California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 19 - Regulations for Enforcement Actions and Penalties
Section 2591 - Preamble
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The purpose of this article is to meet the requirements of Insurance Code section 12921.1, paragraph (a)(7). This statute pertains to violations of statutes or regulations which are discovered in the investigation of consumer complaints and requires that the commissioner establish a list of criteria to determine which violations by insurers should be pursued through enforcement action and to establish enforcement guidelines that set forth appropriate penalties for violations based on the nature, severity, and frequency of the violations.
(b) Pursuant to the commissioner's authority to enforce the Insurance Code, this article shall also apply to actions arising from findings generated by other regulatory activities that allege violations of statutes or regulations. These activities include but are not limited to market conduct examinations or other Department investigations, examinations, or reviews of insurer conduct. This article is intended to provide greater uniformity in enforcement and in the general assessment of penalties imposed upon insurers.
1. New article 19 (sections 2591-2591.4) and section filed 12-15-2003; operative 1-14-2004 (Register 2003, No. 51).
Note: Authority cited: Sections 790.10 and 12921.1, Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal.3d 805 (1989); and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994). Reference: Sections 704.7, 769.86, 789.3, 790.035, 790.036, 790.07, 790.10, 1858.07, 1858.1, 1858.3, 1859.1, 1861.14, 10140.1, 10140.5, 10149.1, 10199.7, 10234.3, 10509.9, 11756, 12414.25 and 12921.1, Insurance Code.
