Insurance Code — Part 9 | INS — United States — California law | Esheria

Insurance Code

Part 9 of 23 · provisions 1,601–1,800

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. 1155.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Restrictions on Activities [1152 - 1155] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer may contribute to community funds or charitable, philanthropic, or benevolent organizations, but only within limits set by its board of directors.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Restrictions on Activities [1152 - 1155] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 1155. An insurer, within such limits as may be set by the board of directors, may contribute to community funds or to charitable, philanthropic, or benevolent instrumentalities conducive to public welfare or civic betterment. (Added by Stats. 1951, Ch. 564.)
  2. 11550.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    This article defines “liability” to mean liability and common carrier liability insurance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11550. As used in this article, the term “liability” means liability and common carrier liability insurance. (Enacted by Stats. 1935, Ch. 145.)
  3. 11551.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    In this article, “compensation” means workers’ compensation insurance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11551. As used in this article, the term “compensation” means workers’ compensation insurance. (Amended by Stats. 1981, Ch. 714, Sec. 272.)
  4. 11552.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    This section defines “earned premium” for this article.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11552. As used in this article, the term “earned premium,” means the amount remaining of the gross premiums charged on all policies written, including all determined excess and additional premiums, after deducting the aggregate of: (a) Return premiums other than premiums returned to policyholders as dividends. (b) Reinsurance premiums and premiums on policies canceled. (c) Unearned premiums on policies in force. (Enacted by Stats. 1935, Ch. 145.)
  5. 11553.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    This section defines “loss payments” and “loss expense payments” as payments to claimants or on account of claims, including several listed expense categories.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11553. As used in this article, the terms “loss payments,” and “loss expense payments,” mean all payments to claimants or on account of claims. Such payments include but are not restricted to those for: (a) Medical and surgical attendance. (b) Legal expense. (c) Salaries and expenses of investigators, adjusters and field men. (d) Rents. (e) Stationery, telegraph and telephone charges. (f) Postage. (g) Salaries and expenses of office employees. (h) Home office expenses, and all other payments made on account of claims, whether or not such payments are allocated to specific losses. (Enacted by Stats. 1935, Ch. 145.)
  6. 11554.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    The commissioner must treat certain items as liabilities when estimating the condition of an insurer admitted to write liability or compensation insurance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11554. In estimating the condition of any insurer admitted to transact such liability or compensation insurance, the commissioner shall charge as liabilities, among any other items, the following: (a) All outstanding indebtedness of such insurer. (b) A premium reserve on policies in force, equal to the unearned portions of the gross premiums charged for covering the risks and computed on each respective risk from the date of the issuance of the policy. (c) Proper reserves for outstanding losses, computed as set forth in this article. (Enacted by Stats. 1935, Ch. 145.)
  7. 11555.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    An insurer writing compensation or liability insurance must include specified schedules in its annual statement.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11555. An insurer transacting such compensation or liability insurance shall include the following schedules in its annual statement required by law: (a) A schedule showing distribution of unallocated liability loss expense payments. (b) A schedule showing distribution of unallocated compensation loss expense payments. (c) A schedule of its experience under policies of such insurance, in such form as the commissioner prescribes. (Enacted by Stats. 1935, Ch. 145.)
  8. 11555.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Certain malpractice-liability insurers must report specified statistics to the commissioner when requested.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11555.2. Each insurer transacting insurance covering liability for malpractice of any person licensed under the Dental Practice Act (Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code), under the Medical Practice Act (Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code), or under the State Bar Act (Chapter 4 (commencing with Section 6000) of Division 3 of the Business and Professions Code), shall report all of the following statistics to the commissioner, by profession and by medical specialty, upon request of the commissioner: (a) The total number of doctors or lawyers written during the immediately preceding calendar year. (b) The total amount of premiums received from insureds, both written and earned (as reported in the annual statement), during the immediately preceding calendar year. (c) The number of claims reported to the insurer for the first time separately by the year the claim occurred, and the number of claims reported closed during a previous calendar year which were reopened separately by the year the claim occurred. (d) The total number of claims outstanding, together with the monetary amount reserved for loss and allocated loss expense, in the annual statement as of December 31 of the calendar year next preceding, separately stated by the year the claim occurred. (e) (1) The number of claims closed with payment to the claimant during the calendar year next preceding, to be reported by the year the claim occurred, (2) the total monetary amount paid thereon, reported by the year the claim occurred, and (3) the total allocated loss expense paid thereon, reported by the year the claim occurred. (f) The monetary amount paid on claims during the calendar year next preceding, to be reported separately by the year the claim occurred, with allocated loss expense paid, to be reported separately by the year the claim occurred. (g) The number of claims closed without payment to the claimant during the calendar year next preceding, by the year the claim occurred, and the allocated loss expense paid thereon, separately by the year the claim occurred. (h) The monetary amount reserved in the annual statement for the calendar year next preceding on claims incurred but not reported to the insurer. (i) The number of lawsuits filed against the insurer’s insureds, and the number of doctors, included therein, during the calendar year next preceding, to be separately reported by the year the claim occurred. (j) A distribution by size of payment for those claims closed during the calendar year next preceding, showing the number of claims and total amount paid for each monetary category, as determined by the commissioner. (Amended by Stats. 1995, Ch. 586, Sec. 1. Effective January 1, 1996.)
  9. 11556.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    The reserve for outstanding losses and loss expenses for this liability or compensation insurance must be determined under the commissioner’s regulations.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11556. The reserve for outstanding losses and loss expenses under such liability or compensation insurance shall be determined in accordance with the regulations of the commissioner promulgated pursuant to Section 923.5. (Amended by Stats. 1982, Ch. 454, Sec. 121.)
  10. 11557.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    If the commissioner thinks an insurer’s reserves for certain liability or compensation losses and loss expenses are inadequate, the commissioner must require the insurer to hold additional reserves.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Reserves of Insurers [11550 - 11557] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11557. Whenever the reserves for outstanding liability or compensation losses and loss expenses of any insurer, computed pursuant to this article, seem inadequate to the commissioner, he shall require such insurer to maintain additional reserves. (Amended by Stats. 1969, Ch. 705.)
  11. 11580.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Certain liability insurance policies may not be issued or delivered in this state unless they include the required statutory provisions.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580. A policy insuring against losses set forth in subdivision (a) shall not be issued or delivered to any person in this state unless it contains the provisions set forth in subdivision (b). Such policy, whether or not actually containing such provisions, shall be construed as if such provisions were embodied therein. (a) Unless it contains such provisions, the following policies of insurance shall not be thus issued or delivered: (1) Against loss or damage resulting from liability for injury suffered by another person other than (i) a policy of workers’ compensation insurance, or (ii) a policy issued by a nonadmitted Mexican insurer solely for use in the Republic of Mexico. (2) Against loss of or damage to property caused by draught animals or any vehicle, and for which the insured is liable, other than a policy which provides insurance in the Republic of Mexico, issued or delivered in this state by a nonadmitted Mexican insurer. (b) Such policy shall not be thus issued or delivered to any person in this state unless it contains all the following provisions: (1) A provision that the insolvency or bankruptcy of the insured will not release the insurer from the payment of damages for injury sustained or loss occasioned during the life of such policy. (2) A provision that whenever judgment is secured against the insured or the executor or administrator of a deceased insured in an action based upon bodily injury, death, or property damage, then an action may be brought against the insurer on the policy and subject to its terms and limitations, by such judgment creditor to recover on the judgment. (Amended by Stats. 1976, Ch. 1145, Sec. 1.)
  12. 11580.01.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Certain claims-made professional liability policies cannot be issued or delivered unless the application and policy include specific conspicuous claims-made notices.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.01. (a) A policy insuring against legal liability arising from the rendering of professional services by an insured licensed pursuant to the provisions of Division 2 (commencing with Section 500) of the Business and Professions Code, or Chapter 4 (commencing with Section 6000) of Division 3 of the Business and Professions Code, and which generally limits the coverage thereof to liability for only those claims that are first made against the insured while the policy is in force, shall not be issued or delivered to any person in this state unless the application or proposal therefor complies with subdivision (b) and the policy complies with subdivision (c). (b) The form of application or proposal for any such policy described in subdivision (a) shall recite prominently and conspicuously at the heading thereof that it is an application or proposal for a claims-made policy. (c) Each such policy described in subdivision (a) shall contain on the face page thereof a prominent and conspicuous legend or statement substantially to the following effect: NOTICE “Except to such extent as may otherwise be provided herein, the coverage of this policy is limited generally to liability for only those claims that are first made against the insured while the policy is in force. Please review the policy carefully and discuss the coverage thereunder with your insurance agent or broker.” (Added by Stats. 1974, Ch. 513.)
  13. 11580.010.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An auto liability insurer covered for medical transportation services is liable for those charges, and it may pay either the service provider or the insured/claimant. If an insured or claimant receives a vehicle-loss payment that includes these charges, that person is also liable for them to the provider.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.010. (a) Any automobile liability insurer that is responsible for coverage for ordinary, reasonable, and necessary medical transportation services provided to an insured, or on behalf of an insured, to a valid claimant is liable for those charges to the person performing those services. The insurer may discharge this obligation by making payment to the person performing the medical transportation services or to the insured or on behalf of the insured to the claimant. (b) Any insured or claimant who has received payment, which includes charges for medical transportation services, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services. (Added by renumbering Section 11580.09 (as added by Stats. 1987, Ch. 201) by Stats. 1989, Ch. 1360, Sec. 99.)
  14. 11580.011.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Some automobile insurance policies must cover replacement of a child passenger restraint system, and insurers must ask about and handle replacement or reimbursement when a claim is filed.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.011. (a) As used in this section, “child passenger restraint system” means a system as described in Section 27360 of the Vehicle Code. (b) Every policy of automobile liability insurance, as described in Section 16054 of the Vehicle Code, shall provide liability coverage for replacement of a child passenger restraint system that was damaged or was in use by a child during an accident for which liability coverage under the policy is applicable due to the liability of an insured. (c) Every policy of automobile liability insurance that provides uninsured motorist property damage coverage, as described in paragraph (2) of subdivision (a) of Section 11580.26, shall provide coverage for replacement of a child passenger restraint system that was damaged or was in use by a child during an accident for which uninsured motorist property damage coverage under the policy is applicable due to the liability of an uninsured motorist. (d) Every policy that provides automobile collision coverage, as described in Section 660, or every policy that provides automobile physical damage coverage, as described in Section 660, shall include a child passenger restraint system within the definition of covered property, if the child passenger restraint system was in use by a child during an accident or, if the child passenger restraint system was in the vehicle and it sustained a loss covered by the policy. (e) Upon the filing of a claim pursuant to a policy described in subdivision (b), (c), or (d), unless otherwise determined, an insurer shall have an obligation to ask whether a child passenger restraint system was in use by a child during an accident or was in the vehicle at the time of a loss that is covered by the policy, and an obligation to replace the child passenger restraint system or reimburse the claimant for the cost of purchasing a new passenger restraint system in accordance with this section if it was in use by a child during the accident or if it sustained a covered loss while in the vehicle. (f) An insured, upon acquiring a replacement child passenger restraint system, may surrender the child passenger restraint system that was replaced to the nearest office of the Department of the California Highway Patrol. (Amended by Stats. 2009, Ch. 234, Sec. 13. (AB 299) Effective January 1, 2010.)
  15. 11580.02.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A liability insurer may review defense bills for its insured, but it may not pay a reviewer using certain incentive-based methods.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.02. A liability insurer may review bills submitted for the defense of its insured, but shall not compensate a reviewer based on any of the following: (a) A percentage of the amount by which a bill is reduced for payment. (b) The number of claims or the cost of services for which the reviewer has denied authorization or payment. (c) An agreement that no compensation will be due unless one or more bills are reduced for payment. (Added by Stats. 1999, Ch. 883, Sec. 1. Effective January 1, 2000.)
  16. 11580.04.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section limits certain additional insured endorsements in specified construction-contract settings and makes invalid contract terms that require prohibited insurance procurement.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.04. Any additional insured endorsement issued by an admitted or nonadmitted insurer for the benefit of a public agency in connection with, collateral to, or affecting any construction contract to which the provisions of subdivision (b) of Section 2782 of the Civil Code apply, shall not provide any duty of indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under subdivision (b) of Section 2782 of the Civil Code. In any case where a claim or loss encompasses the negligence of the original insured and the active negligence of the additional insured that is not covered because of this section, the insurer’s obligation shall be limited to obligations permitted by this section. Any contract requirement that requires a promisor to procure insurance that is invalid under this section shall be invalid. (Added by Stats. 1996, Ch. 558, Sec. 1. Effective January 1, 1997.)
  17. 11580.05.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section says the article states California’s full public policy for certain automobile and motor vehicle liability insurance policies, with specific exceptions and cross-references.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.05. The Legislature declares that the public policy of this state in regard to provisions authorized or required to be included in policies affording automobile liability insurance or motor vehicle liability insurance issued or delivered in this state shall be as stated in this article, that this article expresses the total public policy of this state respecting the content of such policies, and that no provision of this article or of the Vehicle Code shall apply to policies affording automobile liability insurance or motor vehicle liability insurance in the Republic of Mexico issued or delivered in this state by a nonadmitted Mexican insurer. The Legislature further declares that it is the intent of the Legislature that the requirements set forth in Article 2 (commencing with Section 16450) of Chapter 3 of Division 7 of the Vehicle Code shall apply only to an owner’s policy or operator’s policy of liability insurance certified as provided in Section 16431 of the Vehicle Code as proof of ability to respond in damages, and that the requirements set forth in Article 4 (commencing with Section 11620) of Chapter 1 of Part 3 of Division 2 of the Insurance Code shall apply only to automobile liability insurance policies issued under the California Assigned Risk Plan. Except as provided above, any other policy issued or delivered in this state affording liability insurance with respect to ownership, maintenance, or use of a motor vehicle shall comply with the requirements set forth in Sections 11580, 11580.1, and 11580.2. (Amended by Stats. 1976, Ch. 1145.)
  18. 11580.06.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section defines several insurance terms used in the article, including motor vehicle, insured, bodily injury, automobile, arrest, operated by, use, terms, and leased motor vehicle.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.06. Except as may be otherwise provided in this article: (a) The term “motor vehicle” means any vehicle designed for use principally upon streets and highways and subject to motor vehicle registration under the laws of this state. (b) The term “insured” shall include the person or persons to whom any policy subject to this article is issued as named insured and any other person to whom coverage is afforded under the terms of any such policy. (c) The term “bodily injury” shall include sickness or disease, including death resulting therefrom. (d) The term “automobile” means any self-propelled motor vehicle, with neither more than nor less than four wheels, designed for use principally upon streets and highways and subject to motor vehicle registration under the laws of this state. (e) The term “arrest” shall have the same meaning as set forth in Section 834 of the Penal Code. (f) The term “operated by” or “when operating” shall be conclusively presumed to describe the conduct of the person sitting immediately behind the steering controls of the motor vehicle. The person shall be conclusively presumed to be the sole operator of the motor vehicle. (g) The term “use” when applied to a motor vehicle shall only mean operating, maintaining, loading, or unloading a motor vehicle. (h) The word “terms” when used with reference to a policy or endorsement includes the provision of coverage, exclusions, restrictions, conditions, deductions, and limits. (i) Unless otherwise provided in this code, the term “leased motor vehicle” means a motor vehicle leased or rented by a lessor licensed to lease motor vehicles under a written contract for a period of six months or longer. (Amended by Stats. 1994, Ch. 359, Sec. 1. Effective January 1, 1995.)
  19. 11580.07.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A licensed insurance person or entity may not require an insured to buy or keep automobile collision coverage as a condition of comprehensive coverage, except when required by a conditional sales vendor or when the policy requires both coverages.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.07. Except when required by a conditional sales vendor, no person or entity who is licensed pursuant to Chapter 5 (commencing with Section 1621) of Part 2 of Division 1 and who holds an appointment by, or transacts insurance with, an insurer which is admitted to issue a policy of automobile liability insurance, as described in Section 16054 of the Vehicle Code, or a motor vehicle liability policy, as described in Section 16450 of the Vehicle Code, or any policy or coverage described in Section 660, shall require any insured to purchase or maintain automobile collision coverage, as defined in Section 660, for the insured motor vehicle as a condition to the issuance or maintenance of comprehensive coverage for such motor vehicle, unless such policy requires the purchase of both such coverages. This section shall apply only to those policies and coverages issued or renewed on or after the effective date of this section. As used in this section, “comprehensive coverage” means coverage for loss or damage to the insured motor vehicle resulting from a cause other than collision or upset. (Amended by Stats. 1976, Ch. 1079.)
  20. 11580.08.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An auto insurance issuer, its agency, or employee must not ask an applicant about certain non-conviction arrests or make policy issuance depend on that disclosure.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.08. With respect to disclosure of the fact of an arrest for any violation of the Vehicle Code or of a city or county ordinance or resolution relating to vehicles or their operators or owner which did not result in a conviction, the issuer, or his agency or employee, of any policy of automobile liability insurance (as described in Section 16056 of the Vehicle Code), any motor vehicle liability policy (as described in Section 16450 of the Vehicle Code), or any policy or coverage described in Section 660, shall not inquire of an applicant whether he has been arrested under such circumstances or to condition the issuance of any such policy on the applicant’s making such disclosure. (Added by Stats. 1975, Ch. 420.)
  21. 11580.09.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Auto liability insurance policies must include a prominent notice about limits of future coverage.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.09. (a) Any policy of automobile liability insurance shall contain a notice stating limits of future coverage. The notice shall be prominently displayed on the first page of the policy or in related documents which are provided to the policyholder. (b) For the purposes of this section: (1) “Automobile liability insurance policy” means a policy of automobile liability insurance, and any other policy of automobile insurance that contains as a component automobile liability insurance, but limited to those policies that are defined in Section 660. (2) “Limits of future coverage” means specified reasons for which the insurer may cancel or refuse to renew the policy or increase the premium for the same coverage. (3) “Notice” means the specific information specified in paragraph (2) or a clear and concise reference to the exact location of the information in the policy or in related documents provided to the policyholder. (c) For the purposes of notice of cancellation, the insurer shall list those grounds for valid notice of cancellation as specified in Section 661. (d) For the purposes of nonrenewal or premium increase, the insurer shall state the reasons for this action which shall include, if applicable, but not be limited to, the following: (1) Accident involvement by an insured, and whether the insured is at fault in the accident. (2) A change in, or an addition of, an insured vehicle. (3) A change in, or addition of, an insured under the policy. (4) A change in the location of garaging of an insured vehicle. (5) A change in the use of the insured vehicle. (6) Convictions for violating any provision of the Vehicle Code or the Penal Code relating to the operation of a motor vehicle. (7) The payment made by an insurer due to a claim filed by an insured or a third party. (e) A statement shall be included in the nonrenewal section that some nonrenewals and premium increases may result from reasons that are not specified in subdivision (d) for an insurer that are both lawful and not unfairly discriminatory. (Added by Stats. 1988, Ch. 1143, Sec. 1. Operative April 1, 1989, by Sec. 2 of Ch. 1143.)
  22. 11580.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Auto liability policies must include specified coverage terms, and insurers may use only certain listed exclusions or agreements.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.1. (a) No policy of automobile liability insurance described in Section 16054 of the Vehicle Code covering liability arising out of the ownership, maintenance, or use of any motor vehicle shall be issued or delivered in this state on or after the effective date of this section unless it contains the provisions set forth in subdivision (b). However, none of the requirements of subdivision (b) shall apply to the insurance afforded under the policy (1) to the extent that the insurance exceeds the limits specified in subdivision (a) of Section 16056 of the Vehicle Code, or (2) if the policy contains an underlying insurance requirement, or provides for a retained limit of self-insurance, equal to or greater than the limits specified in subdivision (a) of Section 16056 of the Vehicle Code. (b) Every policy of automobile liability insurance to which subdivision (a) applies shall contain all of the following provisions: (1) Coverage limits not less than the limits specified in subdivision (a) of Section 16056 of the Vehicle Code. (2) Designation by explicit description of, or appropriate reference to, the motor vehicles or class of motor vehicles to which coverage is specifically granted. (3) Designation by explicit description of the purposes for which coverage for those motor vehicles is specifically excluded. (4) Provision affording insurance to the named insured with respect to any owned or leased motor vehicle covered by the policy, and to the same extent that insurance is afforded to the named insured, to any other person using the motor vehicle, provided the use is by the named insured or with his or her permission, express or implied, and within the scope of that permission, except that: (A) with regard to insurance afforded for the loading or unloading of the motor vehicle, the insurance may be limited to apply only to the named insured, a relative of the named insured who is a resident of the named insured’s household, a lessee or bailee of the motor vehicle, or an employee of any of those persons; and (B) the insurance afforded to any person other than the named insured need not apply to: (i) any employee with respect to bodily injury sustained by a fellow employee injured in the scope and course of his or her employment, or (ii) any person, or to any agent or employee thereof, employed or otherwise engaged in the business of selling, repairing, servicing, delivering, testing, road-testing, parking, or storing automobiles with respect to any accident arising out of the maintenance or use of a motor vehicle in connection therewith. As used in this chapter, “owned motor vehicle” includes all motor vehicles described and rated in the policy. (c) In addition to any exclusion provided in paragraph (3) of subdivision (b), the insurance afforded by any policy of automobile liability insurance to which subdivision (a) applies, including the insurer’s obligation to defend, may, by appropriate policy provision, be made inapplicable to any or all of the following: (1) Liability assumed by the insured under contract. (2) Liability for bodily injury or property damage caused intentionally by or at the direction of the insured. (3) Liability imposed upon or assumed by the insured under any workers’ compensation law. (4) Liability for bodily injury to any employee of the insured arising out of and in the course of his or her employment. (5) Liability for bodily injury to an insured or liability for bodily injury to an insured whenever the ultimate benefits of that indemnification accrue directly or indirectly to an insured. (6) Liability for damage to property owned, rented to, transported by, or in the charge of, an insured. A motor vehicle operated by an insured shall be considered to be property in the charge of an insured. (7) Liability for any bodily injury or property damage with respect to which insurance is or can be afforded under a nuclear energy liability policy. (8) Any motor vehicle or class of motor vehicles, as described or designated in the policy, with respect to which coverage is explicitly excluded, in whole or in part. “The insured” as used in paragraphs (1), (2), (3), and (4) shall mean only that insured under the policy against whom the particular claim is made or suit brought. “An insured” as used in paragraphs (5) and (6) shall mean any insured under the policy including those persons who would have otherwise been included within the policy’s definition of an insured but, by agreement, are subject to the limitations of paragraph (1) of subdivision (d). (d) Notwithstanding paragraph (4) of subdivision (b), or Article 2 (commencing with Section 16450) of Chapter 3 of Division 7 of, or Article 2 (commencing with Section 17150) of Chapter 1 of Division 9 of, the Vehicle Code, the insurer and any named insured may, by the terms of any policy of automobile liability insurance to which subdivision (a) applies, or by a separate writing relating thereto, agree as to either or both of the following limitations, the agreement to be binding upon every insured to whom the policy applies and upon every third-party claimant: (1) That coverage and the insurer’s obligation to defend under the policy shall not apply nor accrue to the benefit of any insured or any third-party claimant while any motor vehicle is being used or operated by a natural person or persons designated by name. These limitations shall apply to any use or operation of a motor vehicle, including the negligent or alleged negligent entrustment of a motor vehicle to that designated person or persons. This agreement applies to all coverage provided by that policy and is sufficient to comply with the requirements of paragraph (2) of subdivision (a) of Section 11580.2 to delete coverage when a motor vehicle is operated by a natural person or persons designated by name. The insurer shall have an obligation to defend the named insured when all of the following apply to that designated natural person: (A) He or she is a resident of the same household as the named insured. (B) As a result of operating the insured motor vehicle of the named insured, he or she is jointly sued with the named insured. (C) He or she is an insured under a separate automobile liability insurance policy issued to him or her as a named insured, which policy does not provide a defense to the named insured. An agreement made by the insurer and any named insured more than 60 days following the inception of the policy excluding a designated person by name shall be effective from the date of the agreement and shall, with the signature of a named insured, be conclusive evidence of the validity of the agreement. That agreement shall remain in force as long as the policy remains in force, and shall apply to any continuation, renewal, or replacement of the policy by the named insured, or reinstatement of the policy within 30 days of any lapse thereof. (2) That with regard to a policy issued to a named insured engaged in the business of leasing vehicles for those vehicles that are leased for a term in excess of six months, or selling, repairing, servicing, delivering, testing, road-testing, parking, or storing automobiles, coverage shall not apply to any person other than the named insured or his or her agent or employee, except to the extent that the limits of liability of any other valid and collectible insurance available to that person are not equal to the limits of liability specified in subdivision (a) of Section 16056 of the Vehicle Code. If the policy is issued to a named insured engaged in the business of leasing vehicles, which business includes the lease of vehicles for a term in excess of six months, and the lessor includes in the lease automobile liability insurance, the terms and limits of which are not otherwise specified in the lease, the named insured shall incorporate a provision in each vehicle lease contract advising the lessee of the provisions of this subdivision and the fact that this limitation is applicable except as otherwise provided for by statute or federal law. (e) Nothing in this section or in Section 16054 or 16450 of the Vehicle Code shall be construed to constitute a homeowner’s policy, personal and residence liability policy, personal and farm liability policy, general liability policy, comprehensive personal liability policy, manufacturers’ and contractors’ policy, premises liability policy, special multiperil policy, or any policy or endorsement where automobile liability coverage is offered as incidental to some other basic coverage as an “automobile liability policy” within the meaning of Section 16054 of the Vehicle Code, or as a “motor vehicle liability policy” within the meaning of Section 16450 of the Vehicle Code, nor shall this section apply to a policy that provides insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle in the Republic of Mexico issued or delivered in this state by a nonadmitted Mexican insurer, notwithstanding that the policy may provide automobile or motor vehicle liability coverage on insured premises or the ways immediately adjoining. (f) (1) On and after January 1, 1976, no policy of automobile liability insurance described in subdivision (a) shall be issued, amended, or renewed in this state if it contains any provision that expressly or impliedly excludes from coverage under the policy the operation or use of an insured motor vehicle by the named insured in the performance of volunteer services for a nonprofit charitable organization or governmental agency by providing social service transportation. This subdivision shall not apply in any case in which the named insured receives any remuneration of any kind other than reimbursement for actual mileage driven in the performance of those services at a rate not to exceed the following: (A) For the 1980–81 fiscal year, the maximum rate authorized by the California Victim Compensation and Government Claims Board shall also be known as the “base rate.” (B) For each fiscal year thereafter, the greater of either (A) the maximum rate authorized by the Department of General Services or (B) the base rate as adjusted by the California Consumer Price Index. (2) No policy of insurance issued under this section may be canceled by an insurer solely for the reason that the named insured is performing volunteer services for a nonprofit charitable organization or governmental agency consisting of providing social service transportation. (3) For the purposes of this section, “social service transportation” means transportation services provided by private nonprofit organizations or individuals to either individuals who are senior citizens or individuals or groups of individuals who have special transportation needs because of physical or mental conditions and supported in whole or in part by funding from private or public agencies. (g) Notwithstanding paragraph (4) of subdivision (b), or Article 2 (commencing with Section 16450) of Chapter 3 of Division 7 of, or Article 2 (commencing with Section 17150) of Chapter 1 of Division 9 of, the Vehicle Code, a Mexican nonadmitted insurer and any named insured may, by the terms of any policy of automobile insurance for use solely in the Republic of Mexico to which subdivision (a) applies, or by a separate writing relating thereto, agree to the limitation that coverage under that policy shall not apply to any person riding in or occupying a vehicle owned by the insured or driven by another person with the permission of the insured. The agreement shall be binding upon every insured to whom the policy applies and upon any third-party claimant. (h) No policy of automobile insurance that provides insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle solely in the Republic of Mexico issued by a nonadmitted Mexican insurance company, shall be subject to, or provide coverage for, those coverages provided in Section 11580.2. (Amended by Stats. 2016, Ch. 31, Sec. 176. (SB 836) Effective June 27, 2016.)
  23. 11580.10.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Liability insurers that issue or renew certain auto or motor vehicle liability policies must give the named insured written notice of the policy identification number and provide at least two copies.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.10. Any liability insurer issuing or renewing an automobile liability policy or a motor vehicle liability policy within the meaning of subdivision (a) of Section 16054 of the Vehicle Code shall provide written notice to the named insured of the policy identification number that may be used for verifying financial responsibility for purposes of Section 16028 of the Vehicle Code. This notice may be provided in a written binder, if any, or in the policy documents provided upon issuance or renewal of the policy. The insurer shall provide at least two copies of the notice to the insured and shall, upon request and payment of the reasonable cost thereof, provide additional copies. (Amended by Stats. 1989, Ch. 1124, Sec. 1. Effective September 30, 1989.)
  24. 11580.15.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Some admitted auto liability insurers must give applicants a written, freestanding disclosure of available discounts when issuing or renewing policies, subject to Insurance Commissioner approval.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.15. Subject to the approval of the Insurance Commissioner, every admitted insurer issuing or renewing motor vehicle liability policies as defined in Section 16054 or 16450 of the Vehicle Code shall, at the time of offering to issue or offering to renew any such policy, disclose to the applicant in writing as a freestanding document, which brings attention to the applicant, all discounts, if any, that are available from the insurer for that insurance and for any related insurance provided under that policy. The insurer shall disclose any discounts for good drivers, senior drivers, students, multiple cars, and any other discounts that are available from that insurer. The disclosure shall be required for personal lines of motor vehicle insurance. Every insurer that sells insurance through licensed agents or brokers shall disclose in writing to the agents and brokers all of the discounts that are required to be disclosed to the applicant under this section, and shall require its agents and brokers to make the disclosures required by this section. (Amended by Stats. 1991, Ch. 160, Sec. 1.)
  25. 11580.17.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    The department may not stop an insurer from physically inspecting a motor vehicle for collision or comprehensive coverage, and if an insurer chooses to inspect, it must inspect each requested vehicle that was not already covered, subject to a new-vehicle exemption.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.17. The department shall not prohibit an insurer from electing to inspect physically a motor vehicle for purposes of issuing a policy for collision or comprehensive coverage. The inspection of the motor vehicle shall be at no cost to the insured. The information ascertained from that inspection may only be used to determine the extent of insurability for collision or comprehensive coverage for the motor vehicle. If an insurer elects to conduct an inspection prior to offering comprehensive and collision insurance pursuant to this section, the insurer shall inspect every motor vehicle for which coverage is requested if the vehicle was not previously insured under a policy of comprehensive and collision coverage. An insurer may exempt from this requirement new motor vehicles if a copy of the sales contract is delivered to the insurer within five business days of the purchase of the new motor vehicle. The inspection shall be done by the insurer or its agent, and shall be performed not more than 20 miles from the address where the vehicle is insured, and during normal business hours. (Added by Stats. 2000, Ch. 210, Sec. 1. Effective January 1, 2001.)
  26. 11580.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Insurers must include uninsured motorist coverage in qualifying motor vehicle bodily injury policies, with limited written opt-outs and specified minimum limits.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.2. (a) (1) No policy of bodily injury liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle, except for policies that provide insurance in the Republic of Mexico issued or delivered in this state by nonadmitted Mexican insurers, shall be issued or delivered in this state to the owner or operator of a motor vehicle, or shall be issued or delivered by any insurer licensed in this state upon any motor vehicle then principally used or principally garaged in this state, unless the policy contains, or has added to it by endorsement, a provision with coverage limits at least equal to the limits specified in subdivision (m) and in no case less than the financial responsibility requirements specified in Section 16056 of the Vehicle Code insuring the insured, the insured’s heirs or legal representative for all sums within the limits that he, she, or they, as the case may be, shall be legally entitled to recover as damages for bodily injury or wrongful death from the owner or operator of an uninsured motor vehicle. The insurer and any named insured, prior to or subsequent to the issuance or renewal of a policy, may, by agreement in writing, in the form specified in paragraph (2) or paragraph (3), (1) delete the provision covering damage caused by an uninsured motor vehicle completely, or (2) delete the coverage when a motor vehicle is operated by a natural person or persons designated by name, or (3) agree to provide the coverage in an amount less than that required by subdivision (m) but not less than the financial responsibility requirements specified in Section 16056 of the Vehicle Code. Any of these agreements by any named insured or agreement for the amount of coverage shall be binding upon every insured to whom the policy or endorsement provisions apply while the policy is in force, and shall continue to be so binding with respect to any continuation or renewal of the policy or with respect to any other policy that extends, changes, supersedes, or replaces the policy issued to the named insured by the same insurer, or with respect to reinstatement of the policy within 30 days of any lapse thereof. A policy shall be excluded from the application of this section if the automobile liability coverage is provided only on an excess or umbrella basis. Nothing in this section shall require that uninsured motorist coverage be offered or provided in any homeowner policy, personal and residents’ liability policy, comprehensive personal liability policy, manufacturers’ and contractors’ policy, premises liability policy, special multiperil policy, or any other policy or endorsement where automobile liability coverage is offered as incidental to some other basic coverage, notwithstanding that the policy may provide automobile or motor vehicle liability coverage on insured premises or the ways immediately adjoining. (2) The agreement specified in paragraph (1) to delete the provision covering damage caused by an uninsured motor vehicle completely or delete the coverage when a motor vehicle is operated by a natural person or persons designated by name shall be in the following form: “The California Insurance Code requires an insurer to provide uninsured motorists coverage in each bodily injury liability insurance policy it issues covering liability arising out of the ownership, maintenance, or use of a motor vehicle. Those provisions also permit the insurer and the applicant to delete the coverage completely or to delete the coverage when a motor vehicle is operated by a natural person or persons designated by name. Uninsured motorists coverage insures the insured, his or her heirs, or legal representatives for all sums within the limits established by law, that the person or persons are legally entitled to recover as damages for bodily injury, including any resulting sickness, disease, or death, to the insured from the owner or operator of an uninsured motor vehicle not owned or operated by the insured or a resident of the same household. An uninsured motor vehicle includes an underinsured motor vehicle as defined in subdivision (p) of Section 11580.2 of the Insurance Code.” The agreement may contain additional statements not in derogation of or in conflict with the foregoing. The execution of the agreement shall relieve the insurer of liability under this section while the agreement remains in effect. (3) The agreement specified in paragraph (1) to provide coverage in an amount less than that required by subdivision (m) shall be in the following form: “The California Insurance Code requires an insurer to provide uninsured motorists coverage in each bodily injury liability insurance policy it issues covering liability arising out of the ownership, maintenance, or use of a motor vehicle. Those provisions also permit the insurer and the applicant to agree to provide the coverage in an amount less than that required by subdivision (m) of Section 11580.2 of the Insurance Code but not less than the financial responsibility requirements. Uninsured motorists coverage insures the insured, his or her heirs, or legal representatives for all sums within the limits established by law, that the person or persons are legally entitled to recover as damages for bodily injury, including any resulting sickness, disease, or death, to the insured from the owner or operator of an uninsured motor vehicle not owned or operated by the insured or a resident of the same household. An uninsured motor vehicle includes an underinsured motor vehicle as defined in subdivision (p) of Section 11580.2 of the Insurance Code.” The agreement may contain additional statements not in derogation of or in conflict with this paragraph. However, it shall be presumed that an application for a policy of bodily injury liability insurance containing uninsured motorist coverage in an amount less than that required by subdivision (m), signed by the named insured and approved by the insurer, with a policy effective date after January 1, 1985, shall be a valid agreement as to the amount of uninsured motorist coverage to be provided. (b) As used in subdivision (a), “bodily injury” includes sickness or disease, including death, resulting therefrom; “named insured” means only the individual or organization named in the declarations of the policy of motor vehicle bodily injury liability insurance referred to in subdivision (a); as used in subdivision (a) if the named insured is an individual “insured” means the named insured and the spouse of the named insured and, while residents of the same household, relatives of either while occupants of a motor vehicle or otherwise, heirs and any other person while in or upon or entering into or alighting from an insured motor vehicle and any person with respect to damages he or she is entitled to recover for care or loss of services because of bodily injury to which the policy provisions or endorsement apply; as used in subdivision (a), if the named insured is an entity other than an individual, “insured” means any person while in or upon or entering into or alighting from an insured motor vehicle and any person with respect to damages he or she is entitled to recover for care or loss of services because of bodily injury to which the policy provisions or endorsement apply. As used in this subdivision, “individual” shall not include persons doing business as corporations, partnerships, or associations. As used in this subdivision, “insured motor vehicle” means the motor vehicle described in the underlying insurance policy of which the uninsured motorist endorsement or coverage is a part, a temporary substitute automobile for which liability coverage is provided in the policy or a newly acquired automobile for which liability coverage is provided in the policy if the motor vehicle is used by the named insured or with his or her permission or consent, express or implied, and any other automobile not owned by or furnished for the regular use of the named insured or any resident of the same household, or by a natural person or persons for whom coverage has been deleted in accordance with subdivision (a) while being operated by the named insured or his or her spouse if a resident of the same household, but “insured motor vehicle” shall not include any automobile while used as a public or livery conveyance. As used in this section, “uninsured motor vehicle” means a motor vehicle with respect to the ownership, maintenance or use of which there is no bodily injury liability insurance or bond applicable at the time of the accident, or there is the applicable insurance or bond but the company writing the insurance or bond denies coverage thereunder or refuses to admit coverage thereunder except conditionally or with reservation, or an “underinsured motor vehicle” as defined in subdivision (p), or a motor vehicle used without the permission of the owner thereof if there is no bodily injury liability insurance or bond applicable at the time of the accident with respect to the owner or operator thereof, or the owner or operator thereof be unknown, provided that, with respect to an “uninsured motor vehicle” whose owner or operator is unknown: (1) The bodily injury has arisen out of physical contact of the automobile with the insured or with an automobile that the insured is occupying. (2) The insured or someone on his or her behalf has reported the accident within 24 hours to the police department of the city where the accident occurred or, if the accident occurred in unincorporated territory then either to the sheriff of the county where the accident occurred or to the local headquarters of the California Highway Patrol, and has filed with the insurer within 30 days thereafter a statement under oath that the insured or his or her legal representative has or the insured’s heirs have a cause of action arising out of the accident for damages against a person or persons whose identity is unascertainable and set forth facts in support thereof. As used in this section, “uninsured motor vehicle” shall not include a motor vehicle owned or operated by the named insured or any resident of the same household or self-insured within the meaning of the Financial Responsibility Law of the state in which the motor vehicle is registered or that is owned by the United States of America, Canada, a state or political subdivision of any of those governments or an agency of any of the foregoing, or a land motor vehicle or trailer while located for use as a residence or premises and not as a vehicle, or any equipment or vehicle designed or modified for use primarily off public roads, except while actually upon public roads. As used in this section, “uninsured motor vehicle” also means an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency. An insurer’s solvency protection shall be applicable only to accidents occurring during a policy period in which its insured’s motor vehicle coverage is in effect where the liability insurer of the tortfeasor becomes insolvent within one year of the accident. In the event of payment to any person under the coverage required by this section and subject to the terms and conditions of the coverage, the insurer making the payment, shall to the extent thereof, be entitled to any proceeds that may be recoverable from the assets of the insolvent insurer through any settlement or judgment of the person against the insolvent insurer. Nothing in this section is intended to exclude from the definition of an uninsured motor vehicle any motorcycle or private passenger-type four-wheel drive motor vehicle if that vehicle was subject to and failed to comply with the Financial Responsibility Law of this state. (c) The insurance coverage provided for in this section does not apply either as primary or as excess coverage: (1) To property damage sustained by the insured. (2) To bodily injury of the insured while in or upon or while entering into or alighting from a motor vehicle other than the described motor vehicle if the owner thereof has insurance similar to that provided in this section. (3) To bodily injury of the insured with respect to which the insured or his or her representative shall, without the written consent of the insurer, make any settlement with or prosecute to judgment any action against any person who may be legally liable therefor. (4) In any instance where it would inure directly or indirectly to the benefit of any workers’ compensation carrier or to any person qualified as a self-insurer under any workers’ compensation law, or directly to the benefit of the United States, or any state or any political subdivision thereof. (5) To establish proof of financial responsibility as provided in Section 16054 of the Vehicle Code. (6) To bodily injury of the insured while occupying a motor vehicle owned by an insured or leased to an insured under a written contract for a period of six months or longer, unless the occupied vehicle is an insured motor vehicle. “Motor vehicle” as used in this paragraph means any self-propelled vehicle. (7) To bodily injury of the insured when struck by a vehicle owned by an insured, except when the injured insured’s vehicle is being operated, or caused to be operated, by a person without the injured insured’s consent in connection with criminal activity that has been documented in a police report and that the injured insured is not a party to. (8) To bodily injury of the insured while occupying a motor vehicle rented or leased to the insured for public or livery purposes. (d) Subject to paragraph (2) of subdivision (c), the policy or endorsement may provide that if the insured has insurance available to the insured under more than one uninsured motorist coverage provision, any damages shall not be deemed to exceed the higher of the applicable limits of the respective coverages, and the damages shall be prorated between the applicable coverages as the limits of each coverage bear to the total of the limits. (e) The policy or endorsement added thereto may provide that if the insured has valid and collectible automobile medical payment insurance available to him or her, the damages that the insured shall be entitled to recover from the owner or operator of an uninsured motor vehicle shall be reduced for purposes of uninsured motorist coverage by the amounts paid or due to be paid under the automobile medical payment insurance. (f) The policy or an endorsement added thereto shall provide that the determination as to whether the insured shall be legally entitled to recover damages, and if so entitled, the amount thereof, shall be made by agreement between the insured and the insurer or, in the event of disagreement, by arbitration. The arbitration shall be conducted by a single neutral arbitrator. An award or a judgment confirming an award shall not be conclusive on any party in any action or proceeding between (i) the insured, his or her insurer, his or her legal representative, or his or her heirs and (ii) the uninsured motorist to recover damages arising out of the accident upon which the award is based. If the insured has or may have rights to benefits, other than nonoccupational disability benefits, under any workers’ compensation law, the arbitrator shall not proceed with the arbitration until the insured’s physical condition is stationary and ratable. In those cases in which the insured claims a permanent disability, the claims shall, unless good cause be shown, be adjudicated by award or settled by compromise and release before the arbitration may proceed. Any demand or petition for arbitration shall contain a declaration, under penalty of perjury, stating whether (i) the insured has a workers’ compensation claim; (ii) the claim has proceeded to findings and award or settlement on all issues reasonably contemplated to be determined in that claim; and (iii) if not, what reasons amounting to good cause are grounds for the arbitration to proceed immediately. The arbitration shall be deemed to be a proceeding and the hearing before the arbitrator shall be deemed to be the trial of an issue therein for purposes of issuance of a subpoena by an attorney of a party to the arbitration under Section 1985 of the Code of Civil Procedure. Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure shall be applicable to these determinations, and all rights, remedies, obligations, liabilities and procedures set forth in Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure shall be available to both the insured and the insurer at any time after the accident, both before and after the commencement of arbitration, if any, with the following limitations: (1) Whenever in Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure, reference is made to the court in which the action is pending, or provision is made for application to the court or obtaining leave of court or approval by the court, the court that shall have jurisdiction for the purposes of this section shall be the superior court of the State of California, in and for any county that is a proper county for the filing of a suit for bodily injury arising out of the accident, against the uninsured motorist, or any county specified in the policy or an endorsement added thereto as a proper county for arbitration or action thereon. (2) Any proper court to which application is first made by either the insured or the insurer under Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure for any discovery or other relief or remedy, shall thereafter be the only court to which either of the parties shall make any applications under Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure with respect to the same accident, subject, however, to the right of the court to grant a change of venue after a hearing upon notice, upon any of the grounds upon which change of venue might be granted in an action filed in the superior court. (3) A deposition pursuant to Chapter 9 (commencing with Section 2025.010) of Title 4 of Part 4 of the Code of Civil Procedure may be taken without leave of court, except that leave of court, granted with or without notice and for good cause shown, must be obtained if the notice of the taking of the deposition is served by either party within 20 days after the accident. (4) Subdivision (a) of Section 2025.280 of the Code of Civil Procedure is not applicable to discovery under this section. (5) For the purposes of discovery under this section, the insured and the insurer shall each be deemed to be “a party to the action,” where that phrase is used in Section 2025.260 of the Code of Civil Procedure. (6) Interrogatories under Chapter 13 (commencing with Section 2030.010) of Title 4 of Part 4 of the Code of Civil Procedure and requests for admission under Chapter 16 (commencing with Section 2033.010) of Title 4 of Part 4 of the Code of Civil Procedure may be served by either the insured or the insurer upon the other at any time more than 20 days after the accident without leave of court. (7) Nothing in this section limits the rights of any party to discovery in any action pending or that may hereafter be pending in any court. (g) The insurer paying a claim under an uninsured motorist endorsement or coverage shall be entitled to be subrogated to the rights of the insured to whom the claim was paid against any person legally liable for the injury or death to the extent that payment was made. The action may be brought within three years from the date that payment was made hereunder. (h) An insured entitled to recovery under the uninsured motorist endorsement or coverage shall be reimbursed within the conditions stated herein without being required to sign any release or waiver of rights to which he or she may be entitled under any other insurance coverage applicable; nor shall payment under this section to the insured be delayed or made contingent upon the decisions as to liability or distribution of loss costs under other bodily injury liability insurance or any bond applicable to the accident. Any loss payable under the terms of the uninsured motorist endorsement or coverage to or for any person may be reduced: (1) By the amount paid and the present value of all amounts payable to him or her, his or her executor, administrator, heirs, or legal representative under any workers’ compensation law, exclusive of nonoccupational disability benefits. (2) By the amount the insured is entitled to recover from any other person insured under the underlying liability insurance policy of which the uninsured motorist endorsement or coverage is a part, including any amounts tendered to the insured as advance payment on behalf of the other person by the insurer providing the underlying liability insurance. (i) (1) No cause of action shall accrue to the insured under any policy or endorsement provision issued pursuant to this section unless one of the following actions have been taken within two years from the date of the accident: (A) Suit for bodily injury has been filed against the uninsured motorist, in a court of competent jurisdiction. (B) Agreement as to the amount due under the policy has been concluded. (C) The insured has formally instituted arbitration proceedings by notifying the insurer in writing sent by certified mail, return receipt requested. Notice shall be sent to the insurer or to the agent for process designated by the insurer filed with the department. (2) Any arbitration instituted pursuant to this section shall be concluded either: (A) Within five years from the institution of the arbitration proceeding. (B) If the insured has a workers’ compensation claim arising from the same accident, within three years of the date the claim is concluded, or within the five-year period set forth in subparagraph (A), whichever occurs later. (3) The doctrines of estoppel, waiver, impossibility, impracticality, and futility apply to excuse a party’s noncompliance with the statutory timeframe, as determined by the court. (4) Parties to the insurance contract may stipulate in writing to extending the time to conclude arbitration. (j) Notwithstanding subdivisions (b) and (i), in the event the accident occurs in any other state or foreign jurisdiction to which coverage is extended under the policy and the insurer of the tortfeasor becomes insolvent, any action authorized pursuant to this section may be maintained within three months of the insolvency of the tortfeasor’s insurer, but in no event later than the pertinent period of limitation of the jurisdiction in which the accident occurred. (k) Notwithstanding subdivision (i), any insurer whose insured has made a claim under his or her uninsured motorist coverage, and the claim is pending, shall, at least 30 days before the expiration of the applicable statute of limitation, notify its insured in writing of the statute of limitation applicable to the injury or death. Failure of the insurer to provide the written notice shall operate to toll any applicable statute of limitation or other time limitation for a period of 30 days from the date the written notice is actually given. The notice shall not be required if the insurer has received notice that the insured is represented by an attorney. (l) As used in subdivision (b), “public or livery conveyance,” or terms of similar import, shall not include the operation or use of a motor vehicle by the named insured in the performance of volunteer services for a nonprofit charitable organization or governmental agency by providing social service transportation as defined in subdivision (f) of Section 11580.1. This subdivision shall apply only to policies of insurance issued, amended, or renewed on or after January 1, 1976. (m) Coverage provided under an uninsured motorist endorsement or coverage shall be offered with coverage limits equal to the limits of liability for bodily injury in the underlying policy of insurance, but shall not be required to be offered with limits in excess of the following amounts: (1) A limit of thirty thousand dollars ($30,000) because of bodily injury to or death of one person in any one accident. (2) Subject to the limit for one person set forth in paragraph (1), a limit of sixty thousand dollars ($60,000) because of bodily injury to or death of two or more persons in any one accident. (n) Underinsured motorist coverage shall be offered with limits equal to the limits of liability for the insured’s uninsured motorist limits in the underlying policy, and may be offered with limits in excess of the uninsured motorist coverage. For the purposes of this section, uninsured and underinsured motorist coverage shall be offered as a single coverage. However, an insurer may offer coverage for damages for bodily injury or wrongful death from the owner or operator of an underinsured motor vehicle at greater limits than an uninsured motor vehicle. (o) If an insured has failed to provide an insurer with wage loss information or medical treatment record releases within 15 days of the insurer’s request or has failed to submit to a medical examination arranged by the insurer within 20 days of the insurer’s request, the insurer may, at any time prior to 30 days before the actual arbitration proceedings commence, request, and the insured shall furnish, wage loss information or medical treatment record releases, and the insurer may require the insured, except during periods of hospitalization, to make himself or herself available for a medical examination. The wage loss information or medical treatment record releases shall be submitted by the insured within 10 days of request and the medical examination shall be arranged by the insurer no sooner than 10 days after request, unless the insured agrees to an earlier examination date, and not later than 20 days after the request. If the insured fails to comply with the requirements of this subdivision, the actual arbitration proceedings shall be stayed for at least 30 days following compliance by the insured. The proceedings shall be scheduled as soon as practicable following expiration of the 30-day period. (p) This subdivision applies only when bodily injury, as defined in subdivision (b), is caused by an underinsured motor vehicle. If the provisions of this subdivision conflict with subdivisions (a) through (o), the provisions of this subdivision shall prevail. (1) As used in this subdivision, “an insured motor vehicle” is one that is insured under a motor vehicle liability policy, or automobile liability insurance policy, self-insured, or for which a cash deposit or bond has been posted to satisfy a financial responsibility law. (2) “Underinsured motor vehicle” means a motor vehicle that is an insured motor vehicle but insured for an amount that is less than the uninsured motorist limits carried on the motor vehicle of the injured person. (3) This coverage does not apply to any bodily injury until the limits of bodily injury liability policies applicable to all insured motor vehicles causing the injury have been exhausted by payment of judgments or settlements, and proof of the payment is submitted to the insurer providing the underinsured motorist coverage. (4) When bodily injury is caused by one or more motor vehicles, whether insured, underinsured, or uninsured, the maximum liability of the insurer providing the underinsured motorist coverage shall not exceed the insured’s underinsured motorist coverage limits, less the amount paid to the insured by or for any person or organization that may be held legally liable for the injury. (5) The insurer paying a claim under this subdivision shall, to the extent of the payment, be entitled to reimbursement or credit in the amount received by the insured from the owner or operator of the underinsured motor vehicle or the insurer of the owner or operator. (6) If the insured brings an action against the owner or operator of an underinsured motor vehicle, he or she shall forthwith give to the insurer providing the underinsured motorist coverage a copy of the complaint by personal service or certified mail. All pleadings and depositions shall be made available for copying or copies furnished the insurer, at the insurer’s expense, within a reasonable time. (7) Underinsured motorist coverage shall be included in all policies of bodily injury liability insurance providing uninsured motorist coverage issued or renewed on or after July 1, 1985. Notwithstanding this section, an agreement to delete uninsured motorist coverage completely, or with respect to a person or persons designated by name, executed prior to July 1, 1985, shall remain in full force and effect. (q) Regardless of the number of vehicles involved whether insured or not, persons covered, claims made, premiums paid or the number of premiums shown on the policy, in no event shall the limit of liability for two or more motor vehicles or two or more policies be added together, combined, or stacked to determine the limit of insurance coverage available to injured persons. (Amended by Stats. 2005, Ch. 294, Sec. 23. Effective January 1, 2006.)
