The California Department of Insurance is responsible for enforcing many of the insurance-related laws of the state. They are foremost a consumer protection agency. The California Department of Insurance’s number one priority is to protect insurance consumers by regulating the industry’s practices and encouraging a healthy marketplace, which is one of the largest in the world.
The California Department of Insurance ensures that consumers are protected, the insurance marketplace is fostered to be vibrant and stable, the regulatory process is maintained as open and equitable, and the law is enforced fairly and impartially.
As a state mandated regulatory agency, the California Department of Insurance has authority over how the insurance industry conducts business within California. The department aids consumers by regulating how insurance companies market and administer their policies. Insurance business must be conducted in an honest, open, and fair manner.
The California Department of Insurance holds licensing examinations for insurance brokers and insurance agents and investigates suspected violations of the CIC by licensees as mandated by the California Insurance Code (CIC).
Criminal investigations protects the public from economic loss and general distress by actively investigating and arresting those who commit insurance fraud. Claimant, agent, and insurance company fraud is investigated and prosecuted to the fullest extent of the law.
Insurance companies that want to do business in California must apply and be reviewed by the California Department of Insurance to determine whether or not they should be given the authority to sell insurance in this state. The California Department of Insurance takes an active, leading role to conserve, rehabilitate, or liquidate troubled insurance companies under appointment of the Superior Court.
The Rate Regulation Branch, under the provisions of Proposition 103, reviews proposed personal auto and homeowners insurance rates to ensure that they are fair, reasonable, and adequate. The California Department of Insurance oversees the financial condition of the insurance industry and helps to ensure stability and to protect policy holders by examining and reviewing key financial statements and conducting audits of insurance companies in California.
