Care Insurance Act [1862 - 1864] ( Chapter 10 added by Stats. 1985, Ch. 1362, Sec. 3. ) ## 1864. (a) Each insurer engaged in writing child care liability insurance coverage in this state shall submit to the commissioner a report of its operations regarding child care liability claims experience for the last preceding calendar year at the request of the commissioner, but not more than annually, on a form prescribed by the commissioner. Each report shall separately state the following information for family day care homes, as defined in Section 1596.78 of the Health and Safety Code, and licensed child care centers, as defined in Section 1596.76 of the Health and Safety Code: (1) Premiums earned. (2) Premiums written. (3) Number of claims. (4) Number of new claims during the reporting period. (5) Number of claims closed during the reporting period. (6) Number of claims outstanding at the end of the reporting period. (7) Total losses incurred. (8) Total losses incurred as a percentage of premiums earned. (9) Total number of policies in force on the last day of the reporting period. (10) Total number of policies canceled. (11) Total number of policies nonrenewed. (12) Net underwriting gain or loss. (13) Separate allocations of expenses for commissions, other acquisition costs, general office expenses, taxes, licenses and fees, and other expenses. The allocations required by this section shall be made by dividing the company’s total premiums earned for child care liability insurance by its total premiums earned and applying the ratio determined to the expenses reported in the company’s annual statement filed with the commissioner pursuant to Section 900. (b) The commissioner shall develop and issue reporting forms to insurers at least 90 days prior to the due date of the reports required pursuant to this section. (c) The Legislature finds that it is in the public interest of the policyholders of this state that insurers writing child care liability insurance permit remittance of premiums to occur on an installment basis. (d) The information provided under this section pertaining to a specified claim, insurance policy, or insurer shall be confidential and shall only be revealed by the department on a nonspecific basis as part of an aggregate report of claims or policies. (Amended by Stats. 2012, Ch. 786, Sec. 39. (AB 2303) Effective January 1, 2013.)
  134. 1870.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10.5. Risk Retention [1870- 1870.] ( Chapter 10.5 added by Stats. 1988, Ch. 559, Sec. 1. )

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    The section says that, for creating a risk retention group, directors and officers of corporations—whether for profit or nonprofit—are treated as being in the same line of business for liability-risk purposes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 10.5. Risk Retention [1870- 1870.] ( Chapter 10.5 added by Stats. 1988, Ch. 559, Sec. 1. ) ## 1870. The Legislature finds and declares that for the purpose of creating a risk retention group, directors and officers of corporations, whether for profit or nonprofit, are engaged in the same line of business with respect to the liability risks faced by those officers and directors within the meaning of the federal Liability Risk Retention Act of 1986. (Added by Stats. 1988, Ch. 559, Sec. 1.)
  135. 1871.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section states legislative findings about insurance fraud and says the chapter is intended to help the commissioner and department investigate and discover fraud, stop fraudulent activity, and work with law enforcement agencies.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871. The Legislature finds and declares as follows: (a) The business of insurance involves many transactions that have the potential for abuse and illegal activities. There are numerous law enforcement agencies on the state and local levels charged with the responsibility for investigating and prosecuting fraudulent activity. This chapter is intended to permit the full utilization of the expertise of the commissioner and the department so that they may more effectively investigate and discover insurance frauds, halt fraudulent activities, and assist and receive assistance from federal, state, local, and administrative law enforcement agencies in the prosecution of persons who are parties in insurance frauds. (b) Insurance fraud is a particular problem for automobile policyholders; fraudulent activities account for 15 to 20 percent of all auto insurance payments. Automobile insurance fraud is the biggest and fastest growing segment of insurance fraud and contributes substantially to the high cost of automobile insurance with particular significance in urban areas. (c) Prevention of automobile insurance fraud will significantly reduce the incidence of severity and automobile insurance claim payments and will therefore produce a commensurate reduction in automobile insurance premiums. (d) Workers’ compensation fraud harms employers by contributing to the increasingly high cost of workers’ compensation insurance and self-insurance and harms employees by undermining the perceived legitimacy of all workers’ compensation claims. (e) Prevention of workers’ compensation insurance fraud may reduce the number of workers’ compensation claims and claim payments thereby producing a commensurate reduction in workers’ compensation costs. Prevention of workers’ compensation insurance fraud will assist in restoring confidence and faith in the workers’ compensation system, and will facilitate expedient and full compensation for employees injured at the workplace. (f) The actions of employers who fraudulently underreport payroll or fail to report payroll for all employees to their insurance company in order to pay a lower workers’ compensation premium result in significant additional premium costs and an unfair burden to honest employers and their employees. (g) The actions of employers who fraudulently fail to secure the payment of workers’ compensation as required by Section 3700 of the Labor Code harm employees, cause unfair competition for honest employers, and increase costs to taxpayers. (h) Health insurance fraud is a particular problem for health insurance policyholders. Although there are no precise figures, it is believed that fraudulent activities account for billions of dollars annually in added health care costs nationally. Health care fraud causes losses in premium dollars and increases health care costs unnecessarily. (Amended by Stats. 2002, Ch. 6, Sec. 2.5. Effective January 1, 2003.)
  136. 1871.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers and their agents may access relevant public records when investigating suspected fraud claims, but only to the extent those records are already open for inspection under the cited Government Code provisions and related regulations.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.1. Insurers and their agents, while they are investigating suspected fraud claims, shall have access to all relevant public records that are required to be open for inspection under Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code, and any regulations thereunder. This section restates existing law, and the Legislature does not intend to grant insurers or their agents access to public records other than to those public records available to them under existing law. (Amended by Stats. 2021, Ch. 615, Sec. 307. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  137. 1871.10.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    It is unlawful to knowingly make or cause a false or fraudulent material statement or representation to obtain or amend an insurance policy.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.10. It is unlawful to make or cause to be made a knowingly false or fraudulent material statement or material representation for the purpose of obtaining or amending an insurance policy under any line of insurance regulated by the department. A violation of this section is a public offense, punishable by a fine not to exceed ten thousand dollars ($10,000), by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or in a county jail not to exceed one year, or by both that fine and imprisonment. (Added by Stats. 2021, Ch. 627, Sec. 10. (AB 1511) Effective January 1, 2022.)
  138. 1871.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    An insurer that provides certain insurance-related forms must include a fraud-warning statement on the form or in a separate endorsement, except for reinsurance contracts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.2. (a) An insurer who, in connection with any insurance application, contract, or provision of contract, prints, reproduces, or furnishes a form to any person upon which that person applies for a policy, seeks to amend insurance coverage, or furnishes information relating to underwriting criteria affecting premium or eligibility for coverage, under an existing policy, or gives notice of a claim to the insurer or makes a claim against the insurer by reason of accident, injury, death, or other noticed or claimed loss, shall cause to be printed or displayed in comparative prominence with other content on the form, exclusive of schedules attached to the form, or an endorsement separate from the form, the statement: “Any person who knowingly presents false or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.” This statement shall be preceded by the words: “For your protection California law requires the following to appear on this form” or other explanatory words of similar meaning. (b) This section is not applicable to a contract of reinsurance as defined in Section 620. (Amended by Stats. 2023, Ch. 217, Sec. 1. (SB 743) Effective January 1, 2024.)
  139. 1871.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    For theft claims on insured vehicles, the insurer must get a claim form from the insured before settling, and the claim form must be signed under penalty of perjury.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.3. (a) In the case of any claim arising from the theft of an insured vehicle, prior to the settlement of the claim, the insurer shall secure from the insured a claim form which shall contain, among other things, the following: (1) A warning that false representations made on the signed claim form by the insured subject the insured to a penalty of perjury. (2) A detailed description of the insured vehicle including the interior, exterior, and any special equipment. (3) The purchase location of the insured vehicle, the purchase date, and the name of the seller. (4) A detailed statement of the circumstances surrounding the theft. (5) The current driver’s license number of the insured, except where the vehicle is owned by a person that is not a natural person, or the claimant is a financial institution and the vehicle is insured pursuant to an insurance policy issued to the financial institution to protect vehicles that are collateral securing any loan made by the financial institution. A financial institution shall provide, to the extent it has the information, the current driver’s license number of the registered owner of the vehicle or the debtor who has obtained the loan. (b) For purposes of complying with the requirements of subdivision (a), the insured shall do either of the following: (1) Sign the claim form in the presence of the insurance agent, broker, adjuster, or other claims representative, who shall verify the driver’s license number of the insured who is signing the claim form. (2) Submit a claim form with a notarized signature. (c) The claim form shall be signed under penalty of perjury. (d) The insurer shall retain the following for at least three years: (1) All settlement checks in settlement of the theft of an automobile, or an electronic copy thereof. (2) The original claim form provided for in subdivision (a), or an electronic copy thereof. (3) A legible copy of the police report of the vehicle theft, or an electronic copy thereof. (Amended by Stats. 2004, Ch. 93, Sec. 1. Effective January 1, 2005.)
  140. 1871.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section prohibits false or fraudulent statements or assistance related to compensation claims, benefits, and Return-to-Work Program reimbursements, and sets criminal penalties for violations.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.4. (a) It is unlawful to do any of the following: (1) Make or cause to be made a knowingly false or fraudulent material statement or material representation for the purpose of obtaining or denying any compensation, as defined in Section 3207 of the Labor Code. (2) Present or cause to be presented a knowingly false or fraudulent written or oral material statement in support of, or in opposition to, a claim for compensation for the purpose of obtaining or denying any compensation, as defined in Section 3207 of the Labor Code. (3) Knowingly assist, abet, conspire with, or solicit a person in an unlawful act under this section. (4) Make or cause to be made a knowingly false or fraudulent statement with regard to entitlement to benefits with the intent to discourage an injured worker from claiming benefits or pursuing a claim. For the purposes of this subdivision, “statement” includes, but is not limited to, a notice, proof of injury, bill for services, payment for services, hospital or doctor records, X-ray, test results, medical-legal expense as defined in Section 4620 of the Labor Code, other evidence of loss, injury, or expense, or payment. (5) Make or cause to be made a knowingly false or fraudulent material statement or material representation for the purpose of obtaining or denying any of the benefits or reimbursement provided in the Return-to-Work Program established under Section 139.48 of the Labor Code. (6) Make or cause to be made a knowingly false or fraudulent material statement or material representation for the purpose of discouraging an employer from claiming any of the benefits or reimbursement provided in the Return-to-Work Program established under Section 139.48 of the Labor Code. (b) Every person who violates subdivision (a) shall be punished by imprisonment in a county jail for one year, or pursuant to subdivision (h) of Section 1170 of the Penal Code, for two, three, or five years, or by a fine not exceeding one hundred fifty thousand dollars ($150,000) or double the value of the fraud, whichever is greater, or by both that imprisonment and fine. Restitution shall be ordered, including restitution for any medical evaluation or treatment services obtained or provided. The court shall determine the amount of restitution and the person or persons to whom the restitution shall be paid. A person convicted under this section may be charged the costs of investigation at the discretion of the court. (c) A person who violates subdivision (a) and who has a prior felony conviction of that subdivision, of former Section 556, of former Section 1871.1, or of Section 548 or 550 of the Penal Code, shall receive a two-year enhancement for each prior conviction in addition to the sentence provided in subdivision (b). The existence of any fact that would subject a person to a penalty enhancement shall be alleged in the information or indictment and either admitted by the defendant in open court, or found to be true by the jury trying the issue of guilt or by the court where guilt is established by plea of guilty or nolo contendere or by trial by the court sitting without a jury. (d) This section may not be construed to preclude the applicability of any other provision of criminal law that applies or may apply to a transaction. (Amended by Stats. 2011, Ch. 15, Sec. 212. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
  141. 1871.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    A person convicted of specified workers’ compensation fraud cannot receive or keep compensation tied to that fraud.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.5. Any person convicted of workers’ compensation fraud pursuant to Section 1871.4 or Section 550 of the Penal Code shall be ineligible to receive or retain any compensation, as defined in Section 3207 of the Labor Code, where that compensation was owed or received as a result of a violation of Section 1871.4 or Section 550 of the Penal Code for which the recipient of the compensation was convicted. (Added by Stats. 1993, Ch. 120, Sec. 3.1. Effective July 16, 1993.)
  142. 1871.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Section 781 of the Penal Code applies to prosecutions for violations of Section 1871.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.6. The provisions of Section 781 of the Penal Code are applicable to any prosecutions for violations of Section 1871.4. This section is declaratory of existing law and shall not be interpreted to limit the applicability of Section 781 of the Penal Code to any other criminal provisions. (Added by Stats. 1993, Ch. 120, Sec. 3.2. Effective July 16, 1993.)