  27. 11580.23.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If an uninsured motorist is sued for bodily injury, the insured or the insured’s representative must give the insurer written notice within a reasonable time, and not before two years from the cause of action accrues. Failure to give notice cannot by itself justify denial of uninsured motorist benefits unless the insurer proves prejudice.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.23. (a) If a suit for bodily injury has been filed against an uninsured motorist in a court of competent jurisdiction, notice in writing of the suit shall be provided the insurer of the insured plaintiff within a reasonable time after the insured knew or should have known of the uninsured status of the motorist, but in no event shall that notice be required before two years from the date of the accrual of the cause of action on which the claim is based. Failure of the insured or his or her representative to give notice shall not be a basis for denial of the uninsured motorist benefits in the absence of proof of prejudice by the insurer. (b) The Legislature hereby finds that this section is declarative of existing law. It is the intent of the Legislature to abrogate the holdings in cases such as State Farm Mutual Auto. Ins. Co. v. Patton, 194 Cal. App. 3d 626, to the extent that they are inconsistent with this section. Those decisions are abrogated and shall not apply to any matters not final. (Amended by Stats. 2003, Ch. 56, Sec. 2. Effective January 1, 2004.)
  28. 11580.24.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section limits how a private passenger car used in a personal vehicle sharing program can be classified and sets duties for the sharing program, including insurance documentation, recordkeeping, no commercial use, and liability handling.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.24. (a) A private passenger motor vehicle insured by its owner pursuant to a policy of insurance subject to Section 11580.1 or 11580.2 shall not be classified as a commercial vehicle, for-hire vehicle, permissive use vehicle, or livery solely because its owner allows it to be used for personal vehicle sharing as long as all of the following circumstances apply: (1) The personal vehicle sharing is conducted pursuant to a personal vehicle sharing program. (2) The annual revenue received by the vehicle’s owner that was generated by the personal vehicle sharing of the vehicle does not exceed the annual expenses of owning and operating the vehicle, including depreciation, interest, lease payments, auto loan payments, insurance, maintenance, parking, fuel, cleaning, automobile repair, and costs associated with personal vehicle sharing, including, but not limited to, the installation, operation, and maintenance of computer hardware and software, signage identifying the vehicle as a personal sharing vehicle, and any fees charged by a personal vehicle sharing program. (3) The owner of the private passenger motor vehicle does not knowingly place the vehicle into commercial use, as defined by Section 675.5, by a personal vehicle sharing user while engaged in personal vehicle sharing. (b) For purposes of this section the following definitions apply: (1) “Personal vehicle sharing” means the use of private passenger motor vehicles by persons other than the vehicle’s owner, in connection with a personal vehicle sharing program. (2) “Personal vehicle sharing program” means a legal entity qualified to do business in the State of California engaged in the business of facilitating the sharing of private passenger vehicles for noncommercial use by individuals within the state. (3) “Private passenger motor vehicle” means a vehicle that is insured, or is subject to being insured, under a personal automobile liability insurance policy insuring a single individual or individuals residing in the same household, as the named insured, or meets the requirements of Section 16058 of the Vehicle Code, but does not include a vehicle with fewer than four wheels. (c) A personal vehicle sharing program shall, for each vehicle that it facilitates the use of, do all of the following: (1) Provide the registered owner of the vehicle with a Department of Motor Vehicles Form REG 5085 or other suitable proof of compliance with the insurance requirements of this section and the requirements of the California Financial Responsibility Law in Section 1656.2 of the Vehicle Code, a copy of which shall be maintained in the vehicle by the vehicle’s registered owner during any time when the vehicle is operated by any person other than the vehicle’s owner pursuant to a personal vehicle sharing program. (2) Collect, maintain, and make available to the vehicle’s owner, the vehicle owner’s primary automobile liability insurer on file with the Department of Motor Vehicles, and to any other government agency as required by law, at the cost of the personal vehicle sharing program, verifiable electronic records that identify the date, time, initial and final locations of the vehicle, and miles driven when the vehicle is under the control of a person other than the vehicle’s owner pursuant to a personal vehicle sharing program. (3) Not knowingly permit the vehicle to be operated for commercial use by a personal vehicle sharing user while engaged in personal vehicle sharing. (4) Use only private passenger vehicles. (5) Facilitate the installation, operation, and maintenance of computer hardware and software and signage, necessary for a vehicle to be used in a personal vehicle sharing program, including payment of the cost of damage or theft of that equipment and any damage caused to the vehicle by the installation, operation, and maintenance of that equipment. (d) Notwithstanding any other law or any provision in a private passenger motor vehicle owner’s automobile insurance policy, in the event of a loss or injury that occurs during any time period when the vehicle is under the operation and control of a person, other than the vehicle owner, pursuant to a personal vehicle sharing program, or otherwise under the control of a personal vehicle sharing program, the personal vehicle sharing program shall assume all liability of the owner and shall be considered the owner of the vehicle for all purposes. Nothing in this section limits the liability of the personal vehicle sharing program for its acts or omissions that result in injury to any persons as a result of the use or operation of a personal vehicle sharing program. (e) A personal vehicle sharing program shall continue to be liable pursuant to subdivision (d) until both of the following occur: (1) The private passenger motor vehicle is returned to a location designated by the personal vehicle sharing program. (2) The earliest of one of the following occurs: (A) The expiration of the time period established for the particular use of the vehicle. (B) The intent to terminate the personal vehicle sharing use is verifiably communicated to the personal vehicle sharing program. (C) The vehicle’s owner takes possession and control of the vehicle. (f) The personal vehicle sharing program shall assume liability for a claim in which a dispute exists as to who was in control of the vehicle when the loss occurred giving rise to the claim, and the vehicle’s private passenger motor vehicle insurer shall indemnify the personal vehicle sharing program to the extent of its obligation under the applicable insurance policy, if it is determined that the vehicle’s owner was in control of the vehicle at the time of the loss. (g) If the owner of the vehicle is named as a defendant in a civil action for a loss or injury that occurs during any time period when the vehicle is under the operation and control of a person other than the vehicle’s owner pursuant to a personal vehicle sharing program, or otherwise under the control of a personal vehicle sharing program, the personal vehicle sharing program shall have the duty to defend and indemnify the vehicle’s owner, subject to the provisions of subdivisions (d) and (f). (h) Notwithstanding any other law or any provision in a vehicle owner’s automobile liability insurance policy, while a private passenger motor vehicle is used by a person other than its owner pursuant to personal vehicle sharing facilitated through a personal vehicle sharing program, all of the following shall apply: (1) The insurer of that vehicle on file with the Department of Motor Vehicles may exclude any and all coverage afforded pursuant to its policy. (2) The primary and excess insurer or insurers of the owners, operators, and maintainers of the private passenger motor vehicle used in a personal vehicle sharing program shall have the right to notify an insured that it has no duty to defend or indemnify any person or organization for liability for any loss that occurs during use of the vehicle in a personal vehicle sharing program. (i) A policy of insurance that is subject to Section 11580.1 or 11580.2 shall not be canceled, voided, terminated, rescinded, or nonrenewed solely on the basis that the private passenger motor vehicle has been made available for personal vehicle sharing pursuant to a personal vehicle sharing program that is in compliance with this section. (Amended by Stats. 2024, Ch. 244, Sec. 1. (AB 2743) Effective January 1, 2025.)
  29. 11580.241.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A personal vehicle sharing program must provide specified insurance coverage and written disclosures for each vehicle it facilitates, and it faces civil penalties for violations.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.241. (a) A personal vehicle sharing program shall, for each vehicle that it facilitates the use of, do all of the following: (1) Provide both of the following during all times that the vehicle is engaged in personal vehicle sharing: (A) (i) Insurance coverages for the vehicle and operator at a minimum of forty-five thousand dollars ($45,000) for bodily injury or death for one person, ninety thousand dollars ($90,000) for bodily injury or death for all persons, and fifteen thousand dollars ($15,000) for property damage. (ii) On and after January 1, 2031, the personal vehicle sharing program shall not provide liability coverage less than three times the minimum insurance requirements for private passenger vehicles set forth in Section 16056 of the Vehicle Code. (B) The ability for the vehicle owner and operator to obtain or purchase additional insurance in excess of the minimum mandatory coverage and limits pursuant to subparagraph (A), including comprehensive and collision coverages or contractual protections. (2) Provide the vehicle owner and any person that operates the vehicle pursuant to a personal vehicle sharing program with a written disclosure of all of the following: (A) The terms and conditions contained in this section, including any applicable insurance requirements, coverages, coverage gaps, protections, limits, and exclusions. (B) The minimum mandatory coverage and limits that the personal vehicle sharing program is required to provide to owners and operators pursuant to Section 16056 of the Vehicle Code. (C) The coverages and limits provided by the personal vehicle sharing program. (D) The requirement that the personal vehicle sharing program provide the vehicle owner and any person that operates the vehicle pursuant to a personal vehicle sharing program with the option to purchase or obtain additional limits, coverages, or protections. (3) Disclose all of the following in writing to the vehicle owner: (A) That the vehicle owner may have chosen higher limits, different coverages, or both, on their personal automobile insurance policy than those being provided by the personal vehicle sharing program, and, if so, that they have the option to purchase or obtain higher limits or optional coverages or protections. (B) That their personal automobile insurance may expressly exclude coverage for a vehicle while it is being operated pursuant to a personal vehicle sharing program in accordance with subdivision (h) of Section 11580.24. (C) That if their personal automobile insurer does not expressly exclude coverage for vehicle sharing, it may still deny coverage for an accident occurring during vehicle sharing if the annual revenue from the personal vehicle sharing program to the vehicle owner exceeds the vehicle owner’s annual expense of owning and operating the vehicle, as provided in subdivision (a) of Section 11580.24. (b) (1) A person who violates this section is liable to the state for a civil penalty, to be determined by the commissioner, not to exceed five thousand dollars ($5,000) for each violation or, if the violation was willful, a civil penalty not to exceed ten thousand dollars ($10,000) for each violation. (2) The duties and obligations imposed by this act are cumulative with any other duties or obligations imposed under any other law, and shall not be construed to relieve any party from a duty or obligation imposed under any other law. (c) A penalty imposed pursuant to subdivision (b) is appealable by means of any remedy provided by Section 12940 or by the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). (d) (1) If the commissioner has reason to believe that a person has engaged or is engaging in this state in a violation of this section, and that a proceeding by the commissioner would be in the interest of the public, the commissioner shall issue and serve upon that person an order to show cause. The order to show cause shall contain a statement of the charges, a statement of that person’s potential liability under this section, and a notice of a hearing. The hearing shall be held at a time and place fixed in the notice, which shall not be less than 30 days after the service of the notice, for the purpose of determining whether or not the commissioner shall issue an order to that person to pay the penalty imposed by subdivision (b) and to cease and desist those methods, acts, or practices that violate this section. (2) If the charges noticed pursuant to paragraph (1) are confirmed by a preponderance of the evidence, the commissioner shall issue and cause to be served upon the person an order requiring that person to pay the penalty imposed pursuant to subdivision (b) and to cease and desist from engaging in those methods, acts, or practices found to be in violation of this section. (3) The hearing shall be conducted in accordance with the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), except that the hearings may be conducted by an administrative law judge in the administrative law bureau of the department when the proceedings involve a common question of law or fact with another proceeding arising under this code that may be conducted by the administrative law bureau’s administrative law judges. The commissioner and the appointed administrative law judge shall have all the powers granted under the Administrative Procedure Act. (4) The person shall be entitled to have the proceedings and the order reviewed by means of any remedy provided by Section 12940 or by the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code). (Added by Stats. 2024, Ch. 244, Sec. 2. (AB 2743) Effective January 1, 2025.)
  30. 11580.25.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A motor vehicle insured under certain insurance policies cannot be classified as a common carrier, livery, or for-hire vehicle just because the named insured is doing volunteer transportation services for a nonprofit charitable organization or a governmental agency.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.25. No motor vehicle insured pursuant to a policy of insurance issued under Section 11580.1 or 11580.2 shall be classified as a common carrier, livery, or for-hire vehicle solely for the reason that the named insured is performing volunteer services for a nonprofit charitable organization or governmental agency consisting of providing social service transportation as defined in subdivision (f) of Section 11580.1. (Added by Stats. 1980, Ch. 1320, Sec. 3. Effective September 30, 1980.)
  31. 11580.26.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Insurers must offer certain uninsured motor vehicle property damage coverage with qualifying motor vehicle liability policies, and claim payments are allowed only if specific contact, identification, reporting, and arbitration conditions are met.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.26. (a) Except where a named insured has agreed pursuant to Section 11580.2 to delete the coverages provided by that section, no policy of bodily injury liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle, except where the policy provides insurance in the Republic of Mexico issued or delivered in this state by nonadmitted Mexican insurers, and except a policy insuring a commercial vehicle as defined in Section 260 of the Vehicle Code, shall be issued or delivered in this state to the owner or operator of a motor vehicle, or shall be issued or delivered by any insurer licensed in this state upon any motor vehicle then principally used or principally garaged in this state, unless a named insured has been offered the following coverage: (1) Where the policy of motor vehicle liability insurance includes collision coverage as defined in subdivision (d) of Section 660, coverage which provides that the deductible amount, if any, to be paid by the named insured under the collision coverage shall be payable by the insurer in the event of collision involving a vehicle owned by the named insured and insured under the policy, and an uninsured motor vehicle. (2) Where the policy of motor vehicle liability insurance does not include collision coverage as defined in subdivision (d) of Section 660, coverage for property damage to the insured motor vehicle, but not including personal property contained therein, caused by the owner or operator of an uninsured motor vehicle. As used in this subdivision, “property damage” means payment for loss or damage to the insured motor vehicle resulting from collision, not to exceed its actual cash value or three thousand five hundred dollars ($3,500), whichever is less, for which loss or damage the insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle. Property damage does not include compensation for loss of use of the motor vehicle. As used in this subdivision, the term “insured motor vehicle” means the motor vehicle described in the underlying insurance policy of which the uninsured motorist property damage coverage or endorsement applies. (b) Every payment by an insurer under either coverage provided in paragraphs (1) and (2) of subdivision (a) shall be payable under the terms and conditions set forth in the policy, and shall be made only where the collision involves actual, direct physical contact between the insured and the uninsured motor vehicle and the owner or operator of the uninsured motor vehicle is identified or the uninsured motor vehicle is identified by its license number, provided that the insured or someone on his or her behalf shall have reported the accident within 10 business days to his or her insurer or their agent and, provided further, that it is also determined by the insured and insurer or, in the event of disagreement, by arbitration conducted by a single neutral arbitrator, when the insured has formally instituted arbitration proceedings within one year from the date of the accident, that the insured is legally entitled to recover the amount of the payments for property damage from the owner or operator of the uninsured motor vehicle. No cause of action shall exist against either an insured or insurer from exercising the right to request arbitration of a claim under this section or Section 11580.2. (c) Any named insured, prior to or subsequent to the issuance or renewal of a policy, may elect not to accept the type of coverage provided by this section or the insurer and any named insured may agree in writing to waive this coverage when a motor vehicle is used or operated by a person or persons designated by name. That election shall be binding upon every insured to whom the policy or endorsement provisions apply while the policy is in force and shall continue to be so binding, with respect to any continuation or renewal of the policy, or with respect to any other policy which extends, changes, supersedes, or replaces the policy issued to the named insured by the same insurer or with respect to reinstatement of the policy within 30 days of any lapse thereof. A policy shall be excluded from the application of this section if the only coverage, with respect to the use of any motor vehicle, is limited to the contingent liability arising out of the use of nonowned motor vehicles or if the automobile liability coverage is provided only on an excess or umbrella basis. (d) An insurer paying a claim under any coverage required by this section shall be entitled to be subrogated to the rights of the insured to whom the claim was paid against any person legally liable for the damage to the insured motor vehicle to the extent that payment was made. The action may be brought within three years from the date that payment was made pursuant to this section. In the event of a covered loss to a vehicle that is insured for the coverage described in paragraph (2) of subdivision (a) and also insured for collision coverage, the collision coverage shall pay for the covered loss and the insurance described in paragraph (2) of subdivision (a) shall only pay any deductible not covered by the collision coverage not to exceed three thousand five hundred dollars ($3,500). (e) As used in this section, “uninsured motor vehicle” means any motor vehicle with respect to the ownership, maintenance, or use of which there is no property damage liability insurance or bond applicable at the time of the accident, or there is applicable insurance or bond but the company writing the insurance or bond denies coverage thereunder or refuses to admit coverage thereunder, except conditionally or with reservation, or a motor vehicle used without the permission of the owner thereof if there is no property damage liability insurance or bond applicable at the time of the accident with respect to the owner or operator thereof. A motor vehicle which has at least the minimum property damage liability limits required pursuant to Section 16056 of the Vehicle Code shall not be held to be an uninsured motor vehicle even when the property damage liability limits are not sufficient to compensate for all property damage caused by the owner or operator of the vehicle. As used in this section, “uninsured motor vehicle” shall not include a motor vehicle owned or operated by any insured or any resident of the named insured’s household or self-insured within the meaning of the financial responsibility provisions of the state in which the motor vehicle is registered or which is owned by the United States of America, Canada, a state or political subdivision of any government, or an agency of any of the foregoing, or a land motor vehicle or trailer operated on rails or crawler treads or while located for use as a residence for premises and not as a vehicle, or a farm-type tractor or equipment designed for use principally off public roads, except while actually upon public roads. As used in this section, “uninsured motor vehicle” also means an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency. An insurer’s solvency protection shall be applicable only to accidents occurring during a policy period in which its insured’s motor vehicle coverage is in effect where the liability insurer of the tortfeasor becomes insolvent within one year of the accident. In the event of payment to any person under the coverage required by this section and subject to the terms and conditions of the coverage, the insurer making the payment shall, to the extent thereof, be entitled to any proceeds which may be recoverable from the assets of the insolvent insurer through any settlement or judgment of the person against the insolvent insurer. (f) The offer of coverage required by this section shall be made only for policies issued or renewed on or after July 1, 1984. (g) Any insurer whose insured has made a claim under either coverage provided in paragraphs (1) and (2) of subdivision (a), and that claim is pending, shall, at least 30 days before the expiration of the applicable statute of limitation, notify its insured in writing of the statute of limitation applicable to the property damage. Failure of the insurer to provide the written notice shall operate to toll any applicable statute of limitation until 30 days after the date the written notice is actually given. The notice shall not be required if the insurer has received notice that the insured is represented by an attorney. (Amended by Stats. 1988, Ch. 1471, Sec. 3.)
  32. 11580.27.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insured motor vehicle cannot be classified as certain commercial passenger or service vehicle types just because the named insured uses it to provide public social services or social service transportation.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.27. (a) For purposes of insurance, a motor vehicle insured pursuant to a policy of insurance issued under Section 11580.1 or 11580.2 shall not be classified as a common carrier, commercial vehicle, for-hire vehicle, permissive use vehicle, or livery solely for the reason that the named insured is operating or using the insured motor vehicle to provide public social services, as defined in Section 10051 of the Welfare and Institutions Code, or social service transportation, as defined in subdivision (f) of Section 11580.1. (b) This section does not impair, affect, or change the rights, duties, or obligations of the employer of the named insured. (Added by Stats. 2025, Ch. 713, Sec. 1. (AB 815) Effective January 1, 2026.)
  33. 11580.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If a minor insured seeking uninsured motorists’ coverage recovery has an arbitration award, the award is treated as a compromise and the court may disapprove it only on the grounds listed in Section 1286.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.3. When an insured entitled to recovery under uninsured motorists’ coverage is a minor, an arbitration award upon the minor’s claim is deemed to be a compromise and is governed by Part 8 (commencing with Section 3300) of Division 4 of the Probate Code; provided, however, that the court may disapprove the award only on the grounds specified in Section 1286.2 of the Code of Civil Procedure. (Amended by Stats. 1988, Ch. 113, Sec. 12. Effective May 25, 1988. Operative July 1, 1988, by Sec. 23 of Ch. 113.)
  34. 11580.4.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    In certain uninsured motorist actions or arbitrations, a DMV certificate may be used as evidence to create a rebuttable presumption that the vehicle was uninsured at the time of the accident.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.4. In any action or arbitration proceeding to determine whether an insured shall be entitled to recovery of damages under uninsured motorist coverage, the certificate of the Department of Motor Vehicles that the owner or operator of the motor vehicle alleged to have been an uninsured motor vehicle at the time of the accident has not established financial responsibility, as provided in Section 16020 of the Vehicle Code, shall be admissible in evidence to create a rebuttable presumption that such vehicle was an uninsured motor vehicle at the time of the accident. (Amended by Stats. 1974, Ch. 1409.)
  35. 11580.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An arbitration award under Section 11580.2 does not count as res judicata or collateral estoppel in a pending or later court case by the insured against the owner or operator of an uninsured motor vehicle.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.5. No award made in an arbitration proceeding instituted pursuant to Section 11580.2 shall be deemed to be res judicata or collateral estoppel in any court action which may be pending or brought by the insured against the owner or operator of an uninsured motor vehicle. (Added by Stats. 1967, Ch. 1654.)
  36. 11580.6.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A liability insurance policy that extends coverage to Mexico must include a specific warning about possible jail time and other penalties if the insured lacks Mexican insurance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.6. Where a policy of liability insurance covering the ownership, maintenance, or use of a motor vehicle or aircraft contains a provision indicating that coverage is extended to accidents, occurrences, and loss arising in Mexico, the policy shall contain an additional provision, either on the face of the policy or by an endorsement attached thereto stating as follows: WARNING Unless you have automobile or aircraft insurance written by a Mexican insurance company, you may spend many hours or days in jail, if you have an accident in Mexico. Insurance coverage should be secured from a company licensed under the laws of Mexico to write such insurance in order to avoid complications and some other penalties possible under the laws of Mexico, including the possible impoundment of your automobile or aircraft. (Amended by Stats. 1968, Ch. 511.)
  37. 11580.8.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section states California public policy on how liability insurance policies should be treated when multiple policies may cover the same motor-vehicle injury or death event.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.8. The Legislature declares it to be the public policy of this state to avoid so far as possible conflicts and litigation, with resulting court congestion, between and among injured parties, insureds, and insurers concerning which, among various policies of liability insurance and the various coverages therein, are responsible as primary, excess, or sole coverage, and to what extent, under the circumstances of any given event involving death or injury to persons or property caused by the operation or use of a motor vehicle. The Legislature further declares it to be the public policy of this state that Section 11580.9 of the Insurance Code expresses the total public policy of this state respecting the order in which two or more of such liability insurance policies covering the same loss shall apply, and such public policy is not to be changed or modified by any provision of the Vehicle Code except in those express cases where the requirements of Article 2 (commencing with Section 16450) of Chapter 3 of Division 7 of the Vehicle Code apply with regard to a policy of liability insurance certified as provided in Section 16431 of the Vehicle Code. (Added by Stats. 1970, Ch. 300.)
  38. 11580.9.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section sets rules for when automobile liability policies are treated as primary or excess, and it limits changes to those presumptions unless all insurers and named insureds sign a written agreement.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11580.9. (a) Where two or more policies affording valid and collectible automobile liability insurance apply to the same motor vehicle in an occurrence out of which a liability loss shall arise, and one policy affords coverage to a named insured engaged in the business of selling, repairing, servicing, delivering, testing, road-testing, parking, or storing motor vehicles, then both of the following shall be conclusively presumed: (1) If, at the time of loss, the motor vehicle is being operated by any person engaged in any of these businesses, or by his or her employee or agent, the insurance afforded by the policy issued to the person engaged in the business shall be primary, and the insurance afforded by any other policy shall be excess. (2) If, at the time of loss, the motor vehicle is being operated by any person other than as described in paragraph (1), the insurance afforded by the policy issued to any person engaged in any of these businesses shall be excess over all other insurance available to the operator as a named insured or otherwise. (b) Where two or more policies apply to the same loss, and one policy affords coverage to a named insured who in the course of his or her business rents or leases motor vehicles without operators, it shall be conclusively presumed that the insurance afforded by that policy to a person other than the named insured or his or her agent or employee, shall be excess over and not concurrent with, any other valid and collectible insurance applicable to the same loss covering the person as a named insured or as an additional insured under a policy with limits at least equal to the financial responsibility requirements specified in Section 16056 of the Vehicle Code. The presumption provided by this subdivision shall apply only if, at the time of the loss, the involved motor vehicle either: (1) Qualifies as a “commercial vehicle.” For purposes of this subdivision, “commercial vehicle” means a type of vehicle subject to registration or identification under the laws of this state and is one of the following: (A) Used or maintained for the transportation of persons for hire, compensation, or profit. (B) Designed, used, or maintained primarily for the transportation of property. (2) Has been leased for a term of six months or longer. (c) Where two or more policies are applicable to the same loss arising out of the loading or unloading of a motor vehicle, and one or more of the policies is issued to the owner, tenant, or lessee of the premises on which the loading or unloading occurs, it shall be conclusively presumed that the insurance afforded by the policy covering the motor vehicle shall not be primary, notwithstanding anything to the contrary in any endorsement required by law to be placed on the policy, but shall be excess over all other valid and collectible insurance applicable to the same loss with limits up to the financial responsibility requirements specified in Section 16056 of the Vehicle Code. In that event, the two or more policies shall not be construed as providing concurrent coverage, and only the insurance afforded by the policy or policies covering the premises on which the loading or unloading occurs shall be primary and the policy or policies shall cover as an additional insured with respect to the loading or unloading operations all employees of the owner, tenant, or lessee while acting in the course and scope of their employment. (d) Except as provided in subdivisions (a), (b), and (c), where two or more policies affording valid and collectible liability insurance apply to the same motor vehicle or vehicles in an occurrence out of which a liability loss shall arise, it shall be conclusively presumed that the insurance afforded by that policy in which the motor vehicle is described or rated as an owned automobile shall be primary and the insurance afforded by any other policy or policies shall be excess. (e) Any insurance policy which, under the terms of subdivisions (a) to (d), inclusive, applies as excess coverage may provide with respect to any primary policy or to any loss to which primary insurance is not valid and collectible in whole or in part, that the excess policy shall apply only to the extent necessary to provide the insured with the coverage limits specified in Section 16056 of the Vehicle Code. (f) The presumptions stated in subdivisions (a) to (d), inclusive, may be modified or amended only by written agreement signed by all insurers who have issued a policy or policies applicable to a loss described in these subdivisions and all named insureds under these policies. (g) Where two or more personal policies affording valid and collectible liability insurance apply to the same motor vehicle in an occurrence out of which a loss shall arise, and one policy, as defined in subdivision (a) of Section 660, is primary, either by its terms or by operation of law, and one or more of the personal policies providing liability insurance, as defined in Section 108, are excess, either by their terms or by operation of law, then the following shall apply: (1) Each insurer shall pay its share of the defense costs. Each insurer’s share of the defense costs shall be the percentage of the total defense costs equal to the amount of damage paid by that insurer as a percentage of total damages paid by all insurers whose policies apply to that motor vehicle. (2) The term “defense costs” means, for purposes of this subdivision, reasonable attorney’s fees and expenses, investigation expenses, expert witness fees, and costs allowable under Section 1033.5 of the Code of Civil Procedure. (h) Notwithstanding subdivision (b), when two or more policies affording valid and collectible automobile liability insurance apply to a power unit and an attached trailer or trailers in an occurrence out of which a liability loss shall arise, and one policy affords coverage to a named insured in the business of a trucker, defined as any person or organization engaged in the business of transporting property by auto for hire, then the following shall be conclusively presumed: If at the time of loss, the power unit is being operated by any person in the business of a trucker, the insurance afforded by the policy to the person engaged in the business of a trucker shall be primary for both power unit and trailer or trailers, and the insurance afforded by the other policy shall be excess. (i) For purposes of this article, a certificate of self-insurance issued pursuant to Section 16053 of the Vehicle Code or a deposit of cash made pursuant to Section 16054.2 of the Vehicle Code or a bond in effect pursuant to Section 16054 of the Vehicle Code or a report of governmental ownership or lease filed pursuant to Section 16051 of the Vehicle Code shall be considered a policy of automobile liability insurance. However, this subdivision does not establish or provide the basis for any other form of liability for or upon a self-insurer or other person or entity holding, issuing, or establishing any form of security as described herein. (Amended by Stats. 2006, Ch. 345, Sec. 1. Effective January 1, 2007.)
  39. 11581.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    In a proceeding supplementary to execution, a judgment debtor may be required to show any insurance policy he carries that covers the loss or damage for which the judgment was entered.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11581. Upon any proceeding supplementary to execution, such judgment debtor may be required to exhibit any policy carried by him, insuring him against the liability for the loss or damage for which judgment was obtained. (Enacted by Stats. 1935, Ch. 145.)
  40. 11582.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A settlement under a motor vehicle liability insurance policy cannot be treated as an admission of liability for other claims from the same accident or event.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11582. No settlement made under a motor vehicle liability insurance policy of a claim against any insured thereunder arising from any accident or other event insured against for damage to or destruction of property owned by another person shall be construed as an admission of liability by the insured, or the insurer’s recognition of such liability, with respect to any other claim arising from the same accident or event. (Added by Stats. 1965, Ch. 296.)
  41. 11583.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Advance or partial damage payments generally cannot be treated as admitting liability, and the payer must give written notice of applicable limitation periods when payment begins unless the recipient has an attorney.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11583. No advance payment or partial payment of damages made by any person, or made by his insurer under liability insurance as defined in subdivision (a) of Section 108, as an accommodation to an injured person or on his behalf to others or to the heirs at law or dependents of a deceased person because of an injury or death claim or potential claim against any person or insured shall be construed as an admission of liability by the person claimed against, or of that person’s or the insurer’s recognition of such liability, with respect to such injured or deceased person or with respect to any other claim arising from the same accident or event. Any such payments shall, however, constitute a credit and be deductible from any final settlement made or judgment rendered with respect to such injured or deceased person which does not expressly take into account such advance payments. Any person, including any insurer, who makes such an advance or partial payment, shall at the time of beginning payment, notify the recipient thereof in writing of the statute of limitations applicable to the cause of action which such recipient may bring against such person as a result of such injury or death, including any time limitations within which claims are required to be made against the state or any local public entity when such payments are made on behalf of such public entities. Failure to provide such written notice shall operate to toll any such applicable statute of limitations or time limitations from the time of such advance or partial payment until such written notice is actually given. That notification shall not be required if the recipient is represented by an attorney. (Amended by Stats. 1985, Ch. 792, Sec. 5.)
  42. 11584.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An aircraft insurance policy issued or delivered in this state may not deny or exclude coverage because the aircraft was operated in violation of federal or state air rules or local ordinances, or because the insured must provide coverage by law.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11584. No policy of insurance issued or delivered in this state covering any loss, expense or liability arising out of the ownership, maintenance, or use of an aircraft shall exclude or deny coverage because the aircraft is operated in violation of federal or civil air regulations, or any state law or local ordinance, nor shall any policy exclude or deny coverage which the insured is obligated to provide according to law. This section does not prohibit the use of specific exclusions or conditions in any such policy which relates to any of the following: (1) Certification of an aircraft in a stated category by the Federal Aviation Administration. (2) Certification of a pilot in a stated category by the Federal Aviation Administration. (3) Establishing requirements for pilot experience. (4) Establishing limitations on the use of the aircraft. (5) Any person licensed under Division 6 (commencing with Section 11401) of the Agricultural Code with respect to his operation of an aircraft for the purpose of applying pest control materials or substances by dusting, spraying or any other manner whereby such materials or substances are applied through the medium of aircraft. (Amended by Stats. 1979, Ch. 993.)
  43. 11585.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Residential property insurance policies in California must meet subdivision (b) requirements, and if liability coverage is included or issued with the policy, it must cover polling-place use during state or local elections on the same terms as other liability coverage.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11585. (a) No policy of insurance for residential property located within California shall be issued or delivered, and no existing policy of insurance for residential property located within California shall be renewed, unless the policy complies with the requirements of subdivision (b). (b) If the policy includes any liability insurance, or if a liability insurance policy is issued in connection with the policy, the policy shall cover liability incurred by the insured in connection with the use of the residential property for a polling place for any state or local election, under the same terms and conditions as for other liability covered by the policy. (Added by Stats. 1987, Ch. 815, Sec. 1.)
  44. 11586.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Insurers selling certain automobile or common carrier liability insurance to transit districts must offer uninsured motorist coverage, cannot waive it, cannot refuse to issue it to an applying transit district, and may charge a premium sufficient to cover costs.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11586. (a) On and after the effective date of this section, each insurer licensed to issue automobile liability insurance or common carrier liability insurance, and selling or offering for sale automobile liability insurance or common carrier liability insurance to a transit district organized under Part 3 (commencing with Section 30000) of Division 10 of the Public Utilities Code, shall, as a condition of obtaining or retaining a license to transact business in this state, offer uninsured motorist coverage identical in all respects to that set forth in Section 11580.2 with regard to private passenger motor vehicles, except that the insurer and such transit district, as the case may be, may not agree to waive such coverage. (b) No insurer subject to subdivision (a) shall refuse to issue uninsured motorist coverage to any such transit district which applies to it therefor. (c) Each insurer subject to this section may charge such premium rate for providing uninsured motorist coverage to such transit district as will be sufficient for it to meet the costs of providing such coverage. (Added by Stats. 1971, Ch. 1514.)
  45. 11588.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer covering professional liability for certain medical and health care providers must not refuse to issue or renew insurance just because the insured has a valid written patient arbitration agreement.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11588. No insurer authorized to do business in this state and to provide professional liability insurance to persons lawfully engaged in the practice of medicine or osteopathic medicine, health plans, and to partnerships or corporations lawfully engaged in the operation of hospitals, sanitariums, clinics, or other health care facilities, shall refuse to issue or renew insurance at rates which are not excessive or unfairly discriminatory as defined in Section 1852 to those persons, partnerships or corporations, solely on the grounds that those persons, partnerships or corporations have entered, or intend to enter, into valid written agreements with patients or prospective patients for the arbitration of cases or controversies arising out of the professional or business relationships between those persons, partnerships or corporations and said patients. (Amended by Stats. 1993, Ch. 226, Sec. 12. Effective January 1, 1994.)
  46. 11589.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer covering physicians’ or dentists’ professional liability may not raise premiums, add surcharges, require extra compensation, or increase deductibles because a notice of intention to sue was given, unless a complaint has been served.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11589. No insurer who provides professional liability insurance for physicians and surgeons or dentists shall increase the premium for such insurance, impose a surcharge with respect to such insurance, or otherwise require additional compensation for such insurance, or institute or increase a deductible amount payable by the insured, because a notice of intention to commence an action has been given pursuant to Section 364 of the Code of Civil Procedure, unless a complaint has been served on the physician and surgeon or dentist with respect to such action. (b) For the purposes of this section, “professional liability insurance” means insurance against liability for damages caused by any act or omission of a physician and surgeon or dentist in rendering professional services within this state issued by any insurer, including, but not limited to, a joint underwriting association, cooperative corporation or reciprocal or interinsurance exchange. (Added by Stats. 1979, Ch. 988.)
  47. 11589.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer may not deny, cancel, refuse to renew, or add extra costs to professional liability insurance for a health care provider solely because of the prohibited discrimination bases. It also may not deny coverage for abortion, contraception, or gender-affirming care claims when the stated conditions are met.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11589.1. (a) (1) An insurer shall not refuse to issue or renew, nor shall terminate, professional liability insurance for a health care provider in this state, solely based on any prohibited bases for discrimination set forth in subdivision (d). (2) With respect to policies issued in this state and that provide professional liability coverage for damages arising from services offered or performed in multiple states, if a health care provider offers or performs the services described in paragraph (1) of subdivision (d) in a state where those services are unlawful, nothing in this section shall be construed to prohibit an insurer from terminating, or refusing to issue or renew, a health care provider’s professional liability coverage in that state where the unlawful services are offered or performed. (b) An insurer shall not increase premium, impose a surcharge or other additional compensation or cost, or institute or increase a deductible amount or other cost sharing payable by an insured, solely based on any prohibited bases for discrimination set forth in subdivision (d). Nothing in this section shall be construed to supersede, modify, or otherwise affect in any way the provisions of Article 10 (commencing with Section 1861.01) of Chapter 9 of Part 2 of Division 1 and implementing regulations, as applicable. (c) An insurer providing professional liability insurance for health care providers in this state shall not deny coverage for liability for damages arising from offering or performing abortion, contraception, gender-affirming health care, or care related to those health care services, if those services are within the scope of the insured’s license, the services are lawful in the state where they are offered or performed, and the policy would otherwise cover liability for such damages arising from performing or rendering other professional services within the insured’s scope of license. (d) For purposes of this section, “prohibited bases for discrimination” include all of the following: (1) A health care provider offers or performs abortion, contraception, gender-affirming health care, or care related to those health care services, that are lawful in this state, including, but not limited to, those that may be unlawful in another state. (2) Another state’s laws create potential or actual liability for abortion, contraception, gender-affirming health care, or care related to those health care services offered or performed in this state. (3) Legal or administrative action taken in another state against a health care provider concerning abortion, contraception, gender-affirming health care, or care related to those health care services, results or resulted in a judgment, conviction, or disciplinary action against the provider, if those health care services, as provided, are or would be lawful and consistent with the applicable standard of care in this state. (e) This section applies to professional liability insurance marketed, offered, issued, amended, or renewed in this state for health care providers in this state. (f) For purposes of this section, the following definitions shall apply: (1) “Health care provider” means a person licensed under Division 2 (commencing with Section 500) of the Business and Professions Code to perform or render health care services in this state. (2) “Offer or perform” means to offer, perform, provide, prescribe, dispense, furnish, or otherwise render health care items or services, as well as to aid or assist in the rendering of those items or services. (3) “Professional liability insurance” means insurance against liability for damages caused by any act or omission of a person licensed to provide health care services in rendering professional services within this state issued by any insurer, including, but not limited to, a joint underwriting association, cooperative corporation, or reciprocal or interinsurance exchange. (Added by Stats. 2023, Ch. 256, Sec. 1. (AB 571) Effective January 1, 2024.)
  48. 11589.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer providing professional liability insurance for certain licensed persons must not exclude coverage for liability from a licensee’s breach of duty, but may exclude dishonest, fraudulent, criminal, or malicious acts, errors, or omissions by or known to the insured.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Actions on Policies Containing Liability Provisions [11580 - 11589.5] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11589.5. No insurer who provides professional liability insurance for persons licensed under the provisions of Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code shall exclude from coverage under that policy liability arising from the breach of the duty of the licensee arising under Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of the Civil Code. Notwithstanding the foregoing, an insurer may exclude coverage against liability arising out of a dishonest, fraudulent, criminal, or malicious act, error, or omission committed by, at the direction of, or with the knowledge of the insured. For the purposes of this section, “professional liability insurance” means insurance against liability for damages caused by any act or omission of a real estate licensee in rendering professional services in this state. (Added by Stats. 1985, Ch. 223, Sec. 3.)
  49. 11590.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. )

