California

Insurance Code

4,514 sections, each with the official text and a plain-English explanation of what it means for you.

• § 922.3 — Notwithstanding any other provision of law, credit for reinsurance, as either an asset or a deduction, shall not be allowed in any accounting or financial statement of the ceding insurer in respect to
• § 922.31 — (a) A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business.
• § 922.4 — Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a deduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of sub
• § 922.41 — (a) Credit shall be allowed a domestic insurer when the reinsurance is ceded to an assuming insurer that has been certified by the commissioner as a reinsurer in this state and secures its obligations
• § 922.42 — (a) If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the commissioner may suspend or revoke the reinsurer’s accreditation or certification.
• § 922.425 — (a) Credit shall be allowed a domestic insurer when the reinsurance is ceded to an assuming insurer that meets all of the following requirements: (1) The assuming insurer has its head office or is dom
• § 922.43 — The actual costs and expenses incurred by the department in reviewing requests for accreditation or certification, trusts, or review of an assuming insurer that has its head office or is domiciled in
• § 922.5 — (a) An asset or a deduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Section 922.
• § 922.6 — Credit for reinsurance shall not be denied a foreign ceding insurer to the extent that credit is recognized by the ceding insurer’s domestic state regulator, provided that the domestic state is accred
• § 922.7 — (a) For purposes of subdivision (b) of Section 922.
• § 922.8 — (a) The commissioner, after notice, comment period, and a hearing if requested by more than 10 affected insurers, may issue a bulletin setting forth reasonable requirements for the allowance of reinsu
• § 922.85 — (a) The commissioner may adopt regulations in accordance with the procedures provided in Chapter 3.
• § 922.9 — Sections 922.
• § 923 — The commissioner shall require every insurer which is required to file an annual or quarterly statement to use the statement blanks and instructions thereto for the appropriate year adopted by the Nat
• § 923.5 — Each insurer transacting business in this state shall at all times maintain reserves in an amount estimated in the aggregate to provide for the payment of all losses and claims for which the insurer m
• § 923.6 — (a) Every admitted property and casualty insurer, unless otherwise exempted by the domiciliary commissioner, shall annually submit the opinion of an Appointed Actuary entitled “Statement of Actuarial
• § 924 — The commissioner shall collect a late filing fee of seven hundred five dollars ($705) from any admitted insurer that fails to make and file in the commissioner’s office within the time prescribed by l
• § 925 — Upon request of the commissioner, and at intervals as prescribed by him or her, any insurer that appears to the commissioner to require immediate regulatory attention shall provide to the commissioner
• § 925.1 — (a) All supplemental information, work papers and other relevant documents of the independent certified public accountant, or independent actuary, or other independent professional financial person an
• § 925.2 — The commissioner may prescribe the subject matter and form of reporting supplemental information and the subject matter of opinions.
• § 925.3 — All supplemental information provided or made available to the commissioner pursuant to Sections 925 to 925.
• § 925.4 — Nothing contained herein shall be deemed in any manner to limit, restrict or abridge the powers of the commissioner to examine insurers, to inquire into their financial condition or to obtain suppleme
• § 926 — The Legislature finds and declares all of the following: (a) It is in the interest of all Californians that there is a strong and viable insurance market.
• § 926.1 — As used in this article, the following terms shall have the following meanings: (a) “Area median income” (AMI) means either of the following: (1) The median family income for the metropolitan statisti
• § 926.3 — (a) It is the policy of the State of California that (1) insurers should, where practicable, be supportive of community development investments and community development infrastructure investments, an
• § 927 — The Legislature finds and declares all of the following: (a) It is in the state’s interest to encourage competitive business opportunities for all of its people.
• § 927.1 — For the purposes of this article, the following definitions apply: (a) “Control” means to exercise the power to make policy decisions.
• § 927.2 — (a) (1) Commencing July 1, 2020, and biennially on July 1 of each even-numbered year thereafter, each admitted insurer, with California premiums written of seventy-five million dollars ($75,000,000) o
• § 927.3 — (a) (1) Commencing July 1, 2020, and biennially on July 1 of each even-numbered year thereafter, each admitted insurer with California premiums written of seventy-five million dollars ($75,000,000) or
• § 927.4 — (a) The commissioner shall establish and appoint an Insurance Diversity Task Force.