  143. 1871.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    It is unlawful to knowingly use runners, cappers, steerers, or similar people to recruit clients or patients for certain labor, insurance, or claim-related services.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.7. (a) It is unlawful to knowingly employ runners, cappers, steerers, or other persons to procure clients or patients to perform or obtain services or benefits pursuant to Division 4 (commencing with Section 3200) of the Labor Code or to procure clients or patients to perform or obtain services or benefits under a contract of insurance or that will be the basis for a claim against an insured individual or their insurer. (b) Every person who violates any provision of this section or Section 549, 550, or 551 of the Penal Code shall be subject, in addition to any other penalties that may be prescribed by law, to a civil penalty of not less than five thousand dollars ($5,000) nor more than ten thousand dollars ($10,000), plus an assessment of not more than three times the amount of each claim for compensation, as defined in Section 3207 of the Labor Code or pursuant to a contract of insurance. The court shall have the power to grant other equitable relief, including temporary injunctive relief, as is necessary to prevent the transfer, concealment, or dissipation of illegal proceeds, or to protect the public. The penalty prescribed in this paragraph shall be assessed for each fraudulent claim presented to an insurance company by a defendant and not for each violation. (c) The penalties set forth in subdivision (b) are intended to be remedial rather than punitive, and shall not preclude, nor be precluded by, a criminal prosecution for the same conduct. If the court finds, after considering the goals of disgorging unlawful profit, restitution, compensating the state for the costs of investigation and prosecution, and alleviating the social costs of increased insurance rates due to fraud, that such a penalty would be punitive and would preclude, or be precluded by, a criminal prosecution, the court shall reduce that penalty appropriately. (d) The district attorney or commissioner may bring a civil action under this section. Before the commissioner may bring that action, the commissioner shall be required to present the evidence obtained to the appropriate local district attorney for possible criminal or civil filing. If the district attorney elects not to pursue the matter, then the commissioner may proceed with the action. (e) (1) Any interested persons, including an insurer, may bring a civil action for a violation of this section for the person and for the State of California. The action shall be brought in the name of the state. The action may be dismissed only if the court and the district attorney or the commissioner, whichever is participating, give written consent to the dismissal. (2) A copy of the complaint and written disclosure of substantially all material evidence and information the person possesses shall be served on the district attorney and commissioner. The complaint shall be filed in camera, shall remain under seal for at least 60 days from the date of service on the district attorney and commissioner, and shall not be served on the defendant until the court so orders. The local district attorney or commissioner may elect to intervene and proceed with the action within 60 days after the district attorney or commissioner receives both the complaint and the material evidence and information. If more than one governmental entity elects to intervene, the district attorney shall have precedence. (3) The district attorney or commissioner may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under paragraph (2). The motions may be supported by affidavits or other submissions in camera. The defendant shall not be required to respond to any complaint filed under this section until 20 days after the complaint is unsealed and served upon the defendant. (4) Before the expiration of the 60-day period or any extensions obtained under paragraph (3), the district attorney or commissioner shall either: (A) Proceed with the action, in which case the action shall be conducted by the district attorney or commissioner. (B) Notify the court that it declines to take over the action, in which case the person bringing the action shall have the right to conduct the action. (5) When a person or governmental agency brings an action under this section, no person other than the district attorney or commissioner may intervene or bring a related action based on the facts underlying the pending action unless that action is authorized by another statute or common law. (f) (1) If the district attorney or commissioner proceeds with the action, the district attorney or commissioner shall have the primary responsibility for prosecuting the action, and shall not be bound by an act of the person bringing the action. That person shall have the right to continue as a party to the action, subject to the limitations set forth in paragraph (2). (2) (A) The district attorney or commissioner may dismiss the action notwithstanding the objections of the person initiating the action if the person has been notified by the district attorney or commissioner of the filing of the motion, and the court has provided the person with an opportunity for a hearing on the motion. (B) The district attorney or commissioner may settle the action with the defendant notwithstanding the objections of the person initiating the action if the court determines, after a hearing, that the proposed settlement is fair, adequate, and reasonable under all the circumstances. Upon a showing of good cause, the hearing may be held in camera. (C) Upon a showing by the district attorney or commissioner that unrestricted participation during the course of the litigation by the person initiating the action would interfere with or unduly delay the district attorney’s or commissioner’s prosecution of the case, or would be repetitious, irrelevant, or for purposes of harassment, the court may, in its discretion, impose limitations on the person’s participation, including, but not limited to, the following: (i) Limiting the number of witnesses the person may call. (ii) Limiting the length of the testimony of those witnesses. (iii) Limiting the person’s cross-examination of witnesses. (iv) Otherwise limiting the participation by the person in the litigation. (D) Upon a showing by the defendant that unrestricted participation during the course of the litigation by the person initiating the action would be for purposes of harassment or would cause the defendant undue burden or unnecessary expense, the court may limit the participation by the person in the litigation. (3) If the district attorney or commissioner elects not to proceed with the action, the person who initiated the action shall have the right to conduct the action. If the district attorney or commissioner so requests, the district attorney or commissioner shall be served with copies of all pleadings filed in the action and shall be supplied with copies of all deposition transcripts, at the district attorney’s or commissioner’s expense. When a person proceeds with the action, the court, without limiting the status and rights of the person initiating the action, may nevertheless permit the district attorney or commissioner to intervene at a later date upon a showing of good cause. (4) If at any time both a civil action for penalties and equitable relief pursuant to this section and a criminal action are pending against a defendant for substantially the same conduct, whether brought by the government or a private party, the civil action shall be stayed until the criminal action has been concluded at the trial court level. The stay shall not preclude the court from granting or enforcing temporary equitable relief during the pendency of the actions. Whether or not the district attorney or commissioner proceeds with the action, upon a showing by the district attorney or commissioner that certain actions of discovery by the person initiating the action would interfere with a law enforcement or governmental agency investigation or prosecution of a criminal or civil matter arising out of the same facts, the court may stay discovery for a period of not more than 180 days. A hearing on a request for the stay shall be conducted in camera. The court may extend the 180-day period upon a further showing in camera that the agency has pursued the criminal or civil investigation or proceedings with reasonable diligence and any proposed discovery in the civil action will interfere with the ongoing criminal or civil investigation or proceedings. (5) Notwithstanding subdivision (e), the district attorney or commissioner may elect to pursue its claim through any alternate remedy available to the district attorney or commissioner. (g) (1) (A) (i) If the district attorney proceeds with an action brought by a person under subdivision (e), that person shall, subject to subparagraph (B), receive at least 30 percent but not more than 40 percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to the prosecution of the action. (ii) If the commissioner has brought an action or has proceeded with an action brought by another person under this section on or after January 1, 2006, the commissioner shall be entitled to attorney’s fees and costs in addition to any judgment, regardless of the date that judgment is entered. The court shall determine and award the commissioner the amount of reasonable attorney’s fees, including, but not limited to, reasonable fees for time expended by attorneys employed by the department and for costs incurred. Any attorney’s fees or costs awarded to the commissioner and collected shall be deposited in the Insurance Fund. In cases in which the commissioner has intervened, the commissioner and the person bringing the claim may stipulate to an allocation. The court may allocate the funds pursuant to the stipulation if, after the court’s ruling on objection by the district attorney, if any, the court finds it is in the interests of justice to follow the stipulation. (iii) If the commissioner has proceeded with an action, if there is no stipulation regarding allocation, and if a judgment has been obtained or a settlement has been reached with the defendants, the court shall determine the allocation, upon motion of the commissioner or the person bringing the action, according to the following priority: (I) The person bringing the action, regardless of whether that person paid money to the defendants as part of the acts alleged in the complaint, shall first receive the amount the court determines is reasonable for attorney’s fees, costs, and expenses that the court determines to have been necessarily incurred. (II) The commissioner shall receive the amount the court determines for reasonable attorney’s fees and costs. (III) If the person bringing the suit has paid moneys to the defendants as part of the acts alleged in the complaint, that person shall receive the amount paid to the defendants. (IV) At least 30 percent, but not more than 40 percent, of the remaining assets or moneys, shall be allocated to the person bringing the action, depending upon the extent to which the person substantially contributed to the prosecution of the action. (iv) Those portions of a judgment or settlement not distributed pursuant to this subdivision shall be paid to the General Fund of the state and, upon appropriation by the Legislature, shall be apportioned between the Department of Justice and the Department of Insurance for enhanced fraud investigation and prevention efforts. (B) Where the action is one that the court finds to be based primarily on disclosures of specific information, other than information provided by the person bringing the action, relating to allegations or transactions in a criminal, civil, or administrative hearing, in a legislative or administrative report, hearing, audit, or investigation, or from the news media, the court may award those sums that it considers appropriate, but in no case more than 10 percent of the proceeds, taking into account the significance of the information and the role of the person bringing the action in advancing the case to litigation. (C) Any payment to a person under subparagraph (A) or under subparagraph (B) shall be made from the proceeds. The person shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, plus reasonable attorney’s fees and costs. All of those expenses, fees, and costs shall be awarded against the defendant. (2) (A) If the district attorney or commissioner does not proceed with an action under this section, the person bringing the action or settling the claim shall receive an amount that the court decides is reasonable for collecting the civil penalty and damages. Except as provided in subparagraph (B), the amount shall not be less than 40 percent and not more than 50 percent of the proceeds of the action or settlement and shall be paid out of the proceeds. That person shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, plus reasonable attorney’s fees and costs. All of those attorney’s fees and costs shall be imposed against the defendant. The parties shall serve the commissioner and the local district attorney with complete copies of any and all settlement agreements, and terms and conditions, for actions brought under this article at least 10 days prior to filing any motion for allocation with the court under this paragraph. The court may allocate the funds pursuant to the settlement agreement if, after the court’s ruling on objection by the commissioner or the local district attorney, if any, the court finds it is in the interests of justice to follow the settlement agreement. (B) If the person bringing the action, as a result of a violation of this section has paid money to the defendant or to an attorney acting on behalf of the defendant in the underlying claim, then the person shall be entitled to up to double the amount paid to the defendant or the attorney if that amount is greater than 50 percent of the proceeds. That person shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, plus reasonable attorney’s fees and costs. All of those expenses, fees, and costs shall be awarded against the defendant. (3) If a local district attorney has proceeded with an action under this section, one-half of the penalties not awarded to a private party, as well as any costs awarded shall go to the treasurer of the appropriate county. Those funds shall be used to investigate and prosecute fraud, augmenting existing budgets rather than replacing them. All remaining funds shall go to the state and be deposited in the General Fund and, when appropriated by the Legislature, shall be apportioned between the Department of Justice and the Department of Insurance for enhanced fraud investigation and prevention efforts. (4) Whether or not the district attorney or commissioner proceeds with the action, if the court finds that the action was brought by a person who planned and initiated the violation of this section, that person shall be dismissed from the civil action and shall not receive any share of the proceeds of the action. The dismissal shall not prejudice the right of the district attorney or commissioner to continue the action on behalf of the state. (5) If the district attorney or commissioner does not proceed with the action, and the person bringing the action conducts the action, the court may award to the defendant its reasonable attorney’s fees and expenses if the defendant prevails in the action and the court finds that the claim of the person bringing the action was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment. (h) (1) In no event may a person bring an action under subdivision (e) that is based upon allegations or transactions that are the subject of a civil suit or an administrative civil money penalty proceeding in which the Attorney General, district attorney, or commissioner is already a party. (2) (A) A court shall not have jurisdiction over an action under this section based upon the public disclosure of allegations or transactions in a criminal, civil, or administrative hearing in a legislative or administrative report, hearing, audit, or investigation, or from the news media, unless the action is brought by the district attorney or commissioner, the district attorney or commissioner proceeds with an action brought by a person under subdivision (e), or the person bringing the action is an original source of the information. (B) For purposes of this paragraph, “original source” means an individual who has direct and independent knowledge of the information on which the allegations are based and has voluntarily provided the information to the district attorney or commissioner before filing an action under this section that is based on the information. (i) Except as provided in subdivision (j), the district attorney or commissioner is not liable for expenses that a person incurs in bringing an action under this section. (j) In civil actions brought under this section in which the commissioner or a district attorney is a party, the court shall retain discretion to impose sanctions otherwise allowed by law, including the ability to order a party to pay expenses as provided in Sections 128.5 and 1028.5 of the Code of Civil Procedure. (k) Any employee who is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment by their employer because of lawful acts done by the employee on behalf of the employee or others in furtherance of an action under this section, including investigation for, initiation of, testimony for, or assistance in, an action filed or to be filed under this section, shall be entitled to all relief necessary to make the employee whole. That relief shall include reinstatement with the same seniority status the employee would have had but for the discrimination, two times the amount of backpay, interest on the backpay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorney’s fees. An employee may bring an action in the appropriate superior court for the relief provided in this subdivision. The remedies under this section are in addition to any other remedies provided by existing law. (l) (1) An action pursuant to this section may not be filed more than three years after the discovery of the facts constituting the grounds for commencing the action. (2) Notwithstanding paragraph (1) no action may be filed pursuant to this section more than eight years after the commission of the act constituting a violation of this section or a violation of Section 549, 550, or 551 of the Penal Code. (Amended by Stats. 2025, Ch. 558, Sec. 17. (AB 487) Effective January 1, 2026.)