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    A comprehensive personal liability insurance policy issued or renewed in this state on or after January 1, 1977 must include workers' compensation coverage for certain employees, unless Section 11591 applies.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. ) ## 11590. Except as provided in Section 11591, no policy providing comprehensive personal liability insurance may be issued or renewed in this state on or after January 1, 1977, unless it contains a provision for coverage against liability for the payment of compensation, as defined in Section 3207 of the Labor Code, to any person defined as an employee by subdivision (d) of Section 3351 of the Labor Code. Any such policy in effect on or after January 1, 1977, whether or not actually containing such provisions, shall be construed as if such provisions were embodied therein. However, such coverage shall not apply if any other existing, valid and collectible, workers’ compensation insurance for such liability is applicable to the injury or death of such employee. (Repealed and added by Stats. 1977, Ch. 17.)
  50. 11591.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. )

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    Section 11590 does not apply to a policy or endorsement when the employee’s services are connected with the insured’s trade, business, profession, or occupation.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. ) ## 11591. The requirements of Section 11590 shall be inapplicable to any such policy of insurance or endorsement where the services of such employee are in connection with the trade, business, profession, or occupation, as such terms are defined in Sections 3355 and 3356 of the Labor Code, of the insured. (Repealed and added by Stats. 1977, Ch. 17.)
  51. 11592.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. )

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    Workers’ compensation insurance rates, classifications, rating systems, and issuing insurers are subject to Chapter 9, despite subdivision (f) of Section 1851.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. ) ## 11592. Notwithstanding the provisions of subdivision (f) of Section 1851, the rates, classifications, and rating systems for the workers’ compensation insurance covering those persons defined as employees by subdivision (d) of Section 3351 of the Labor Code, and the insurers issuing such insurance coverage, shall be subject to the provisions of Chapter 9 (commencing with Section 1850) of Part 2 of Division 1. (Repealed and added by Stats. 1977, Ch. 17.)
  52. 11593.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. )

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    The premium charge for the required coverage must not be separately stated from other policy coverage in the insured’s copy of certain insurance documents.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2.5. Personal Liability Insurance Providing Workers’ Compensation Coverage for Household Employees [11590 - 11593] ( Article 2.5 repealed and added by Stats. 1977, Ch. 17. ) ## 11593. The premium charge for the coverage required by Section 11590 shall not be separately stated from that charged for other coverage under the policy in the insured’s copy of the following: premium notice, policy, endorsement or memorandum of insurance. (Added by Stats. 1978, Ch. 765.)
  53. 116.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. Classes of Insurance [100 - 124.5] ( Chapter 1 enacted by Stats. 1935, Ch. 145. )

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    This section defines what counts as automobile insurance and what does not.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. Classes of Insurance [100 - 124.5] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## 116. (a) Automobile insurance includes insurance of automobile owners, users, dealers, or others having insurable interests therein, against hazards incident to ownership, maintenance, operation, and use of automobiles, other than loss resulting from accident or physical injury, fatal or nonfatal, to, or death of, any natural person. (b) Automobile insurance also includes any contract of warranty, or guaranty that promises service, maintenance, parts replacement, repair, money, or any other indemnity in event of loss of or damage to a motor vehicle or a trailer, as defined by Section 630 of the Vehicle Code, or any part thereof from any cause, including loss of or damage to or loss of use of the motor vehicle or trailer by reason of depreciation, deterioration, wear and tear, use, obsolescence, or breakage if made by a warrantor or guarantor who is doing an insurance business. (c) Automobile insurance also includes any agreement that promises repair or replacement of a motor vehicle, or part thereof, after a mechanical or electrical breakdown, at either no cost or a reduced cost for the agreement holder. However, automobile insurance does not include a vehicle service contract subject to Part 8 (commencing with Section 12800) of Division 2, or an agreement deemed not to be insurance under that part. (d) The doing or proposing to do any business in substance equivalent to the business described in this section in a manner designed to evade the provisions of this section is the doing of an insurance business. (Amended by Stats. 2003, Ch. 439, Sec. 2. Effective January 1, 2004. Operative July 1, 2004, by Sec. 7 of Ch. 439.)
  54. 116.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. Classes of Insurance [100 - 124.5] ( Chapter 1 enacted by Stats. 1935, Ch. 145. )