• § 927.5 — The commissioner may promulgate regulations that further the purposes of this article.
• § 928 — (a) An admitted insurer shall not undertake any single risk or accept reinsurance on any single risk when its liability thereon in excess of the amount reinsured by reinsurance authorized for annual s
• § 929 — (a) (1) On or before April 1, 2020, and every two years thereafter, an admitted insurer with written California premiums totaling ten million dollars ($10,000,000) or more shall submit a report to the
• § 929.1 — Information submitted to the commissioner, as required by Section 929, shall be confidential pursuant to Section 7929.
• § 929.2 — (a) The commissioner shall post to the department’s Internet Web site a report on wildfire risk compiled from the data collected pursuant to Section 929.
• § 929.3 — (a) Failure to submit a report pursuant to Section 929 shall subject an admitted insurer to a civil penalty to be fixed by the commissioner, not to exceed five thousand dollars ($5,000) or, if the act
• § 930 — The provisions of this article shall apply to all domestic, foreign, and alien insurers doing business in this state.
• § 931 — (a) Each domestic, foreign, and alien insurer doing business in this state shall annually, on or before the first day of March of each year, file with the National Association of Insurance Commissione
• § 932 — In the absence of actual malice, members of the National Association of Insurance Commissioners, their duly authorized committees, subcommittees, and task forces, their delegates, National Association
• § 933 — All financial analysis ratios and examination synopses concerning insurers that are submitted to the department by the National Association of Insurance Commissioners’ Insurance Regulatory Information
• § 934 — The commissioner may suspend, revoke, or refuse to renew the certificate of authority of any insurer failing to file its annual or quarterly statement with the National Association of Insurance Commis
• § 935.1 — (a) The purpose of this article is to provide the requirements for maintaining a risk management framework, completing an Own Risk and Solvency Assessment (ORSA), and provide guidance and instructions
• § 935.10 — If any provision of this article, or the application thereof to any person or circumstance, is held invalid, that determination shall not affect the provisions or applications of this article that can
• § 935.11 — This article shall become operative on January 1, 2015.
• § 935.2 — For purposes of this article, the following definitions apply: (a) For the purpose of conducting an ORSA, the term “insurance group” shall mean those insurers and affiliates included within an insuran
• § 935.3 — An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks.
• § 935.4 — Subject to Section 935.
• § 935.5 — (a) Upon the commissioner’s request, and no more than once each year, an insurer shall submit to the commissioner an ORSA Summary Report or any combination of reports that together contain the informa
• § 935.6 — (a) An insurer shall be exempt from the requirements of this article if both of the following apply: (1) The insurer has annual direct written and unaffiliated assumed premiums, including internationa
• § 935.7 — (a) The ORSA Summary Report shall be prepared consistent with the ORSA Guidance Manual, subject to the requirements of this section.
• § 935.8 — (a) Documents, materials, or other information, including the ORSA Summary Report, in the possession of or control of the Department of Insurance that are obtained by, created by, or disclosed to the
• § 935.9 — Any insurer failing, without just cause, to timely file the ORSA Summary Report as required in this article shall be subject to the late filing fees set forth in Section 924.
• § 936.1 — (a) The purpose of this article is to provide the Insurance Commissioner a summary of an insurer or insurance group’s corporate governance structure, policies, and practices to permit the commissioner
• § 936.2 — For the purposes of this article, the following definitions apply: (a) “Corporate Governance Annual Disclosure (CGAD)” means a confidential report filed by the insurer or insurance group made in accor
• § 936.3 — (a) An insurer, or the insurance group of which the insurer is a member, shall, no later than June 1 of each calendar year, submit to the commissioner a CGAD that contains the information described in
• § 936.4 — The commissioner may, upon notice and opportunity for all interested parties to be heard, issue those rules, regulations, and orders as may be necessary to carry out the provisions of this article.