  144. 1871.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    An insurer or self-insured employer must give an injured worker a bilingual notice with a temporary disability benefits check.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.8. An insurer or self-insured employer shall provide the following notice, in both English and Spanish, to an injured worker on or with a check for temporary disability benefits: WARNING: You are required to report to your employer or the insurance company any money that you earned for work during the time covered by this check, and before cashing this check. If you do not follow these rules, you may be in violation of the law and the penalty may be jail or prison, a fine, and loss of benefits. ADVERTENCIA: Es necesario que usted le avise a su patrón o a su compañía de seguro todo dinero que usted ha ganado por trabajar, durante el tiempo cubierto por éste cheque, y antes de cambiar éste cheque. Si usted no sigue estos reglamentos, Usted puede estar en violación de la ley y el castigo podría ser cárcel o prisión, una multa, y pérdida de beneficios. (Amended by Stats. 2004, 4th Ex. Sess., Ch. 2, Sec. 2. Effective March 6, 2005.)
  145. 1871.9.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    The department must post specified conviction information on its website for certain fraud-related convictions involving workers’ compensation insurance, services, or benefits.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 1. False and Fraudulent Claims [1871 - 1871.10] ( Article 1 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1871.9. The department shall post all of the following information on its Internet Web site for each person, as defined in Section 19, convicted of a violation of this article, Section 11760 or 11880, Section 3700.5 of the Labor Code, or Section 487 or 550 of the Penal Code, if the violation involved workers’ compensation insurance, services, or benefits: (a) The name, case number, county or court, and other identifying information with respect to the case. (b) The full name of the defendant. (c) The city and county of the defendant’s last known residence or business address. (d) The date of conviction. (e) A description of the offense. (f) The amount of money alleged to have been defrauded. (g) A description of the punishment imposed, including the length of any sentence of imprisonment and the amount of any fine imposed. The information required to be posted under this section shall be maintained on the department’s Web site for a period of five years from the date of conviction or until the department is notified in writing by the person that the conviction has been reversed or expunged. (Added by Stats. 2004, Ch. 281, Sec. 1. Effective January 1, 2005.)
  146. 1872.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    The department must create a Fraud Division to enforce Penal Code Sections 549 and 550 and administer Article 3 starting with Section 1873.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872. There is created within the department the Fraud Division to enforce the provisions of Sections 549, and 550 of the Penal Code, and to administer the provisions of Article 3 (commencing with Section 1873). (Amended by Stats. 2005, Ch. 717, Sec. 1. Effective January 1, 2006.)
  147. 1872.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section defines “insurer” for this article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.2. For purposes of this article, “insurer” means any person who undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event, including reciprocals and interinsurance exchanges. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  148. 1872.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    The Fraud Division and commissioner may investigate suspected insurance-fraud-related violations, gather evidence, and share information with law enforcement, while certain investigation records stay confidential.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.3. (a) If, by its own inquiries or as a result of complaints, the Fraud Division has reason to believe that a person has engaged in, or is engaging in, an act or practice that violates Section 1871.4 of this code, or Section 549 or 550 of the Penal Code, the commissioner in his or her discretion may do either or both of the following: (1) Make those public or private investigations within or outside of this state that he or she deems necessary to determine whether any person has violated or is about to violate any provision of Section 1871.4 of this code, or Section 549 or 550 of the Penal Code, or to aid in the enforcement of this chapter. (2) Publish information concerning any violation of this chapter or Section 550 of the Penal Code. (b) For purposes of any investigation under this section, the commissioner or any officer designated by the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records that the commissioner deems relevant or material to the inquiry, as provided by Section 12924. (c) If any matter that the commissioner seeks to obtain by request is located outside the state, the person so requested may make it available to the commissioner or his or her representative to be examined at the place where it is located. The commissioner may designate representatives, including officials of the state in which the matter is located, to inspect the matter on his or her behalf, and he or she may respond to similar requests from officials of other states. (d) Except as provided in subdivision (e), the department’s papers, documents, reports, or evidence relative to the subject of an investigation under this section shall not be subject to public inspection for so long a period as the commissioner deems reasonably necessary to complete the investigation, to protect the person investigated from unwarranted injury, or to serve the public interest. Furthermore, those papers, documents, reports, or evidence shall not be subject to subpoena or subpoena duces tecum until opened for public inspection by the commissioner, unless the commissioner otherwise consents or, after notice to the commissioner and a hearing, the superior court determines that the public interest and any ongoing investigation by the commissioner would not be unnecessarily jeopardized by compliance with the subpoena duces tecum. (e) The Fraud Division shall furnish all papers, documents, reports, complaints, or other facts or evidence to any police, sheriff, or other law enforcement agency, when so requested, and shall assist and cooperate with those law enforcement agencies. (Amended by Stats. 2005, Ch. 717, Sec. 3. Effective January 1, 2006.)
  149. 1872.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers with suspected fraud must report to the Fraud Division, and agencies must cooperate with the Division’s investigation.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.4. (a) Any company licensed to write insurance in this state that has determined, after the completion of the insurer’s special investigative unit investigation, that it reasonably suspects or knows an act of insurance fraud may have occurred or might be occurring shall, within 60 days after that determination by the insurer, send to the Fraud Division, on a form prescribed by the department, the information requested by the form and any additional information relative to the factual circumstances regarding the alleged insurance fraud and person or entity that may have committed or is committing insurance fraud, as specified in Section 2698.38 of Title 10 of the California Code of Regulations. The Fraud Division shall review each report and undertake further investigation it deems necessary and proper to determine the validity of the allegations. Whenever the commissioner is satisfied that fraud, deceit, or intentional misrepresentation of any kind has been committed in the submission of the claim, claims, application, or other insurance transaction, the commissioner shall report the violations of law to the insurer, to the appropriate licensing agency, and to the district attorney of the county in which the offenses were committed, as provided by Sections 12928 and 12930. If the commissioner is satisfied that fraud, deceit, or intentional misrepresentation has not been committed, the commissioner shall report that determination to the insurer. If prosecution by the district attorney concerned is not begun within 60 days of the receipt of the commissioner’s report, the district attorney shall inform the commissioner and the insurer as to the reasons for the lack of prosecution regarding the reported violations. (b) This section shall not require an insurer to submit to the Fraud Division the information specified in subdivision (a) in either of the following instances: (1) The insurer’s initial investigation indicated a potentially fraudulent claim but further investigation revealed that it was not fraudulent. (2) The insurer and the claimant have reached agreement as to the amount of the claim and the insurer does not have reasonable grounds to believe that claim to be fraudulent. (c) Nothing contained in this article shall relieve an insurer of its existing obligations to also report suspected violations of law to appropriate local law enforcement agencies. (d) Any police, sheriff, disciplinary body governed by the provisions of the Business and Professions Code, or other law enforcement agency shall furnish all papers, documents, reports, complaints, or other facts or evidence to the Fraud Division, when so requested, and shall otherwise assist and cooperate with the division. (e) If an insurer, at the time the insurer, pursuant to subdivision (a) forwards to the Fraud Division information on a claim that appears to be fraudulent, has no evidence to believe the insured on that claim is involved with the fraud or the fraudulent collision, the insurer shall take all necessary steps to assure that no surcharge is added to the insured’s premium because of the claim. (Amended by Stats. 2022, Ch. 424, Sec. 21. (SB 1242) Effective January 1, 2023.)
  150. 1872.41.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Agents or brokers who suspect insurance fraud must report it to the Fraud Division or the insurer’s special investigative unit and cooperate with requests for evidence.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.41. (a) An agent or broker who, before placing an insurance application with an insurer, reasonably suspects or knows that a fraudulent application is being made shall, within 60 days after the determination by the agent or broker that the application appears to be fraudulent, submit to the Fraud Division, using the electronic form within Fraud Division’s Consumer Fraud Reporting Portal, the information requested by the form and any additional information relative to the factual circumstances of the application and the alleged material misrepresentations contained in the application. All data fields within the Fraud Division’s Consumer Fraud Reporting Portal electronic form shall be completed accurately, to the best of the agent or broker’s ability. An agent or broker shall not submit a fraud referral anonymously. The Fraud Division shall review each report and undertake further investigation it deems necessary and proper to determine the validity of the allegations. (b) An agent or broker who, after an insurance application has been placed with an insurer, reasonably suspects or knows that fraud has been perpetrated shall report that information directly to the insurer’s special investigative unit. An agent or broker shall furnish all papers, documents, reports, or other facts or evidence to the insurer’s special investigative unit upon request, and shall otherwise assist and cooperate with the insurer’s special investigative unit. (c) An agent or broker shall furnish all papers, documents, reports, or other facts or evidence to the department upon request, and shall otherwise assist and cooperate with the department. (d) (1) For purposes of this section, an “agent or broker” is a natural person licensed to transact insurance in a capacity described in Section 1625, 1625.5, 1625.55, 1626, or 1758.1 and is not the employee of an insurer. (2) An agent or broker is not considered a “contracted entity” or “integral antifraud personnel” pursuant to Section 2698.30 of Title 10 of the California Code of Regulations. (Amended by Stats. 2023, Ch. 204, Sec. 12. (AB 1140) Effective January 1, 2024.)
  151. 1872.45.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    If a district attorney files certain criminal complaints, the district attorney must promptly notify affected insurers, the DMV, and the victims; an insurer that raised a victim’s premiums because of the complaint must promptly rebate the increase after notice.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.45. A district attorney who files a criminal complaint pursuant to Section 549 or 550 of the Penal Code shall promptly do all of the following: (a) Notify each insurer affected by the acts that are the subject of the criminal complaint of the existence of the complaint and the names of all persons insured by the insurer who are the victims. (b) Notwithstanding any other provision of law, when an insurer receives notification pursuant to subdivision (a), and the insurer has increased the premiums of a person who is a victim because of a claim that is the subject of the criminal complaint, the insurer shall promptly rebate to that person the increased premiums that were charged to and paid by that person. (c) Notify the Department of Motor Vehicles of the criminal complaint and the names of all persons who are the victims. (d) Notify all the persons who are the victims in simple understandable language that a criminal complaint has been filed and that subdivision (b) of Section 1806 of the Vehicle Code requires the Department of Motor Vehicles not to record the accident on the record of the victim. (Added by Stats. 1999, Ch. 885, Sec. 4. Effective January 1, 2000.)
  152. 1872.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    An insurer, its employees, or its agents are protected from civil liability for libel, slander, or similar tort claims when they provide certain fraud-related information or reports without malice.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.5. No insurer, or the employees or agents of any insurer, shall be subject to civil liability for libel, slander, or any other relevant tort cause of action by virtue of providing any of the following without malice: (a) Any information or reports relating to suspected fraudulent insurance transaction furnished to law enforcement officials, or licensing officials governed by the Business and Professions Code. (b) Any reports or information relating to suspected fraudulent insurance transaction furnished to other persons subject to this chapter. (c) Any information or reports required by this article or required by the commissioner under the authority granted in this chapter. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  153. 1872.51.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    People who share or receive information under Section 1872.41, or help with a suspected insurance fraud investigation, are protected from civil liability if they act in good faith, without malice, and reasonably rely on the known facts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.51. (a) An agent or broker who furnishes written or oral information pursuant to Section 1872.41, or an authorized governmental agency, or its employees, that furnishes or receives written or oral information pursuant to Section 1872.41 or assists in an investigation of a suspected insurance fraud violation conducted by an authorized governmental agency, shall not be subject to any civil liability in a cause or action if the insurer, authorized agent, agent or broker, or authorized governmental agency acted in good faith, without malice, and reasonably believes that the action taken was warranted by the then-known facts, obtained by reasonable efforts. (b) This chapter does not abrogate or lessen the existing common law or statutory privileges and immunities of an insurer, agent authorized by that insurer to act on its behalf, agent or broker, licensed rating organization, or any authorized governmental agency or its employees. (Added by Stats. 2022, Ch. 424, Sec. 23. (SB 1242) Effective January 1, 2023.)
