California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4.9 - Rules of Practice and Procedure for Rate Proceedings
Article 13 - Intervention
Section 2661.1 - Definitions
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
The following definitions shall apply to Articles 13 and 14 of this subchapter.
(a) "Advocacy Fees" means costs, incurred or billed, by a party for the services of an advocate in the proceeding. An advocate need not be an attorney. Advocacy fees shall not exceed market rates as defined in this section.
(b) "Compensation" means payment for all or part of advocacy fees, witness fees, and other expenses of participation and intervention in any rate hearing or proceeding other than a rate hearing.
(c) "Market Rate" means, with respect to advocacy and witness fees, the prevailing rate for comparable services in the private sector in the Los Angeles and San Francisco Bay Areas at the time of the Commissioner's decision awarding compensation for attorney advocates, non-attorney advocates, or experts with similar experience, skill and ability. Billing rates shall not exceed the market rate.
(d) "Other Expenses" means reasonable, actual out-of-pocket costs of an intervenor or petitioner. Out-of-pocket costs include but are not limited to expenses such as travel costs, transcript charges, postage charges, overnight delivery charges, telephone charges and copying expenses. Out-of-pocket costs also includes the costs incurred in preparing a request or amended request for award, defined in sections 2662.3 and 2662.4. The intervenor or petitioner has the burden of substantiating any costs incurred, including providing supporting documentation as requested by the Public Advisor.
(e) "Proceeding" includes those proceedings set forth in Insurance Code Section 1861.10(a).
(f) "Proceeding Other Than a Rate Proceeding" means any proceeding, including those described in subdivision (e) above, conducted pursuant to Chapter 9 of Part 2 of Division 1 of the Insurance Code which is not a rate proceeding as defined in this section.
(g) "Public Advisor" means that official of the Department of Insurance who monitors and assists participation by members of the public in the Department of Insurance's proceedings. The Public Advisor shall not represent any member of the public and shall not advocate any substantive position on behalf of the public on any issues before the Commissioner.
(h) "Rate Proceeding" means any proceeding conducted pursuant to Insurance Code Sections 1861.01 and 1861.05. For purposes of section 1861.05, a "rate proceeding" is established upon the submission of a petition for hearing in accordance with section 2653.1 of this subchapter, or if no petition for hearing is filed, upon notice of hearing.
(i) "Rate Hearing" means a hearing noticed by the Commissioner on the Commissioner's own motion or in response to a petition for hearing pursuant to Insurance Code section 1861.05, which is conducted pursuant to the applicable procedural requirements of Insurance Code section 1861.08, and subchapters 4.8. and 4.9 of this chapter.
(j) "Represents the Interests of Consumers" means that the intervenor represents the interests of individual insurance consumer[s], or the intervenor is a group organized for the purpose of consumer protection as demonstrated by, but is not limited to, a history of representing consumers in administrative, legislative or judicial proceedings.
A party which represents, in whole or in part, any entity regulated by the Commissioner shall not be eligible for compensation. However, nothing in this subsection shall be construed to prohibit any person from intervening or participating if that person is not seeking compensation.
(k) "Substantial Contribution" means that the intervenor substantially contributed, as a whole, to a decision, order, regulation, or other action of the Commissioner by presenting relevant issues, evidence, or arguments which were separate and distinct from those emphasized by the Department of Insurance staff or any other party, such that the intervenor's participation resulted in more relevant, credible, and non-frivolous information being available for the Commissioner to make the Commissioner's decision than would have been available to a Commissioner had the intervenor not participated. A substantial contribution may be demonstrated without regard to whether a petition for hearing is granted or denied.
(l) "Witness Fees" means recorded or billed costs for a witness, together with associated expenses. Costs and expenses for a witness shall not exceed market rate as defined in this section.
1. Renumbering
and amendment of former section
2616.1 to new section 2661.1 filed
8-18-95 as an emergency; operative 8-18-95 (Register 95, No. 33). A Certificate of
Compliance must be transmitted to OAL by 12-16-95 or emergency language will be
repealed by operation of law on the following day.
2. Renumbering and
amendment of former section
2616.1 to new section 2661.1 refiled
12-19-95 as an emergency; operative 12-19-95 (Register 95, No. 51). A Certificate of
Compliance must be transmitted to OAL by 4-17-96 or emergency language will be
repealed by operation of law on the following day.
3. Certificate of
Compliance as to 12-19-95 order transmitted to OAL April 17, 1996; disapproved by
OAL and order of repeal as to 12-19-95 order filed 5-30-96 (Register 96, No.
22).
4. Renumbering and amendment of former section
2616.1 to new section 2661.1 filed
5-30-96 as an emergency; operative 5-30-96 (Register 96, No. 22). A Certificate of
Compliance must be transmitted to OAL by 9-27-96 or emergency language will be
repealed by operation of law on the following day.
5. Certificate of
Compliance as to 5-30-96 order, including amendments to subsections (c), (d), (e)
and (i), transmitted to OAL 9-26-96 and filed 11-5-96 (Register 96, No.
45).
6. Amendment of subsections (d), (f) and (h), new subsection (i),
subsection relettering and amendment of newly designated subsection (k) filed
12-29-2006; operative 1-28-2007 (Register 2006, No. 52).
7. Change
without regulatory effect amending subsections (i) and (k) filed 7-14-2021 pursuant
to section 100, title 1, California Code of
Regulations (Register 2021, No. 29). Filing deadline specified in Government Code
section
11349.3(a)
extended 60 calendar days pursuant to Executive Order
N-40-20.
Note: Authority cited: Section 1861.10, Insurance Code; and CalFarm Insurance Company, et al. v. George Deukmejian, et al., 48 Cal.3d 805, 824 (1989), 20th Century Insurance Company v. John Garamendi, 8 Cal.4th 216, 281, 32 Cal. Rptr. 2d 807, 847 (1994). Reference: Sections 1861.10(a) and 1861.10(b), Insurance Code; and CalFarm Insurance Company, et al. v. George Deukmejian, et al., 48 Cal.3d 805 (1989), 20th Century Insurance Company et al. v. John Garamendi 8 Cal. 4th 216, 32 Cal. Rptr. 2d 807 (1994).