• § 936.5 — (a) The insurer or insurance group shall have discretion over the responses to the CGAD inquiries, provided the CGAD contains the material information necessary to permit the commissioner to gain an u
• § 936.6 — (a) (1) Documents, materials, or other information, including the CGAD, in the possession or control of the department that are obtained by, created by, or disclosed to, the commissioner or any other
• § 936.7 — (a) The commissioner may retain, at the insurer's expense, third-party consultants, including attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner’s staff as m
• § 936.8 — Any insurer or insurer group failing, without just cause, to timely file the CGAD as required in this article shall be subject to the late filing fees set forth in Section 924.
• § 936.9 — The provisions of this article, other than Section 936.
• § 937 — The Legislature finds and declares all of the following: (a) Since 2006, the state of California has funded and undertaken four comprehensive climate change assessments designed to assess the impacts
• § 937.1 — (a) (1) On or before March 1, 2026, and on or before March 1 of every year thereafter, an admitted insurer in a group with written premiums in the prior year from fire, allied lines, private flood, ho
• § 937.2 — Notwithstanding Section 937.
• § 937.3 — (a) The commissioner shall post to the department’s internet website an aggregated report based on the data collected under Section 937.
• § 937.4 — (a) Failure to submit a report under Section 937.
• § 937.5 — The commissioner may promulgate regulations that further the purposes of this article.
• § 938 — (a) The Department of Insurance shall implement specific data collections on the availability and affordability of insurance for heavy-duty trucks and truck fleets that utilize advanced fuels and rela
• § 938.1 — (a) The Department of Insurance, in consultation with the State Air Resources Board, shall create a consumer-focused online insurance information resource tool, based on data collected pursuant to Sec
• § 939 — Except as otherwise expressly provided, all deposits of securities with the commissioner shall be subject to the provisions of this article.
• § 940 — The commissioner shall accept and hold securities in trust for the policyholders or policyholders and creditors of an insurer and for their benefit, whenever (a) the law of another state or of a forei
• § 940.1 — The commissioner shall require the payment of fifty-eight dollars ($58) in lawful money of the United States in advance for receiving and processing securities or deposit schedules for securities depo
• § 941 — Such deposited securities shall not be estimated above their par value nor above their market value, except that preferred stock shall be estimated only at its market value.
• § 942 — The commissioner shall permit a deposit of those securities in the State Treasury, subject to the provisions of Section 11691, if applicable.
• § 943 — So long as the insurer continues solvent the commissioner shall permit it to collect the interest or dividends on the securities so deposited, and from time to time to withdraw any such securities on
• § 944 — Securities deposited under the provisions of this article shall not be withdrawn from the State treasury except upon the written order of the insurer making the deposits, with the endorsement of the c
• § 945 — If the deposit is of mortgages, it shall be accompanied either by full abstracts of title with the fees for examination of title, or by policies of title insurance or certificates of title issued by a
• § 946 — If the deposit is of stocks or bonds, it shall be accompanied by the fees necessary for the appraisal thereof, except as otherwise provided by Article 3, Chapter 1, Part 2, Division 1, of this code.
• § 948 — Whenever an insurer has deposited with the commissioner the requisite security, in conformity with the requirements of this article, the commissioner shall issue to such insurer, under his official se
• § 949 — The commissioner shall require the payment of seventy-two dollars ($72), in advance, as a fee for each certificate issued pursuant to this article.
• § 950 — Whenever such a depositing insurer has paid, canceled, or reinsured all its unexpired policies outstanding in this State, and all its liabilities under such policies are extinguished, or assumed by ot
• § 951 — Pending such examination the securities requested to be withdrawn may continue subject to withdrawal and substitution as provided by section 943.
• § 952 — Whenever the laws of any other state or country, by reason of which Section 940 is brought into force, are repealed and abrogated, then any deposit with the commissioner under and by reason of that se
• § 953 — Whenever a domestic insurer deposits securities with an officer of this State, in order to enable it to do business in another State pursuant to the laws of such other State, if such insurer thereafte
• § 954 — The commissioner shall make an annual examination of the securities received by him from each insurer.