  154. 1872.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This article does not override other agencies’ authority to investigate and prosecute suspected violations, and it does not restrict voluntary reporting or the department’s and commissioner’s investigative powers.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.6. Nothing contained in this article shall: (a) Preempt the authority of other law enforcement or licensing agencies to investigate and prosecute suspected violations of law. (b) Prevent or prohibit a person from voluntarily disclosing any information concerning violations of this chapter to any law enforcement or licensing agency governed by the Business and Professions Code. (c) Limit any of the powers granted to the department or the commissioner to investigate possible violations of the chapter and take appropriate action against wrongdoers. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  155. 1872.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers doing business in the state must pay an annual assessment per insured vehicle, and the commissioner, Fraud Division, district attorneys, and CHP have related funding, reporting, and investigative duties.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.8. (a) An insurer doing business in this state shall pay an annual special purpose assessment to be determined by the commissioner, but not to exceed one dollar ($1) annually, for each vehicle insured under an insurance policy it issues in this state, in order to fund increased investigation and prosecution of fraudulent automobile insurance claims and economic automobile theft. Thirty-four percent of those funds received from ninety-five cents ($0.95) of the special purpose assessment per insured vehicle shall be distributed to the Fraud Division for enhanced investigative efforts, 15 percent of that ninety-five cents ($0.95) shall be deposited in the Motor Vehicle Account for appropriation to the Department of the California Highway Patrol for enhanced prevention and investigative efforts to deter economic automobile theft, and 51 percent of that ninety-five cents ($0.95) shall be distributed to district attorneys for purposes of investigation and prosecution of automobile insurance fraud cases, including fraud involving economic automobile theft. (b) (1) The commissioner shall award funds to district attorneys according to population. The commissioner may alter this distribution formula as necessary to achieve the most effective distribution of funds. A local district attorney desiring a portion of those funds shall submit to the commissioner an application detailing the proposed use of any moneys that may be provided. The application shall include a detailed accounting of assessment funds received and expended in prior years, including, at a minimum, all of the following: (A) The amount of funds received and expended. (B) The uses to which those funds were put, including payment of salaries and expenses, purchase of equipment and supplies, and other expenditures by type. (C) The results achieved as a consequence of expenditures made, including the number of investigations, arrests, complaints filed, convictions, and the amounts originally claimed in cases prosecuted compared to payments actually made in those cases. (D) Other relevant information as the commissioner may reasonably require. A district attorney who fails to submit an application by the deadline set by the commissioner shall be subject to loss of distribution of the moneys. The commissioner may consider recommendations and advice of the Fraud Division and the Commissioner of the California Highway Patrol in allocating moneys to local district attorneys. A district attorney that receives funds shall submit an annual report to the commissioner, which may be made public, as to the success of the program administered. The report shall provide information and statistics on the number of active investigations, arrests, indictments, and convictions. Both the application for moneys and the distribution of moneys shall be public documents. The commissioner shall conduct a fiscal audit of the programs administered under this subdivision at least once every three years. The costs of a fiscal audit shall be shared equally between the department and the district attorney. Information submitted to the commissioner pursuant to this section concerning criminal investigations, whether active or inactive, shall be confidential. If the commissioner determines that a district attorney is unable or unwilling to investigate and prosecute automobile insurance fraud claims as provided by this subdivision or Section 1874.8, the commissioner may discontinue the distribution of funds allocated for that county and may redistribute those funds to other eligible district attorneys. (2) The Department of the California Highway Patrol shall submit to the commissioner, for informational purposes only, a report detailing the department’s proposed use of funds under this section and an annual report in the same format as required of district attorneys under paragraph (1). (c) The remaining five cents ($0.05) shall be spent for enhanced automobile insurance fraud investigation by the Fraud Division. (d) Except for funds to be deposited in the Motor Vehicle Account for allocation to the Department of the California Highway Patrol for purposes of the Motor Vehicle Theft Prevention Act (Chapter 5 (commencing with Section 10900) of Division 4 of the Vehicle Code), the funds received under this section shall be deposited in the Insurance Fund and be expended and distributed when appropriated by the Legislature. (e) In the course of its investigations, the Fraud Division shall pursue aggressively all reported incidents of probable fraud and, in addition, shall forward to the appropriate disciplinary body the names of individuals licensed under the Business and Professions Code who are suspected of actively engaging in fraudulent activity along with all relevant supporting evidence. (f) As used in this section, “economic automobile theft” means automobile theft perpetrated for financial gain, including, but not limited to, the following: (1) Theft of a motor vehicle for financial gain. (2) Reporting that a motor vehicle has been stolen for the purpose of filing a false insurance claim. (3) Engaging in any act prohibited by Chapter 3.5 (commencing with Section 10801) of Division 4 of the Vehicle Code. (4) Switching of vehicle identification numbers to obtain title to a stolen motor vehicle. (Amended by Stats. 2008, Ch. 179, Sec. 170. Effective January 1, 2009.)
  156. 1872.81.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers doing business in the state must pay a special purpose assessment to the commissioner for each insured vehicle; the commissioner may later set the amount, subject to a 26-cent cap. The department may also use up to 5 cents of the revenue for low-cost auto insurance outreach if the Legislature appropriates it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.81. In addition to the special purpose assessment imposed pursuant to Section 1872.8, effective July 1, 2014, an insurer doing business in this state shall, until January 1, 2016, pay to the commissioner an annual special purpose assessment of twenty-six cents ($0.26), and thereafter pay to the commissioner an annual special purpose assessment in an amount not to exceed twenty-six cents ($0.26), as determined by the commissioner, for each vehicle insured under an insurance policy it issues in this state, for expenditure, upon appropriation by the Legislature, as follows: (a) Two-thirds of the special purpose assessment shall be used for the purpose of funding the consumer service functions of the department that are related to regulating automobile insurers, including those functions performed by the rating and underwriting service bureau, the claims service bureau, the investigations bureau, or any successor bureaus of the department that may assume the consumer service functions of these bureaus, and legal services in support of these bureaus. (b) One-third of the special purpose assessment shall be used for the purpose of improving consumer functions identified in subdivision (a) of the department that are related to regulating automobile insurers, including, for improving the ability of the department to respond to consumer complaints and information requests through the department’s toll-free telephone number, and for improving the ability of the department to offer information about automobile insurance rates to the public. (c) Upon appropriation by the Legislature, the department may use up to five cents ($0.05) of the special purpose assessment revenues collected pursuant to this section to notify insurers and other members of the public about the existence of any low-cost automobile insurance program established pursuant to Section 11629.7 or other statutes that establish a program of the type identified in Section 11629.7. In requesting an appropriation for this purpose under its proposed plan developed pursuant to Section 11629.85, the department shall explain, with as much specificity as is reasonably possible, the objectives for the use of the funds and the quantitative criteria by which the Legislature may evaluate the effectiveness of the department’s use of the funds. (d) The commissioner shall include, in the annual report submitted pursuant to Section 12922, all of the following information: (1) The number of opened consumer complaints related to automobile insurance. (2) The number of opened investigations related to automobile insurance. (3) The number of investigations related to automobile insurance referred to prosecuting agencies. (4) The number of administrative or regulatory cases related to automobile insurance referred to the department’s legal division. (5) The number of administrative or regulatory enforcement actions taken in cases related to automobile insurance. (6) Total aggregate annual assessment revenue and expenditures pursuant to the assessment. (Amended by Stats. 2014, Ch. 407, Sec. 1. (AB 1395) Effective January 1, 2015.)
  157. 1872.83.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section requires the commissioner and related state bodies to investigate workers’ compensation fraud, route suspected cases and evidence to the proper authorities, and manage an annual assessment-funded fraud account.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.83. (a) The commissioner shall ensure that the Fraud Division aggressively pursues all reported incidents of probable workers’ compensation fraud, as defined in Sections 11760 and 11880, and in subdivision (a) of Section 1871.4, and in Section 549 of the Penal Code, and forwards to the appropriate disciplinary body the names, along with all supporting evidence, of any individuals licensed under the Business and Professions Code who are suspected of actively engaging in fraudulent activity. The Fraud Division shall forward to the Insurance Commissioner or the Director of Industrial Relations, as appropriate, the name, along with all supporting evidence, of any insurer, as defined in subdivision (c) of Section 1877.1, suspected of actively engaging in the fraudulent denial of claims. (b) To fund increased investigation and prosecution of workers’ compensation fraud, and of willful failure to secure payment of workers’ compensation, in violation of Section 3700.5 of the Labor Code, there shall be an annual assessment as follows: (1) The aggregate amount of the assessment shall be determined by the Fraud Assessment Commission, which is hereby established. The commission shall be composed of seven members consisting of two representatives of organized labor, two representatives of self-insured employers, one representative of insured employers, one representative of workers’ compensation insurers, and the President of the State Compensation Insurance Fund, or their designee. The Governor shall appoint members representing organized labor, self-insured employers, insured employers, and insurers. The term of office of members of the commission shall be four years, and a member shall hold office until the appointment of a successor. The President of the State Compensation Insurance Fund shall be an ex officio, voting member of the commission. Members of the commission shall receive one hundred dollars ($100) for each day of actual attendance at commission meetings and other official commission business, and shall also receive their actual and necessary traveling expenses incurred in the performance of commission duties. Payment of per diem and travel expenses shall be made from the Workers’ Compensation Fraud Account in the Insurance Fund, established in paragraph (4), upon appropriation by the Legislature. (2) In determining the aggregate amount of the assessment, the Fraud Assessment Commission shall consider the advice and recommendations of the Fraud Division and the commissioner. (3) The aggregate amount of the assessment shall be collected by the Director of Industrial Relations pursuant to Section 62.5 of the Labor Code. The Fraud Assessment Commission shall annually advise the Director of Industrial Relations, not later than March 15, of the aggregate amount to be assessed for the next fiscal year. (4) The amount collected, together with the fines collected for violations of the unlawful acts specified in Sections 1871.4, 11760, and 11880, Section 3700.5 of the Labor Code, and Section 549 of the Penal Code, shall be deposited in the Workers’ Compensation Fraud Account in the Insurance Fund, which is hereby created, and may be used, upon appropriation by the Legislature, only for enhanced investigation and prosecution of workers’ compensation fraud and of willful failure to secure payment of workers’ compensation as provided in this section. (c) For each fiscal year, the total amount of revenues derived from the assessment pursuant to subdivision (b) shall, together with amounts collected pursuant to fines imposed for unlawful acts described in Sections 1871.4, 11760, and 11880, Section 3700.5 of the Labor Code, and Section 549 of the Penal Code, not be less than three million dollars ($3,000,000). Any funds appropriated by the Legislature pursuant to subdivision (b) that are not expended in the fiscal year for which they have been appropriated, and that have not been allocated under subdivision (f), may be applied to satisfy for the immediately following fiscal year the minimum total amount required by this subdivision or, subject to appropriation by the Legislature, may be used to augment funding in the immediately following fiscal year. The money shall not be transferred to the General Fund. (d) After incidental expenses, at least 40 percent of the funds to be used for the purposes of this section shall be provided to the Fraud Division of the Department of Insurance for enhanced investigative efforts, and at least 40 percent of the funds shall be distributed to district attorneys, pursuant to a determination by the commissioner with the advice and consent of the division and the Fraud Assessment Commission, as to the most effective distribution of moneys for purposes of the investigation and prosecution of workers’ compensation fraud cases and cases relating to the willful failure to secure the payment of workers’ compensation. Each district attorney seeking a portion of the funds shall submit to the commissioner an application setting forth in detail the proposed use of any funds provided. A district attorney receiving funds pursuant to this subdivision shall submit an annual report to the commissioner with respect to the success of their efforts. Upon receipt, the commissioner shall provide copies to the Fraud Division and the Fraud Assessment Commission of any application, annual report, or other documents with respect to the allocation of money pursuant to this subdivision. Both the application for moneys and the distribution of moneys shall be public documents. Information submitted to the commissioner pursuant to this section concerning criminal investigations, whether active or inactive, shall be confidential. (e) If a district attorney is determined by the commissioner to be unable or unwilling to investigate and prosecute workers’ compensation fraud claims or claims relating to the willful failure to secure the payment of workers’ compensation, the commissioner shall discontinue distribution of funds allocated for that county and may redistribute those funds according to this subdivision. (1) The commissioner shall promptly determine whether any other county could assert jurisdiction to prosecute the fraud claims or claims relating to the willful failure to secure the payment of workers’ compensation that would have been brought in the nonparticipating county, and, if so, the commissioner may award funds to conduct the prosecutions redirected pursuant to this subdivision. These funds may be in addition to any other fraud prosecution funds or claims relating to the willful failure to secure the payment of workers’ compensation prosecution otherwise awarded under this section. Any district attorney receiving funds pursuant to