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    A vehicle protection product warranty can be treated as an express warranty, not automobile insurance, if the warrantor follows the section’s required policy, disclosure, and claim-handling rules.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. Classes of Insurance [100 - 124.5] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## 116.6. (a) Notwithstanding Section 116, a warranty issued by the warrantor of a vehicle protection product shall constitute an express warranty, as defined in Section 1791.2 of the Civil Code, and shall not constitute automobile insurance if the warrantor complies with all of the following requirements: (1) The warrantor maintains an insurance policy with an admitted insurer providing coverage for 100 percent of the warrantor’s obligations under the warranty. The insurance policy shall allow the warrantyholder to make a direct claim for payment from the insurer upon the failure of the warrantor to pay any covered claim within 60 days after a complete proof-of-loss has been filed with the party designated in the warranty. In addition, all of the following shall apply: (A) The warrantor shall file with the commissioner a copy of the insurance policy. At any time, a warrantor may have on file with the commissioner only one active policy from one insurer. (B) The insurer’s liability under the policy shall not be negated by a failure of the warrantor, for any reason, to report the issuance of a warranty to the insurer or to remit moneys owed to the insurer. (C) No policy cancellation by an insurer shall be valid unless a notice of the intent to cancel the policy is filed with the commissioner not less than 30 days prior to the effective date of the cancellation, or, in the event that the cancellation is due to fraud, material misrepresentation, or defalcation by the warrantor, not less than 10 days prior to that date. (D) In the event an insurer cancels a policy that a warrantor has filed with the commissioner, the warrantor shall do either of the following: (i) File a copy of a new policy with the commissioner, before the termination of the prior policy, providing no lapse in coverage following the termination of the prior policy. (ii) Discontinue acting as a warrantor as of the termination date of the policy until a new policy becomes effective and is accepted by the commissioner. (2) The warrantor does not use the words insurance, casualty, surety, mutual, or any other words descriptive of the casualty, insurance, or surety business or deceptively similar to the name or description of any insurance company or casualty or surety company in the vehicle protection product name or warranty or in any advertising or other materials provided to prospective purchasers. (3) The warranty has been issued to a customer that is insured under a comprehensive vehicle insurance policy for the vehicle covered by the warranty agreement. (4) The warranty is in writing and provides all of the following: (A) The benefits are limited to the difference between the actual cash value of the stolen vehicle and the vehicle’s replacement cost, temporary vehicle rental expenses, reimbursement for insurance policy deductible, and registration fees and taxes on a replacement vehicle or a fixed amount for those benefits. (B) A statement that the warrantyholder shall be entitled to make a direct claim against the insurer covering the obligations of the warranty upon the failure of the warrantor to pay any covered claim within 60 days after a complete proof-of-loss has been filed with the party designated in the warranty. (C) A disclosure stating clearly the name, address, and telephone number of the insurer covering the obligations of the warrantor. (D) A toll-free telephone number established and operated by the warrantor for the warrantyholder to call for questions about the warranty or the procedures to file a claim. (E) A statement that clearly indicates the terms of the warranty, whether new or used cars are eligible for the vehicle protection product, the method for calculating the benefits paid and provided to the warrantyholder, and the procedure for filing a claim under the warranty. (F) A disclosure in 10-point type or larger that reads as follows: “This agreement is a product warranty and is not insurance. It is not subject to state insurance laws but is subject to state law concerning warranties.” (G) A disclosure in 10-point type or larger that reads as follows: “To be eligible for this warranty, the warrantyholder must have comprehensive insurance coverage on the vehicle that is protected by the antitheft device.” (5) The benefit is payable upon the theft of the vehicle, as defined in the warranty, and subject to the satisfaction of the procedural proof of claim requirements of the warranty. (b) For purposes of this section, the following definitions shall apply: (1) “Warrantor” means the manufacturer or provider of a vehicle protection product who, under the terms of a vehicle protection product warranty, is the contractual obligor to the purchaser of a vehicle protection product. (2) (A) “Vehicle protection product” means a vehicle protection device, system, or service that is installed on, or applied to, a vehicle, is designed to deter the theft of a vehicle, and includes a written warranty that provides if the product fails to deter the theft of the vehicle, that the warrantyholder shall be paid specified incidental costs by the warrantor as a result of the failure of the device, system, or service to perform pursuant to the terms of the warranty. (B) For purposes of this section, “vehicle protection product” shall also include alarm systems, window etch products, body part marking products, steering locks, pedal and ignition locks, fuel and ignition kill switches, and electronic, radio, and satellite tracking devices. (c) The commissioner may issue a stop order pursuant to Section 12921.8 to a warrantor who is in violation of the requirements of this section. (d) A warrantor shall have the burden of proving that a claim filed in compliance with the terms and conditions of the warranty is not covered by the warranty. A warrantor shall have the burden of proving that a claim settlement amount fulfills the promises contained in the warranty. (e) The requirements of this section shall not apply under either of the following conditions: (1) The warrantor is a manufacturer of motor vehicles, as defined pursuant to Section 672 of the Vehicle Code, or a distributor of motor vehicles, as defined pursuant to Section 296 of the Vehicle Code. (2) The warranty only provides for the repair or replacement of the vehicle protection product subsequent to a mechanical or electrical breakdown of the vehicle protection product. (f) Nothing in this section is intended to affect any pending litigation. (Added by Stats. 2002, Ch. 749, Sec. 1. Effective January 1, 2003.)
  55. 11600.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Capital Requirements of Reserve Basis Insurers [11600 - 11602] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    An incorporated insurer writing liability, workers’ compensation, or common carrier liability policies must follow the paid-in capital and surplus requirements in Sections 700.01 to 700.05.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Capital Requirements of Reserve Basis Insurers [11600 - 11602] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 11600. An incorporated insurer issuing policies of liability, workers’ compensation, or common carrier liability insurance, shall be governed by the paid-in capital and surplus requirements of Sections 700.01 to 700.05, inclusive. (Amended by Stats. 1981, Ch. 714, Sec. 275.)
  56. 11601.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Capital Requirements of Reserve Basis Insurers [11600 - 11602] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    An incorporated insurer with the required paid-in capital may transact all three insurances, unless its charter restricts it.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Capital Requirements of Reserve Basis Insurers [11600 - 11602] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 11601. Except as restricted by its charter, such an incorporated insurer, having such a paid-in capital, may transact all three of such insurances. (Enacted by Stats. 1935, Ch. 145.)
  57. 11602.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Capital Requirements of Reserve Basis Insurers [11600 - 11602] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Certain insurers may transact workers’ compensation and common carrier liability insurance if they were already authorized by charter to transact liability insurance on July 26, 1919.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Capital Requirements of Reserve Basis Insurers [11600 - 11602] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 11602. Any such insurer which on July 26, 1919, was authorized by its charter to transact liability insurance may transact workers’ compensation and common carrier liability insurance as though expressly permitted by its charter to do so. (Amended by Stats. 1981, Ch. 714, Sec. 276.)
  58. 11620.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    The commissioner must hold a public hearing, approve or issue a reasonable assigned-risk plan, charge a $1,410 filing fee for plan amendments, give 45 days’ notice of hearings, and consider comments before adopting amendments.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11620. (a) The commissioner, after a public hearing, shall approve or issue a reasonable plan for the equitable apportionment, among insurers admitted to transact liability insurance, of those applicants for automobile bodily injury and property damage liability insurance who are in good faith entitled to but are unable to procure that insurance through ordinary methods. The commissioner shall require the payment of one thousand four hundred ten dollars ($1,410), in advance, as a fee for the filing of amendments to the plan with the commissioner. The commissioner may approve or issue reasonable amendments to the plan that are approved by the plan’s advisory committee, if he or she first holds a public hearing to determine whether the amendments are in keeping with the intent and purpose of this section. All those insurers shall subscribe to the plan and its amendments and participate in the plan. (b) Judicial review of a change to the plan, including rate revision proceedings, shall be in accordance with Section 1858.6. (c) The adoption of the plan referenced in subdivision (a), and any amendments thereto, is not subject to the requirements 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), unless written or oral comments submitted pursuant to subdivision (e) raise regulatory standards set forth in subdivisions (a), (b), (c), (d), (e), and (f) of Section 11349 of the Government Code. (d) The commissioner shall provide notice of any hearing pursuant to subdivision (a) by doing all of the following at least 45 days prior to the hearing: (1) Publishing the notice in the California Regulatory Notice Register. (2) Mailing the notice to the parties on the department’s regulations mailing list. (3) Posting the notice on the department’s public Internet Web site. (e) Interested parties may present written or oral comments at the hearing, or may submit written comments to the contact person identified in the hearing notice by the date and time posted in the notice. Before adopting any amendments to the plan, the commissioner shall consider all comments received on or before the day of the hearing. (Amended by Stats. 2017, Ch. 534, Sec. 69. (AB 1699) Effective January 1, 2018.)
  59. 11621.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    If an insurer stops writing automobile liability insurance in the state but keeps its license, it must keep paying plan assessments and receiving plan assignments until its quota is filled. If that business is transferred or reinsured, the receiving insurer must take over those assessments and assignments, unless another insurer is allowed to assume them.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11621.1. In the event an insurer discontinues writing automobile liability insurance in this state but retains its license to write that business, it shall continue to pay plan assessments and receive plan assignments until its quota or quotas established by its writings prior to discontinuance of business has or have been filled. However, if the automobile liability business of an insurer discontinuing the writing of that business in this state has been transferred to or reinsured by another insurer, the latter shall receive and assume the plan assignments and plan assessments of the insurer discontinuing business, as established by its writings prior to the transfer or agreement of reinsurance, until its quota or quotas has or have been filled, unless another insurer is allowed to assume those obligations. (Added by Stats. 2000, Ch. 175, Sec. 2. Effective January 1, 2001.)
  60. 11621.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    An insurer that loses its auto liability license in this state cannot get new assignments, and an insurer leaving or losing its license must submit a plan for handling plan assignments and outstanding policies.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11621.2. (a) An insurer that is no longer licensed to write automobile liability insurance in this state shall have its plan business treated in the same manner as its voluntary business and shall not receive new assignments. (b) The runoff of existing plan business shall be conducted in an orderly manner with policies nonrenewed upon the next anniversary date. (c) An insurer that elects to surrender its license or has its license to do business in this state revoked shall comply with the following requirements: (1) If an insurer elects to leave this state by surrendering its license to write automobile insurance, it shall submit to the plan’s advisory committee as a condition precedent to the surrender of its license, a plan that disposes of the insurer’s quota of plan assignments established by its voluntary writings, and provides for the handling of its outstanding assigned risk policies, including payment of claims, by appropriate financial arrangements or reinsurance agreements. The plan’s advisory committee shall evaluate the plan that is submitted and shall advise the commissioner as to whether or not it recommends acceptance or rejection by the commissioner of the plan. (2) In the event an insurer’s license to do business in this state is revoked by the commissioner, the insurer shall submit to the plan’s advisory committee a plan that disposes of the insurer’s quota of plan assignments established by its voluntary writings, and provides for the handling of its outstanding assigned risk policies, including payment of claims, by appropriate financial arrangements or reinsurance agreements. The plan’s advisory committee shall evaluate the plan that is submitted and shall advise the commissioner as to whether or not it recommends acceptance or rejection by the commissioner of the plan. (d) If all insurers in a group are under the same ownership and management, or a group elects to be treated as a single insurer and an insurer in the same group is no longer licensed, that insurer shall comply with the provisions of this section. (Amended by Stats. 2001, Ch. 159, Sec. 150. Effective January 1, 2002.)
  61. 11621.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    Insurer groups under the same ownership may choose to be treated as one insurer for plan participation and for receiving assignments and assessments under this article.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11621.3. Insurer groups under the same ownership may elect to be treated as one insurer for purposes of participating in the plan and receiving its assignments and assessments pursuant to this article. (Added by Stats. 2000, Ch. 175, Sec. 4. Effective January 1, 2001.)
  62. 11621.4.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    The commissioner may suspend new plan assignments or relieve a participating insurer from renewing assigned-risk policies, but only with the required suspension order and approval. The advisory committee must advise the commissioner before approvals and adjustments, and an insurer that returns to business must have its quota adjusted.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11621.4. (a) New plan assignments to a participating insurer may be suspended or a participating insurer may be relieved of its obligation to renew existing assigned risk policies at expiration when a valid order of suspension is issued by the commissioner and the suspension of assignments or policy renewals is approved by the commissioner. Prior to the approval of a suspension of assignments or policy renewals, the plan’s advisory committee shall advise the commissioner as to whether or not it recommends approval or denial of the suspension. (b) If an insurer granted relief pursuant to subdivision (a) resumes writing business in this state, its quota shall reflect the plan assignments it would have received and the assigned risk renewal policies it would have issued during its period of suspension. The required assignment adjustment shall be spread over a period of three or more years, as determined by the commissioner. Prior to determining this assignment adjustment, the plan’s advisory committee shall advise the commissioner as to whether or not it recommends approval or denial of the adjustment. (c) The adjustment of the insurer’s quota shall be a percentage of the insurer’s under-assignments as determined by the commissioner. Prior to determining this adjustment, the plans’s advisory committee shall advise the commissioner as to whether or not it recommends approval or denial of the adjustment. After the approved period of adjustment has expired, the insurer’s normal quota will resume unless the insurer shows good cause to and receives approval from the commissioner for extension of the adjustment period. Prior to this approval, the plan’s advisory committee shall advise the commissioner as to whether or not it recommends approval or denial of this extension. (Added by Stats. 2000, Ch. 175, Sec. 5. Effective January 1, 2001.)
  63. 11621.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    If insolvency proceedings are started and a receiver or liquidator is appointed, the plan must reimburse insureds for unearned premiums on assigned risk policies in force, once satisfactory proof is submitted.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11621.5. (a) In the event proceedings have been initiated by the commissioner to have an insurer declared insolvent, and a receiver or liquidator has been appointed, the plan shall reimburse any insured of that insurer for the unearned premium on any assigned risk policy then in force, upon submission of satisfactory evidence from the insured that the policy was in force at the time of the declaration of insolvency and that the requisite premium had been paid. (b) The amount expended by the plan to remit unearned premium to insureds shall be deemed a cost of administration of the plan and shall be apportioned as provided in the plan adopted and approved pursuant to this article. The plan shall be subrogated in the liquidation proceedings to the right of reimbursement of all insureds to whom unearned premium has been remitted. In the event that the insurer is subsequently found by the court not to be insolvent, the proceedings are dismissed, and the receiver or liquidator has been discharged, the insurer shall be assessed by the plan for the total amount expended by the plan for return of unearned premiums. (Added by Stats. 2000, Ch. 175, Sec. 6. Effective January 1, 2001.)
  64. 11622.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    A plan must require policies to carry minimum liability coverage amounts, with higher minimums for policies or bonds issued or renewed on or after January 1, 2025 and again on or after January 1, 2035.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11622. (a) A plan shall require the issuance of a policy affording coverage in the amount of fifteen thousand dollars ($15,000) for bodily injury to, or death of, each person as a result of any one accident and, subject to that limit as to one person, the amount of thirty thousand dollars ($30,000) for bodily injury to, or death of, all persons as a result of any one accident, and the amount of five thousand dollars ($5,000) for damage to property of others as a result of any one accident, or in those minimum amounts as are necessary to provide exemption from the security requirements of Section 16021 of the Vehicle Code or for which proof of ability to respond in damages or adequate protection against liability is otherwise required by law, but shall not require the issuance of a policy affording coverage in excess of those amounts. (b) For a policy or bond issued or renewed on or after January 1, 2025, a plan shall require the issuance of a policy affording coverage in the amount of thirty thousand dollars ($30,000) for bodily injury to, or death of, each person as a result of any one accident and, subject to that limit as to one person, the amount of sixty thousand dollars ($60,000) for bodily injury to, or death of, all persons as a result of any one accident, and the amount of fifteen thousand dollars ($15,000) for damage to property of others as a result of any one accident, or in those minimum amounts as are necessary to provide exemption from the security requirements of Section 16021 of the Vehicle Code or for which proof of ability to respond in damages or adequate protection against liability is otherwise required by law, but shall not require the issuance of a policy affording coverage in excess of those amounts. (c) For a policy or bond issued or renewed on or after January 1, 2035, a plan shall require the issuance of a policy affording coverage in the amount of fifty thousand dollars ($50,000) for bodily injury to, or death of, each person as a result of any one accident and, subject to that limit as to one person, the amount of one hundred thousand dollars ($100,000) for bodily injury to, or death of, all persons as a result of any one accident, and the amount of twenty-five thousand dollars ($25,000) for damage to property of others as a result of any one accident, or in those minimum amounts as are necessary to provide exemption from the security requirements of Section 16021 of the Vehicle Code or for which proof of ability to respond in damages or adequate protection against liability is otherwise required by law, but shall not require the issuance of a policy affording coverage in excess of those amounts. (Amended by Stats. 2023, Ch. 204, Sec. 15. (AB 1140) Effective January 1, 2024.)
  65. 11622.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    The plan must set coverage effective dates using the rules in this section, including limits on when coverage can start and how electronic applications are handled.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11622.5. The plan shall provide for effective dates for coverage consistent with all of the following: (a) Except as provided in this section, in no event shall coverage be effective prior to the date and time of execution of the application forms. Postage meter or United States Postal Service postmarks shall not be recognized by the plan as establishing effective dates. (b) (1) When the applicant requires that coverage be effective immediately, the effective date and time shall be established using an electronic effective date procedure established by the plan. The plan shall establish a future effective date using the electronic effective date procedure. The future effective date option shall be available upon request by an applicant. An applicant may request a future effective date of 45 days or less from the date of application completion. (2) The manager of the plan shall ensure access at no cost to the user as part of the electronic effective date procedure. The manager shall maintain sufficient capacity to service, in a timely manner, applications received by means of the electronic effective date procedure. (3) The electronic effective date procedure shall be available only to producers of record who are certified by the plan and shall include a procedure to prevent fraudulent applications. (4) A producer of record shall have a duty to comply with the requirements of this section within 24 hours of the date and time the application is completed and executed. (c) Coverage for vehicles shall become effective at the date and time the application is transmitted through the plan’s electronic effective date procedure if and only if all of the following requirements are met: (1) The producer of record and the applicant certify under penalty of perjury on the application the date and time that the application forms were completed and executed. (2) The producer of record uses the electronic effective date procedure adopted pursuant to subdivision (b). (3) The application forms and required deposit are submitted to the plan manager no later than two working days following the date the application forms are completed and executed. The submission date is established in accordance with the procedure established by the plan. (d) If the application is made without using the electronic effective date procedure or if there is not compliance with the provisions of subdivision (c), coverage shall be effective in accordance with an alternative procedure established by the plan, but not later than 12:01 a.m. on the date following receipt of the application in the plan office unless a later date is requested. (e) If the applicant desires coverage on a date later than that which would otherwise be fixed pursuant to this section, the applicant shall indicate that date and the plan manager shall fix the effective date of coverage as of 12:01 a.m. on the desired date of coverage. However, no date shall be later than 45 days after the date of application. (f) The effective date for coverage for an additional vehicle to be added to an in-force policy or for other coverage to be added to an in-force policy shall not be subject to the requirements of this section, but shall be governed by the terms of the policy and other applicable laws and regulations. (g) In order to provide evidence of a requested effective date, the plan shall establish a procedure for the maintenance of appropriate records of all risks for which the producer of record has designated the time and date of coverage. (h) Where the plan’s electronic effective date procedure is disrupted due to failure of transmission or receiving equipment due to fire, earthquake, explosion, civil unrest, or similar disaster or emergency, the producer of record may bind coverage up to one day prior to the time the application forms and required deposit are mailed to the plan manager, as established by the United States Postal Service postmark on the envelope in which the application was enclosed. (i) Notwithstanding any other provision of this section, where the producer of record discovers a material error in an application, the producer of record shall be authorized to rescind coverage bound for a period up to 24 hours after the date and time established pursuant to the plan’s electronic effective date procedure. (j) To ensure compliance with the electronic effective date procedure, application forms shall contain the following statement in 12-point boldface type: ## IMPORTANT NOTICE THIS POLICY IS NOT EFFECTIVE UNTIL YOUR APPLICATION IS ELECTRONICALLY TRANSMITTED TO THE PLAN BY YOUR AGENT OR BROKER. THE FOLLOWING CONDITIONS MUST ALSO BE MET: (1) BOTH YOU AND YOUR AGENT OR BROKER MUST SIGN AND DATE A PROPERLY COMPLETED APPLICATION. (2) YOUR AGENT OR BROKER MUST TRANSMIT YOUR APPLICATION TO THE PLAN WITHIN TWO DAYS OF ITS COMPLETION. YOU MAY REQUEST THAT YOUR AGENT OR BROKER TRANSMIT THE DOCUMENTS IN YOUR PRESENCE TO ENSURE IMMEDIATE COVERAGE, PROVIDED THE ABOVE REQUIREMENTS ARE MET. IF THE ABOVE REQUIREMENTS ARE NOT MET, THE EFFECTIVE DATE OF YOUR COVERAGE MAY BE DELAYED. (Amended by Stats. 2010, Ch. 234, Sec. 2. (AB 1597) Effective January 1, 2011.)
  66. 11623.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    The commissioner must run the plan, consult the advisory committee regularly, and make certain appointments and regulations. The advisory committee may appoint a manager, hire staff, and contract for statistical and actuarial services. Member pay, attendance removal rules, and cost allocation rules are also set.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11623. (a) (1) To assist the commissioner in carrying out the purposes of this article, an advisory committee composed of 15 members is created. The commissioner shall administer and operate the plan as authorized by law. The commissioner shall consult with the advisory committee on a regular basis on policy matters affecting the operation of the plan. (2) Eight members representing subscribing insurers shall be elected annually by subscribing insurers. The commissioner shall appoint the noninsurer members. Four members shall represent the public. Two members shall represent producers. The remaining member is the commissioner or his or her designee. (3) Each insurer representative serving shall be either (A) a salaried employee or officer of the named insurer or (B) a salaried employee or officer of another insurer from a group of insurance companies under the same management as the named insurer. A salaried employee or officer of the holding company of the named insurer may also be designated as the representative. At least two insurer representatives shall be employed by insurers having their principal headquarters located in California. At least two insurer representatives shall represent companies who have average annual automobile liability premiums in California below one hundred million dollars ($100,000,000) in the prior three years. At least one insurer representative shall represent an insurer with average annual automobile liability premiums in California exceeding one hundred million dollars ($100,000,000) in the prior three years. At least one insurer representative shall represent an insurer with average annual automobile liability premiums in California exceeding seven hundred million dollars ($700,000,000) in the prior three years. (4) Public members shall be paid two hundred fifty dollars ($250) per meeting and shall be reimbursed all reasonable expenses incurred. (5) The commissioner shall remove members for nonattendance. Unless satisfactory excuse is made in writing to the commissioner in a timely manner, nonattendance shall mean the failure to appear at more than two regularly scheduled meetings in a 12-month period. Should the member who is removed represent a company or agency, another representative from the company or agency may not be appointed for a period of not less than two years. (6) The advisory committee with the approval of the commissioner shall appoint a manager to carry out the purposes of this article, employ sufficient personnel to provide services necessary to the operation of the plan, and contract for the provision of statistical and actuarial services. (7) The cost of the plan, including any personnel and contracting costs, shall be fairly apportioned among the subscribing insurers to whom assignments may be made. The costs associated shall be directly attributable to the management of the plan and directly related to its programs. In consultation with the advisory committee, the commissioner shall develop, issue, and adopt regulations to carry out the purposes of this article. (b) Notwithstanding this act, which changes the status of the governing committee to that of an advisory committee, the committee shall have the right to retain counsel of its choice pursuant to a selection process adopted by the committee and the right and necessary standing to bring and defend actions in judicial and administrative proceedings related to the plan in the name of the plan, with all powers attendant thereto including the right to retain consultants, counsel, and expert witnesses of its choice. (Amended by Stats. 2011, Ch. 411, Sec. 55. (AB 1416) Effective January 1, 2012.)
  67. 11623.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    Insurers in certain groups may create an assigned-risk arrangement, but a servicing carrier needs the commissioner’s continuing approval, must meet a $10 million surplus requirement, and the commissioner must charge a cost-limited filing fee.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11623.5. (a) Groups of insurers not under common ownership or management may form a limited assignment distribution arrangement. Each arrangement shall have one servicing carrier that writes assigned risk business on behalf of the members of the arrangement in return for consideration from the other participating carriers for not writing the business. (b) No insurer may act as a servicing carrier except with the continuing approval of the commissioner. (c) Each servicing carrier shall have a surplus of at least ten million dollars ($10,000,000). (d) Upon the approval of the commissioner of a servicing carrier under this section, the plan shall make all assignments that otherwise would be made to a participant to the servicing carrier for that participant. (e) The commissioner shall impose a filing fee for the filing necessary to obtain approval pursuant to this section, which fee shall be limited to that sufficient to defray the costs of the department in connection with considering the application. (Added by Stats. 1990, Ch. 509, Sec. 1.)
  68. 11624.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    The assigned risk plan must include eligibility standards, application and appeal procedures, premium rules, and notice procedures.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624. The plan shall contain: (a) Standards for determining eligibility of applicants for insurance, including a requirement of a certificate of eligibility as provided in Section 11624.08, and in establishing those standards the following may be taken into consideration in respect to the applicant or any other person who may reasonably be expected to operate the applicant’s automobile with his or her permission: (1) His or her criminal conviction record. (2) His or her record of suspension or revocation of a license to operate an automobile. (3) His or her automobile accident records. (4) His or her age and mental, physical and moral characteristics which pertain to his or her ability to safely and lawfully operate an automobile. (5) The condition or use of the automobile. (b) Procedures for making application for insurance, for apportionment of eligible applicants among the subscribing insurers and for appeal to the commissioner by persons who believe themselves aggrieved by the operation of the plan. (c) A provision that the organization administering the plan shall notify the Department of Insurance regarding the name of each applicant for insurance who is rejected by the assigned risk plan and the statutory grounds for the rejection. The information contained in that notification shall be for the confidential use of the Department of Insurance. (d) Rules and regulations governing the administration and operation of the plan. (e) Provisions showing the basis upon which premium charges shall be made, and the manner of payment thereof. Premium charges for the plan shall not be excessive, inadequate, nor unfairly discriminatory, and shall be actuarially sound so as to result in no subsidy of the plan. In no event shall the commissioner be required to approve a plan rate that includes a provision for operating profits greater than zero dollars. The commissioner shall not be required to allow a contingency provision with respect to a plan rate if the commissioner takes final action on an application for a rate change within 180 days from the date the application is submitted to the commissioner by the plan’s advisory committee. The plan shall include procedures for notifying within a reasonable time the agent, broker, or solicitor who obtained insurance under the plan for the insured of any nonpayment of premium to the insurer when notice of the nonpayment is sent to the insured pursuant to Section 662. (f) Any other provisions as may be necessary to carry out the purpose of this article. (Amended by Stats. 1993, Ch. 1133, Sec. 1. Effective January 1, 1994.)
  69. 11624.08.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    The plan must require a certificate of eligibility with coverage applications, and the applicant and the agent or broker must sign it.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.08. The plan shall require a certificate of eligibility to accompany the application for coverage. The certificate shall indicate whether or not the applicant meets the criteria for the purchase of a good driver discount policy as set forth in Section 1861.025 and, if so, the name of the insurer and the insurer’s representative that denied the applicant automobile insurance coverage. The fact that an applicant has specified in the certificate of eligibility a particular insurer as having denied automobile insurance coverage shall not, by itself, be sufficient to sustain a finding in a formal action brought by the commissioner under Section 1858.1 that the specified insurer in fact denied the applicant automobile insurance coverage in violation of paragraph (1) of subdivision (b) of Section 1861.02. The certificate shall be signed by the applicant under penalty of perjury to verify its accuracy, and shall only be required with applications for personal lines automobile insurance through the plan. The agent or broker shall also be required to sign the certificate of eligibility indicating that he or she has reviewed the certificate for completeness. (Amended by Stats. 1993, Ch. 1135, Sec. 1. Effective January 1, 1994.)
  70. 11624.09.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    If the plan finds a certificate of eligibility defective for an immaterial omission or mistake, it must notify the insured and the agent or broker, and the applicant has 10 days from the notice postmark to fix it; otherwise the policy is void from inception.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.09. Upon a determination by the plan that a certificate of eligibility is defective due to an omission or mistake which is immaterial to determining the eligibility of the applicant for coverage, the plan shall immediately provide written notice of the defect or defects to the insured and to the agent or broker of record. The notice shall inform the applicant that he or she has 10 days from the postmark date of the notice to correct the defect and postmark the correction or missing information for return to the plan. In the event that the defect is not corrected within that 10-day time period, the policy is void from inception. Providing a photocopy of the application or certificate denoting the specific defect or defects shall be adequate to comply with the requirement to specify the defects in the certificate. For purposes of this section, failure to provide a required telephone number, time of day, producer number, producer signature, date or information that is omitted but can be determined by questions answered or information provided in other sections of the application or documents submitted as part of the application, shall be considered an omission or mistake immaterial to determining the eligibility of the applicant for the plan coverage. A certificate of eligibility that is submitted to the plan as to which the applicant did not demonstrate a good faith effort in completing or where the applicant has made a willful misrepresentation shall not be subject to this section. In the event that the defect is material to determining the eligibility of the applicant for coverage, the policy is void from inception. (Amended by Stats. 1992, Ch. 1255, Sec. 4. Effective January 1, 1993.)
  71. 11624.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    An insurer must mail a policy within 30 days after receiving an assignment. If the insurer finds an insured’s application is defective, it must immediately notify the insured and the agent or broker of record in writing, and the insured then has 15 days from the mailing of that notice to correct the defect.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.1. (a) An insurer shall mail a policy within 30 days of the receipt of an assignment. (b) Upon the determination of an insurer to whom an assignment is made that the application of an insured is defective, the insurer shall immediately give written notice of the defect to the insured and to the agent or broker of record that the insured has 15 days from the mailing of the notice of defect to correct the defect. (Added by Stats. 1990, Ch. 509, Sec. 2.)
  72. 11624.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    An insurer must acknowledge requests for an assigned risk policy endorsement in writing within 15 days and must issue and mail the endorsement to the insured within 30 days when the request is complete.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.2. (a) An insurer shall acknowledge in writing within 15 days the receipt of a request for the endorsement of an assigned risk policy. The mailing of the endorsement within 15 days of receipt shall constitute acknowledgement of receipt. (b) Upon receipt of a completed request for an endorsement that contains all information necessary for the issuance of an endorsement, the insurer shall issue and mail the endorsement to the insured within 30 days of the request for the endorsement. (c) As used in this section, “endorsement” means an amendment of a policy, such as a loss payee endorsement, the addition or deletion of insureds, or the addition or deletion of coverage. (Added by Stats. 1990, Ch. 509, Sec. 3.)
  73. 11624.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    Return premium checks for an insured or certain lenders must be mailed within 30 days after the cancellation or endorsement becomes effective.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.3. Any return premium checks due to an insured or to a lender subject to the provisions of subdivision (g) of Section 673 on account of a cancellation or endorsement shall be mailed within 30 days of the effective date of the cancellation or endorsement. (Added by Stats. 1990, Ch. 509, Sec. 4.)
  74. 11624.4.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    An insurer that receives an assignment must give claims-reporting information to policyholders, provide brokers and agents a toll-free number or accept collect calls, and answer premium complaints in writing within 15 days.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.4. Every insurer to whom an assignment is made shall do all of the following: (a) Provide policyholders with information on how to report claims. (b) Provide brokers and agents with a toll-free telephone number or accept their collect calls for the purpose of providing agents and brokers with a means of communicating with the insurer in order to rectify errors in applications or endorsements for assigned-risk coverage. (c) Reply in writing within 15 days to complaints disputing the amount of premium charged for coverage under this article. (Added by Stats. 1990, Ch. 509, Sec. 5.)
  75. 11624.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    Insurance agents, brokers, and solicitors must not charge applicants for providing application forms, technical assistance, or services needed to complete an application through the plan, except for commissions paid by the insurer under the plan.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.5. No insurance agent, broker or solicitor shall make any charge to the applicant, directly or indirectly, for furnishing any person the necessary application forms, technical assistance and services necessary to perfect an application through the plan other than such commission as is paid by the insurer pursuant to the provisions of such plan. (Added by Stats. 1959, Ch. 213.)
  76. 11624.6.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    Certain insurers, agents, or brokers assigned an application by the plan may rely on the coverages stated in the signed application.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.6. Every insurer, agent, or broker assigned an application by the plan may conclusively rely on the acceptance, rejection, or waiver of coverages stated in the application signed by the applicant. A policy shall only be issued for the coverages, limits, and deductibles stated in the application assigned by the plan. This section shall apply to all applications assigned by the plan which are submitted to the plan by a person licensed pursuant to Chapter 5 (commencing with Section 1621) of Part 2 of Division 1. (Repealed and added by Stats. 1988, Ch. 572, Sec. 2.)
  77. 11624.7.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    An insurer must get a driving-related report within 60 days after a policy is issued or renewed, and bill any resulting premium changes within that same 60-day period.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11624.7. Within 60 days after the effective date of any policy issued or renewed under this article, the insurer shall obtain from the Department of Motor Vehicles, or from a subscribing loss underwriting exchange carrier, a report on the applicant and any other person who may reasonably be expected to operate the applicant’s motor vehicle with the permission of the applicant. Any premium adjustments that occur as a result of the inspection of the reports shall be billed within the same 60-day period. This section does not apply to amendments of a policy other than upon original issuance or renewal. (Amended by Stats. 2008, Ch. 42, Sec. 1. Effective January 1, 2009.)
  78. 11625.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    If an admitted liability insurer fails to subscribe to the plan or an amendment, the commissioner must give 10 days’ written notice, and may later suspend the insurer’s certificate of authority after a noticed hearing if the insurer still does not comply.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11625. If an insurer admitted to transact liability insurance fails to subscribe to the plan or to any amendments thereto, the commissioner shall give 10 days’ written notice to such insurer to so subscribe. If such insurer fails to comply with such notice, then the commissioner may, after hearing upon notice, suspend the certificate of authority of such insurer to transact liability insurance in this State until such insurer does so subscribe. Proceedings under this section shall be conducted in accordance with Chapter 5, Part 1, Division 3, Title 2 of the Government Code, and the commissioner shall have all the powers granted therein. (Added by Stats. 1947, Ch. 1205.)
  79. 11626.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    If the commissioner finds an insurer failed to do required duties, the commissioner may order compliance; a noncomplying insurer must pay a $500 penalty for each failure.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11626. If the commissioner, after hearing upon not less than ten (10) days’ notice, finds that any insurer has failed to perform any of the duties required of it by this article or by the plan, other than those duties enumerated in Section 11625, he may issue an order to such insurer specifying in what manner and to what extent he finds the insurer to have so failed and requiring, within a reasonable time, not less than 10 days, compliance with such requirements. If within the period specified in the order the insurer fails to comply with such order, such insurer shall, in addition to any other penalty provided by law, forfeit to the State a penalty of five hundred dollars ($500) for each such failure. The commissioner may bring an action in his own name against the insurer to collect the said penalty. (Added by Stats. 1947, Ch. 1205.)
  80. 11626.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    An insurer may not downgrade or otherwise hurt a person's insurability just because the person is in the assigned risk plan or contracts with someone in it.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11626.1. (a) No insurer shall downgrade the rating, or otherwise adversely affect the insurability, of a person insured under Section 11622.1 solely because of that person’s participation in the assigned risk plan or because that person contracts with a person insured under Section 11622.1. (b) An insurer violating subdivision (a) is subject to the penalties set forth in Section 11626, and shall restore the insurance rating, insurability, and coverage of any person harmed by the violation. (Added by Stats. 1986, Ch. 155, Sec. 4. Effective June 16, 1986.)
  81. 11627.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. )

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    For this article, “insurer” also includes reciprocal or interinsurance exchanges.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Assigned Risk Plans [11620 - 11627] ( Article 4 added by Stats. 1947, Ch. 39. ) ## 11627. In this article, “insurer” includes reciprocal or interinsurance exchanges. (Added by Stats. 1947, Ch. 1205.)
  82. 11628.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. )