• § 955 — All appraisal fees collected by the commissioner under the provisions of this article shall be paid into the State treasury in trust and withdrawn as provided by law for withdrawal of trust funds from
• § 956 — An account or accounts in one or more banks or savings and loan associations the accounts of which are insured by an agency or instrumentality of the federal government shall be accepted as securities
• § 970 — (a) The Wildfire Safety and Risk Mitigation Program is hereby established.
• § 971 — (a) The Wildfire Safety and Risk Mitigation Program shall be administered by the department.
• § 972 — In evaluating grant proposals pursuant to this article, the department shall give priority to projects that demonstrate one or more of the following: (a) A benefit to disadvantaged communities determi
• § 973 — (a) The department shall create a framework and multiyear plan with available data for the development, demonstration, and deployment of a public wildfire catastrophe model created pursuant to a grant
• § 974 — The Wildfire Safety and Risk Mitigation Account is hereby created within the Insurance Fund.
• § 975 — Upon implementation of the first round of grants issued pursuant to this article, the department shall identify, publish, and make available on its internet website key milestones for the completion o
• § 976 — The department shall provide recommendations to the Senate Committee on Insurance, Assembly Committee on Insurance, Assembly Committee on Emergency Management, Budget Committees, and the Governor for
• § 977 — This article shall not be construed to limit or conflict with the commissioner’s authority regarding rate regulation, or any other provisions of this code.
• § 978 — This article shall be operative upon appropriation by the Legislature for these purposes.
• § 980 — As used in this article, “liability” includes liability for losses reported, expenses, taxes, and all other indebtedness not included in those categories.
• § 984 — Any mortgage insurer or any mortgage guaranty insurer is insolvent whenever provision for its liabilities and for unearned income would, after exhausting its required insurance surplus, impair its cap
• § 985 — (a) On or after January 1, 1970, as used in this article and in subdivision (i) of Section 1011, “insolvency” means either of the following: (1) Any impairment of minimum “paid-in capital” or “capital
• § 985.5 — In the case of the insolvency of an admitted insurer, the commissioner shall prepare a report, which shall be a public record, with respect to the causes and factors which contributed to that insolven
• § 985.6 — The costs incurred in investigating and preparing the report required by Section 985.
• § 986 — A life insurer issuing policies on a reserve basis is insolvent whenever its assets are exceeded by the total of the following: (1) the amount necessary to provide for its liabilities; (2) the amount
• § 987 — A title insurer is insolvent whenever provision for its liabilities would, after exhausting its required surplus, so far impair its capital paid in as to reduce it below two hundred fifty thousand dol
• § 988 — (a) As used in this section: (1) “Impaired” means a financial situation in which the assets of an insurer are less than the sum of the insurer’s minimum required capital, minimum required surplus and
• § 989 — Any person who does any of the following is guilty of a misdemeanor punishable by not more than one year in county jail: (a) Conceals any property belonging to an insurer.
• § 995 — (a) As used in this article, “contingent compensation arrangement” means an arrangement having as its purpose the payment of a variable commission by the insurer, depending on the overall operating pr
• § 995.1 — An agent, broker, surplus line broker, general agent or other person operating under a contingent or retrospective compensation arrangement with any insurer shall promptly notify the insurer of every
• § 995.2 — An insurer shall not claim as an asset by reason of any provision of a contingent or retrospective compensation arrangement, any account due from the other party pursuant to such an arrangement in an
• § 995.3 — Every person operating under a retrospective or contingent compensation arrangement with any insurer shall report to the insurer within a reasonable time, and policy by policy, the full premium charge
• § 995.4 — An insurer, notwithstanding the provisions of any contingent or retrospective compensation arrangement with any person, shall maintain as a liability, as part of its unearned premium reserve the unear
• § 995.5 — An insurer, notwithstanding the provisions of any contingent or retrospective compensation arrangement with any person, shall report and pay the premium tax liability set forth in the Revenue and Taxa
• § 995.6 — The provisions of Sections 995.
• § 995.7 — The purposes of Section 816 and the provisions of this article are to promote the solvency of insurers and the producers dealing with them under contracts, arrangements and practices therein described
• § 997 — (a) For statement purposes as defined in Article 10 (commencing with Section 900), for insolvency calculations as defined in Article 13 (commencing with Section 980), and for the valuation of the liab