this subdivision shall first agree that the funds shall be used solely for investigating and prosecuting those cases of workers’ compensation fraud or claims relating to the willful failure to secure the payment of workers’ compensation that are redirected pursuant to this subdivision and submit an annual report to the commissioner with respect to the success of the district attorney’s efforts. The commissioner shall keep the Fraud Assessment Commission fully informed of all reallocations of funds under this paragraph. (2) If the commissioner determines that no district attorney is willing or able to investigate and prosecute the workers’ compensation fraud claims or claims relating to the willful failure to secure the payment of workers’ compensation arising in the nonparticipating county, the commissioner, with the advice and consent of the Fraud Assessment Commission, may award to the Attorney General some or all of the funds previously awarded to the nonparticipating county. Before the commissioner may award any funds, the Attorney General shall submit to the commissioner an application setting forth in detail their proposed use of any funds provided and agreeing that any funds awarded shall be used solely for investigating and prosecuting those cases of workers’ compensation fraud or claims relating to the willful failure to secure the payment of workers’ compensation that are redirected pursuant to this subdivision. The Attorney General shall submit an annual report to the commissioner with respect to the success of the fraud prosecution efforts of their office. (3) Neither the Attorney General nor any district attorney shall be required to relinquish control of any investigation or prosecution undertaken pursuant to this subdivision unless the commissioner determines that satisfactory progress is no longer being made on the case or the case has been abandoned. (4) A county that has become a nonparticipating county due to the inability or unwillingness of its district attorney to investigate and prosecute workers’ compensation fraud or the willful failure to secure the payment of workers’ compensation shall not become eligible to receive funding under this section until it has submitted a new application that meets the requirements of subdivision (d) and the applicable regulations. (f) If in any fiscal year the Fraud Division does not use all of the funds made available to it under subdivision (d), any remaining funds may be distributed to district attorneys pursuant to a determination by the commissioner in accordance with the same procedures set forth in subdivision (d). (g) The commissioner shall adopt rules and regulations to implement this section in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). Included in the rules and regulations shall be the criteria for redistributing funds to district attorneys and the Attorney General. The adoption of the rules and regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare. (h) The department shall report to the Governor, the Legislature, to the committees of the Senate and Assembly having jurisdiction over insurance, and the Fraud Assessment Commission on the activities of the Fraud Division and district attorneys supported by the funds provided by this section in the annual report submitted pursuant to Section 12922. The annual report shall include, but is not limited to, all of the following information for the department and each district attorney’s office: (1) All allocations, distributions, and expenditures of funds. (2) The number of search warrants issued. (3) The number of arrests and prosecutions, and the aggregate number of parties involved in each. (4) The number of convictions and the names of all convicted fraud perpetrators. (5) The estimated value of all assets frozen, penalties assessed, and restitutions made for each conviction. (6) Any additional items necessary to fully inform the Fraud Assessment Commission and the Legislature of the fraud-fighting efforts financed through this section. (i) In order to meet the requirements of subdivision (g), the department shall submit a biannual information request to those district attorneys who have applied for and received funding through the annual assessment process under this section. (j) Assessments levied or collected to fight workers’ compensation fraud and insurance fraud are not taxes. Those funds are entrusted to the state to fight fraud and the willful failure to secure the payment of workers’ compensation by funding state and local investigation and prosecution efforts. Accordingly, any funds resulting from assessments, fees, penalties, fines, restitution, or recovery of costs of investigation and prosecution deposited in the Insurance Fund shall not be deemed “unexpended” funds for any purpose and, if remaining in that account at the end of any fiscal year, shall be applied as provided in subdivision (f) and to offset or augment subsequent years’ program funding. (Amended by Stats. 2025, Ch. 23, Sec. 3. (SB 129) Effective June 30, 2025.)
  158. 1872.84.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    The commissioner must make sure the Fraud Division sends specified names and supporting evidence to the appropriate disciplinary body.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.84. The commissioner shall ensure that the Fraud Division forwards to the appropriate disciplinary body, in addition to the names and supporting evidence of individuals described in subdivision (a) of Section 1872.83, the names, along with all supporting evidence, of any individuals licensed under the Chiropractic Initiative Act who are suspected of actively engaging in fraudulent activity. (Added by Stats. 2005, Ch. 415, Sec. 2. Effective January 1, 2006.)
  159. 1872.85.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Certain disability insurers and related entities must pay an annual assessment, and the commissioner controls how the funds are collected and distributed.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.85. (a) Every admitted disability insurer or other entity liable for any loss due to health insurance fraud doing business in this state shall pay an annual special purpose assessment to be determined by the commissioner, but not to exceed twenty cents ($0.20) annually for each person in this state covered under an individual or group insurance policy regardless of the situs of the contract or master group policyholder, and regardless of whether the insured has been issued an individual certificate of coverage, and including blanket insurance as defined in Section 10270.2, in order to fund increased investigation and prosecution of fraudulent disability insurance claims. The data supporting the special purpose assessment shall not be required to be submitted more often than once each calendar year, except that responses to questions from the commissioner and clarifying information regarding the data shall not be considered as additional submissions of data. For group and blanket insurance contracts, insurers may rely on information requested from and provided by the group policyholder after a reasonable effort to obtain timely and accurate information. After incidental expenses, 30 percent of those funds received from the assessment per insured shall be distributed to the Fraud Division of the Department of Insurance for enhanced investigative efforts, and 70 percent of the funds shall be distributed to local district attorneys, pursuant to subdivisions (b) and (c), for investigation and prosecution of disability insurance fraud cases. The funds received pursuant to this section shall be deposited into the Disability Insurance Fraud Account, which is hereby created in the Insurance Fund, and shall be expended and distributed, when appropriated by the Legislature, only for enhanced investigation and prosecution of disability insurance fraud. In the course of its investigation, the Fraud Division shall aggressively pursue all reported incidents of probable fraud and, in addition, shall forward to the appropriate disciplinary body the names of any individuals licensed under the Business and Professions Code who are convicted of engaging in fraudulent activity along with all relevant supporting evidence. (b) The commissioner shall distribute funds pursuant to subdivision (a) to district attorneys who are able to show a likely positive outcome that will enhance the prosecution of disability insurance fraud in their jurisdiction based on specific criteria promulgated by the commissioner. A district attorney desiring funds pursuant to subdivision (a) shall submit to the commissioner an application that includes, but is not limited to, all of the following: (1) The proposed use of the moneys and the anticipated outcome. (2) A list of all prior cases or projects in the district attorney’s jurisdiction that have been funded under the provisions of this section, and a copy of the final accounting for each case or project. If a case or project is ongoing, the most recent accounting shall be provided. (3) A detailed budget for the moneys, including salaries and general expenses, that specifically identifies the purchase or rental cost of equipment or supplies. (c) (1) A district attorney who receives moneys pursuant to this section shall submit a final detailed accounting at the conclusion of each case or project funded. For a case or project that continues for longer than six months, an interim accounting shall be submitted every six months, or as otherwise directed by the commissioner. (2) A district attorney who receives moneys pursuant to this section shall submit a final report to the commissioner, which may be made public, as to the success of each case or project funded by this section. The report shall provide information and statistics on the number of active investigations, arrests, indictments, and convictions associated with a case or project. The applications for moneys, the distribution of moneys, and the annual report required by Section 1872.9 shall be public documents. (3) Notwithstanding any other provision of this section, information submitted to the commissioner pursuant to this section concerning criminal investigations, whether active or inactive, shall be confidential. (4) The commissioner may conduct a fiscal audit of the programs administered under this subdivision. The fiscal audit shall be conducted by an internal audit unit of the department. The cost of fiscal audits shall be paid from the Disability Insurance Fraud Account, upon appropriation by the Legislature. (5) If the commissioner determines that a district attorney is unable or unwilling to investigate or prosecute a relevant disability insurance fraud case, the commissioner may discontinue distribution of moneys allocated for that matter pursuant to this section, and may redistribute moneys to other eligible district attorneys. (d) Activities of the Fraud Division with regard to investigating and prosecuting fraudulent disability insurance claims pursuant to this section shall be included in the report required by Section 1872.9. (e) This section shall not apply to policies issued by a reciprocal or interinsurance exchange, as defined by Sections 1303 and 1350, or coverage provided by or through a motor club, as defined by Section 12142, affiliated with a reciprocal or interinsurance exchange, if the annual premium charged for the coverage or the annual cost to the insurer for providing that coverage does not exceed one dollar ($1) per insured. (f) The commissioner shall adopt regulations to implement this section in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Amended by Stats. 2014, Ch. 251, Sec. 1. (SB 1142) Effective January 1, 2015.)
  160. 1872.86.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers doing business in the state must pay an annual special purpose assessment set by the commissioner, up to $5,100, and the Fraud Division must publish an annual report online.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.86. (a) An insurer doing business in this state shall pay an annual special purpose assessment to be determined by the commissioner, not to exceed five thousand one hundred dollars ($5,100), to be used exclusively for the support of the Fraud Division. All moneys received by the commissioner from insurers pursuant to this section shall be transmitted to the Treasurer to be deposited in the State Treasury to the credit of the Insurance Fund. (b) The Fraud Division shall report annually, on the department’s Internet Web site, all of the following information: (1) The number of suspected fraudulent claim referrals made to the Fraud Division pursuant to Section 1872.4, by line of insurance. (2) The number of investigations opened by the Fraud Division, by line of insurance, at the local, state, and federal levels. (3) The number of investigations referred by the Fraud Division for criminal prosecution, by line of insurance, at the local, state, and federal levels. (4) The number of insurer fraud cases investigated by the department’s Enforcement Branch. (5) The number of criminal complaints filed by prosecutors at the local, state, and federal levels. (6) The number of convictions at the local, state, and federal levels. (7) The total amount of court-ordered restitution, and the amount collected by the courts for the victims. (8) The number of training presentations focusing on the current schemes and trends, investigative tools and techniques, and proper reporting requirements needed to increase the quality of suspected fraudulent referrals by insurance industry special investigation units. (9) The number of vacant peace officer positions, including information on the number and rate of vacancies for which an employment commitment has been made and on the number and rate of vacancies required to meet budgeted salary savings requirements. (Amended by Stats. 2008, Ch. 179, Sec. 172. Effective January 1, 2009.)
  161. 1872.87.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers that must pay certain special purpose assessments may recoup them through a premium surcharge or by including them in rates, but only within a reasonable time and no later than the calendar year the assessment is paid.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.87. (a) Each insurer required to pay special purpose assessments pursuant to Sections 1872.8, 1872.81, 1872.85, 1874.8, or subdivision (a) of Section 1872.86 may, over a reasonable length of time, but in no event later than the calendar year in which the assessment is paid, recoup the special purpose assessments by way of a surcharge on premiums charged for the insurance policies to which those sections apply or by including the assessments within the insurer’s rates. Amounts recouped shall not be considered premiums for any purpose, including the computation of gross premium tax or agents’ commission. (b) The amount of the surcharge shall be separately stated on either a billing or policy declaration sent to an insured. (Amended by Stats. 2013, Ch. 321, Sec. 22. (AB 1391) Effective January 1, 2014.)
  162. 1872.9.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    The Fraud Division must annually compile and report specified insurance fraud information as part of the commissioner’s annual report.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.9. The Fraud Division shall annually compile and report, as a part of the commissioner’s annual report as required by Section 12922, the following information: (a) The number of cases reported to the division pursuant to this chapter. (b) The number of cases rejected for which an investigation was not initiated by the division due to insufficient evidence to proceed and the number of cases rejected for which an investigation was not initiated by the division due to any other reason. (c) The number of cases that were prosecuted in cooperation with licensing agencies governed by the Business and Professions Code. (d) The number and kind of cases prosecuted as a result of moneys received under Section 1872.7. (e) An estimate of the economic value of insurance fraud by type of insurance fraud. (f) Recommendations on ways insurance fraud may be reduced. (g) A summary of the division’s activities with respect to pursuing a reduction of fraud with all of the following: (1) Insurance companies. (2) The Department of Motor Vehicles. (3) The Department of the California Highway Patrol. (4) Licensing agencies governed by the Business and Professions Code. (5) The Department of Insurance. (6) Local and state law enforcement agencies. (7) Employers, as defined in Section 3300 of the Labor Code, who are self-insured for workers’ compensation and doing business in the state. (h) Basic claims information including trends of payments by type of claim and other claim information that is generally provided in a closed claim study. (i) A summary of the division’s activities with respect to the reduction, pursuant to Section 1871.4, of fraudulent denials and payments of compensation. (j) The number and types of cases investigated and prosecuted with funds specified in Section 1872.83. (Amended by Stats. 2005, Ch. 717, Sec. 10. Effective January 1, 2006.)
