Existing law authorizes the Insurance Commissioner to conduct examinations of insurers whenever they deem it appropriate, or for admitted insurers, at least once every 5 years. Existing law requires the examiner in charge to file a verified written report of the examination with the department. Existing law requires the department to transmit that report to the company examined with a notice that the company has 30 days to make a written submission or rebuttal to any matters contained in the report. Existing law requires the commissioner, within 30 days of the end of the period allowed for the company to reply, to fully consider the report and any submissions and either adopt the report as filed, with modifications, or reject the report with an order to reopen the examination.
This bill would require an examined company to comply with all of the recommendations in the report. The bill would require the commissioner, if the commissioner has reason to believe that a company has not complied with a recommendation in the report, to issue and serve an order to show cause on the company with a statement of the charges, its potential liability, and a notice of hearing. If the charges are found to be justified, the bill would require the commissioner to issue an order requiring the company to pay a specified penalty and to comply with and implement the recommendations contained in the report. The bill would require the hearing be held in compliance with the Administrative Procedure Act and would state that these powers would be additional to any other powers currently vested in the commissioner to enforce the provisions of this code.

Statutes affected:
SB 1209: 734.1 INS
02/19/26 - Introduced: 734.1 INS