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    Motor vehicle liability insurers must not reject, issue on worse terms, or charge more because of protected characteristics, geographic area, occupation, or active-duty military status, and they must file certain loss-experience reports with the commissioner.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. ) ## 11628. (a) (1) No admitted insurer that is licensed to issue and issuing motor vehicle liability policies, as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an application for that insurance, to issue that insurance to an applicant therefor, or issue or cancel that insurance under conditions less favorable to the insured than in other comparable cases, except for reasons applicable alike to persons of every characteristic listed or defined in subdivision (b) or (e) of Section 51 of the Civil Code, including, but not limited to, language, or persons of the same geographic area; nor shall any characteristic listed or defined in subdivision (b) or (e) of Section 51 of the Civil Code, including, but not limited to, language, or location within a geographic area, of itself, constitute a condition or risk for which a higher rate, premium, or charge may be required of the insured for that insurance. (2) As used in this section “geographic area” means a portion of this state of not less than 20 square miles defined by description in the rating manual of an insurer or in the rating manual of a rating bureau of which the insurer is a member or subscriber. In order that geographic areas used for rating purposes may reflect homogeneity of loss experience, a record of loss experience for the geographic area shall include the breakdown of actual loss experience statistics by ZIP Code area (as designated by the United States Postal Service) within each geographic area for family owned private passenger motor vehicles and lightweight commercial motor vehicles, under 11/2-ton load capacity, used for local service or retail delivery, normally within a 50-mile radius of garaging, and that are not part of a fleet of five or more motor vehicles under one ownership. A record of loss experience for the geographic area, including that statistical data by ZIP Code area, shall be submitted biennially to the commissioner for examination by each insurer licensed to issue and issuing motor vehicle liability policies, motor vehicle physical damage policies, or both. Loss experience shall include separate loss data for each type of coverage, including liability or physical damage coverage, underwritten. The biennial report shall include the insurer’s statewide loss ratio, loss adjustment expense ratio, expense ratio, and combined ratio on its assigned-risk business. Statewide summary data shall be submitted annually to the commissioner. An insurer may satisfy its obligation to report statistical data under this subdivision by providing its loss experience data and statewide expense ratio and combined ratio on its assigned-risk business to a rating or advisory organization for submission to the commissioner. This data shall be made available to the public by the commissioner biennially after examination. However, the data shall be released in aggregate form by ZIP Code or statewide basis in order that no individual insurer’s loss experience for any specific geographic area be revealed. Differentiation in rates between geographical areas shall not constitute unfair discrimination. (3) All information reported to the department pursuant to this subdivision shall be confidential. (4) As used in this section: (A) “Language” means the inability to speak, read, write, or comprehend the English language. (B) “Dependents” shall include, but not be limited to, issue regardless of generation. (C) “Spouse” shall be determined without regard to current marital status. (b) The commissioner may require insurers with combined ratios on statewide assigned-risk business that are 10 percent above the mean combined ratio for all plan participants to also report the following: (1) The reason for the excessive ratio. (2) A plan for reducing the ratio, and when the reduction can be expected to occur. The commissioner may require insurers subject to this subdivision to provide periodic reports on the progress in reducing the combined ratio. (c) (1) No admitted insurer, licensed to issue and issuing motor vehicle liability insurance policies as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an application for that insurance, refuse to issue that insurance to an applicant therefor, or cancel that insurance solely for the reason that the applicant for that insurance or any insured is employed in a specific occupation, or is on active duty service in the Armed Forces of the United States. (2) Nothing in this section shall prohibit an insurer from doing any of the following: (A) Considering the occupation of the applicant or insured as a condition or risk for which a higher rate or discounted rate may be required or offered for coverage in the course and scope of his or her occupation. (B) Charging a deviated rate to any classification of risks involving a specific occupation, or grouping thereof, if the rate meets the requirements of Chapter 9 (commencing with Section 1850.4) of Part 2 of Division 1 and is based upon actuarial data that demonstrates a significant actual historical differential between past losses or expenses attributable to the specific occupation, or grouping thereof, and the past losses or expenses attributable to other classification of risks. For purposes of compiling that actuarial data for a specific occupation or grouping thereof, a person shall be deemed employed in the occupation in which that data is compiled if any of the following is true: (i) The majority of his or her employment during the previous year was in the occupation. (ii) The majority of his or her aggregate earnings for the immediate preceding three-year period were derived from the occupation. (iii) The person is a member in good standing of a union that is an authorized collective bargaining agent for persons engaged in the occupation. (3) Nothing in this section shall be construed to include in the definition of “occupation” any status or activity that does not result in remuneration for work done or services performed, or self-employment in a business operated out of an applicant’s or insured’s place of residence or persons engaged in the renting, leasing, selling, repossessing, rebuilding, wrecking, or salvaging of motor vehicles. (d) Nothing in this section shall limit or restrict the ability of an insurer to refuse to accept an application for or refuse to issue or cancel insurance for the reason that it is a commercial vehicle or based upon the consideration of a vehicle’s size, weight, design, or intended use. (e) It is the intent of the Legislature that actuarial data by occupation may be examined for credibility by the commissioner on the same basis as any other automobile insurance data that he or she is empowered to examine. (f) (1) Except as provided in Article 4 (commencing with Section 11620), nothing in this section or in Article 10 (commencing with Section 1861.01) of Chapter 9 of Part 2 of Division 1 or in any other provision of this code, shall prohibit an insurer from limiting the issuance or renewal of insurance, as defined in subdivision (a) of Section 660, to persons who engage in, or have formerly engaged in, governmental or military service or segments of categories thereof, and their spouses, dependents, direct descendants, and former dependents or spouses. (2) The term “military service” includes, but is not limited to, officers, warrant officers, and enlisted persons, officer and warrant officer candidates, cadets or midshipmen at a service academy, cadets or midshipmen in advance Reserve Officer Training Corps programs or on Reserve Officer Training Corps program scholarships, National Guard officer candidates, students in government-sponsored precommissioning programs, and foreign military officers while on temporary duty in the United States. (g) Any person subject to regulation by the commissioner pursuant to this code who fails to comply with a data call required by the department pursuant to subdivision (a) shall be liable to the state for a civil penalty in an amount not exceeding five thousand dollars ($5,000) for each 30-day period that the person is not in compliance, unless the failure to comply is willful, in which case the civil penalty shall be in an amount not to exceed ten thousand dollars ($10,000) for each 30-day period that the person is not in compliance, but not to exceed an aggregate amount of one hundred thousand dollars ($100,000). 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 shall be in addition to other penalties provided by law. (h) This section shall be known and may be cited as the “Rosenthal Auto Insurance Nondiscrimination Law.” (Amended by Stats. 2014, Ch. 362, Sec. 6. (AB 2734) Effective January 1, 2015.)
  83. 11628.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. )

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    Admitted insurers must offer premium-rate reductions for qualifying motor vehicle liability insurance customers age 55 or older who complete the approved mature driver improvement course.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. ) ## 11628.3. (a) Based on the actuarial and loss experience data available to each insurer, including the driving records of mature driver improvement course graduates, as recorded by the Department of Motor Vehicles, every admitted insurer shall provide for an appropriate percentage of reduction in premium rates for motor vehicle liability insurance for principal operators who are 55 years of age or older and who produce proof of successful completion of the mature driver improvement course provided for and approved by the Department of Motor Vehicles pursuant to Section 1675 of the Vehicle Code. (b) The insured shall enroll in and successfully complete the course described in subdivision (a) once every three years in order to continue to be eligible for an appropriate percentage of reduced premium. (c) The percentage of premium reduction required by subdivision (a) shall be reassessed by the insurer upon renewal of the insured’s policy. The insured’s eligibility for any percentage of premium reduction shall be effective for a three-year period from the date of successful completion of the course described in subdivision (a), except that the insurer may discontinue the reduced premium rate if the insured is in any case: (1) Involved in an accident for which the insured is at fault, as determined by the insurer. (2) Convicted of a violation of Division 11 (commencing with Section 21000) of the Vehicle Code, except Chapter 9 (commencing with Section 22500) of that division, or of a traffic related offense involving alcohol or narcotics. (d) The percentage of premium rate reduction required by subdivision (a) does not apply in the event the insured enrolls in, and successfully completes, an approved course pursuant to a court order provided for in Section 42005 of the Vehicle Code. Nothing in this subdivision precludes an insured from also enrolling in a driver improvement course. (Added by Stats. 1986, Ch. 1325, Sec. 2. Operative July 1, 1987, by Sec. 8 of Ch. 1325.)
  84. 11628.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. )

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    An admitted insurer selling motor vehicle liability policies cannot reject, issue, cancel, or price coverage less favorably solely because an applicant is handicapped.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. ) ## 11628.5. No admitted insurer, licensed to issue motor vehicle liability policies as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an application from a handicapped person for such insurance, or to issue such insurance to a handicapped applicant therefor solely because of handicap, or to issue or cancel such insurance under conditions less favorable to handicapped persons than nonhandicapped persons; nor shall a handicap itself constitute a condition or risk for which a higher rate, premium, or charge may be required of a handicapped person for such insurance. As used in this section, “handicapped person” and “handicapped applicant” refer only to persons who have suffered an impairment of physical ability because of amputation or loss of function which impairment has been compensated for, when necessary, by vehicle equipment adaptation or modification; or who have suffered an impairment of hearing which impairment has been compensated for, when necessary, either by sensory equipment adaptation or modification; or who have suffered an impairment of speech; provided, that the insurer may require a handicapped applicant for such insurance or the renewal of such insurance to furnish proof that he or she has qualified for a new or renewed drivers license through the California Department of Motor Vehicles since the occurrence of the handicapping condition. If such insurer can justify a higher rate, premium, or charge for handicapped persons with actuarial evidence, a higher rate, premium, or charge may be required. (Added by Stats. 1979, Ch. 524.)
  85. 11628.7.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. )

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    An insurer may not refuse or delay motor vehicle liability insurance coverage because the vehicle owner is blind, and may not raise premiums or cancel a blind insured’s policy solely because drivers change often.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. ) ## 11628.7. No admitted insurer, licensed to issue motor vehicle liability policies as defined in Section 16450 of the Vehicle Code, shall fail or refuse to accept an application for that insurance, or to issue that insurance, on the basis that the owner of the motor vehicle to be insured is blind. However, notwithstanding any other provision of law, an admitted insurer may exclude from coverage under the policy the unlicensed owner of a motor vehicle who is blind for injuries and damages incurred while the insured vehicle is operated by an unlicensed owner who is blind. Nothing in this section shall prohibit an insurer from applying its usual and customary underwriting and rating criteria with respect to the operators of the vehicle to be insured, including, but not limited to, the loss experience the insurer has had with respect to the insured vehicle. No insurer shall raise the premiums of an insured blind person or shall cancel the policy of an insured blind person solely on the basis that the operators of the insured vehicle are changed frequently. (Added by Stats. 1981, Ch. 330, Sec. 1.)
  86. 11629.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. )

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    If an insurer or its agent separately violates Section 11628 or 11628.5, the insurer is liable for $100 in damages plus reasonable attorneys’ fees.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. ) ## 11629. Each separate act of an insurer or its agent in violation of Section 11628 or 11628.5 shall render the insurer liable in damages in the amount of one hundred dollars ($100), plus a reasonable allowance for attorneys’ fees incurred in connection with the prosecution of the action, which may be recovered in an action at law brought for that purpose by the person aggrieved by any such act. (Amended by Stats. 1984, Ch. 193, Sec. 93.)
  87. 11629.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. )

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    If an insurer refused to issue a policy in violation of specified sections and has already been required to pay damages, it must pay additional damages based on the applicant’s higher insurance costs.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Motor Vehicle Liability Insurance [11628 - 11629.5] ( Article 5 added by Stats. 1955, Ch. 125. ) ## 11629.5. Any insurer which has refused to issue to an applicant a policy of insurance in violation of Section 11628 or 11628.5 and which has been required to pay damages for the violation pursuant to Section 11629 shall pay as additional damages the amount by which the rates which the applicant found it necessary to pay to obtain other insurance exceed the rates of the insurer. (Amended by Stats. 1984, Ch. 193, Sec. 94.)
  88. 11629.7.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    A low-cost automobile insurance program is established for all California counties, and the commissioner must approve or issue a plan for how eligible people are apportioned among participating insurers after a public hearing.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.7. (a) There is established, within the California Automobile Assigned Risk Plan established under Section 11620, a low-cost automobile insurance program for all counties in California. (b) The commissioner, after a public hearing, shall approve or issue a reasonable plan for the equitable apportionment, among insurers required to participate in the California Automobile Assigned Risk Plan established under Section 11620, of persons who are eligible to purchase through the program a low-cost automobile insurance policy, as described in Section 11629.71. The program shall be conducted in conjunction with the California Automobile Assigned Risk Plan established under Section 11620. (Amended by Stats. 2014, Ch. 487, Sec. 1. (SB 1273) Effective January 1, 2015.)
  89. 11629.71.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    A low-cost automobile insurance policy must include specified coverage amounts, make certain coverages available, have a one-year initial term, and cover some permitted drivers; it also applies only to automobiles valued at $25,000 or less.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.71. A low-cost automobile insurance policy for purposes of the program established under this article shall have all of the following attributes: (a) The policy shall offer coverage in the amount of ten thousand dollars ($10,000) for bodily injury to, or death of, each person as a result of any one accident and, subject to that limit as to one person, the amount of twenty thousand dollars ($20,000) for bodily injury to, or death of all persons as a result of any one accident, and the amount of three thousand dollars ($3,000) for damage to property of others as a result of any one accident. (b) The coverage required by Section 11580.2 shall be made available to the consumer. However, an insurer may charge a premium for that coverage in addition to the premium set forth in Section 11629.72. Notwithstanding the coverage amounts required by Section 11580.2 and Section 16056 of the Vehicle Code, uninsured motorist coverage issued in conjunction with a low-cost automobile policy under the program, with coverage limits at least equal to the limits of liability in the underlying low-cost automobile policy, shall satisfy the requirements of Section 11580.2 and the financial responsibility requirements of Sections 4000.37, 16021, and 16431 of the Vehicle Code. (c) Medical payments coverage shall be made available to the consumer. However, an insurer may charge a premium for that coverage in addition to the premium set forth in Section 11629.72. (d) The policy shall have an initial term of one year, renewable on an annual basis thereafter. (e) The policy shall cover the person named in the policy, and to the same extent that insurance is provided to the named insured, any other person using the automobile, provided the use is with his or her permission, express or implied, and within the scope of that permission, except that the policy shall not cover members of the named insured’s household who do not satisfy the requirements of subdivisions (b) to (e), inclusive, of Section 11629.73. (f) The policy shall provide coverage for an automobile with a value of twenty-five thousand dollars ($25,000) or less, as evidenced by the value given to the automobile by the Department of Motor Vehicles in assessing vehicle license fees, or another method of determining market value adopted by the California Automobile Assigned Risk Plan Advisory Committee (CAARP Advisory Committee) and approved by the commissioner. (Amended by Stats. 2014, Ch. 487, Sec. 2. (SB 1273) Effective January 1, 2015.)
  90. 11629.72.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    The program’s annual rates, surcharges, installment options, and rate filings are controlled by the commissioner and the California Automobile Assigned Risk Plan must follow specified filing and payment rules.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.72. (a) The annual rate offered under the program for each of the counties in California shall be established at a date according to the discretion of the commissioner. Surcharges, as a percentage of the base rate, shall be added to the base rate and that percentage shall be set at the discretion of the commissioner, if the named insured or a resident of the household of the named insured will be a driver of the automobile covered under the low-cost policy, and is a person 16 years of age or older to whom any of the following applies: (1) Is an unmarried individual between 16 and 24 years of age. (2) Operates a vehicle with a driver’s license issued by the Department of Motor Vehicles pursuant to Section 12801.9 of the Vehicle Code and has fewer than three years of driving history. (3) Has fewer than three years of driving history. (4) Has not been continually licensed to drive for the past three years. (b) (1) The California Automobile Assigned Risk Plan shall make available to an insured under the program, subject to approval by the commissioner, a premium installment option pursuant to which an insured is required to pay not more than 20 percent of the total policy cost upon issuance of the low-cost policy, followed thereafter by seven other payments. The plan may make additional payment plans available, subject to approval by the commissioner. (2) No other premium financing arrangement shall be permitted. (c) Rates for policies issued under the program in each county or city and county shall be reviewed and revised as follows: (1) Rates shall be sufficient to cover (A) losses incurred under policies issued under the program, and (B) expenses, including, but not limited to, all reasonable and necessary expenses such as the costs of administration, underwriting, taxes, commissions, and claims adjusting, that are incurred due to participation in the program. For purposes of this paragraph, “losses incurred” means claims paid, claims incurred and reported, and claims incurred but not yet reported. In assessing loss reserves, the commissioner shall only allow loss reserves that are estimated from actual losses in the program or comparable data by a licensed statistical agent, as adjusted to reflect coverage provided under the program. (2) Rates shall be set so as to result in no projected subsidy of the program by those policyholders of insurers issuing policies under the program who are not participants in the program. (3) Rates shall be set with respect to the program so as to result in no projected subsidy by policyholders in one county of policyholders in any of the other counties. (4) (A) Commencing on January 1, 2015, and annually thereafter through January 1, 2017, the California Automobile Assigned Risk Plan shall submit the loss and expense data, together with a proposed rate and the surcharge authorized by subdivision (a) for the low-cost automobile policy for the program, to the commissioner for approval in accordance with this chapter. The commissioner shall act on the recommendation within 90 days. (B) After the January 1, 2017, rate filing, subsequent rate filings are mandatory if the rate indication is a change of greater than 7 percent from the previous filing, or at the discretion of the CAARP Advisory Committee if the rate indication is a change of less than 7 percent. (Amended by Stats. 2019, Ch. 274, Sec. 1. (SB 570) Effective January 1, 2020.)
  91. 11629.73.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    A low-cost auto insurance policy under the program may be bought only by people who meet the listed eligibility rules.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.73. A low-cost automobile insurance policy under the program shall only be available for purchase by persons who satisfy the following eligibility requirements: (a) The person shall be in a household with an annual gross household income that does not exceed 250 percent of the federal poverty level, as defined in Part 6.2 (commencing with Section 12693) or as defined in an equivalent manner that is approved by the commissioner. (b) The person shall be no less than 16 years of age and have been continuously licensed to drive an automobile for the previous three years, except that a person who has not been continually licensed to drive or has fewer than three years of driving history may qualify for the surcharge under subdivision (a) of Section 11629.72. (c) The person shall have not more than one of either, but not both, of the following within the previous three years: (1) A property damage only accident in which the driver was principally at fault. (2) A point for a moving violation. (d) The person shall not have on record within the previous three years, an at-fault accident involving bodily injury or death. (e) The person shall not have a felony or misdemeanor conviction for a violation of the Vehicle Code on the person’s motor vehicle record. (f) The person shall not be a student claimed as a dependent of another person for federal or state income tax purposes, unless the student resides at the same address where the student is claimed as a dependent. (Amended by Stats. 2019, Ch. 274, Sec. 2. (SB 570) Effective January 1, 2020.)
  92. 11629.731.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    A qualifying person may receive a rebuttable presumption that they are eligible to buy a low-cost automobile insurance policy if they meet the stated conditions.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.731. A person who meets the requirements of subdivision (a) of Section 11629.73, and who claims that he or she meets the requirements of subdivisions (b) to (e), inclusive, of Section 11629.73 based entirely or partially on a driver’s license and driving experience obtained other than in the United States or Canada, shall be entitled to a rebuttable presumption that he or she is qualified to purchase a low-cost automobile insurance policy under the program if he or she has been licensed to drive pursuant to a license obtained in the United States or Canada for at least the previous 18 months and meets the criteria of subdivisions (b) to (e), inclusive, for that period. (Amended by Stats. 2005, Ch. 435, Sec. 6. Effective January 1, 2006.)
  93. 11629.74.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    Applicants for the program may apply through a certified producer, but must provide income-related proof and certify their application statements; the certified producer must then send the application package to the California Automobile Assigned Risk Plan.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.74. (a) Application may be made through any producer certified by the plan. The applicant, in order to demonstrate financial eligibility to purchase a low-cost automobile insurance policy under the program, shall present at the time of applying for the policy documents deemed appropriate to confirm proof of income or other reliable evidence from a governmental agency or governmental means-tested program of the applicant’s gross annual household income. (b) The applicant shall certify that the representations made in the documents submitted as proof of financial eligibility and in the application for the policy are true, correct, and contain no material misrepresentations or omissions of fact to the best knowledge and belief of the applicant. (c) The certified producer shall forward the application, supporting documents, and the applicant’s certification to the California Automobile Assigned Risk Plan. (Amended by Stats. 2019, Ch. 274, Sec. 3. (SB 570) Effective January 1, 2020.)
  94. 11629.745.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    Producers in counties with a low-cost auto insurance policy must tell certain new prospective policyholders that the low-cost policy may be available, before application, and in the language they have been using with the consumer.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.745. (a) An agent or broker, hereafter referred to as a producer, who conducts business in a county in which a low-cost automobile insurance policy is available pursuant to this article shall inform every new prospective automobile insurance policyholder who requests a minimum limits or basic limits insurance policy, or coverage to meet California’s minimum limits automobile insurance requirements, that the low-cost automobile insurance policy may be available for qualifying motorists. The information may be provided orally if the producer has been contacted by telephone, or in writing, but shall be communicated to the policyholder prior to the application for automobile insurance coverage in the language in which the producer has otherwise communicated with the consumer. (b) If the consumer requests more information about the low-cost program the producer shall do either of the following: (1) If the producer is California Automobile Assigned Risk Plan certified, provide the consumer with an explanation in an information pamphlet produced by the California Automobile Assigned Risk Plan and approved and provided by the Department of Insurance of the qualifications, cost, and coverage provided by the policy. If the consumer qualifies for the low-cost policy and wishes to purchase the policy, the California Automobile Assigned Risk Plan certified producer shall provide the application and, upon completion, submit the application, supporting documents, and the applicant’s certification to the California Automobile Assigned Risk Plan. The submittal of the California Automobile Assigned Risk Plan application may be in addition to any other coverage offered or applied for through the producer. (2) If the producer is not California Automobile Assigned Risk Plan certified, the producer shall provide the consumer with the toll-free telephone number for the California Automobile Assigned Risk Plan or the program’s Internet Web site address as an option to coverage offered by the producer. (Amended by Stats. 2014, Ch. 487, Sec. 5. (SB 1273) Effective January 1, 2015.)
  95. 11629.75.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    A certified producer must give an applicant for a low-cost automobile insurance policy a separate written notice at application time describing the policy’s coverage limits and key exclusions/options.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.75. (a) A certified producer shall provide to an applicant for a low-cost automobile insurance policy under this article a notice relating to coverage under the policy. The notice shall be provided in a separate document at the time of application and include the following statement in 14-point boldface type: ## “Notice This policy provides liability coverage for injuries or death caused to other persons in the total amount of ten thousand dollars ($10,000) per person in any one accident, and up to a total amount of twenty thousand dollars ($20,000) for all persons in any one accident. The policy also provides up to three thousand dollars ($3,000) in liability coverage for property damage in any one accident. These limits are very low compared to coverage outside of the low-cost automobile program. If you are at fault for an accident where the damage exceeds the coverage provided by this policy, you can be held personally responsible for the losses. If you want higher coverage limits, you must purchase a different policy. This policy does not cover damage to your own vehicle caused by you or anyone else. The plan offers uninsured motorist coverage as an option. However, comprehensive coverage and collision coverage are only available for purchase outside of the program. This policy does not cover your bodily injury or your death. You do have the option to purchase uninsured motorist bodily injury coverage in the total amount of ten thousand dollars ($10,000) per person in any one accident and up to a total amount of twenty thousand dollars ($20,000) for all persons in any one accident. You also have the option to purchase medical payments coverage in the amount of one thousand dollars ($1,000) per person in any one accident. This policy does not cover any other driver in your household who meets any of the following criteria: (1) Is under 16 years of age. (2) Has less than three years of continuously licensed driving experience (unless the policy includes a surcharge for this driver). (3) Has more than one at-fault property damage only accident in which the driver was principally at fault in the last three years. (4) Has more than one point for a moving violation in the last three years. (5) Has both one at-fault property damage only accident in which the driver was principally at fault and one point for a moving violation in the last three years. (6) Has had an at-fault accident in the previous 3 years involving bodily injury or death. (7) Has a felony or misdemeanor conviction from a violation of the Vehicle Code on their motor vehicle record.” (b) When the certified producer establishes delivery of the disclosure form specified in subdivision (a) by obtaining the signature of the applicant or insured, there shall be a conclusive presumption that the certified producer has complied with the disclosure requirements of this section. (Repealed and added by Stats. 2019, Ch. 274, Sec. 5. (SB 570) Effective January 1, 2020.)
  96. 11629.76.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    Certified producers are entitled to specified commissions for low-cost auto policies, and the commissioner may set commissions with limits.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.76. (a) (1) For a low-cost automobile insurance policy issued pursuant to the program, certified producers shall be entitled to the same commission rate as is paid by the California Automobile Assigned Risk Plan for private passenger, nonfleet risks under Article 4 (commencing with Section 11620). The commission rate prescribed in this paragraph shall only be in effect until the conditions described in paragraph (2) are fulfilled. (2) Effective upon the setting of policy rates in 2015 pursuant to Section 11629.72, for a low-cost automobile insurance policy issued pursuant to the program, certified producers shall be entitled to a commission rate of 12 percent or fifty dollars ($50), whichever is greater. (b) Notwithstanding subdivision (a), the commissioner may at any time establish a commission for a low-cost automobile insurance policy issued pursuant to the program and may make the commission effective on any policy originated within an entire year, or any portion of a year, as is needed to provide an incentive to certified producers to sell low-cost automobile insurance to eligible applicants. The commissioner shall not establish a commission pursuant to this subdivision if the commissioner determines that setting the commission rate will result in a lower commission than the commission paid by the California Automobile Assigned Risk Plan for private passenger, nonfleet risks under Article 4 (commencing with Section 11620). (c) No other fees of any kind may be charged or collected pursuant to this section and the sale of a low-cost policy under this article shall not be conditioned on the purchase of any other product or service. (Amended by Stats. 2014, Ch. 487, Sec. 7. (SB 1273) Effective January 1, 2015.)
  97. 11629.77.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    Low-cost auto insurance policies may be canceled or nonrenewed only for listed reasons, and insured eligibility must be recertified on the stated schedule.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.77. (a) A low-cost automobile insurance policy issued pursuant to the program shall be canceled only for the following reasons: (1) Nonpayment of premium. (2) Fraud or material misrepresentation affecting the policy or the insured. (3) The purchase of additional automobile liability insurance coverage in violation of subdivision (a) of Section 11629.78. (4) The purchase or maintenance of automobile liability insurance coverage other than a low-cost policy for any additional vehicles in the insured’s household, in violation of subdivision (b) of Section 11629.78. (b) A policy shall be nonrenewed only for the following reasons: (1) A substantial increase in the hazard insured against. (2) The insured no longer meets the applicable eligibility requirements. In this regard, the eligibility of an insured shall be recertified by the California Automobile Assigned Risk Plan after the first year of eligibility, and every three years thereafter by the insurer that issued the policy. (Amended by Stats. 2019, Ch. 274, Sec. 6. (SB 570) Effective January 1, 2020.)
  98. 11629.78.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    An insured under the program may not buy extra automobile liability coverage on top of the low-cost policy’s liability coverage, but may buy other extra auto coverage outside the plan.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.78. (a) An insured under the program shall not purchase automobile liability insurance coverage that is in addition to the liability coverage provided by the low-cost policy. However, the insured may purchase any other additional type of automobile insurance coverage, such as uninsured motorist coverage or collision coverage outside the plan. (b) No more than two low-cost policies per person are permitted. (Amended by Stats. 2019, Ch. 274, Sec. 7. (SB 570) Effective January 1, 2020.)
  99. 11629.8.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    A low-cost automobile policy under the program must meet specified Vehicle Code financial responsibility requirements.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.8. Notwithstanding the coverage amounts required by Section 16056 of the Vehicle Code, a low-cost automobile policy issued under the program shall satisfy the financial responsibility requirements of Sections 4000.37, 16021, and 16431 of the Vehicle Code. (Amended by Stats. 2005, Ch. 435, Sec. 13. Effective January 1, 2006.)
  100. 11629.81.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    The California Automobile Assigned Risk Plan must report program status to the commissioner every year, and the department must combine reports and submit them to the Legislature on a set schedule.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.81. (a) The California Automobile Assigned Risk Plan shall report to the commissioner on an annual basis, and at those additional times as it deems prudent, on the status of the program. The report shall include data regarding new policies, renewed policies, and policy cancellations or nonrenewals. (b) The department shall combine the reports pursuant to subdivision (a) with the report required by Section 11629.85 and submit the combined report to the Legislature on or before March 15, 2024, and on or before March 15 every five years thereafter. (c) A report submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code. (Amended by Stats. 2023, Ch. 350, Sec. 1. (AB 917) Effective January 1, 2024.)
  101. 11629.82.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    This section says Article 5.5 does not change, affect, or interpret Proposition 103, and Proposition 103 does not apply to this article.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.82. Nothing in this article is intended to amend or otherwise affect or interpret any provision of Proposition 103, approved by the electors on November 8, 1988, and no provision of that initiative measure applies to this article. (Added by Stats. 1999, Ch. 794, Sec. 2. Effective January 1, 2000.)
  102. 11629.85.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    The commissioner must prepare an annual report plan about how to inform eligible households about low-cost automobile insurance, submit reports on set dates, and the report must be posted online. The department’s ads cannot use the commissioner’s name, office, voice, image, or likeness.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.85. (a) (1) Notwithstanding Section 10231.5 of the Government Code, on or before March 15, 2024, and on or before March 15 every year thereafter, the commissioner shall prepare and propose a plan in a report setting forth the methods the commissioner intends to implement to inform households eligible for the program about the availability of low-cost automobile insurance. (2) The commissioner shall submit the report identified in paragraph (1) to the Legislature on an annual basis on or before March 15, 2024, March 15, 2025, and March 15, 2026, and every five years thereafter, beginning with the report due on or before March 15, 2031. (3) The report identified in paragraph (1) shall be posted on the department’s and the California Automobile Assigned Risk Plan’s internet websites, beginning with the report due on or before March 15, 2024. (b) The plan shall include, at a minimum, a brief description of methods proposed to be used, anticipated costs, sources of revenue, goals, targets, objectives, and a justification of the proposed methods. The plan shall also explain how the department proposes to work in cooperation with the California Automobile Assigned Risk Plan, the social service agencies, the Department of Motor Vehicles, and community-based organizations in order to inform eligible households of the existence of the program. (c) The plan shall also include all of the following: (1) The commissioner’s determination regarding whether the program has been successful, based on the criteria specified in subdivision (d), and an explanation regarding that success or lack thereof. (2) In cooperation with the California Automobile Assigned Risk Plan, structural characteristics of the program that may require statutory revision in order for the program to succeed or to improve upon existing success. (3) Impediments to success of the program that can reasonably be overcome by revision to the strategies adopted by the department. (4) A detailed explanation of the department’s use for the program of funds assessed pursuant to Section 1872.81 for the reporting period. (5) For the previous five calendar years, a list of the total low-cost auto premiums for each county in which the program was available. (d) The program is successful if the following occur: (1) The program generated sufficient premiums to cover losses incurred under policies issued under the program, and expenses incurred by the program, as calculated pursuant to subdivision (c) of Section 11629.72. (2) The program served the public purpose of offering access to automobile insurance to otherwise underserved communities in the program areas. (3) The program offered access to automobile insurance to previously uninsured motorists seeking affordable coverage in the program areas. (4) The program’s outreach efforts lead uninsured motorists to contact a producer, and the driver obtains any auto insurance policy that complies with California law. (e) Any written or oral advertisements, including, but not limited to, paid or unpaid commercial or noncommercial advertising, by the department with reference to the low-cost automobile insurance program shall reference the department and shall not reference the commissioner by name or office, or include the commissioner’s voice, image, or likeness. The department shall not participate with any nongovernmental entity that produces or intends to produce advertisements or educational material that include the name of the commissioner or their voice, image, or likeness, and that are intended to make eligible households aware of the existence of low-cost automobile insurance. (f) A report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (Amended by Stats. 2023, Ch. 350, Sec. 2. (AB 917) Effective January 1, 2024.)
  103. 11629.86.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    Certified producers may take low-cost auto insurance applications online, but they must notify the California Automobile Assigned Risk Plan first and show customers clear coverage timing information before payment.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.86. (a) A California Automobile Assigned Risk Plan certified producer may accept and process an application to purchase a low-cost automobile insurance policy under this program through an Internet Web site, in accordance with this section and regulations adopted by the department pursuant to this section. (b) Any producer seeking certification to accept and process low-cost automobile insurance policy applications through an Internet Web site shall notify the California Automobile Assigned Risk Plan of its intentions to do so prior to accepting any applications to the program. (c) Prior to accepting payment and upon transmitting any information from the consumer, the producer’s Internet Web site shall include a clear explanation of whether the consumer will be afforded insurance coverage upon payment and, if not, when the consumer will receive coverage and how he or she will receive notice of coverage. (d) A producer accepting and processing applications through an Internet Web site shall be entitled to the same commission available to a producer selling a low-cost automobile insurance policy by any other means acceptable under the law. (e) Any producer accepting and processing applications through an Internet Web site is subject to the laws and rules governing this program and is liable for any errors and omissions related to the transaction of insurance to the same extent as a producer selling a low-cost automobile insurance policy by any other means acceptable under the law. (f) Any consumer information required by this article may be accepted by electronic means after the department adopts regulations implementing this section and only if the information is submitted in accordance with those regulations. (g) The California Automobile Assigned Risk Plan shall coordinate with the department in order to develop a system for receiving and assigning policies issued through Internet Web sites. (h) The California Automobile Assigned Risk Plan may request, and the department may include in its plan submitted pursuant to Section 11629.85, up to fifty thousand dollars ($50,000) from the department’s existing consumer outreach fund to be used for the sole purpose of implementing this section. (Amended by Stats. 2014, Ch. 487, Sec. 12. (SB 1273) Effective January 1, 2015.)
  104. 11629.87.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    The department must, with the CAARP Advisory Committee, maintain a consumer-oriented website with referral, eligibility, benefit, limit, and alternative-policy information.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.87. The department shall, in consultation with the CAARP Advisory Committee, establish and maintain a consumer-oriented internet website that provides all of the following: (a) Referral to a list of certified agents or brokers with an office in the same geographic area as the consumer who may be contacted to purchase a low-cost automobile insurance policy. (b) Information about the eligibility requirements, benefits, and limits of the low-cost automobile insurance policy. (c) Notification that if a consumer does not qualify for the low-cost automobile insurance policy, other policies may be available from producers or insurers, and directing the consumer to the department’s automobile insurance premium comparison internet web page. (Amended by Stats. 2019, Ch. 274, Sec. 11. (SB 570) Effective January 1, 2020.)
  105. 11629.88.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )

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    An applicant does not have to provide a driver’s license copy if the Department of Insurance finds another suitable way to verify licensure.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 1. General Regulations [11550 - 11629.88] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 - 11629.88] ( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. ) ## 11629.88. An applicant shall not be required to provide a copy of the applicant’s or other household member’s driver’s license, if the Department of Insurance finds that there is another suitable means of verifying the driver’s licensure. (Added by Stats. 2011, Ch. 401, Sec. 3. (AB 1024) Effective January 1, 2012.)
  106. 11630.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Definitions [11630 - 11631] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines “compensation” as the benefits insured by workers’ compensation insurance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Definitions [11630 - 11631] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11630. As used in this chapter, the term “compensation” means the benefits insured by workers’ compensation insurance. (Amended by Stats. 1979, Ch. 373.)
  107. 11631.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Definitions [11630 - 11631] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In this chapter, “insurer” includes the State Compensation Insurance Fund.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Definitions [11630 - 11631] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 11631. As used in this chapter, the term “insurer” includes the State Compensation Insurance Fund. (Enacted by Stats. 1935, Ch. 145.)
  108. 11650.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Workers’ compensation insurance contracts and policies are treated as including all provisions required by this article.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11650. Every contract insuring against liability for compensation and every compensation policy is conclusively presumed to contain all of the provisions required by this article. (Enacted by Stats. 1935, Ch. 145.)
  109. 11651.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Workers’ compensation policies must include a clause making the insurer directly and primarily liable to a proper claimant for compensation the employer owes, subject to the policy’s provisions, conditions, and limitations.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11651. Every such contract or policy shall contain a clause to the effect that the insurer will be directly and primarily liable to any proper claimant for payment of any compensation for which the employer is liable, subject to the provisions, conditions and limitations of the policy. (Enacted by Stats. 1935, Ch. 145.)
  110. 11652.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Every workers’ compensation policy or contract must include a clause treating the employer’s notice or knowledge of an injury as notice or knowledge to the insurer.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11652. Every such contract or policy shall contain a clause to the effect that, as between the employee and the insurer, notice to or knowledge of the occurrence of the injury on the part of the employer will be deemed notice or knowledge, as the case may be, on the part of the insurer. (Enacted by Stats. 1935, Ch. 145.)
  111. 11653.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Every workers’ compensation contract or policy must include a clause making the employer’s jurisdiction, for compensation-liability purposes, the insurer’s jurisdiction.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11653. Every such contract or policy shall contain a clause to the effect that jurisdiction of the employer will, for the purpose of the law imposing liability for compensation, be jurisdiction of the insurer. (Enacted by Stats. 1935, Ch. 145.)
  112. 11654.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A workers’ compensation policy must include a clause making the insurer bound by awards and similar decisions against the employer, subject to the policy’s terms.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11654. Every such contract or policy shall contain a clause to the effect that the insurer will in all things be bound by and subject to the orders, findings, decisions or awards rendered against the employer under the provisions of the law imposing liability for compensation, subject to the provisions, conditions and limitations of the policy. The insurance contract shall govern as between the employer and insurer as to payments by either in discharge of the employer’s liability for compensation. (Enacted by Stats. 1935, Ch. 145.)
  113. 11655.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An insurance policy for workers’ compensation must not include clauses that relieve the insurer from paying because the employer is insolvent or bankrupt.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11655. Such policy shall not contain any provisions relieving the insurer from payment when the employer becomes insolvent or obtains a discharge in bankruptcy, or otherwise, during the period that the policy is in operation or the compensation remains owing. (Amended by Stats. 2009, Ch. 500, Sec. 56. (AB 1059) Effective January 1, 2010.)
  114. 11656.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    The policy must give the employee a first lien on amounts owed to the employer by the insurer, and the insurer must pay the claimant directly if the employer cannot legally receive and pass on the money.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11656. Such policy shall also provide that the employee has a first lien upon any amount which becomes owing to the employer from the insurer on account of the policy, and that in case of the legal incapacity or inability of the employer to receive the money and pay it to the claimant, the insurer will pay it directly to the claimant. To the extent of such payment, the obligations of the employer to the claimant are thereby discharged. (Enacted by Stats. 1935, Ch. 145.)
  115. 11656.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    On request of the State Department of Social Services, the State Compensation Insurance Fund may issue one workers’ compensation insurance policy for certain recipients of in-home supportive services.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11656.1. Upon request of the State Department of Social Services, the State Compensation Insurance Fund may issue one workers’ compensation insurance policy insuring all recipients of in-home supportive services under Article 7 (commencing with Section 12300), Chapter 3, Part 3, Division 9 of the Welfare and Institutions Code for whom and to the extent that the State Department of Social Services has an obligation to perform or assure the performance of rights, duties and obligations relating to such services as specified in Section 12302.2 of the Welfare and Institutions Code. (Added by renumbering Section 11656.7 by Stats. 1979, Ch. 373.)
  116. 11656.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Certain agricultural labor employers may be insured under a group compensation insurance policy if the commissioner allows it under prescribed conditions.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11656.5. In order to permit employees of small farms to be brought under the provisions of the Workers’ Compensation Law, employers of agricultural labor who are members of any nonprofit agricultural association or who are members of, or stockholders in, any nonprofit cooperative agricultural marketing association of producers, some or all of whom may not be required to carry compensation insurance, may, under such conditions as the commissioner may prescribe in order to effectuate the purpose of Article 2, Chapter 3, of this part, be insured under a group compensation insurance policy. (Amended by Stats. 1990, Ch. 293, Sec. 1.)
  117. 11656.6.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer may issue a group workers’ compensation policy to an organization or association of employers only if specified membership, filing, safety, and payroll conditions are met.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11656.6. An insurer may issue a workers’ compensation policy insuring an organization or association of employers as a group if the organization or association complies with the following conditions: (a) Files with the commissioner or a licensed workers’ compensation rating organization designated by him or her the following: (1) A copy of its articles of incorporation and bylaws or its agreement of association and rules and regulations governing the conduct of its business, all certified by the custodian of the originals thereof. (2) A statement setting forth its reasons for desiring insurance as a group. (3) A statement certifying that at least 75 percent of its regular membership is engaged in a common trade or business, and an agreement that the percentage of membership will be maintained during the time that a group workers’ compensation policy issued to the organization or association is in force. (4) An agreement that only those members who are engaged in a common trade or business shall be named by the organization or association in any statement to the commissioner, a licensed workers’ compensation rating organization, or insurer as eligible for insurance as a member of the group, and an agreement that it will immediately notify its insurer if any member of the organization fails to remain a member in good standing in accordance with the basic law, rules, and regulations of the organization or association. (5) A statement in writing undertaking to establish and maintain a safety committee which, by education and otherwise, will seek to reduce the incidence and severity of accidents. (6) An agreement in writing duly executed stating that, if the insurer notifies the organization or association of the nonpayment of a premium by an insured member of the organization or association within 60 days after the premium was due, the organization or association may be liable to pay to the insurer the amount of any past due premium that does not exceed the amount of the dividends that are due to the organization or association or its members from the insurer. However, this agreement shall not be required, nor shall an organization or association be liable for payment, unless the governing board of the organization or association and the insurer agree in writing to use dividends due for the payment of past due premiums. The organization or association shall promptly notify the insurer of the known insolvency of any member of the group plan, and shall request, upon learning of the insolvency, removal of the member from the group plan. A copy of the resolution of the governing board of the organization or association authorizing the execution of the agreement shall be filed with the commissioner or a licensed workers’ compensation rating organization designated by the commissioner and with any insurer issuing a group policy. (b) “Common trade or business,” as used in this article, shall mean: (1) In agricultural enterprises, operations in which the principal payroll of the employer develops under any combination of the classifications of the Manual of Rules, Classifications and Basic Rates of Workers’ Compensation Insurance approved by the Insurance Commissioner as applicable to farms, nurserymen, cultivating or gardening of flowers, and classifications embracing other operations that may be conducted by a nonprofit cooperative association composed of producer members and combinations of nonprofit cooperative agricultural marketing associations having a central organization composed of member associations. (2) In the building and construction industry, operations in the construction or repair of commercial or residential buildings or in general engineering construction in which the principal payroll develops under any combination of the classifications applicable to the construction or repair as they appear in the Manual of Rules, Classifications and Basic Rates for Workers’ Compensation Insurance approved by the Insurance Commissioner. Commercial buildings, as defined in this paragraph, shall mean any nonresidential buildings. (3) In the transportation and warehousing industry, operations in which the principal payroll of the employer develops under any combination of the classifications of the Manual of Rules, Classifications and Basic Rates of Workers’ Compensation Insurance approved by the Insurance Commissioner as applicable to for-hire motor carriers subject to regulation by the Public Utilities Commission and warehousemen. (4) In the timber and lumber industry, operations in which the principal payroll of the employer develops under any combination of the classifications of the Manual of Rules, Classifications and Basic Rates of Workers’ Compensation Insurance approved by the Insurance Commissioner as applicable to land clearing, logging or lumbering, log, chip, and lumber hauling, planing or molding mills, sawmills or shingle mills, veneer or veneer products manufacturing, box or box shook manufacturing, cabinet works, door, door frame, or sash manufacturing and wood fiber preparation. However, no classification applicable to for-hire motor carriers under the provisions of paragraph (3) of this subdivision shall be included in any combination of classifications authorized by this paragraph. (5) For public agencies providing industrial, domestic, or agricultural water service, operations in which the principal payroll of the employer develops under any combination of the classifications of the Manual of Rules, Classifications and Basic Rates of Workers’ Compensation Insurance approved by the Insurance Commissioner as applicable to irrigation, drainage, reclamation, or waterworks operations. (6) For sheltered workshops and rehabilitation facilities licensed pursuant to Section 1191.5 of the Labor Code, operations in which the principal payroll of the employer develops under any combination of classifications of the Manual of Rules, Classifications and Basic Rates of Workers’ Compensation Insurance approved by the Insurance Commissioner. (7) For all other enterprises, operations in which the principal payroll develops under a single manual classification or a combination of classifications under which a group policy may be issued pursuant to subdivision (d). (8) For manufacturing facilities as identified in Sector 31 to 33, inclusive, of the North American Industry Classification System (NAICS), operations in which the principal payroll of the employer develops under any combination of classifications of the Manual of Rules, Classifications, and Basic Rates of Workers’ Compensation Insurance approved by the Insurance Commissioner applicable to establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. (c) Except as provided in subdivision (d), “principal payroll,” for the purpose of this section, means not less than 51 percent of the total payroll for the preceding policy year or, in the case of an employer who has no preceding full year’s payroll, not less than 51 percent of his or her estimated annual payroll. Principal or estimated annual payroll shall not include the payroll of those employees set forth in the standard exceptions contained in the Manual of Rules, Classifications, and Basic Rates of Workers’ Compensation Insurance approved by the Insurance Commissioner. (d) An insurer may issue a workers’ compensation policy insuring an organization or association of employers as a group if, in addition to complying with the conditions set forth in subdivision (a), the organization or association has had at least 50 percent of its present membership for at least one year prior to the issuance of the policy, and not less than 75 percent of the payroll of each employer to be insured under the group policy developed under the same two manual classifications, or either of them, for the preceding policy year or, in the case of an employer who has had no preceding full-year’s payroll, not less than 75 percent of his estimated annual payroll develops under the classification or classifications. However, no classification applicable to for-hire motor carriers under the provisions of paragraph (3) of subdivision (b) shall be included in any combination of classifications authorized by this subdivision. (Amended by Stats. 2003, Ch. 641, Sec. 1. Effective January 1, 2004.)
  118. 11656.7.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Members of an organization insured under a group policy must be treated separately for rates, classifications, and rating plans. Combined policy experience can make the coverage group insurance and subject to this article, unless the employers have a common payroll or approved rating rules allow more than one employer in one policy.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11656.7. Each member of an organization insured under a group policy shall be treated as a single and separate entity as respects rates, classifications and rating plans. Two or more policies whose experience is combined for any purpose whatsoever, shall be considered group insurance and subject to the provisions of this article unless employers insured by such policies are engaged in operations having a common pay roll or where any rating plan or rating system and the rules applicable to them approved by the commissioner under the provisions of Article 2, Chapter 3, Part 3, Division 2, require or permit the insurance of more than one employer in a single policy. (Added by Stats. 1953, Ch. 889.)
  119. 11656.8.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Sections 11656.6 and 11656.7 must not be read to override, change, or otherwise affect Section 11656.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11656.8. Nothing in Section 11656.6 or 11656.7 shall be construed to supersede, modify, or otherwise affect in any way the provisions of Section 11656.5. (Added by Stats. 1953, Ch. 889.)
  120. 11656.9.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Insurers may insure workers’ compensation liability for enrollees of sponsoring agencies under a master policy, but only with the Insurance Commissioner’s approval.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11656.9. To encourage and facilitate the participation of agencies, entities or institutions, public or private, in economic opportunity programs authorized under Public Law 88-452, insurers may insure the workers’ compensation liability to enrollees of sponsoring agencies pursuant to Chapter 9 (commencing with Section 4201) of Part 1 of Division 4 of the Labor Code under a master policy, subject to the approval of the Insurance Commissioner. (Amended by Stats. 1981, Ch. 714, Sec. 277.)
  121. 11657.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Limited workers’ compensation policies may be issued only subject to Sections 11659 and 11660, and only if the commissioner has previously approved the policy’s substance and form.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11657. Subject to the provisions of Sections 11659 and 11660, limited workers’ compensation policies may be issued insuring either the whole or any part of the liability of any employer for compensation, provided that the policy is previously approved, as to substance and form, by the commissioner. Subject to those provisions, the policy may restrict or limit the insurance in any manner whatsoever. (Amended by Stats. 1995, Ch. 582, Sec. 1. Effective January 1, 1996.)
  122. 11658.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer generally may not issue a workers’ compensation policy or endorsement in California unless the form is filed and either 30 days pass without commissioner notice or the commissioner gives written approval.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11658. (a) A workers’ compensation insurance policy or endorsement shall not be issued by an insurer to any person in this state unless the insurer files a copy of the form or endorsement with the rating organization pursuant to subdivision (e) of Section 11750.3 and 30 days have expired from the date the form or endorsement is received by the commissioner from the rating organization without notice from the commissioner, unless the commissioner gives written approval of the form or endorsement prior to that time. (b) If the commissioner notifies the insurer that the filed form or endorsement does not comply with the requirements of law, specifying the reasons for his or her opinion, it is unlawful for the insurer to issue any policy or endorsement in that form. (c) The withdrawal of a policy form or endorsement by the commissioner pursuant to this section shall not affect the status of the policyholder as having secured payment for compensation or affect the substitution of the insurer for the policyholder in workers’ compensation proceedings as set forth in the provisions of Chapter 4 (commencing with Section 3700) of Part 1 of Division 4 of the Labor Code during the period of time in which the policy form or endorsement was in effect. (d) This section shall not apply to limited policies submitted for approval to the commissioner pursuant to Section 11657. (Repealed and added by Stats. 1995, Ch. 582, Sec. 3. Effective January 1, 1996.)
  123. 11658.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer using an arbitration or dispute-resolution agreement for a California workers’ compensation policy must disclose certain terms to the employer, and the employer must sign the disclosure when accepting coverage.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11658.5. (a) (1) An insurer that intends to use a dispute resolution or arbitration agreement to resolve disputes arising in California out of a workers’ compensation insurance policy or endorsement issued to a California employer shall disclose to the employer, contemporaneously with any written quote that offers to provide insurance coverage, that choice of law and choice of venue or forum may be a jurisdiction other than California and that these terms are negotiable between the insurer and the employer. The disclosure shall be signed by the employer as evidence of receipt where the employer accepts the offer of coverage from that insurer. (2) After compliance with paragraph (1), a dispute resolution or arbitration agreement may be negotiated by the insurer and the employer before any dispute arises. (b) Nothing in this section is intended to interfere with any authority granted to the Insurance Commissioner under current law. (c) Failure by the insurer to observe the requirements of subdivision (a) shall result in a default to California as the choice of law and forum for resolution of disputes arising in California. (d) For purposes of this section, a “California employer” means an employer whose principal place of business is in California and whose California payroll constitutes the majority of the employer’s payroll for purposes of determining premium under the policy. (e) This section shall apply to workers’ compensation policies issued or renewed on or after July 1, 2012. (Added by Stats. 2011, Ch. 566, Sec. 2. (SB 684) Effective January 1, 2012.)
  124. 11659.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An approved workers’ compensation policy form may not be limited in any way other than by an indorsement made under a commissioner-prescribed form or commissioner-adopted rules.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11659. Such approved form of policy, limited pursuant to Section 11657, shall not be otherwise limited except by indorsement thereon in accordance with a form prescribed by the commissioner or in accordance with rules adopted by the commissioner. Such indorsement form shall not be subject to Section 11658. Before prescribing such indorsement form or adopting such rule, the commissioner shall consult concerning it with the Workers’ Compensation Appeals Board. (Amended by Stats. 1980, Ch. 575, Sec. 1.)
  125. 11660.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If a policy issued under Section 11657 does not comply with the requirements of Sections 11657 and 11659, the policy is unlimited.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11660. Failure to observe the requirements of Sections 11657 and 11659 shall render a policy issued under Section 11657, and not complying therewith, unlimited. (Amended by Stats. 1995, Ch. 582, Sec. 4. Effective January 1, 1996.)
  126. 11661.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer must not cover the employer’s liability for additional compensation tied to serious and willful misconduct, but may cover the cost of defending such a suit.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11661. An insurer shall not insure against the liability of the employer for the additional compensation recoverable for serious and willful misconduct of the employer or his agent. An insurer may, however, provide insurance against the expense of defending any suit for serious and willful misconduct against an employer or his agent. (Amended by Stats. 1969, Ch. 1062.)
  127. 11661.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer must not insure an employer for additional-compensation liability arising from injuries to illegally employed persons under 16.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11661.5. An insurer shall not insure an employer against his liability for additional compensation arising out of injuries to illegally employed persons under 16 years of age, as provided for by Part 4 (commencing with Section 1171) of Division 2 of the Labor Code. (Amended by Stats. 1967, Ch. 689.)
  128. 11661.6.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer may not cover an employer’s reimbursement obligation for certain workers’ compensation indemnity increases, and it may not report those increases as incurred indemnity. Relevant policies must also state that the employer must reimburse the insurer in the specified late-payment case.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11661.6. (a) An insurer shall not insure an employer against his or her obligation to reimburse the insurer for the amount of increase in indemnity payment as provided for by subdivision (e) of Section 4650 of the Labor Code. Every contract insuring against liability for compensation and every compensation policy shall provide that the insured employer is obligated to reimburse the insurer for the amount of increase in indemnity payment required by Section 4650 of the Labor Code, if the late indemnity payment which gives rise to the increase in the amount of payment is due less than seven days after the insurer receives the completed claim form from the employer. (b) An insurer shall not report the amount of any increase in indemnity required by Section 4650 of the Labor Code as incurred indemnity to the Insurance Commissioner’s designated statistical agent. (Added by Stats. 1990, Ch. 1550, Sec. 1.)
  129. 11662.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If an employer is insured for workers’ compensation liability, the insurer gets the employer’s recovery rights for certain losses and may enforce those rights in its own name.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11662. Whenever any employer is insured against liability for compensation with any insurer, such insurer is subrogated to the rights of the employer to recover losses arising out of any of the following acts by the insurer: (a) Assuming the liability of the employer for compensation in the manner provided by the law relating thereto. (b) Payment of any compensation for which the employer is liable. Such insurer may enforce any such subrogated rights in its own name. (Enacted by Stats. 1935, Ch. 145.)
  130. 11663.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section allocates workers’ compensation liability between the general employer’s insurer and the special employer’s insurer, with a payroll-based exception.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11663. As between insurers of general and special employers, one which insures the liability of the general employer is liable for the entire cost of compensation payable on account of injury occurring in the course of and arising out of general and special employments unless the special employer had the employee on his or her payroll at the time of injury, in which case the insurer of the special employer is solely liable. For the purposes of this section, a self-insured or lawfully uninsured employer is deemed and treated as an insurer of his or her workers’ compensation liability. (Amended by Stats. 1981, Ch. 714, Sec. 279.)
  131. 11663.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer must give a premium and loss history report, and current policy-period loss information, when it gets a written request from an insured or authorized agent/broker and certain policy events occur.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11663.5. (a) Upon receiving a written request from an insured or the agent or broker of record where authorized by the insured, an insurer shall provide a premium and loss history report to the requesting party for the account’s tenure or the three-year period ending with the inception of the current policy period, whichever is shorter, plus loss experience during the current policy period that is in force if any of the following occur. (1) The policy is canceled or nonrenewed. (2) The policyholder requests the information within 60 days prior to the renewal date of an existing policy. (3) The policyholder’s current insurer’s rating is downrated by a nationally recognized insurance rating service to a financial rating below secure or good or to a rating that would negatively impact the ability of the policyholder to conduct its business operations. (4) The policyholder’s current insurer is conserved by the department under Section 1011, or is ordered to cease writing business under Sections 1065.1 and 1065.2. The premium and loss history report, and the loss experience information for the current policy period, shall be provided within 10 business days of receiving the request. (b) This section applies only to workers’ compensation insurance. (c) This section shall not apply to a policyholder who, through automated or other means, is provided direct, ongoing access to claims information by the insurer. (d) For purposes of this section, a loss history report includes, but is not limited to, a list of individual claims detailed by date of claim and total incurred and paid losses. (Added by Stats. 2001, Ch. 102, Sec. 3. Effective January 1, 2002.)
  132. 11664.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section requires workers’ compensation insurers to give written notice before nonrenewing a policy, with reasons, and to send or deliver it to the producer of record and the named insured.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11664. (a) This section applies only to policies of workers’ compensation insurance. (b) A notice of nonrenewal shall be in writing and shall be delivered or mailed to the producer of record and to the named insured at the mailing address shown on the policy. The time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if the notice is mailed. (c) An insurer, at least 30 days, but not more than 120 days, in advance of the end of the policy period, shall give notice of nonrenewal, and the reasons for the nonrenewal, if the insurer intends not to renew the policy. (d) If an insurer fails to give timely notice required by subdivision (c), the policy of insurance shall be continued, with no change in its premium rate, for a period of 60 days after the insurer gives the notice. (e) A notice of nonrenewal shall not be required in any of the following situations. (1) The transfer of, or renewal of, a policy without a change in its terms or conditions or the rate on which the premium is based between insurers that are members of the same insurance group. (2) The policy has been extended for 90 days or less, if the notice required in subdivision (c) has been given prior to the extension. (3) The named insured has obtained replacement coverage or has agreed, in writing, within 60 days of the termination of the policy, to obtain that coverage. (4) The policy is for a period of no more than 60 days and the insured is notified at the time of issuance that it may not be renewed. (5) The named insured requests a change in the terms or conditions or risks covered by the policy within 60 days prior to the end of the policy period. (6) The insurer has made a written offer to the insured to renew the policy at a premium rate increase of less than 25 percent. (A) If the premium rate in the governing classification for the insured is to be increased 25 percent or greater and the insurer intends to renew the policy, the insurer shall provide a written notice of a renewal offer not less than 30 days prior to the policy renewal date. The governing classification shall be determined by the rules and regulations established in accordance with subdivision (c) of Section 11750.3. (B) For purposes of this section, “premium rate” means the cost of insurance per unit of exposure prior to the application of individual risk variations based on loss or expense considerations such as scheduled rating and experience rating. (Amended by Stats. 2022, Ch. 424, Sec. 28. (SB 1242) Effective January 1, 2023.)
  133. 11665.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insurer that issues workers’ compensation coverage to a roofing contractor with a C-39 license must do an annual payroll audit, including an in-person visit, and the commissioner must oversee annual statistical reporting on C-39 licensees.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 2. Workers’ Compensation Policies [11630 - 11665] ( Heading of Chapter 2 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. Policy Provisions [11650 - 11665] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 11665. (a) An insurer who issues a workers’ compensation insurance policy to a roofing contractor holding a C-39 license from the Contractors’ State License Board shall perform an annual payroll audit for the contractor. This audit shall include an in-person visit to the place of business of the roofing contractor to verify whether the number of employees reported by the contractor is accurate. The insurer may impose a surcharge on each policyholder audited under this subdivision in an amount necessary to recoup the reasonable costs of conducting the annual payroll audits. (b) The commissioner shall direct the rating organization designated as his or her statistical agent to compile pertinent statistical data on those holding C-39 licenses, as reported by the appropriate state entity, on an annual basis and provide a report to him or her each year. The data shall track the total annual payroll and loss data reported on those holding C-39 licenses in accordance with the standard workers’ compensation insurance classifications applicable to roofing operations. The data shall include the number of employers, total payroll, total losses, and the losses per one hundred dollars ($100) of payroll by the employers’ annual payroll intervals as follows: 1 to 4,999 5,000 to 9,999 10,000 to 14,999 15,000 to 19,999 20,000 to 24,999 25,000 to 29,999 30,000 to 39,999 40,000 to 49,999 50,000 to 74,999 75,000 to 99,999 100,000 to 199,999 200,000 to 299,999 300,000 to 399,999 400,000 to 499,999 500,000 to 599,999 600,000 to 699,999 700,000 to 799,999 800,000 to 899,999 900,000 to 999,999 1,000,000 to 1,099,999 1,100,000 to 1,199,999 1,200,000 to 1,299,999 1,300,000 to 1,399,999 1,400,000 to 1,499,999 1,500,000 or more The report shall also be provided to the Legislature by the commissioner, in compliance with Section 9795 of the Government Code. (Amended by Stats. 2013, Ch. 76, Sec. 140. (AB 383) Effective January 1, 2014.)
  134. 11690.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    This section defines three terms used in the article: “compensable workers’ compensation claim,” “delinquency proceeding,” and “receiver.”