  163. 1872.95.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    The Medical Board of California, the Board of Chiropractic Examiners, and the State Bar must designate employees to investigate and report possible insurance-related fraud, and those employees must cooperate with the Fraud Division.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.95. (a) Within existing resources, the Medical Board of California, the Board of Chiropractic Examiners, and the State Bar shall each designate employees to investigate and report on possible fraudulent activities relating to workers’ compensation, motor vehicle insurance, or disability insurance by licensees of the board or the bar. Those employees shall actively cooperate with the Fraud Division in the investigation of those activities. (b) The Medical Board of California and the Board of Chiropractic Examiners shall each report annually, on or before March 1, to the committees of the Senate and Assembly having jurisdiction over insurance on their activities established pursuant to subdivision (a) for the previous year. The State Bar shall include this report in its Annual Discipline Report on or before April 30. That report shall specify, at a minimum, the number of cases investigated, the number of cases forwarded to the Fraud Division or other law enforcement agencies, the outcome of all cases listed in the report, and any other relevant information concerning those cases or general activities conducted under subdivision (a) for the previous year. The report shall include information regarding activities conducted in connection with cases of suspected automobile insurance fraud. (Amended by Stats. 2018, Ch. 659, Sec. 149. (AB 3249) Effective January 1, 2019.)
  164. 1872.96.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    The commissioner must prepare an annual public report on Fraud Division receipts, expenditures, and activities, submit it to the Governor and Legislature by January 31, and exclude individually identifiable information.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 2. Bureau of Fraudulent Claims [1872 - 1872.96] ( Article 2 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1872.96. The commissioner shall prepare an annual report, which shall be a public record, with respect to the receipts, expenditures, and activities of the Fraud Division for the year just ended. The report shall be submitted to the Governor and to the Legislature, no later than January 31 of the following year. This report shall not contain any individually identifiable information. (Amended by Stats. 2005, Ch. 717, Sec. 12. Effective January 1, 2006.)
  165. 1873.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    On written request, an insurer must provide relevant information about a specific insurance fraud to the requesting authorized governmental agency.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1873. (a) Upon written request to an insurer by officers designated in subdivisions (a) and (b) of Section 830.1 and subdivision (a) of Section 830.2, and subdivisions (a), (c), and (i) of Section 830.3 of the Penal Code, an insurer, or agent authorized by that insurer to act on behalf of the insurer, shall release to the requesting authorized governmental agency any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any specific insurance fraud. Relevant information may include, but is not limited to, all of the following: (1) Insurance policy information relevant to the insurance fraud under investigation, including, but not limited to, any application for a policy. (2) Policy premium payment records which are available. (3) History of previous claims made by the insured. (4) Information relating to the investigation of the insurance fraud, including statements of any person, proof of loss, and notice of loss. (5) Complete copies of both sides of payment drafts. (b) The provisions of subdivision (a) shall not operate to authorize disclosure of medical information not otherwise authorized for disclosure pursuant to law. (Amended by Stats. 2000, Ch. 843, Sec. 3. Effective January 1, 2001.)
  166. 1873.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Information acquired under this article is not public record, and covered recipients must not release it to public inspection unless law requires release in a criminal or civil proceeding.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1873.1. Any information acquired pursuant to this article shall not be a part of any public record. Except as otherwise provided by law, any authorized governmental agency, an insurer, or an agent authorized by an insurer to act on its behalf, which receives any information furnished pursuant to this article, shall not release that information to public inspection until the time that its release is required in connection with a criminal or civil proceeding. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  167. 1873.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Certain insurers, their authorized employees or agents, and authorized governmental agencies and their employees are exempt from civil liability for sharing or receiving information under Sections 1873 or 1873.1, unless fraud or malice is involved.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1873.2. In the absence of fraud or malice, no insurer, or any employee or agent authorized by an insurer to act on behalf of the insurer, and no authorized governmental agency or its respective employees, shall be subject to any civil liability for libel, slander, or any other relevant cause of action by virtue of releasing or receiving any information pursuant to Section 1873 or 1873.1. Nothing in this article is intended to, nor does in any way or manner, abrogate or lessen the existing common law or statutory privileges and immunities of an insurer, or any employee or agent authorized by the insurer to act on behalf of the insurer, or of any authorized governmental agency or its respective employees. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  168. 1873.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section defines “insurance fraud” and “authorized governmental agency” for this article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1873.3. (a) For purposes of this article and Article 2 (commencing with Section 1872), “insurance fraud” does not include motor vehicle theft and motor vehicle insurance fraud reporting subject to the provisions of Article 4 (commencing with Section 1874), or workers’ compensation insurance fraud reporting subject to Article 7 (commencing with Section 1877). (b) As used in this article, “authorized governmental agency” means the Department of the California Highway Patrol, the Department of Motor Vehicles, the Department of Insurance, the Department of Justice, the police department of a city, or a city and county, the sheriff’s office or department of a county, the district attorney of any county, or city and county, those agencies employing officers designated in subdivisions (a) and (b) of Section 830.1, subdivision (a) of Section 830.2, and subdivisions (b), (d), and (k) of Section 830.3 of the Penal Code, any other law enforcement agency of this state or any city or county, or city and county, and any licensing agency governed by the Business and Professions Code. (Amended by Stats. 1991, Ch. 116, Sec. 18.)
  169. 1873.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    If an authorized governmental entity receives or releases certain information under Sections 1873 or 1873.1, the agency must send that information to the Fraud Division within 10 days after receiving it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 3. Insurance Fraud Reporting [1873 - 1873.4] ( Article 3 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1873.4. Any or all information released or received by an authorized governmental entity pursuant to Section 1873 or 1873.1 shall be provided by that agency to the Fraud Division within 10 days of the agency’s receipt of the information. (Amended by Stats. 2005, Ch. 717, Sec. 13. Effective January 1, 2006.)
  170. 1874.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This article may be cited as the Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting Act.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1874. This article shall be known and may be cited as the Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting Act. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  171. 1874.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section defines key terms used in the article, including authorized governmental agency, relevant, important, insurer, and motor vehicle.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1874.1. The following definitions govern the construction of this article, unless the context requires otherwise: (a) “Authorized governmental agency” means the Department of the California Highway Patrol, the Department of Insurance, the Department of Justice, the Department of Motor Vehicles, the police department of a city, or a city and county, the sheriff’s office or department of a county, a law enforcement agency of the federal government, the district attorney of any county, or city and county, and any licensing agency governed by the Business and Professions Code or the Chiropractic Initiative Act. (b) “Relevant” means having a tendency to make the existence of any fact that is of consequence to the investigation or determination of an issue more probable or less probable than it would be without the information. (c) Information shall be deemed important if, within the sole discretion of the authorized governmental agency, that information is requested by that authorized governmental agency. (d) “Insurer” means the automobile assigned risk plan established pursuant to Section 11620 of the Insurance Code, as well as any insurer writing insurance for motor vehicles or otherwise liable for any loss due to motor vehicle theft or motor vehicle insurance fraud. (e) “Motor vehicle” means motor vehicle as defined in Section 415 of the Vehicle Code. (Amended by Stats. 2005, Ch. 415, Sec. 3. Effective January 1, 2006.)
  172. 1874.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers must provide relevant motor vehicle theft or insurance fraud information to authorized government agencies on written request, and insurers and agencies have related notice and sharing duties.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1874.2. (a) Upon written request to an insurer by an authorized governmental agency, an insurer or agent authorized by that insurer to act on behalf of the insurer, shall release to the requesting authorized governmental agency any or all relevant information deemed important to the authorized governmental agency that the insurer may possess relating to any specific motor vehicle theft or motor vehicle insurance fraud. Relevant information may include, but is not limited to, all of the following: (1) Insurance policy information relevant to the motor vehicle theft or motor vehicle insurance fraud under investigation, including, but not limited to, any application for a policy. (2) Policy premium payment records that are available. (3) History of previous claims made by the insured. (4) Information relating to the investigation of the motor vehicle theft or motor vehicle insurance fraud, including statements of any person, proof of loss, and notice of loss. (b) (1) When an insurer knows or reasonably believes it knows the identity of a person whom it has reason to believe committed a criminal or fraudulent act relating to a motor vehicle theft or motor vehicle insurance claim or has knowledge of the criminal or fraudulent act that is reasonably believed not to have been reported to an authorized governmental agency, then, for the purpose of notification and investigation, the insurer, or an agent authorized by an insurer to act on its behalf, shall notify the local police department, sheriff’s office, the Department of the California Highway Patrol, or district attorney’s office, and may notify any other authorized governmental agency of that knowledge or reasonable belief and provide any additional information in accordance with subdivision (a). (2) When an insurer provides the local police department, sheriff’s office, Department of the California Highway Patrol, or district attorney’s office with notice pursuant to this section, it shall be deemed sufficient notice to all authorized governmental agencies for the purpose of this chapter. Nothing in this section shall relieve an insurer of its obligations under Section 1872.4. (3) Nothing in this subdivision shall abrogate or impair the rights or powers created under subdivision (a). (c) The authorized governmental agency provided with information pursuant to subdivision (a) or (b) may release or provide that information to any other authorized governmental agency. (d) An authorized governmental agency shall notify the affected insurer in writing when it has reason to believe that a fraudulent act relating to a motor vehicle theft or motor vehicle insurance claim has been committed. The agency shall provide this notice within a reasonable time, not to exceed 30 days. The agency may also release more specific information pursuant to this section when it determines that an ongoing investigation would not be jeopardized. The agency may require a fee from the insurer equal to the cost of providing the notice or the information specified in this section. (e) An insurer providing information to an authorized agency pursuant to this section shall provide the information within a reasonable time, but not to exceed 30 days from the day on which the duty arose. (Amended by Stats. 2006, Ch. 538, Sec. 461. Effective January 1, 2007.)
  173. 1874.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Information obtained under this article is confidential and generally cannot be released to the public or used in civil or criminal subpoenas unless a court allows disclosure after notice and a hearing.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1874.3. (a) Any information acquired pursuant to this article shall not be a part of any public record. Except as otherwise provided by law, any authorized governmental agency, an insurer, or an agent authorized by an insurer to act on its behalf, which receives any information furnished pursuant to this article shall not release that information to public inspection. (b) The evidence or information described in this section shall be privileged and shall not be subject to subpoena or subpoena duces tecum in a civil or criminal proceeding unless, after reasonable notice to any insurer, agent authorized by an insurer to act on its behalf, and an authorized governmental agency which has an interest in the information, and a hearing, the court determines that the public interest and any ongoing investigation by the authorized governmental agency, insurer, or an agent authorized by an insurer to act on its behalf will not be jeopardized by its disclosure, or by the issuance of and compliance with a subpoena or subpoena duces tecum. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  174. 1874.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Certain insurers, their authorized agents, and authorized सरकारी agencies and employees are immune from civil liability for releasing or receiving information under Sections 1874.1 or 1874.2, unless fraud or malice is involved.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1874.4. In the absence of fraud or malice, no insurer, or agent authorized by an insurer to act on behalf of the insurer, and no authorized governmental agency or its employees, shall be subject to any civil liability in a cause of action of any kind for releasing or receiving any information pursuant to Section 1874.1 or 1874.2. Nothing in this chapter is intended to, nor does in any way or manner, abrogate or lessen the existing common law or statutory privileges and immunities of an insurer, agent authorized by that insurer to act on behalf of the insurer, or of any authorized governmental agency or its employees. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  175. 1874.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers must report certain stolen or salvage-total-loss covered private passenger automobiles to the specified theft-prevention organization and must follow commissioner-adopted verification procedures before paying total theft losses.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1874.6. Every insurer shall report covered private passenger automobiles involved in theft and salvage total losses, including the vehicle identification number and any other information as may be required, to the National Automobile Theft Bureau or a similar central organization engaged in automobile loss prevention approved by the commissioner, in accordance with regulations promulgated by the commissioner. Prior to the payment of total theft losses, insurers shall comply with verification procedures in accordance with regulations adopted by the commissioner. No insurer, the National Automobile Theft Bureau, or a similar central organization, engaged in automobile loss prevention approved by the commissioner, or their employees or agents, shall be liable for damages in a civil action when the insurer or person acts pursuant to this section in good faith, without malice, and in reasonable belief that the action taken is warranted by the known facts after a reasonable effort to obtain the facts. As used in this section “private passenger automobile” a motor vehicle of the private passenger or station wagon type, any other four-wheel vehicle with a load capacity of 1,500 pounds or less, or a motorcycle. (Added by Stats. 1990, Ch. 948, Sec. 2.)
