Insurance: examination of insurers.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill updates California law regarding insurance company examinations by requiring companies to take corrective actions identified in examination reports and imposing penalties for non-compliance. It strengthens the Insurance Commissioner’s ability to enforce examination findings, including issuing orders to show cause and imposing monetary penalties. The bill also clarifies procedures for requesting extensions and ensures hearings are conducted according to the Administrative Procedure Act.
Key provisions
- Requires examined companies to implement corrective actions identified in examination reports.
- Establishes penalties of up to $20,000 per failure to take corrective action.
- Allows companies to request extensions for compliance, subject to commissioner approval.
- Authorizes the commissioner to issue orders to show cause and penalties for non-compliance.
- Mandates hearings conducted in accordance with the Administrative Procedure Act.
- Clarifies the commissioner’s authority to enforce examination findings beyond existing powers.
- Requires transmission of examination files to the State Bureau of Audits upon termination or suspension.
- Specifies that penalties can be adjusted based on the scale of the company's operations.
Who is affected
- Insurance Companies
- California Department of Insurance
- Insurance Agents and Brokers
Bill text
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Sponsors
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1 on record
Primary sponsor
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