California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 9.6 - Workers' Compensation Rate Filings
Section 2509.33 - Disapproval of an Insurer's Rates; Procedure

(a) The Commissioner may commence a rate disapproval hearing by serving a notice of hearing on the insurer. The hearing notice shall state which parts of an insurer's rate filings the Commissioner proposes to disapprove and shall specify in reasonable detail the reasons for any proposed disapproval. The hearing notice shall state the date and location of the hearing. A hearing shall be commenced within a reasonable time after issuance of the hearing notice.

(b) The decision of the hearing officer shall be based on the record of the proceedings. The record of the proceedings shall consist of the written pleadings submitted by the parties, any oral testimony, the documentary evidence admitted into evidence by the hearing officer, and if a written transcription of the proceedings is made by a Certified Shorthand Reporter, the written transcription.

(c) A disapproval of a rate filing other than a rejection for incompleteness as specified in section 2509.32, subdivision (c), shall occur only by order of the Commissioner after a hearing. If the Commissioner disapproves a rate, the order shall specify when, within a reasonable time after the decision, the rate shall no longer be used.

(d) All documents admitted as evidence in the hearing shall be open to public inspection.

(e) If after a hearing the Commissioner disapproves an insurer's rate filing, it shall not have any legally effective rates. The Commissioner shall specify interim rates upon the insurer's request.

(f) If the Commissioner rejects an insurer's rate filing because of incompleteness or for failure to comply with filing requirements, its legally effective rates shall be the prior rates in effect for the insurer. "Prior rates" means the rates properly in effect for the insurer at the time of its incomplete filing.

(g) The Commissioner may serve any document concerning a rate disapproval hearing in the manner provided in Section 1013, subdivision (a), of the California Code of Civil Procedure. The address for service on an insurer shall be the address of the insurer's agent for service of process in the State of California.

(h) An insurer may serve any document concerning a rate disapproval hearing as provided in Section 1013, subdivision (a), of the California Code of Civil Procedure. The address for service on the Commissioner shall be his or her address in Oakland.