  176. 1874.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Insurers doing business in the state must pay an annual special purpose assessment, set by the commissioner, up to $0.50 per insured vehicle. The commissioner also funds and oversees grants for district attorneys and related reporting and coordination.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting [1874 - 1874.8] ( Article 4 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1874.8. (a) Each insurer doing business in this state shall pay an annual special purpose assessment to be determined by the commissioner in an amount not to exceed fifty cents ($0.50) for each vehicle insured under an insurance policy it issues in this state, in order to fund the Fraud Division and the Organized Automobile Fraud Activity Interdiction Program. (b) (1) From the funds to be distributed to district attorneys under this section, the commissioner shall fund between three and 10 grants at any one time for a coordinated program targeted at the successful prosecution and elimination of organized automobile fraud activity. These grants may be awarded only to district attorneys. (2) In determining whether to award a district attorney a grant pursuant to this subdivision, the commissioner shall consider factors indicating organized automobile fraud activity in the district attorney’s county, including, but not limited to, the county’s level of general criminal activity, population density, automobile insurance claims frequency, number of suspected fraudulent claims, and prior and current evidence of organized automobile fraud activity. Funding priority shall be given to those grant applications with the potential to have the greatest impact on reducing organized automobile insurance fraud activity committed by an insurer’s employees or agents, brokers, insureds, and others, and lessening the economic losses realized by insurers from that fraud. (3) All participants of a grant under this subdivision shall coordinate their efforts and work in conjunction with the Fraud Division, other participating agencies, and all interested insurers in this regard. (c) Of the funds collected pursuant to this section, upon appropriation by the Legislature, 42.5 percent shall be distributed to district attorneys, 42.5 percent shall be distributed to the Fraud Division, and 15 percent shall be distributed to the Department of the California Highway Patrol. Funds distributed pursuant to this section to the Fraud Division and to the Department of the California Highway Patrol shall be used to fund Fraud Division and Department of the California Highway Patrol investigators to work in conjunction with district attorneys who are awarded grants. Each grantee shall be notified by the Fraud Division of the identity of the investigators assigned to work with the grantee. In accordance with the terms and conditions of the applicable grant, each grantee shall provide the Fraud Division with information resulting from the investigations the grantee conducts pursuant to this section. This section does not prohibit the referral of any cases developed by the Fraud Division to any appropriate prosecutorial entity. (d) A grant under this section shall be awarded on the basis of a single application for a period of three years and shall be subject where applicable to the requirements of subdivision (b) of Section 1872.8, except for the requirement that grants be awarded according to population. Continued funding of a grant shall be contingent upon a grantee’s successful performance, as determined by an annual review by the commissioner. Any redirection of grant funds under this section shall be made only for good cause. The Department of the California Highway Patrol shall submit to the commissioner, for informational purposes only, an annual report on its expenditure of funds under this section in the same format as is required of grantees under this section. (e) Two or more district attorneys may submit a joint application for a grant award under this section. (f) The Fraud Division shall report to the Governor, the Legislature, and to the committees of the Senate and Assembly having jurisdiction over insurance on the results of the grant program established by this section, including funding distributed to the Department of the California Highway Patrol in the annual report submitted pursuant to Section 12922. (g) For purposes of this section, “organized automobile fraud activity” means two or more persons who conspire, aid and abet, or in any other manner act together, to engage in economic automobile theft as defined in subdivision (f) of Section 1872.8, or to violate any of the following sections in a manner that involved an automobile insurance claim: (1) Section 650 or 6152 of the Business and Professions Code. (2) Section 750. (3) Section 549, 550, or 551 of the Penal Code. (Repealed and added by Stats. 2013, Ch. 347, Sec. 5. (SB 476) Effective January 1, 2014.)
  177. 1874.85.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.5. Insurer Inspections [1874.85 - 1874.87] ( Article 4.5 added by Stats. 2000, Ch. 867, Sec. 18. )

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    Insurers that issue automobile liability or collision policies must inspect certain repaired vehicles, and the inspected vehicles must form a sampling large enough to show the department efforts to reduce fraudulent auto body work.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.5. Insurer Inspections [1874.85 - 1874.87] ( Article 4.5 added by Stats. 2000, Ch. 867, Sec. 18. ) ## 1874.85. An insurer that issues automobile liability or collision policies shall inspect vehicles for which it has approved a claim for the cost of auto body repairs, either during the repair process or after the work has been completed, and the number of vehicles inspected shall be a statistical sampling sufficient to demonstrate to the department the insurer’s efforts to reduce fraudulent auto body work during a calendar year. (Amended by Stats. 2002, Ch. 664, Sec. 154. Effective January 1, 2003.)
  178. 1874.86.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.5. Insurer Inspections [1874.85 - 1874.87] ( Article 4.5 added by Stats. 2000, Ch. 867, Sec. 18. )

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    Insurers covered by this article must report specified inspection information to the department when the commissioner requests it, and not more than once a year.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.5. Insurer Inspections [1874.85 - 1874.87] ( Article 4.5 added by Stats. 2000, Ch. 867, Sec. 18. ) ## 1874.86. Each insurer subject to this article shall report, at the request of the commissioner, but not more than annually, to the department on the following: (a) The number of vehicles inspected pursuant to Section 1874.85 and the percentage that this number represents of the total number of vehicles for which it paid a claim for the cost of auto body repairs in the prior calendar year. (b) The results of the inspections, including the nature of any fraud uncovered, and whether or not legal action was pursued. The department shall make the information provided pursuant to this section available to the California Highway Patrol and the Bureau of Automotive Repair. (Amended by Stats. 2010, Ch. 400, Sec. 27. (AB 2782) Effective January 1, 2011.)
  179. 1874.87.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.5. Insurer Inspections [1874.85 - 1874.87] ( Article 4.5 added by Stats. 2000, Ch. 867, Sec. 18. )

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    Insurers must give insureds an Auto Body Repair Consumer Bill of Rights, and the department sets the bill’s content.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.5. Insurer Inspections [1874.85 - 1874.87] ( Article 4.5 added by Stats. 2000, Ch. 867, Sec. 18. ) ## 1874.87. (a) Each insurer subject to this article shall provide each insured with an Auto Body Repair Consumer Bill of Rights either at the time of application for an automobile insurance policy or following an accident that is reported to the insurer. If the insurer provides the insured with an electronic copy of a policy, the bill of rights may also be transmitted electronically. (b) The bill of rights shall be a standardized form developed by the department with the purpose of presenting easy-to-read facts for auto insurance consumers. The content of the bill of rights shall be determined by the department, and at a minimum, shall contain information about all of the following: (1) A consumer’s right to select an auto body repair shop for auto body damage covered by the insurance policy and that an insurer may not require this work to be done at a particular auto body repair shop. (2) The consumer’s right to be informed about auto body repairs made with new original equipment crash parts, new aftermarket crash parts, and used crash parts. (3) The consumer’s right to be informed about coverage for towing services, and for a replacement rental vehicle while a damaged vehicle is being repaired. (4) Toll-free telephone numbers and Internet addresses for reporting suspected fraud or other complaints and concerns about auto body repair shops to the Bureau of Automotive Repair. (5) A consumer’s right to seek and obtain an independent repair estimate directly from a registered auto body repair shop for repair of a damaged vehicle, even when pursuing an insurance claim for repair of that vehicle. (c) The department shall consult with the Bureau of Automotive Repair in determining the information to be contained in the bill of rights. (Amended by Stats. 2009, Ch. 141, Sec. 1. (AB 1179) Effective January 1, 2010.)
  180. 1874.90.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.6. Auto Insurance Fraud Crisis Areas [1874.90- 1874.90.] ( Article 4.6 added by Stats. 2000, Ch. 867, Sec. 19. )

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    The commissioner may declare a region an auto insurance fraud crisis area if fraud is endemic there.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 4.6. Auto Insurance Fraud Crisis Areas [1874.90- 1874.90.] ( Article 4.6 added by Stats. 2000, Ch. 867, Sec. 19. ) ## 1874.90. The commissioner may declare any region of the state as an auto insurance fraud crisis area upon making a finding that auto insurance fraud is endemic to the area. That declaration of an auto insurance fraud crisis area shall be in effect for not more than two years, unless extended or renewed by the commissioner. Auto insurance fraud is endemic to an area if the commissioner determines that organized automobile fraud activity exists in the area and contributes significantly to the cost of automobile insurance in that area. (Added by Stats. 2000, Ch. 867, Sec. 19. Effective January 1, 2001.)
  181. 1875.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section defines “authorized agency” and “insurer” for this chapter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875. As used in this chapter: (a) “Authorized agency” means any of the following officers or agencies, or their duly authorized representatives, when investigating or prosecuting arson in connection with a specific fire: the State Fire Marshal, the Director of the Department of Forestry and Fire Protection, the chief of any city or county fire department, the chief of any fire protection district, the Attorney General, any district attorney, or any peace officer, the Department of Insurance, and any federal agency. (b) “Insurer” means any insurer admitted to write, or otherwise issuing, fire insurance covering property in this state and includes its agents, servants, investigators, and adjusters. “Insurer” includes the California FAIR Plan. (Amended by Stats. 1991, Ch. 602, Sec. 2.)
  182. 1875.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    An authorized agency may request information from an insurer when arson is suspected or evidenced, and the insurer must release the requested relevant information.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875.1. An authorized agency may, when there is evidence or suspicion that the crime of arson has been committed, request any insurer to release all information in its possession that the authorized agency determines to be relevant to the crime. The insurer shall release the following: (a) Any insurance policy or any application for such a policy. (b) Policy premium payment records. (c) History of previous claims made by the insured for fire loss. (d) Material relating to the investigation of the loss, including the statement of any person, proof of loss, and any other relevant evidence. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  183. 1875.10.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    This section states legislative findings about insurance fraud and the public benefit of insurance claims analysis bureaus and data-sharing partnerships.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.10. The Legislature finds and declares as follows: (a) That the business of insurance involves many transactions which have potential for abuse and illegal activities. (b) That insurers and their policyholders ultimately pay the cost of fraudulent insurance claims. (c) That the operation of insurance claims analysis bureaus would be to the benefit of the public, regulators, law enforcement, prosecutors, and insurers in suppressing and preventing insurance claims fraud. (d) That the purpose of insurance claims analysis bureaus is to provide a data service to encourage the identification of utilization patterns by individuals or businesses who provide services in support of insurance claims, and by individual claimants themselves, in order to facilitate the identification and prevention of fraudulent activities. (e) That promotion of an effective public-private partnership between the insurance industry and the commissioner to share data on suspected fraudulent claims is necessary to avoid unnecessary duplication and expense in reporting that data. (f) It is the intent of the Legislature that, to promote a data-sharing partnership that is efficient and cost-effective, the commissioner and the bureau make every effort to obtain suspected fraudulent claims data from reporting and collection sources already in existence and supported by the insurance industry, by licensing those sources as claims analysis bureaus, as provided in this chapter. (Amended by Stats. 1994, Ch. 1247, Sec. 4. Effective January 1, 1995.)
  184. 1875.11.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    An insurance claims analysis bureau cannot operate in this state unless it first files a written application with the commissioner and gets a license.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.11. (a) No insurance claims analysis bureau shall conduct any operations in this state without first filing a written application with the commissioner and obtaining a license to act in that capacity. (b) As used in this section, an insurance claims analysis bureau is an organization, duly licensed pursuant to this article, which collects claims information and data from and disseminates claims information and data to its members or subscribers which is utilized for the purpose of the prevention and suppression of insurance fraud. (Added by Stats. 1991, Ch. 1222, Sec. 3.)