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11690. For purposes of this article: (a) “Compensable workers’ compensation claim” means a claim where the claimant is entitled to benefits under the workers’ compensation law of the state. (b) “Delinquency proceeding” means any proceeding commenced against an insurer for the purpose of liquidating, rehabilitating, reorganizing, or conserving that insurer, where there has not been a court order finding the insurer insolvent. (c) “Receiver” means liquidator, rehabilitator, or conservator, as appropriate. (Repealed and added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  135. 11691.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    Insurers seeking workers’ compensation authority must make specified deposits, give prior notice if they want to reinsure, and follow commissioner-approved trust and filing requirements.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11691. (a) (1) In order to provide protection to the workers of this state in the event that the insurers issuing workers’ compensation insurance to employers fail to pay compensable workers’ compensation claims when due, except in the case of the State Compensation Insurance Fund, every insurer desiring admission to transact workers’ compensation insurance, or workers’ compensation reinsurance business, or desiring to reinsure the injury, disablement, or death portions of policies of workers’ compensation insurance under the class of disability insurance shall, as a prerequisite to admission, or ability to reinsure the injury, disablement, or death portion of policies of workers’ compensation insurance under the class of disability insurance, deposit cash instruments or approved interest-bearing securities or approved stocks readily convertible into cash, investment certificates, or share accounts issued by a savings and loan association doing business in this state and insured by the Federal Deposit Insurance Corporation, certificates of deposit, or savings deposits in a bank licensed to do business in this state, or approved letters of credit that perform in material respects as any other security allowable as a form of deposit for purposes of a workers’ compensation deposit and that meet the standard set forth in Section 922.5, or approved securities registered with a qualified depository located in a reciprocal state as defined in Section 1104.9, with that deposit to be in an amount and subject to any exceptions as set forth in this article. The deposit shall be made from time to time as demanded by the commissioner and may be made with the Treasurer, or a bank or savings and loan association authorized to engage in the trust business pursuant to Division 1 (commencing with Section 99) or Division 2 (commencing with Section 5000) of the Financial Code, or a trust company. A deposit of securities registered with a qualified depository located in a reciprocal state as defined in Section 1104.9 may only be made in a bank or savings and loan association authorized to engage in the trust business pursuant to Division 1 (commencing with Section 99) or Division 2 (commencing with Section 5000) of the Financial Code, or a trust company, licensed to do business and located in this state that is either domiciled in and has a principal place of business in this state, or is a national bank association with a trust office located in this state, that is a qualified custodian as defined in paragraph (1) of subdivision (a) of Section 1104.9, and that maintains deposits of at least seven hundred fifty million dollars ($750,000,000). The deposit shall be made subject to the approval of the commissioner under those rules and regulations that he or she shall promulgate. The deposit shall be maintained at a deposit value specified by the commissioner, but in any event no less than one hundred thousand dollars ($100,000), nor less than the reserves required of the insurer to be maintained under any of the provisions of Article 1 (commencing with Section 11550) of Chapter 1, relating to loss reserves on workers’ compensation business of the insurer in this state, nor less than the sum of the amounts specified in subdivision (a) of Section 11693, whichever is greater. The deposit shall be for the purpose of paying compensable workers’ compensation claims under policies issued by the insurer or reinsured by the admitted reinsurer and expenses as provided in Section 11698.02, in the event the insurer or reinsurer fails to pay those claims when they come due. If the insurer providing the deposit is domiciled in a state where a state statute, regulation, or court decision provides that, with respect to covered claims within the deductible amount that are paid by a guarantee association after the entry of an order of liquidation under large deductible workers’ compensation policies, any part of the reimbursement proceeds, other than the reasonable expenses of the receiver related to treatment of deductible policy arrangements of insurance companies in liquidation, owed by insureds on those deductible amounts, whether paid directly or through a draw of collateral, are general assets of the estate, then the amount of the insurer’s deposit pursuant to this article shall be calculated based on the gross amount of that insurer’s liabilities for loss and loss adjustment expenses under those policies without regard to the deductible, and those reserves shall not be reduced by any collateral or reimbursement obligations insureds were required to provide under those policies. (2) This section does not require that the deposit be calculated based on gross amounts of liabilities described above if the domiciliary state does not have an existing statute, regulation, or court decision providing that the reimbursement proceeds described above are general assets of the estate. (b) Each insurer or reinsurer desiring to have the ability to reinsure the injury, disablement, or death portions of policies of workers’ compensation under the class of disability insurance shall provide prior notice to the commissioner, in the manner and form prescribed by the commissioner of its intent to reinsure that insurance. In the event of late notice, a late filing fee shall be imposed on the reinsurer pursuant to Section 924 for failure to notify the commissioner of its intent to reinsure workers’ compensation insurance. (c) If the deposit required by this section is not made with the Treasurer, then the depositor shall execute a trust agreement in a form approved by the commissioner between the insurer, the institution in which the deposit is made or, where applicable, the qualified custodian of the deposit, and the commissioner, that grants to the commissioner the authority to withdraw the deposit as set forth in Sections 11691.2, 11696, 11698, and 11698.3. The insurer shall also execute and deliver in duplicate to the commissioner a power of attorney in favor of the commissioner for the purposes specified herein, supported by a resolution of the depositor’s board of directors. The power of attorney and director’s resolution shall be on forms approved by the commissioner, shall provide that the power of attorney cannot be revoked or withdrawn without the consent of the commissioner, and shall be acknowledged as required by law. (d) (1) The commissioner shall require payment, in advance, of a fee of two hundred eighty-three dollars ($283) for the initial filing of a trust agreement with a bank, savings and loan association, or trust company on deposits made pursuant to subdivision (a); for each amendment, supplement, or other change to the deposit agreement; for receiving and processing deposit schedules pursuant to this section; and for each withdrawal, substitution, or any other change in the deposit. (2) The commissioner shall require payment, in advance, of a fee of four hundred twenty-four dollars ($424) for the initial filing of each letter of credit utilized pursuant to subdivision (a). In addition, the commissioner shall require payment, in advance, of a fee of two hundred eighty-three dollars ($283) annually for each amendment of a letter of credit. (e) Any workers’ compensation insurer that deposits cash or cash equivalents pursuant to this section shall be entitled to a prompt refund of those deposits in excess of the amount determined by the commissioner pursuant to subdivision (a). The commissioner shall cause to be refunded any deposits determined by the commissioner to be in excess of the amount required by subdivision (a) within 30 days of that determination. In the alternative, an insurer may use any excess deposit funds to offset a demand by the commissioner to increase its deposit due to the failure of a reinsurer to make a deposit pursuant to this section. (f) (1) An admitted insurer reinsuring business covered in this article (hereafter referred to as reinsurer) shall identify to the commissioner, in a form prescribed by the commissioner, amounts deposited for credit in the name of each ceding insurer. (2) All reinsurance agreements covering claims and obligations under business covered by this article, and allowable for purposes of granting a ceding carrier a deposit credit, shall include a provision granting the commissioner, in the event of a delinquency proceeding, receivership, or insolvency of a ceding insurer, any sums from a reinsurer’s deposit that are necessary for the commissioner to pay those reinsured claims and obligations, or to ensure their payment by the California Insurance Guarantee Association, deemed by the commissioner due under the reinsurance agreement, upon failure of the reinsurer for any reason to make payments under the policy of reinsurance. The commissioner shall give 30 days’ notice prior to drawing upon these funds of an intent to do so. Notwithstanding the commissioner’s right to draw on these funds, the reinsurer shall otherwise retain its right to determine the validity of those claims and obligations and to contest their payment under the reinsurance agreement. Prior to a reinsurer’s deposit being drawn upon, in whole or in part, by the department, the department shall provide a reinsurer with an explanation of procedures that a reinsurer may use to explain to the department why the use of the reinsurer’s deposit may not be appropriate under the reinsurance agreement. (3) A reinsurer entering into a contract identified in paragraph (2), beginning on or after January 1, 2005, may not cede claims or obligations assumed from a ceding insurer unless the deposit securing the ceded claims or obligations is governed by paragraph (2) or, upon approval of the commissioner, would secure the ceded claims or obligations in all material respects and in the same manner as a deposit identified in paragraph (2) above. (4) All sums received from the reinsurer by the commissioner for those claims paid by the California Insurance Guarantee Association shall be held separate and apart from and not included in the general assets of the insolvent insurer, and shall be transferred to the California Insurance Guarantee Association upon receipt by the commissioner. In the event of a final judgment or settlement adverse to the drawing of funds by the commissioner pursuant to paragraph (2) or (3), the California Insurance Guarantee Association shall repay funds it obtained to pay covered claims and shall, if necessary, either levy a surcharge as needed or seek legislative approval to levy the surcharge if the California Insurance Guarantee Association is already levying the maximum surcharge permissible under law. (g) If a reinsurer has not maintained deposits as required by subdivision (a) in amounts equal to the amounts of deposit credits claimed by its ceding insurers, the commissioner, after notifying the reinsurer and its ceding insurers of the deposit shortfall and allowing 15 days from the date of the notice for the deposit shortfall to be corrected, may disallow all or a portion of the reserve credits claimed by the ceding insurers. A ceding insurer disallowed a reserve credit pursuant to this provision shall immediately make the deposit required by this section. (h) For interest-bearing securities that are debt securities and include principal payment features prior to maturity that are utilized pursuant to subdivision (a), all principal payments received shall be retained as part of the deposit. (i) Withdrawal of any amount of the deposit required under subdivision (a) that results in a reduction of the required amount of the deposit may only occur with the prior written consent of the commissioner. (Amended by Stats. 2017, Ch. 534, Sec. 70. (AB 1699) Effective January 1, 2018.)
  136. 11691.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    Insurers must pay certain filing and review fees to the commissioner, and must pay the Treasurer’s reasonable servicing charges for deposited securities.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11691.1. The fees for filing a schedule of securities with the Treasurer, and making a deposit of the same, and for each withdrawal, substitution, or any other change in the securities comprising this deposit with the Treasurer, shall be paid to the commissioner for the costs of review and approval of deposits, and shall be the same as are prescribed by Article 11 (commencing with Section 939) of Chapter 1 of Part 2 of Division 1. All other reasonable charges made by the Treasurer for servicing securities deposited with him or her shall be paid to the Treasurer by the insurer that has deposited the security, and shall not be charged to the commissioner. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  137. 11691.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    A workers’ compensation deposit must be kept as security for the insurer’s obligations and can only be withdrawn or released as the article or the commissioner allows.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11691.2. The deposit required pursuant to Section 11691 shall be security for the payment of the insurer’s obligations on worker’s compensation insurance transacted in this state. The deposit shall not be withdrawn except upon the written order of the commissioner to use the proceeds thereof in payment of compensable worker’s compensation claims and expenses as provided in Section 11698.02, or as otherwise provided in this article, but shall be forthwith payable to the commissioner or at the direction of the commissioner by the Treasurer or the bank, savings and loan association, or trust company approved by the commissioner upon that order. No deposit so placed with a bank, savings and loan association, or trust company shall be subject to any lien or claim asserted by it or be subject to any disposition obligation, demand, liability, cause of action, judgment, or other claim, or cost or expense attendant thereon, other than as is permitted by the commissioner. Notwithstanding any other provisions of this code, the deposit shall be retained by the Treasurer or the bank, savings and loan association, or trust company approved by the commissioner and only released in accordance with the provisions of this article or pursuant to regulations or a written order of the commissioner. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  138. 11691.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    The commissioner must keep and publish a list of insurers or reinsurers authorized to reinsure certain workers’ compensation insurance, and the list must be updated and made accessible.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11691.3. The commissioner shall establish a list of all insurers or reinsurers authorized to reinsure the injury, disablement, or death portions of policies of workers’ compensation insurance under the class of disability insurance. An insurer or reinsurer shall be authorized to reinsure the injury, disablement, or death portions of policies of workers’ compensation insurance under the class of disability insurance if it has complied with Section 11691. The commissioner shall publish a master list of those insurers or reinsurers at least semiannually. Any insurer or reinsurer providing the notification and deposit required by Section 11691, shall be added by addendum to the list at the time of approval, and shall be incorporated into the master list at the next date of publication. The list and addenda required by this section shall be published so that they are readily accessible to insurers and producers. The list and addenda required by this section shall also contain a notice that if an insurer enters into a contract of reinsurance with an insurer or reinsurer reinsuring the injury, disablement, or death portions of policies of workers’ compensation insurance under the class of disability insurance that is not authorized pursuant to this section, the ceding insurer may not be able to claim that reinsurance for reserve credit. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  139. 11692.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    A workers’ compensation insurer’s certificate of authority cannot be issued or renewed until the commissioner approves the required deposit.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11692. A certificate of authority to transact workers’ compensation insurance in this state shall not be issued nor renewed to any insurer until the deposit required pursuant to Section 11691 is approved by the commissioner. (Amended by Stats. 2005, Ch. 415, Sec. 7. Effective January 1, 2006.)
  140. 11692.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    The commissioner must collect a late filing fee from an admitted insurer or reinsurer that does not deposit required securities.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11692.5. On and after the effective date of this article, the commissioner shall collect a late filing fee from any admitted insurer or reinsurer that fails to deposit the securities when required by this code in the following amount: (a) If the deposit shortfall is outstanding for less than 31 days, 0.5 percent of the deposit shortfall, but in no event not less than six hundred dollars ($600). (b) If the deposit shortfall is outstanding for more than 30 days but less than 61 days, an additional late filing fee in the amount of 1 percent of the deposit shortfall, but in no event not less than one thousand two hundred dollars ($1,200) shall be due. (c) If the deposit shortfall is outstanding for 61 days or greater, an additional late filing fee of 1.5 percent of the deposit shortfall for every 30-day period thereafter, or fraction thereof, but in no event shall this portion of the late filing fee for each additional 30-day period or fraction thereof be less than three thousand dollars ($3,000). The late filing fees provided herein are in addition to all other rights and remedies granted the commissioner by this article. (Amended by Stats. 2005, Ch. 415, Sec. 8. Effective January 1, 2006.)
  141. 11693.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    The workers’ compensation deposit must be adjusted each year by March 31 in the amount required by the section, and the commissioner may use valuation software to verify securities held in the deposit.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11693. The deposit required pursuant to Section 11691 shall be adjusted on or prior to March 31 of each year in an amount as follows: (a) Not less than the sum of the following amounts computed, less credits and deductions allowable with respect to reinsurance in admitted insurers, as provided under Section 11691, as of the close of the last preceding December 31 or as of any calendar quarter end as directed by the commissioner pursuant to Section 11694 in respect to workers’ compensation insurance written subject to the workers’ compensation laws of this state: (1) The aggregate of the present values at 6 percent interest, or at the rate of the company’s investment yield as determined by the NAIC Insurance Regulatory Information System Ratio Number 5 for Property and Casualty Companies, whichever is lower, of the determined and estimated future payments upon compensation claims not included in paragraph (2), including in those claims both benefits and loss expenses. (2) The aggregate of the amounts computed as follows: For each of the preceding three years, 65 percent of the earned compensation premiums for that year less all loss and loss expense payments made upon claims incurred in the corresponding year from that 65 percent; except that the amount for each year shall not be less than the present value at 6 percent interest of the determined and the estimated unpaid claims incurred in that year, including both benefits and loss expenses. (b) Not less than one hundred thousand dollars ($100,000). (c) If the aggregate amount computed under subdivision (a) exceeds fifty thousand dollars ($50,000), not more than double the aggregate amount. (d) The commissioner may utilize securities valuation software programs or services to validate the value of securities held in workers’ compensation deposits of insurers authorized to transact workers’ compensation insurance in California as direct writers or reinsurers, or reinsurers of workers’ compensation under the class of disability. (Amended by Stats. 2005, Ch. 415, Sec. 9. Effective January 1, 2006.)
  142. 11694.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    Insurers must report the required deposit to the commissioner by March 1 each year, and may have to increase the deposit if the commissioner finds a material change in future workers’ compensation liability.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11694. After the first annual statement to the commissioner covering business of the insurer for a full year in this state, the deposit required pursuant to Section 11691 shall be computed from the figures shown in the last preceding report of business as of December 31, filed with the commissioner, and shall be reported to the commissioner on or before March 1 of each year in a form and manner prescribed by the commissioner. Notwithstanding anything to the contrary in this article, should the commissioner determine that there has been a material change in the insurer’s ultimate liability for future payments upon compensable workers’ compensation claims in this state, at the commissioner’s discretion, the amount of the deposit shall then be fixed by the commissioner at the amount that he or she deems sufficient to secure the payment of the insurer’s ultimate obligations on its workers’ compensation insurance transacted in this state, and upon notification from the commissioner the insurer shall immediately, but in no event less than 30 days after notification, increase the deposit as directed. (Amended by Stats. 2005, Ch. 415, Sec. 10. Effective January 1, 2006.)
  143. 11694.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    Certain insurers or reinsurers must file a report with the commissioner by March 1 and May 15 each year, using the form and manner the commissioner prescribes.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11694.5. On or before March 1 and May 15 of each year, the insurers or reinsurers subject to Section 11694 shall file a report in the form and manner prescribed by the commissioner that valuates and details the deposit as of December 31 of the preceding year and March 31 of the current year. The commissioner may require additional reporting by any insurer or reinsurer when it is deemed necessary. (Added by Stats. 2005, Ch. 415, Sec. 11. Effective January 1, 2006.)
  144. 11695.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    If an admitted insurer has voluntarily stopped doing business in the state, the commissioner sets the required deposit amount.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11695. Where an admitted insurer has voluntarily ceased to do in this state the business for which a deposit is required pursuant to Section 11691, the deposit shall be fixed by the commissioner at the amount that he or she deems sufficient for the protection of the beneficiaries of the policies of that insurer. (Repealed and added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  145. 11696.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    If an insurer does not pay certain compensable workers’ compensation claims, the commissioner must use the required deposit proceeds to pay those claims and related expenses.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11696. In the event an insurer not in a delinquency proceeding fails to pay any compensable workers’ compensation claim against it, or fails to pay, to the extent of its liability as a reinsurer, any compensable workers’ compensation claim covered by a policy wholly or partly reinsured by it, the commissioner shall use the proceeds of the deposit required pursuant to Section 11691 to pay all those compensable workers’ compensation claims and related expenses as described in Section 11698.02. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  146. 11697.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    If the commissioner pays a workers’ compensation claim, that payment counts as satisfaction of the claim to the extent paid. If a judgment is entered, the commissioner must file a proportionate satisfaction with the clerk of the court.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11697. The payment of a workers’ compensation claim by the commissioner shall constitute a satisfaction of the claim to the extent of the payment made. In the event any judgment is entered on the claim, the commissioner shall file a proportionate satisfaction thereof in the office of the clerk of the court wherein the judgment is entered. (Repealed and added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  147. 11698.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    If specified events happen, the commissioner must take control of the required deposit and may use it for certain workers’ compensation claims and expenses; later, any remaining deposit must be transferred to the estate’s general assets. The commissioner may also order insurers to stop making further deposits in approved securities with a depository after a hearing and finding.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698. (a) In the event any one of the eventualities described in paragraph (1), (2), (3), or (4), transpires, the commissioner shall immediately take control or possession of the deposit required pursuant to Section 11691 and may use the deposit to pay or procure the payment of those compensable workers’ compensation claims against the insurer, and those expenses described in Section 11698.02. The proceeds of the deposit shall in that event inure to the commissioner as a trust to be held separate and apart from all other assets of the insurer held by the commissioner. They shall be used only for the purposes set forth and in accordance with the procedures established in this article. Once it is determined that there are no remaining undischarged liabilities for compensable workers’ compensation claims or it is actuarially demonstrated that the deposit exceeds those liabilities, the commissioner shall transfer the remaining amount of the deposit to the general assets of the estate. (1) If the commissioner is named conservator of that insurer pursuant to Article 14 (commencing with Section 1011) of Chapter 1 of Part 2 of Division 1. (2) The proper court has appointed the commissioner ancillary receiver of the insurer or reinsurer. (3) A delinquency proceeding has been instituted by the proper court against the insurer or reinsurer. (4) If it appears to the commissioner that any of the conditions set forth in Section 1011 exist or that irreparable loss and injury to the property and business of the insurer or reinsurer has occurred or may occur unless the commissioner acts immediately without notice and before applying to the court for any order. (b) If the commissioner has proceeded under subdivision (a) or Section 11696 or 11698.3 and a deposit of securities registered with a qualified depository located in a reciprocal state and in the custody of a qualified custodian pursuant to Section 1104.9 cannot be released to the commissioner according to the terms of the agreement entered into pursuant to Section 11691 or the requirements of Section 11691.2 because of a delinquency proceeding initiated in the reciprocal state in which the qualified depository is located, or, if the deposit of securities registered with a qualified depository has been executed upon at any time by any creditor of an insurer and that execution has been affirmed by a written opinion of a court of competent federal appellate jurisdiction, the commissioner may, after a public hearing and upon a finding that deposits of securities registered with that depository do not allow the commissioner to discharge his or her responsibilities as set forth in this chapter, require workers’ compensation insurers authorized to transact insurance in this state to cease and desist making any further deposits authorized by Section 11691 in approved securities registered with that depository. For the purposes of this subdivision, the term “delinquency proceeding” shall have the same meaning as contained in subdivision (b) of Section 1064.1. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  148. 11698.01.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    If authorized under Section 11698, the commissioner may enter reinsurance and assumption agreements or use a required deposit to pay certain workers’ compensation claims and authorized expenses.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698.01. When the commissioner is authorized to proceed under Section 11698 he or she may do either of the following: (a) Subject to Sections 11698.2, 11698.21, and 11698.22, enter into reinsurance and assumption agreements with one or more admitted solvent workers’ compensation insurers by the terms of which liability for all those obligations is reinsured and assumed by such insurer. (b) Use the deposit required pursuant to Section 11691 to pay or procure payment of the insurer’s compensable workers’ compensation claims and those expenses authorized in Section 11698.02. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  149. 11698.02.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    Deposit proceeds must be used only for specified workers’ compensation claim-related purposes, or to reimburse reinsurers if the commissioner enters reinsurance and assumption agreements.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698.02. The proceeds of the deposit required pursuant to Section 11691 shall be used solely to pay compensable workers’ compensation claims under the insured or reinsured policies, allocated claims expense necessary to pay those claims, and the expenses connected with all proceedings or actions permitted or required by this article in furtherance of the payment of those claims, or should the commissioner pursuant to subdivision (a) of Section 11698.01 enter into reinsurance and assumption agreements with one or more reinsurers, the proceeds of the deposit shall be used to reimburse those reinsurers. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  150. 11698.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    The commissioner must file specified accountings with the Workers’ Compensation Appeals Board and the court, at least by the time the receiver seeks discharge.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698.1. From time to time and in any event at or prior to the time of the filing of his or her petition for discharge as receiver, the commissioner shall do the following: (a) File with the Workers’ Compensation Appeals Board an accounting of all trust funds received and used from the proceeds of the deposit required pursuant to Section 11691. (b) File with the court an accounting of all funds received and used as expenses from the general funds of the insurer. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  151. 11698.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    If the commissioner enters a reinsurance and assumption agreement, the agreement must cover specified items and may not take effect without required approvals.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698.2. If the commissioner enters into a reinsurance and assumption agreement as provided in subdivision (a) of Section 11698.01, that agreement shall provide for all of the following: (a) The reinsurance and assumption of all those obligations by the reinsuring and assuming insurers. (b) If there is more than one reinsurer the proportion of all those obligations assumed by each reinsurer and a method for the actual processing and payment of those obligations by the reinsurers or their representatives. (c) The reimbursement of the reinsuring and assuming insurers from the deposit of the insurer in the delinquency proceeding. The provision shall conform with Section 11698.21 and shall not be effective unless approved by the Workers’ Compensation Appeals Board. (d) The amounts, if any, to be paid the reinsurers from the general funds of the insurer. If the agreement provides that amounts from the general funds of the insurer are to be paid to the reinsurers, those payments shall be approved by the court where the delinquency proceedings are pending. (e) Any other matters as are necessary and proper to achieve the purposes of the reinsurance and assumption agreement. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  152. 11698.21.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    This section requires the reimbursement agreement to direct how securities in the deposit are transferred to reinsurers and how the deposit secures assumed obligations, with special rules if the securities can’t be evenly transferred or if their value exceeds the assumed obligations.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698.21. (a) The reimbursement provision referred to in subdivision (c) of Section 11698.2 shall provide for the transfer of the securities in the deposit to the deposits of the reinsurers. Thereafter, except as provided in subdivision (b), the deposit of the reinsuring and assuming insurers shall be security for the payment of all of those obligations assumed by the agreement as well as those obligations on workers’ compensation insurance transacted in this state by the reinsurer, provided, however, that in determining the amount which shall remain on deposit as security for those obligations that are reinsured and assumed, the method prescribed by paragraph (1) of subdivision (a) of Section 11693 shall be used without any limitation as to time. In providing for the transfer of the securities the agreement may provide for their direct transfer to the deposit account of the reinsurers, or, if the securities deposited are in denominations or units as to make the equitable transfer to more than one reinsurer impossible, it may provide either for a formula under which the transfers may be made and differences in value reconciled by payments or credits among the reinsurers or for the sale of those securities by the commissioner and the reinvestment of the proceeds in other securities in amounts that can be so equitably transferred. (b) The agreement shall provide that if it appears that the market value of the securities on deposit will exceed the obligations assumed by the reinsurers, the commissioner may withhold the transfer of a portion of the deposit and may after a two-year period enter into a final settlement with the reinsurers with respect thereto at which time any excess in that deposit shall be transferred to the general assets of the insurer in the delinquency proceeding. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  153. 11698.22.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    The commissioner must not enter into an agreement with an insurer if the insurer’s reinsurance and assumption of liability would impair solvency or make further business hazardous.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698.22. The commissioner shall not enter into an agreement with an insurer if its reinsurance and assumption of liability will impair its solvency or render its further transaction of business hazardous under subdivision (d) of Section 1011. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  154. 11698.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    If a workers’ compensation insurer becomes insolvent and is a member of the California Insurance Guarantee Association, the association must pay covered claims from the deposit, the commissioner must transfer the deposit, and the association must report on and eventually return any surplus.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11698.3. (a) If the insurer is a member insurer of the California Insurance Guarantee Association (the association) and has been the subject of an order of liquidation or receivership with a finding of insolvency which has been entered by a court of competent jurisdiction the association then becomes obligated to pay compensable workers’ compensation claims arising under the insurer’s policies, which are otherwise “covered claims” as defined in Article 14.2 (commencing with Section 1063) of Chapter 1 of Part 2 of Division 2. The commissioner shall immediately take control or possession of the deposit required pursuant to Section 11691 and shall transfer the deposit to the association. (b) The association shall use the proceeds of the deposit and any interest earned thereon, for the payment of compensable workers’ compensation claims arising under the insolvent insurer’s policies and which are otherwise covered claims, as defined in Article 14.2 (commencing with Section 1063) of Chapter 1 of Part 2 of Division 2, and all expenses related thereto. (c) The association shall make a full report and accounting of the disposition of the deposit on or in the form and at the times as the commissioner shall request, including a report of all interest income earned on the deposit. (d) At the time all of the insolvent insurer’s California workers’ compensation claims liabilities are discharged, or at the time it is actuarially determined that the remaining proceeds, and any interest earned thereon, exceed those liabilities, the association shall return the surplus to the insolvent insurer’s estate. (Added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  155. 11699.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    An insurer may have its workers’ compensation deposit repaid if the commissioner has not withdrawn it and the insurer shows all compensable claims liabilities have been assumed and reinsured by a solvent admitted insurer or fully paid. If the insurer stays admitted for workers’ compensation insurance or wants to reinsure certain policy portions, it must keep at least the minimum deposit.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11699. Unless the deposit required pursuant to Section 11691 is withdrawn by the commissioner pursuant to the authority granted him or her by this article, it, or any remainder thereof, may be repaid to the insurer either upon satisfactory showing to the commissioner that every liability to pay compensable workers’ compensation claims has been assumed and reinsured with a solvent admitted insurer or fully paid and discharged. In the event the insurer remains admitted for workers’ compensation insurance, or desires to reinsure the injury, disablement, or death portions of policies of workers’ compensation under the class of disability insurance, then it must maintain at least the minimum deposit required by Section 11691. (Repealed and added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  156. 1170.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Domestic incorporated insurers may invest in specified securities or loans on those securities if stated conditions are met.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1170. Domestic incorporated insurers may invest their assets in the purchase of any of the securities specified in this article, or in loans upon such securities, if those purchases or loans conform to all the following conditions: (a) Such securities are not in default as to principal or interest at the date of investment. (b) In the case of a purchase, the purchase price does not exceed the market value of the securities at the date of investment. (c) In the case of a loan not governed by the provisions of Section 1194.81, the amount loaned does not exceed eighty-five per cent of such market value at the date of investment. (Amended by Stats. 2009, Ch. 234, Sec. 7. (AB 299) Effective January 1, 2010.)
  157. 11700.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    A required deposit must be used only to pay compensable workers’ compensation claims and related expenses, while any claim remains unpaid, unless the commissioner withdraws it.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11700. The deposit required pursuant to Section 11691, unless withdrawn by the commissioner, shall be used only for the payment of compensable workers’ compensation claims and expenses as provided in Section 11698.02 as long as there remains unpaid any claim or any part thereof. (Repealed and added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  158. 11701.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    The commissioner may revoke an insurer’s authority for workers’ compensation insurance if the insurer does not comply with this article.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11701. The commissioner may revoke the certificate of authority to transact workers’ compensation insurance or to reinsure the injury, disablement, or death portions of policies of workers’ compensation under the class of disability insurance in this state of any insurer failing to comply with the requirements of this article. The power vested in the commissioner by this section is additional to any and all other powers and remedies vested in the commissioner by law. Failure to make the deposit required by this article within the required time shall be deemed to constitute a condition of hazard as set forth in Section 1011. (Repealed and added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  159. 11702.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    This article does not apply to workers’ compensation insurance covering people defined as employees under Labor Code Section 3351(d).

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11702. The provisions of this article shall not apply to workers’ compensation insurance covering those persons defined as employees by subdivision (d) of Section 3351 of the Labor Code. (Repealed and added by Stats. 2002, Ch. 899, Sec. 2. Effective January 1, 2003.)
  160. 11703.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. )

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    An insurer that wants to write workers’ compensation insurance must maintain or provide occupational safety and health loss control consultation services.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 1. Deposits by Workers’ Compensation Insurers [11690 - 11703] ( Article 1 repealed and added by Stats. 2002, Ch. 899, Sec. 2. ) ## 11703. An insurer desiring to write workers’ compensation insurance shall maintain or provide occupational safety and health loss control consultation services pursuant to Section 6354.5 of the Labor Code. (Amended by Stats. 2003, Ch. 13, Sec. 3. Effective May 28, 2003.)
  161. 1171.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    These insurers may invest in U.S. government obligations and certain other obligations backed by the full faith and credit of the United States.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1171. Such insurers may invest in obligations of the United States or obligations for which the faith and credit of the United States are pledged for payment of principal and interest. (Enacted by Stats. 1935, Ch. 145.)
  162. 1171.5.

    ## 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 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Certain insurers may invest in obligations of the United States Postal Service.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1171.5. Such insurers may invest in obligations of the United States Postal Service. (Added by Stats. 1973, Ch. 464.)
  163. 1172.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Certain insurers may invest in specified Canadian and Puerto Rican government obligations if the relevant province or subdivision was not in default for more than 90 days during the prior 10 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 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1172. Such insurers may invest in obligations of the Dominion of Canada, or the Commonwealth of Puerto Rico, or of any province of the Dominion of Canada, or of any political subdivision of the Commonwealth of Puerto Rico, or obligations for which are pledged the faith and credit either of the dominion, or the commonwealth, or of any province of the dominion, or of any political subdivision of the commonwealth, for the payment of principal and interest, if within 10 years immediately preceding the investment such province or such political subdivision was not in default for more than 90 days in the payment of principal or interest upon any legally authorized obligation issued by it. (Amended by Stats. 1963, Ch. 476.)
  164. 1173.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Some insurers may invest in certain public obligations if the obligor has not recently defaulted and the obligations are legal for investment under related sections.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1173. Such insurers may invest in obligations issued under authority of law by any county, municipality, or school district in this State or in any other state, or in any province of the Dominion of Canada or in any political subdivision of the Commonwealth of Puerto Rico, if the obligor has not within two years next preceding the investment defaulted for more than 90 days in the payment of any part of either principal or interest upon any legally authorized obligation issued by it, and the obligations of the state or province or political subdivision in which it is located are legal for investment under the provisions of Sections 1172 or 1174. (Amended by Stats. 1963, Ch. 476.)
  165. 11730.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    This section defines key terms used in the article on state rate supervision.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11730. The following definitions govern the construction and meaning of the terms used in this article: (a) “Classification system” or “classification” means a plan, system, or arrangement for recognizing differences in exposure to hazards among industries, occupations, or operations of insurance policyholders. (b) “Expenses” means that portion of any rate attributable to acquisition, field supervision, collection expenses, general expenses, taxes, licenses, and fees. (c) “Experience rating” means a rating procedure utilizing past insurance experience of the individual policyholder to forecast future losses by measuring the policyholder’s loss experience against the loss experience of policyholders in the same classification to produce a prospective premium credit, debit, or unity modification. (d) “Loss trending” means any procedure for projecting developed losses to the average date of loss for the period during which the policies are to be effective. (e) “Market” means the interaction between buyers and sellers of workers’ compensation insurance within this state pursuant to the provisions of this article. (f) “Pure premium rate” means that portion of the rate which represents the loss cost per unit of exposure, including loss adjustment expense. (g) “Rate” means the cost of insurance per exposure base unit, prior to any application of individual risk variations based on loss or expenses considerations and does not include minimum premiums. (h) “Rating organization” means an entity licensed by the commissioner pursuant to Section 11751.1. (i) “Statistical plan” means the plan, system, or arrangement used in collecting data. (j) “Supplementary rate information” means any manual or plan of rates, classification system, rating schedule, minimum premium, policy fee, rating rule, rating plan, and any other similar information needed to determine the applicable premium for an insured. (k) “Supporting information” means the experience and judgment of the filer and the experience or data of other insurers or organizations relied on by the filer, the interpretation of any statistical data relied on by the filer, descriptions of methods used in making the rates, and any other similar information required to be filed by the commissioner. (Amended (as added by Stats. 1993, Ch. 228) by Stats. 1993, Ch. 1242, Sec. 3. Effective January 1, 1994. Addition and amendment operative January 1, 1995, pursuant to Stats. 1993, Ch. 228, Sec. 7, as amended by Sec. 43 of Ch. 1242.)
  166. 11731.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

    Verify source ↗

    This article applies to workers’ compensation insurance and employers’ liability insurance written in connection with it.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11731. This article applies to workers’ compensation insurance and employers’ liability insurance written in connection therewith. (Repealed and added by Stats. 1993, Ch. 228, Sec. 2. Effective January 1, 1994. Operative January 1, 1995, by Sec. 7 of Ch. 228, as amended by Stats. 1993, Ch. 1242.)
  167. 11732.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

    Verify source ↗

    Workers’ compensation insurance rates must be adequate to cover losses and expenses, and they must not tend to create a market monopoly.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11732. Rates shall be adequate to cover an insurer’s losses and expenses. Rates shall not tend to create a monopoly in the market. For the purpose of this section, the rates of any individual insurer, other than the State Compensation Insurance Fund, are presumed to create a monopoly in the market if the insurer has a market share, based on a percentage of statewide workers’ compensation premium, equivalent to 20 percent or more of the premium written by all insurers other than the State Compensation Insurance Fund. (Amended by Stats. 2002, Ch. 873, Sec. 2. Effective January 1, 2003.)
  168. 11732.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

    Verify source ↗

    Insurer rates must not be unfairly discriminatory.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11732.5. Rates shall not be unfairly discriminatory. Rates are unfairly discriminatory if, after allowing for practical limitations, price differentials fail to reflect equitably the difference in expected losses and expenses. A rate of an insurer shall not be deemed unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expenses, or like expenses but different loss exposures, as long as the rate reflects the differences with reasonable accuracy. (Added by Stats. 1994, Ch. 732, Sec. 1. Effective January 1, 1995.)
  169. 11733.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