  185. 1875.12.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    The commissioner may license an insurance claims analysis bureau if the applicant meets listed qualifications and files specified documents. The applicant must also allow licensed insurers to join, provide electronic submission tools and access, and make its database information available to state law enforcement at no cost.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.12. (a) The commissioner may license an organization as an insurance claims analysis bureau if it meets the following qualifications: (1) Is a nonprofit corporation organized for the purpose of fraud prevention or is a corporation that has made the filings required by Section 1855.2. (2) Has at least two years of experience, or has a managing officer with at least two years of experience, determined by the commissioner to be relevant to operation of an insurance claims analysis bureau, or has at least two years’ experience collecting and compiling insurance statistical information. (3) Has a member or subscriber base of sufficient size that is, in the opinion of the commissioner, adequate to assure uniformity in data collection and cost efficiency to the insurer. (4) Maintains its records in a computerized format. (b) An applicant seeking a license as an insurance claims analysis bureau shall file with the commissioner the following documents: (1) A copy of its articles of incorporation, its bylaws, and any rules and regulations governing the conduct of its business. (2) A list of members or subscribers. (3) A description of its technical capacity to collect and serve the volume of data necessary to act as an insurance claims analysis bureau. (4) A statement establishing that the applicant meets the conditions set forth in subdivision (a). (5) A certificate signed by an officer of the applicant that it will permit any licensed insurer to become a member or subscriber to the insurance claims analysis bureau. (6) A statement of all of the following: (A) That it will provide admitted insurers subject to Article 6 (commencing with Section 1876) the ability to submit required information to the claims analysis bureau at no cost to the insurer, and also provide nonmember or nonsubscriber insurers, at no cost to the insurer, any software that is specifically designed for the purpose of submitting information electronically that the bureau requires its insurers to use. (B) That information from its data base will be made available to state law enforcement agencies pursuant to existing law, and that it will be made available at no cost to those agencies. (c) This section shall not be interpreted to provide any nonmember or nonsubscriber any rights of membership or subscription in an organization licensed as an insurance claims analysis bureau. (Amended by Stats. 1997, Ch. 501, Sec. 2.8. Effective January 1, 1998.)
  186. 1875.13.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    The commissioner must license an insurance claims analysis bureau by class of claims if the bureau applies and is appropriately qualified.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.13. The commissioner shall license an insurance claims analysis bureau by class of claims, if an insurance claims analysis bureau makes application and is appropriately qualified, for the following classes of claims: (a) Automobile bodily injury, which shall include liability, uninsured motorist, and medical payment. (b) Automobile physical damage. (c) Automobile theft. (d) Fire and allied lines property damage. (e) General liability bodily injury. (f) Disability. (g) Life. (h) Workers’ compensation. (Added by Stats. 1991, Ch. 1222, Sec. 3.)
  187. 1875.14.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    An insurance claims analysis bureau must carry out four functions: collect and compile insurance-claims data, share insurance-claims information with members or subscribers to help prevent fraud, promote training and education to support fraud investigation and prosecution, and give the commissioner California data and records without charge.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.14. An insurance claims analysis bureau shall perform the following functions: (a) Collect and compile information and data from members or subscribers concerning insurance claims. (b) Disseminate information to members or subscribers relating to insurance claims for the purpose of preventing and suppressing insurance fraud. (c) Promote training and education to further insurer investigation, suppression, and prosecution of insurance fraud. (d) Provide, without fee or charge, to the commissioner, all California data and information contained in the records of the insurance claims analysis bureau in furtherance of the prevention and prosecution of insurance fraud. (Added by Stats. 1991, Ch. 1222, Sec. 3.)
  188. 1875.15.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    A licensed insurance claims analysis bureau must set data-reporting rules, and members or subscribers must report specified claim information at a minimum. The commissioner may also require new claims categories to help suppress and prevent fraud.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.15. (a) A licensed insurance claims analysis bureau shall develop rules governing the kind, quality, and frequency of data reporting, which shall be binding on all subscribers or members. The commissioner may require development of new claims categories for the suppression and prevention of fraud. (b) Every member or subscriber shall report, at a minimum, the following regarding any category of claims: (1) Name of claimant. (2) Address of claimant. (3) Date of accident or incident. (4) Identification of medical provider, if applicable. (5) Identification of property repair vendor, if applicable. (6) Identification of members or subscribers and, if applicable, adjusters. (7) Identification of attorneys representing claimants, if applicable. (8) Description of claim. (9) Claimant’s driver license or California Identification card number, if applicable. (10) Claimant’s social security number, if known to the insurer. (11) Vehicle license numbers, if the claim involves automobile insurance. (12) Vehicle identification numbers, if known and the claim involves automobile insurance. (Amended by Stats. 1994, Ch. 1248, Sec. 2. Effective January 1, 1995.)
  189. 1875.16.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    Authorized entities that receive information under this article generally must not release it to public inspection.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.16. Unless otherwise provided by law, any authorized entity which receives any information furnished pursuant to this article shall not release that information to public inspection (1) until such time as its release is required in connection with a criminal or civil proceeding, or (2) is necessary to analyze and present information for release in an insurance claims analysis bureau’s annual report. Any information acquired pursuant to this article shall not be part of any public record nor subject to disclosure under the California Public Records Act. (Added by Stats. 1991, Ch. 1222, Sec. 3.)
  190. 1875.17.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    Licensed insurance claims analysis bureaus must file an annual report with the department by May 1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.17. On or before May 1, 1992, and on or before May 1 of each year thereafter, any licensed insurance claims analysis bureau shall file with the department a report on the scope and extent of its activities in this state for the preceding year. (Added by Stats. 1991, Ch. 1222, Sec. 3.)
  191. 1875.18.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. )

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    Certain automobile insurance claims must be made available to law enforcement on request, and the commissioner must set rules for access and use.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5.5. Insurance Claims Analysis Bureaus [1875.10 - 1875.18] ( Article 5.5 added by Stats. 1991, Ch. 1222, Sec. 3. ) ## 1875.18. (a) Every bodily injury, medical payment, or uninsured motorist claim made under a policy of automobile insurance shall be available, upon request, to law enforcement agencies in this state, whenever that claim relates to an event that occurred within the state. (b) Every claim subject to subdivision (a) shall be available without regard to any limitation in the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1), or any other provision of law, whether or not the law enforcement agency has formed a reasonable belief that a violation of law may have occurred with regard to the claim. (c) (1) A licensed insurance claims analysis bureau shall provide automobile claims information, upon request, to a law enforcement agency pursuant to the authority in subdivision (a). (2) A licensed insurance claims analysis bureau, and any person employed therein, that provides information pursuant to this section shall have the same immunity provided under Section 791.21 as any person disclosing personal or privileged information under Article 6.6 (commencing with Section 791) of Chapter 1. (d) (1) Claims information requested by law enforcement agencies, pursuant to the authority in this section, shall be used solely for the purpose of investigating and prosecuting automobile insurance fraud. Those requests shall be narrowly formulated in order to protect the privacy rights of citizens of this state, while obtaining the information necessary to conduct specific investigations. (2) The commissioner shall establish rules governing the access to, and use of, any information requested or obtained pursuant to this section, and the circumstances under which that information may be inspected and corrected. (Added by Stats. 1997, Ch. 501, Sec. 3. Effective January 1, 1998.)
  192. 1875.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    If an insurer suspects a fire loss was caused by arson, it must give an authorized agency all relevant investigation information and cooperate with the agency’s investigation.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875.2. If any insurer has reason to suspect that a fire loss was caused by incendiary means, the insurer shall furnish an authorized agency with all relevant information acquired during its investigation of the fire loss and cooperate in an investigation by an authorized agency. The authorized agency provided with the information pursuant to this article may release that information to any of the other authorized agencies. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  193. 1875.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    An authorized agency must notify the insurer, if known, when it believes a fire loss was not accidental, and must also provide specific fire-loss information to the claimant’s insurer as soon as possible unless doing so would jeopardize an ongoing investigation.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875.3. An authorized agency shall notify the insurer, if known, and at the expense of the insurer, whenever it has reason to believe that a fire loss was not accidentally caused. The agency shall also release to the claimant’s insurer specific information regarding the fire loss at the earliest time possible unless it determines that an ongoing investigation would be jeopardized. (Amended by Stats. 1991, Ch. 602, Sec. 3.)
  194. 1875.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    Certain insurers, their agents, and authorized agencies are protected from civil damages liability when they share information or assist an investigation under this article or chapter, so long as fraud or malice is absent.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875.4. In the absence of fraud or malice, no insurer or person acting in its behalf who (a) furnishes information whether oral or written, pursuant to this article, or (b) assists in any investigation conducted by an authorized agency, shall be liable for damages in a civil action, nor shall any authorized agency which releases information pursuant to this chapter be liable for damages in a civil action. The act of furnishing information required pursuant to this article shall not constitute an act of fraud or malice. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  195. 1875.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    If an insurer willfully fails to comply with this article, the authorized agency may ask the superior court for an order requiring compliance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875.5. In any case in which an insurer willfully fails to comply with this article, the authorized agency may petition the superior court in an appropriate county for an order requiring compliance. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  196. 1875.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    An authorized agency must not make information public after receiving it under this article, except when disclosure is required for a criminal or civil proceeding.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875.6. Any authorized agency that receives any information furnished as required by this article shall not make the information public until the time that its release is required in connection with a criminal or civil proceeding. (Amended by Stats. 1991, Ch. 602, Sec. 4.)
  197. 1875.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. )

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    This section creates an arson information reporting system, assigns oversight and implementation duties to the State Fire Marshal and Department of Justice, and limits release and public-record treatment of certain information.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 5. Arson Investigations [1875 - 1875.8] ( Article 5 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## 1875.8. (a) There is hereby created the Arson Information Reporting System to permit insurers, law enforcement agencies, fire investigative agencies, and district attorneys to deposit arson case information in a common data base within the Department of Justice. The State Fire Marshal shall oversee the establishment, operation, and maintenance of the Arson Information Reporting System. The Department of Justice shall implement the Arson Information Reporting System in consultation with the State Fire Marshal. (b) The purpose of the data base is to identify utilization patterns by individual claimants and the methods of operation of individuals, groups, or businesses engaged in the commission of arson, and to prevent the commission of insurance fraud by arson. (c) The use of the information deposited pursuant to this article shall be made available to law enforcement agencies, fire investigative agencies, district attorneys, and insurers, via modem, for the purpose of investigating and prosecuting arson and arson-related insurance fraud, or evaluating the validity and payment of fire-related insurance claims. The State Fire Marshal shall establish rules governing the access to, and use of, information and the circumstances under which information may be accessed and corrected. (d) Any information acquired pursuant to this section shall not be a part of any public record. Except as otherwise provided by law, any authorized governmental agency, an insurer, or an agent authorized by an insurer to act on its behalf, which receives any information furnished pursuant to this section, shall not release that information to public inspection until the time that its release is required in connection with a criminal or civil proceeding. (e) Information submitted to the State Fire Marshal pursuant to this section concerning active cases shall be confidential. (f) Nothing in this section shall prohibit the accumulation and public distribution by the bureau of statistical data if that data does not reveal the identity of specific claimants, injured parties, attorneys, physicians, or other service providers. (Added by Stats. 1994, Ch. 420, Sec. 1. Effective January 1, 1995.)
  198. 1876.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. )

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    Insurers that receive certain automobile insurance claims must deposit the claim information with a licensed insurance claims analysis bureau within 20 days.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. ) ## 1876. Every insurer who receives a bodily injury, medical payment, or uninsured motorist claim made under a policy of automobile liability insurance defined in Section 660 or Section 11622 shall within 20 days of the receipt of that claim deposit that claim information with a licensed insurance claims analysis bureau. The claims information deposited pursuant to this section shall include at least the following: (1) the claimant’s driver’s license number or California identification card number, if applicable; (2) the vehicle license number; (3) the vehicle identification number, if known; and (4) the claimant’s social security number, if known to the insurer. (Added by renumbering Section 1876.2 by Stats. 1997, Ch. 501, Sec. 7. Effective January 1, 1998.)
  199. 1876.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. )

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    Information received under this article generally may not be released to the public, except in specified situations.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. ) ## 1876.3. Any information acquired pursuant to this article shall not be part of any public record except as follows: Except as otherwise provided by law, any authorized governmental agency, and insurer, or an agent authorized by an insurer to act on its behalf, which receives any information furnished pursuant to this article shall not release that information to public inspection until such time as its release is required in connection with a criminal or civil proceeding; to analyze and present information for release in the bureau’s annual report pursuant to subdivision (h) of Section 1872.9. Nothing in this section shall prohibit the accumulation and public distribution by the bureau of statistical data if that data does not reveal the identity of specific claimants, injured parties, attorneys, physicians, or other service providers. (Amended by Stats. 1991, Ch. 1222, Sec. 7.)
  200. 1876.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. )

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    Insurers, and their employees or agents, are protected from civil liability for libel, slander, or other tort claims arising from depositing or providing information under this article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. ) ## 1876.4. No insurer, or the employees or agents of any insurer, shall be subject to civil liability for libel, slander, or any other tort cause of action arising from the deposit or furnishing of any information or data pursuant to this article. (Added by Stats. 1989, Ch. 1119, Sec. 3.)

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