    Verify source ↗

    An insurer’s rate expense provisions must reflect the insurer’s operating methods and, as far as credible, its actual and expected expense experience.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11733. In determining whether rates comply with Section 11732, the following criteria shall apply: (a) Due consideration may be given to past and prospective loss and expenses experience within this state, to catastrophe hazards and contingencies, to events or trends within this state, to loadings for leveling premium rates over time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers, and to all other relevant factors, including judgment. (b) The expense provisions included in the rates to be used by an insurer shall reflect the operating methods of the insurer and, so far as is credible, its own actual and anticipated expense experience. (c) The rates may contain a provision for contingencies and an allowance permitting a reasonable profit. In determining the reasonableness of profit, consideration shall be given to all investment income attributable to premiums and the reserves associated with those premiums. (Amended by Stats. 2002, Ch. 873, Sec. 3. Effective January 1, 2003.)
  170. 11734.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    Workers’ compensation insurers must follow a uniform experience rating plan, and insurers that create their own classification system must file it 30 days before use.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11734. (a) Every workers’ compensation insurer shall adhere to a uniform experience rating plan filed with the commissioner by a rating organization designated by the commissioner and subject to his or her disapproval. (b) The commissioner shall designate a rating organization to assist him or her in gathering, compiling, and reporting relevant statistical information, and to develop a classification system. An insurer may develop its own classification system upon which a rate may be made or adopt the classification system developed by the designated rating organization; provided, however, that any classification system developed by an insurer must be filed with the commissioner 30 days prior to its use. The commissioner shall disapprove a classification system filed by an insurer pursuant to this section if the insurer fails to demonstrate that the data thereby produced can be reported consistent with the uniform statistical plan or the classification system developed by the rating organization. Every workers’ compensation insurer shall record and report its workers’ compensation experience to the designated rating organization as set forth in the uniform statistical plan approved by the commissioner. (c) The designated rating organization shall develop and file manual rules, subject to the approval of the commissioner, reasonably related to the recording and reporting of data pursuant to the uniform statistical plan, uniform experience rating plan, and any classification systems that may be in effect. Every workers’ compensation insurer shall adhere to the approved manual rules and experience rating plan in writing and reporting its business. No insurer shall agree with any other insurer or with a rating organization to adhere to manual rules that are not reasonably related to the recording and reporting of data pursuant to the uniform statistical plan or classification system developed by the rating organization. (d) The designated rating organization shall also develop and file with the commissioner a weekly premium per employee for each classification used or proposed for use by that organization. The weekly premium shall be developed by applying the proposed rate for each classification to the state average weekly wage. For the purpose of this section, “state average weekly wage” means the average weekly wage paid by employers to employees covered by unemployment insurance as reported by the United States Department of Labor for California for the 12 months ending March 31 of the calendar year preceding the year in which the injury occurred. (Amended by Stats. 2002, Ch. 6, Sec. 5. Effective January 1, 2003.)
  171. 11735.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    Insurers must file workers’ compensation insurance rates and related information with the commissioner, generally 30 days before the effective date, and those filings are publicly inspectable.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11735. (a) Every insurer shall file with the commissioner all rates and supplementary rate information that are to be used in this state. The rates and supplementary rate information shall be filed not later than 30 days prior to the effective date. Upon application by the filer, the commissioner may authorize an earlier effective date. To the extent possible, rates and supplementary rate information shall be based upon supporting information derived from the experience or data of the insurer, rating organization, advisory organization, or other insurers. For the purposes of this subdivision, “rating organization” shall have the same meaning as set forth in subdivision (b) of Section 11750.1, and “advisory organization” shall have the same meaning as set forth in subdivision (e) of that section. (b) Rates filed pursuant to this section shall be filed in the form and manner prescribed by the commissioner. All rates, supplementary rate information, and any supporting information for rates filed under this article, as soon as filed, shall be open to public inspection at any reasonable time. Copies may be obtained by any person upon request and the payment of a reasonable charge. (c) Upon the written application of the insurer and insured, stating its reasons therefor, filed with the commissioner, a rate in excess of that provided by a filing otherwise applicable may be used on any specific risk. (d) Notwithstanding Section 679.70, no rating organization may issue, nor may any insurer use, any classification system or rate, as applied or used, that violates Section 679.71 or 679.72 or that violates the Unruh Civil Rights Act. (e) Notwithstanding Sections 11657 to 11660, inclusive, supplementary rate information filed with the commissioner for purposes of offering deductibles to policyholders for all or part of benefits payable under the policy shall be deemed complete if the filing contains all of the following: (1) A copy of the deductible endorsement that is to be attached to the policy to effectuate deductible coverage. (2) Endorsement language that protects the rights of injured workers and ensures that benefits are paid by the insurer without regard to any deductible. The endorsement shall specify that the nonpayment of deductible amounts by the policyholder shall not relieve the insurer from the payment of compensation for injuries sustained by the employee during the period of time the endorsed policy was in effect. The endorsement shall provide that deductible policies for workers’ compensation insurance coverage shall not be terminated retroactively for the nonpayment of deductible amounts. (3) The endorsement shall provide that notwithstanding the deductible, the insurer shall pay all of the obligations of the employer for workers’ compensation benefits for injuries occurring during the policy period. Payment by the insurer of any amounts within the deductible shall be treated as an advancement of funds by the insurer to the employer and shall create a legal obligation for reimbursements, and may be secured by appropriate security. (4) The endorsement shall specify whether loss adjustment expenses are to be treated as advancements within the deductible to be reimbursed by the employer. (5) An explanation of premium reductions reflecting the type and level of the deductible shall be clearly set forth for the policyholder. (6) The filing shall provide that premium reductions for deductibles are determined before application of any experience modification, premium surcharge, or premium discount, and the premium reductions reflect the type and level of deductible consistent with accepted actuarial standards. (7) The filing shall provide that the nonpayment of deductible amounts by the insured employer to its insurer, or the failure to comply with any security-related terms of the policy, shall be treated under the policy in the same manner as the payment or nonpayment of the premium pursuant to paragraph (1) of subdivision (b) of Section 676.8. (f) The insurer shall report and record losses subject to the deductible as losses for purposes of ratemaking and application of an experience rating plan on the same basis as losses under policies providing first dollar coverage. (Amended by Stats. 2002, Ch. 873, Sec. 4. Effective January 1, 2003.)
  172. 11736.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    An experience rating plan must include reasonable eligibility standards, incentives for loss prevention, and premium differentials that encourage safety.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11736. An experience rating plan shall contain reasonable eligibility standards, provide adequate incentives for loss prevention, and shall provide for sufficient premium differentials so as to encourage safety. (Amended by Stats. 1997, Ch. 748, Sec. 2. Effective January 1, 1998.)
  173. 11736.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    The commissioner must establish, by regulation or order, the forms of collateral or security that insurers may use for workers’ compensation deductible policies, and the authority expires under stated filing deadlines.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11736.5. (a) The commissioner shall establish, by regulation, those forms of collateral or security that an insurer may designate to secure the deductible amount of any policy of workers’ compensation insurance and the establishment of reserves and recognition of receivables for insurers writing workers’ compensation deductible policies. The commissioner, by order, exempt from the requirements of the Administrative Procedure Act, shall establish those forms of security or collateral that the insurer may designate to secure the deductible amount of any policy of workers’ compensation insurance that provides for a deductible and the establishment of reserves and recognition of receivables for insurers writing workers’ compensation deductible policies. This authority shall expire if regulations required by subdivision (a) are not drafted and filed with the Office of Administrative Law by December 31, 1995; if the regulations are filed with the Office of Administrative Law by December 31, 1995, this authority shall expire December 31, 1996, or upon filing of the regulations with the Secretary of State, whichever is earlier. (Added by Stats. 1994, Ch. 1131, Sec. 2. Effective January 1, 1995.)
  174. 11737.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    The commissioner may disapprove certain workers’ compensation insurance rates, and must disapprove them in some cases. The section also sets notice, hearing, interim-rate, and escrow procedures.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11737. (a) The commissioner may disapprove a rate if the insurer fails to comply with the filing requirements under Section 11735. (b) The commissioner may disapprove rates if the commissioner determines that premiums charged, in the aggregate, resulting from the use of the rates or the rates as modified by any supplementary rate information, would be inadequate to cover an insurer’s losses and expenses, unfairly discriminatory, or tend to create a monopoly in the market pursuant to Section 11732, 11732.5, or 11733. (c) The commissioner shall disapprove rates if the commissioner determines that premiums charged, in the aggregate, resulting from the use of the rates or the rates as modified by any supplementary rate information would, if continued in use, tend to impair or threaten the solvency of an insurer. In determining whether the premium charged in the aggregate would, if continued in use, tend to impair or threaten the solvency of the insurer, the commissioner shall consider the insurer’s experience in other states. (d) If the commissioner intends to disapprove rates pursuant to subdivision (a) or (b), the commissioner shall serve notice on the insurer of the intent to disapprove and shall schedule a hearing to commence within 60 days of the date of the notice. (e) If the commissioner disapproves rates pursuant to subdivision (c), the commissioner shall immediately serve notice on the insurer of the disapproval. An insurer whose rates have been disapproved pursuant to that subdivision may, within 20 days of the date of the notice of disapproval, request a hearing, and the commissioner shall hold a hearing within 60 days of the date of the notice of disapproval. (f) Every insurer or rating organization shall provide within this state reasonable means whereby any person aggrieved by the application of its filings may be heard by the insurer or rating organization on written request to review the manner in which the rating system has been applied in connection with the insurance afforded or offered. If the insurer or rating organization fails to grant or reject the request within 30 days, the applicant may proceed in the same manner as if the application had been rejected. Any party affected by the action of the insurer or rating organization on the request may appeal, within 30 days after written notice of the action, to the commissioner who, after a hearing held within 60 days from the date on which the party requests the appeal, or longer upon agreement of the parties and not less than 10 days’ written notice to the appellant and to the insurer or rating organization, may affirm, modify, or reverse that action. If the commissioner has information on the subject from which the appeal is taken and believes that a reasonable basis for the appeal does not exist or that the appeal is not made in good faith, the commissioner may deny the appeal without a hearing. The denial shall be in writing, set forth the basis for the denial, and be served on all parties. (g) If the commissioner disapproves a rate, the commissioner shall issue an order specifying in what respects the rate fails to meet the requirements of this article and stating when, within a reasonable period thereafter, that rate shall be discontinued for any policy issued or renewed after a date specified in the order. The order shall be issued within 20 days after the notice prescribed in subdivision (e) is served. If a hearing is held pursuant to subdivision (d) or (e), the order shall be issued, instead, within 30 days after the close of the hearing. The order may include a provision for premium adjustment for the period after the effective date of the order for policies in effect on that date. (h) Whenever an insurer has no legally effective rates as a result of the commissioner’s disapproval of rates or other act, the commissioner shall specify interim rates for the insurer that protect the interests of all parties and may order that a specified portion of the premiums be placed in an escrow account approved by the commissioner. When new rates become legally effective, the commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds of less than ten dollars ($10) per policyholder shall not be required. However, if the commissioner has disapproved rates pursuant to subdivision (c), the commissioner shall order the insurer in the interim to use, at a minimum, the approved advisory pure premium rates pursuant to subdivision (b) of Section 11750, as modified by the uniform experience rating plan established pursuant to subdivision (c) of Section 11734, without any deviations on account of any supplementary rate information and reflecting the actual expenses of the insurer, until the time that a final determination of rates is adjudicated and ordered through a hearing. (i) Notwithstanding any other provision of law, an insurer may increase rates on policies with inception dates prior to January 1, 2003, in an amount no greater than the pure premium rate increase approved by the commissioner reflecting the cost of the change in benefit levels authorized by the act adding this subdivision. (Amended (as amended by Stats. 2002, Ch. 6) by Stats. 2002, Ch. 873, Sec. 5. Effective January 1, 2003.)
  175. 11738.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    A classification must not consider employees’ physical impairments or whether employees have dependents for support.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11738. A classification shall take no account of any physical impairment of employees or the extent to which employees may have persons dependent upon them for support. (Repealed and added by Stats. 1993, Ch. 228, Sec. 2. Effective January 1, 1994. Operative January 1, 1995, by Sec. 7 of Ch. 228, as amended by Stats. 1993, Ch. 1242.)
  176. 11739.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    An insurer must not use an unfairly discriminatory dividend payment plan for certain workers’ compensation policies, and insurers in this category must file annual dividend-payment information with the commissioner’s designated rating organization.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11739. (a) An insurer shall not use any plan for the payment of dividends to policyholders by reason of a participating provision in a workers’ compensation insurance policy which is unfairly discriminatory. (b) Every insurer issuing workers’ compensation insurance policies under the laws of this state shall file annually with the rating organization designated by the commissioner information relating to dividend payments made to its policyholders. Information filed shall be in sufficient detail to permit the rating organization to prepare for the commissioner’s review and approval, a report showing in the aggregate for all companies premiums earned, losses incurred, and dividends paid the preceding calendar year under policies containing a participating provision, separately by premium size and loss ratio categories, as may reasonably be prescribed by the commissioner. (c) Information submitted by individual companies pursuant to this section shall be confidential and not subject to public disclosure under any law of this state. (Repealed and added by Stats. 1993, Ch. 228, Sec. 2. Effective January 1, 1994. Operative January 1, 1995, by Sec. 7 of Ch. 228, as amended by Stats. 1993, Ch. 1242.)
  177. 1174.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Insurers may invest in certain state obligations, including some other states’ obligations if the default condition is met.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1174. Such insurers may invest in obligations of this State or those for which the faith and credit of this State are pledged for the payment of principal and interest, and in obligations of any other State in the United States, if within ten years immediately preceding the investment such State was not in default for more than ninety days in the payment of any part of principal or interest of any debt duly authorized by the Legislature of such State to be contracted by such State since the first day of January, 1878. (Amended by Stats. 1937, Ch. 738.)
  178. 11740.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    Rates and supplementary rate information may not take effect before the first normal anniversary rating date of a policy on or after January 1, 1995. The section also says policies cannot be issued, renewed, canceled, amended, or rewritten to avoid this rule.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11740. Rates and supplementary rate information filed for use in this state pursuant to this article and Article 3 (commencing with Section 11750), as added and amended by Chapter 228 of the Statutes of 1993, shall not be effective prior to the first normal anniversary rating date of a policy on or after January 1, 1995. Rates, any rating plan or plans, and policy forms issued or approved prior to January 1, 1995, shall remain in effect only until the first normal anniversary rating date on or after January 1, 1995, as determined by a licensed rating organization pursuant to rules issued or approved by the commissioner in effect on July 16, 1993. Prior to January 1, 1995, no policy may be issued or renewed for a term of less than one year for the purpose of changing the normal anniversary date of the policy or the preceding policy. No policy may be canceled, amended, or rewritten for the purpose of avoiding this section. Notwithstanding Section 7 of Chapter 228 of the Statutes of 1993, this section shall become operative January 1, 1994. (Added by Stats. 1993, Ch. 1242, Sec. 7.5. Effective January 1, 1994. Operative January 1, 1994, by its own provisions, notwithstanding the January 1, 1995, operative date of Article 2 (commencing with Section 11730), as added by Stats. 1993, Ch. 228.)
  179. 11742.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. )

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    The commissioner must set up and keep an online workers’ compensation rate comparison guide, and insurers must certify that their rates reflect specified cost savings.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 2. State Rate Supervision [11730 - 11742] ( Article 2 repealed and added by Stats. 1993, Ch. 228, Sec. 2. ) ## 11742. (a) The Legislature finds and declares that the insolvencies of more than a dozen workers’ compensation insurance carriers have seriously constricted the market and led to a dangerous increase in business at the State Compensation Insurance Fund. Yet more than 200 insurance companies are still licensed to offer workers’ compensation insurance in California. Unfortunately, many employers do not know which carriers are offering coverage, and it is both difficult and time consuming to try to get information on rates and coverages from competing insurance companies. A central information source would help employers find the required coverage at the best competitive rate. (b) On or before July 1, 2004, the commissioner shall establish and maintain, on the Internet Web site maintained by the department, an online rate comparison guide showing workers’ compensation insurance rates for the 50 insurance companies writing the highest volume of business in this line during the two preceding years. (c) The online comparison shall display rates for each class set forth in the classification system adopted by the commissioner pursuant to Section 11734, shall include the effective date of each rate, and shall list the rates for each class from the lowest to the highest rate. (d) The rating organization designated by the commissioner as his or her statistical agent pursuant to Section 11751.5 shall determine the cost savings achieved in the 2003 workers’ compensation reform legislation. Each insurer shall certify, in the form and manner determined by the commissioner, that its rates reflect those cost savings. The certifications shall be made available to the public on the Internet Web site maintained by the department. (Added by Stats. 2003, Ch. 635, Sec. 11. Effective January 1, 2004.)
  180. 1175.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Insurers may invest in certain qualifying bonds, and the commissioner may approve other bonds in writing for insurer investment if they do not otherwise qualify under the 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 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1175. Such insurers may invest in bonds of any permanent road division in this state, or any district organized under the laws of this state, when such bonds are legal investments for savings banks of this state, or have been certified as legal investments for savings banks pursuant to Division 10 (commencing with Section 20000) of the Water Code, or when the statutes or laws providing for the issuance of such bonds provide that such bonds shall be entitled to the same force or value or use as bonds issued by any municipality, or such law specifically states that such bonds shall be legal investments for either savings banks, insurance companies, all trust funds, state school funds or any funds which may be invested in bonds of cities, counties, cities and counties, school districts, or municipalities in the state, or when such bonds have been investigated and approved by a commission or board now or hereafter authorized by law to conduct such investigation and give such approval when such law specifies that upon that approval the bonds are legal investments for insurers, or which the commissioner approves in writing as legal for investment of the funds of insurers. The commissioner in determining whether to approve any bonds as legal investments which do not otherwise qualify as such pursuant to any part of this code, shall, at the expense of any insurer requesting approval, make an adequate independent investigation of such bonds and the security therefor. A copy of the data secured in such investigation and the resulting opinion of the commissioner shall be furnished to the insurer. (Amended by Stats. 1984, Ch. 193, Sec. 90.)
  181. 1175.5.

    ## 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 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Certain insurers may invest in bonds of any county water district operating under Division 12 of the Water 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 2. Incorporated Insurers [1140 - 1260] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. General Investments [1170 - 1182] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1175.5. Such insurers may invest in bonds of any county water district operating under Division 12 of the Water Code. (Added by Stats. 1953, Ch. 1653.)
  182. 11750.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    The Insurance Commissioner must hold a public hearing within 60 days after receiving a certain advisory pure premium rate filing, then must approve, disapprove, or modify the proposed rate within 30 days after the hearing ends.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11750. (a) The purpose of this article is to promote the public welfare by regulating concert of action between insurers in collecting and tabulating rating information and other data that may be helpful in the making of adequate pure premium rates for workers’ compensation insurance and for employers liability insurance incidental thereto and written in connection therewith for all admitted insurers and in submitting them to the commissioner for approval; to authorize and regulate the existence and cooperation of qualified rating organizations to one of which each workers’ compensation insurer shall belong; to authorize and regulate cooperation between insurers, rating organizations and advisory organizations in ratemaking and other related matters to the end that the purposes of this chapter may be complied with and carried into effect. (b) Notwithstanding any other provision of law, within 60 days of receiving an advisory pure premium rate filing made pursuant to subdivision (b) of Section 11750.3, the Insurance Commissioner shall hold a public hearing, and within 30 days of the conclusion of the hearing, approve, disapprove, or modify the proposed rate. (Amended by Stats. 2000, Ch. 884, Sec. 2. Effective September 29, 2000.)
  183. 11750.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    This section defines key terms used in the article, including insurer, rating organization, insurance, willful/willfully, advisory organization, and employer’s liability insurance incidental thereto.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11750.1. As used in this article, unless a different meaning is manifest, the term: (a) “Insurer” means every insurer authorized to transact workers’ compensation insurance and employer’s liability insurance incidental thereto and written in connection therewith in this state, including the State Compensation Insurance Fund; (b) “Rating organization” means any organization which has as its primary object or purpose the collecting of loss and expense statistics and other statistical information and data, the making of pure premium rates and those rating plans authorized by Section 11734 for workers’ compensation insurance and employer’s liability insurance incidental thereto and written in connection therewith and presenting them to the commissioner for approval; (c) “Insurance” means workers’ compensation insurance and employer’s liability insurance incidental thereto and written in connection therewith; (d) “Willful” or “willfully” in relation to an act or omission which constitutes a violation of this article means with actual knowledge or belief that such act or omission constitutes such violation and with specific intent to commit such violation. (e) “Advisory organization” means every person, group or organization, other than an insurer, whether located within or without this state, which prepares policy forms or underwriting rules incidental to or in connection with workers’ compensation insurance and employer’s liability insurance incidental thereto and written in connection therewith or which collects and furnishes to admitted insurers or rating organizations loss statistics or other statistical information and data relating to workers’ compensation insurance and employer’s liability insurance incidental thereto and written in connection therewith and acts in an advisory capacity to such insurers or rating organizations as distinguished from a ratemaking capacity. No duly authorized attorney at law acting in the usual course of his profession shall be deemed to be an advisory organization. (f) “Employer’s liability insurance incidental thereto and written in connection therewith” means 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. (Amended (as amended by Stats. 1993, Ch. 228) by Stats. 1993, Ch. 1242, Sec. 9. Effective January 1, 1994. Amendments (to currently operative law) by Stats. 1993, Chs. 228 and 1242, are operative January 1, 1995, by Sec. 7 of Ch. 228, as amended by Sec. 43 of Ch. 1242.)
  184. 11750.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    This article applies to workers’ compensation insurance and related employer’s liability insurance written in this state, except reinsurance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11750.2. The provisions of this article shall apply to all workers’ compensation insurance and employer’s liability insurance incidental thereto and written in connection therewith in this state, except reinsurance. (Amended by Stats. 1981, Ch. 714, Sec. 300.)
  185. 11750.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    A rating organization may be organized and maintained in California for rating-related purposes, including collecting insurance statistics, developing rates, inspecting risks, examining insurance documents, exchanging data, and doing related acts.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11750.3. A rating organization may be organized pursuant to this article and maintained in this state for the following purposes: (a) To provide reliable statistics and rating information with respect to workers’ compensation insurance and employer’s liability insurance incidental thereto and written in connection therewith. (b) To collect and tabulate information and statistics for the purpose of developing pure premium rates to be submitted to the commissioner for issuance or approval. (c) To formulate rules and regulations in connection with pure premium rates and the administration of classifications and rating systems. (d) To inspect risks for classification or rate purposes and to furnish to the insurer and upon request of the employer and after notice to the insurer, to furnish to the employer full information concerning the rates applicable to the employer’s insurance. (e) To examine policies, daily reports, endorsements or other evidences of insurance for the purpose of ascertaining whether they comply with the provisions of law and to make reasonable rules governing their submission. A rating organization may develop loss data on behalf of its members to assist members in developing plans pursuant to subdivision (e) of Section 11735 and other loss sensitive plans. (f) Within one year after expiration of any workers’ compensation insurance policy, to initiate test audits of insured employer’s payrolls and insurer’s audits of those payrolls to check the accuracy and reliability thereof, and to examine all records relative thereto and premises of insured employers. (g) To exchange information and experience data with rating organizations, advisory organizations, and insurers in this and other states, with respect to ratemaking. (h) To become a member or subscriber of any lawfully authorized ratemaking or advisory organization whenever membership in the organization is necessary or helpful to the rating organization. (i) To perform all acts necessary, incidental, or convenient to carry out the foregoing purposes or the provisions of this chapter relating to rating organizations. (Amended by Stats. 1994, Ch. 1131, Sec. 3. Effective January 1, 1995.)
  186. 11751.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    A rating organization may not operate in this state unless it first files a written application with the commissioner and gets a license.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751. On and after January 1, 1952, a rating organization shall not conduct its operations in this state without first having filed with the commissioner a written application for and securing a license to act as a rating organization. Any rating organization may make application for and obtain a license as a rating organization if it meets the requirements for license set forth in this article. The fee for filing an application for a license as a rating organization is two hundred twenty-four dollars ($224) payable in advance to the commissioner. Every rating organization shall file with its application: (a) A copy of its constitution, its articles of incorporation, agreement of association, and of its bylaws, rules and regulations governing the conduct of its business, all certified by the custodian of the originals thereof. (b) A list of its members who shall not number less than five insurers authorized to write and writing workers’ compensation insurance in this state and whose combined experience shall be determined by the commissioner to be reasonably adequate for ratemaking purposes. (c) The name and address of a resident of this state upon whom notices of the commissioner or process affecting that rating organization may be served. (d) A statement of its qualifications as a rating organization. (Amended by Stats. 2017, Ch. 534, Sec. 71. (AB 1699) Effective January 1, 2018.)
  187. 11751.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    A rating organization must give the commissioner satisfactory evidence that it will follow specified conduct rules to obtain and keep a license.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.1. To obtain and retain a license, a rating organization shall provide satisfactory evidence to the commissioner that it shall do all of the following: (a) Permit any insurer to become a member at a reasonable cost and without discrimination, or to withdraw therefrom. (b) Neither have nor adopt any rule or exact any agreement, the effect of which would be to require any member as a condition of membership to adhere to any rates. (c) Neither adopt any rule nor exact any agreement, the effect of which would be to prohibit or regulate the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders or members. (d) Neither practice nor sanction any plan or act of boycott, coercion, or intimidation. (e) Neither enter into nor sanction any contract or act by which any person is restrained from lawfully engaging in the insurance business. (f) Notify the commissioner promptly of every change in its constitution or articles of incorporation, agreement of association, or in its bylaws, 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 the organization may be served. (g) Agree that the commissioner or his or her representative may attend all meetings of the organization or any of its committees. (h) Agree to permit four members of the public, two representing organized labor and two representing insured employers, to serve on the managing or governing committee of the organization as specified in Section 11751.35. (i) Maintain reasonable records of the experience of its members and of the data, statistics or information collected or used in connection with the pure premium rates, classifications, manual rules, and policy and endorsement forms used by its members so that these records will be available at all reasonable times to enable the commissioner to determine whether the rating organization and its members comply with the provisions of this chapter applicable to them. These records shall be maintained in an office within this state. The commissioner may prescribe a uniform system for the keeping of the records which shall be reasonably adapted to the rating organization and its members’ method of operation and which shall be applicable to all rating organizations licensed under this article and their members. (Amended by Stats. 1993, Ch. 228, Sec. 5. Effective January 1, 1994. Operative January 1, 1995, by Sec. 7 of Ch. 228.)
  188. 11751.2.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    The commissioner must examine each application for a rating-organization license, may investigate further, and must issue the license within 60 days if the statutory conditions are met; otherwise, after notice and hearing, the commissioner must deny the application in writing.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.2. The commissioner shall examine each application for license to act as a rating organization and the documents filed therewith and may make any further investigation of the applicant, its affairs and its proposed plan of business, as he deems desirable. The commissioner shall issue the license applied for within 60 days of its filing with him if from such examination and investigation he is satisfied that: a. The business reputation of the applicant and its officers is good. b. The facilities of the applicant are adequate to enable it to furnish the services it proposes to furnish. c. The applicant and its proposed plan of operation conform to the requirements of this chapter. Otherwise, but only after hearing upon notice, the commissioner shall in writing deny the application and notify the applicant of his decision and his reasons therefor. Licenses issued pursuant to this section shall remain in effect until suspended or revoked. (Added by Stats. 1951, Ch. 1123.)
  189. 11751.25.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    Certain rating organizations with an indefinite-term license must pay the commissioner an annual $150 fee in advance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.25. Notwithstanding Section 11751, each rating organization possessing a license of indefinite term pursuant to this article shall owe and pay to the commissioner an annual fee of one hundred fifty dollars ($150), in advance, on account of that license until its final termination. That fee shall be for annual periods commencing on July 1 of each year and ending on June 30 of each year and shall be due and payable on each March 1 and shall be delinquent on and after each April 1. (Amended by Stats. 2017, Ch. 534, Sec. 72. (AB 1699) Effective January 1, 2018.)
  190. 11751.3.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    A licensed rating organization may adopt reasonable governing documents and rules if the commissioner approves, and the commissioner must appoint specified public members to the governing committee after required consultations.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.3. (a) Subject to the approval of the commissioner, a rating organization licensed under this article may adopt any reasonable constitution, articles of incorporation, or agreement of association, and may make reasonable rules for the regulation of its members and the conduct of its business by bylaws or otherwise. In a rating organization of which the State Compensation Insurance Fund is a member, it shall be entitled without election to membership on the managing or governing committee and on the classification and rating committee thereof. (b) In addition, after consultation with the California Labor Federation, AFL-CIO, other statewide organized labor organizations, and statewide associations representing business, the commissioner shall appoint two public members representing insured employers and two public members representing organized labor to serve on the managing or governing committee of a rating organization. The bylaws of a rating organization shall permit a public member from time to time to designate in his or her stead a representative from the same employer organization or an affiliated employee union, as the case may be, to attend and participate in any meeting of the governing committee of a rating organization. (Amended by Stats. 1989, Ch. 892, Sec. 5.)
  191. 11751.35.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    Public members on certain rating-organization committees have voting and service rights, and the commissioner has appointment and removal limits and must adjust one annual spending cap.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.35. (a) Four members of the public, two representing organized labor and two representing insured employers, appointed pursuant to subdivision (b) of Section 11751.3, shall be entitled to serve on the managing or governing committee of a rating organization licensed under this article. A public member shall be entitled to vote on all issues involving pure premium rates, classifications, rating plans, rating systems, manual rules and policy, and endorsement forms which are properly brought before the committee. A public member shall be removed by the commissioner only for cause. (b) In the event a public member is unable or unwilling to complete his or her term, after consultation with the California Labor Federation, AFL-CIO, other statewide organized labor organizations, and statewide organizations representing business, as the case may be, the commissioner shall appoint a successor from organized labor or an insured employer to complete the unexpired term. (c) The public members who serve on the governing committee of a rating organization licensed under this article together may, by a majority vote, retain experts who shall include a fellow of the Casualty Actuarial Society, to advise them on any matter specified in subdivision (a). The actuary hired may participate in all proceedings of the actuarial committee of the rating organization. The reasonable expense of retaining these experts shall not exceed one hundred thousand dollars ($100,000) per year and shall be paid from the budget of the department. The commissioner shall increase this amount annually to reflect any needed cost-of-living adjustments. The public members may submit information obtained from these experts, as well as any other information they deem appropriate, to the commissioner for his or her consideration in approving a change of any matter specified in subdivision (a). (d) In addition to the expenses authorized pursuant to subdivision (c), the public members who serve on the governing committee of a rating organization licensed under this article may expend up to an additional one hundred thousand dollars ($100,000) per year, which shall be paid by insurer members of the rating organization. Those funds shall be used to retain staff, who shall be hired by a majority vote of the public members. (Amended by Stats. 1995, Ch. 375, Sec. 2. Effective January 1, 1996.)
  192. 11751.4.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    Every insurer must be a member of a rating organization, and an insurer cannot belong to more than one licensed rating organization at the same time.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.4. From and after the taking effect of this act, it shall be the duty of every insurer to be a member of a rating organization. No insurer may at the same time belong to more than one rating organization licensed under this article. (Added by Stats. 1951, Ch. 1123.)
  193. 11751.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    The commissioner may, after notice and hearing, adopt reasonable rules and statistical plans for reporting workers’ compensation insurance experience, and must designate a licensed rating organization as statistical agent.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.5. The commissioner, after notice and hearing, may promulgate reasonable rules and statistical plans, which may be modified from time to time and which shall be used thereafter in the recording and reporting by insurers of their loss and expense experience in order that the experiences of all insurers may be made available in such form and detail as may be necessary to aid the commissioner in administering the provisions of Article 2 (commencing with Section 11730). The commissioner shall designate a rating organization licensed under this article as his or her statistical agent to gather and compile such experience statistics and all licensed rating organizations shall report the experience of their members to such designated rating organization. Subject to reasonable rules approved by the commissioner, such designated rating organization shall make such experience statistics, when compiled, available to all licensed rating organizations and may make a reasonable charge to other rating organizations for the expense incurred by it in combining, tabulating and compiling the experience of all workers’ compensation insurers. (Amended by Stats. 1993, Ch. 1242, Sec. 11. Effective January 1, 1994.)
  194. 11751.55.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    If certain insurance-related entities seek official action by the commissioner that requires a noticed public hearing, the commissioner must require the request to be written and must require a $590 fee paid in advance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.55. If an insurer, the State Compensation Insurance Fund, a rating organization, or an advisory organization requests an official action by the commissioner under Chapters 2 (commencing with Section 11630), 3 (commencing with Section 11690), or 4 (commencing with Section 11770) of this part which he can lawfully consummate only after a noticed public hearing required by law, the commissioner shall require the request to be in writing and require the payment of five hundred ninety dollars ($590), in advance, as a fee for filing such request. Such fee shall be earned even if the request is denied or is granted in an altered form. (Amended by Stats. 1985, Ch. 770, Sec. 24.)
  195. 11751.7.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    A designated rating organization must, on request, give certain information to the Director of Industrial Relations and the Registrar of Contractors.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.7. (a) The rating organization designated the statistical agent pursuant to Section 11751.5 shall provide to the Director of Industrial Relations, upon request, any information in the possession of, or reasonably attainable by the rating organization, that would assist the Director of Industrial Relations to identify employers who fail to secure adequate insurance in violation of Section 3700 of the Labor Code. The information requested pursuant to this section shall be provided by the rating organization in a form and manner prescribed by the Director of Industrial Relations. (b) The rating organization designated the statistical agent pursuant to Section 11751.5 shall provide to the Registrar of Contractors of the Contractor’s State License Board, upon request, any information in the possession of, or reasonably attainable by, the rating organization that would assist in identifying licensed contractors who fail to secure adequate insurance in violation of Section 3700 of the Labor Code. The information requested pursuant to this section shall be provided by the rating organization in a form and manner prescribed by the Registrar of Contractors. (Amended by Stats. 2005, Ch. 428, Sec. 1. Effective January 1, 2006.)
  196. 11751.8.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    An insurer must report certain loss corrections or revisions to its rating organization when listed conditions apply.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.8. An insurer shall report to its rating organization as corrections or revisions of losses, pursuant to the unit statistical plan and uniform experience rating plans approved by the commissioner, if any of the following is applicable: (a) A loss record detail was incorrectly reported through mistake other than error of judgment. (b) One or more claims are declared noncompensable. A claim is declared noncompensable if any of the following applies: (1) There is an official ruling specifically holding that a claimant is not entitled to benefits under the workers’ compensation laws of the state, even though the claimant may have been awarded reimbursement for expenses incurred by the claimant in presenting the case. (2) No claim was filed during the period of limitation provided by the workers’ compensation laws for the filing of the claim, and the carrier, therefore, closes the claim. (3) Where the carrier contends, prior to the valuation date, that a claimant is not entitled to benefits under the workers’ compensation laws and the claim is officially closed because of the claimant’s failure to prosecute the claim. (c) The carrier has recovered in an action against a third party. (d) A death claim has been compromised over the sole issue of the applicability of the workers’ compensation laws of the state. (e) The exposure has been reassigned to another classification through the revision of an audit, in which case the insurer shall file with the revision of exposure a revision of losses that will reassign all claims to the appropriate classification. (f) A clerical error in either the classification assignment or the type of injury assignment of a given claim, or a group of claims, has been discovered by the insurer. (g) A clerical error in either the classification assignment or the type of injury assignment of a given claim has been discovered by the rating organization. The insurer shall, when notified by the rating organization, file a revision of losses or make satisfactory explanation. (h) A correction is made in a classification assignment of a given claim, or a group of claims, as a result of the organization test audit of an insured for which the experience has been submitted. (i) The claim has been determined to be a joint coverage claim in accordance with the unit statistical plan approved by the commissioner. (Amended by Stats. 1997, Ch. 748, Sec. 3. Effective January 1, 1998.)
  197. 11751.82.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    An insurer under a wrap-up insurance policy must report workers’ compensation losses and payroll information for each contractor and subcontractor to its rating organization, and must provide copies of that report to each contractor and subcontractor within 10 days of request.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.82. (a) An insurer under a wrap-up insurance policy shall report workers’ compensation losses and payroll information for each contractor and subcontractor to its rating organization on a timely basis and in accordance with the uniform statistical plan. Within 10 days, upon request, the insurer shall provide to each contractor and subcontractor copies of the report covering workers’ compensation losses and payroll information for that contractor or subcontractor. (b) For the purposes of this section, a “wrap-up insurance policy” is an insurance policy, or series of policies, written to cover risks associated with a work of improvement, as defined in Section 8050 of the Civil Code, and covering two or more of the contractors or subcontractors that work on that work of improvement. (Amended by Stats. 2010, Ch. 697, Sec. 41. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)
  198. 11751.9.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    If certain workers’ compensation claims are closed, reported, and valued below 60% of the highest reported aggregate value, the experience rating must be revised under the commissioner-approved uniform experience rating plan.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11751.9. Whenever a claim or claims used in an experience rating are closed and reported pursuant to the unit statistical plan approved by the commissioner and are valued, in the aggregate, at an amount that is less than 60 percent of the highest reported aggregate value of all of these claims, then the experience rating shall be revised pursuant to the uniform experience rating plan approved by the commissioner based on the most current reported values for all claims used in the experience rating. (Added by Stats. 1997, Ch. 748, Sec. 4. Effective January 1, 1998.)
  199. 11752.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    The commissioner may examine each rating or advisory organization, and may instead accept certain outside examination reports.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11752. The commissioner may, as often as reasonable and necessary, make or cause to be made an examination of each rating or advisory organization to ascertain whether such organizations comply with the legal requirements applicable to it under this article. In lieu of any such examination the commissioner may accept the report of an examination made by the insurance supervisory official of another state or the report of a representative designated by the National Association of Insurance Commissioners. (Added by Stats. 1951, Ch. 1123.)
  200. 11752.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. )

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    The commissioner may examine certain organization personnel under oath, and they must provide requested books, records, documents, data, and related information.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 3. LIABILITY, WORKERS' COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 - 11895] ( Heading of Part 3 amended by Stats. 1979, Ch. 373. ) ## CHAPTER 3. Regulation of Business of Workers’ Compensation Insurance [11690 - 11761] ( Heading of Chapter 3 amended by Stats. 1979, Ch. 373. ) ## ARTICLE 3. Rating and Other Organizations [11750 - 11759.2] ( Article 3 added by Stats. 1951, Ch. 1123. ) ## 11752.1. The officers, managers, agents and employees of any such organization may be examined by the commissioner 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 in the conduct of the operations to which the examination relates. (Added by Stats. 1951, Ch. 1123.)

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