California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4.9 - Rules of Practice and Procedure for Rate Proceedings
Article 8 - Stipulations and Settlements
Section 2656.1 - Proposal of Stipulations or Settlements
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Parties may stipulate to the resolution of an issue of fact or the applicability of a provision of law material to a proceeding, or may agree to settlement on a mutually acceptable outcome to a proceeding, with or without resolving material issues.
(b) Notice of the stipulation and a copy of the stipulation shall be served on any intervenor at the time of filing. However, no party to a proceeding pending before the Commissioner shall compensate or agree to compensate an intervenor, and no intervenor shall receive or agree to receive compensation from any party in connection with a proceeding pending before the Commissioner, other than a compensation award approved by the Commissioner in accordance with Article 14 of Subchapter 4.9. No agreement concerning the merits of any matter pending before the Commissioner may be conditioned upon the payment of compensation to an intervenor.
(c) Stipulations and settlements shall be filed with the administrative law judge for proposed acceptance or rejection. When a stipulation or settlement is filed with the administrative law judge, it shall also be served on all parties. If a stipulation dispositive of the case or a settlement is proposed prior to the taking of any testimony, the parties supporting the stipulation or settlement shall file and serve supporting declarations indicating the reasons that the settlement or stipulation is fundamentally fair, adequate, reasonable and in the interests of justice. The administrative law judge shall reject any stipulation or settlement which includes an agreement regarding intervenor fees.
(d) Stipulations shall be limited to the issues in the proceeding and shall have no precedential value for future proceedings.
(e) A settlement or stipulation involving an agreed-upon rate change shall list, for each applicable subline and overall, the California written premium for the prior calendar year, the rate change proposed in the rate application, and the agreed-upon rate change.
(f) Any party may discuss stipulations or settlement with any other party without involving all parties.
(g) Any party objecting to a proposed settlement or stipulation may, within five (5) days of service of the proposed settlement or stipulation, file a written objection and may request a hearing before the administrative law judge on the proposed settlement or stipulation. When a hearing is requested, the administrative law judge shall hold a hearing on the objections within ten (10) business days of the filing of the request.
1. New article 8
and section 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.
Certificate of Compliance as to 8-18-95 order transmitted to OAL 12-18-95 and filed
2-1-96 (Register 96, No. 5).
3. Amendment filed 10-16-2002; operative
11-15-2002 (Register 2002, No. 42).
Note: Authority cited: Section 1861.055, Insurance Code, 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 1861.055 and 1861.08, Insurance Code, Section 11511.5, Government Code, CalFarm Insurance Company, et al. v. George Deukmejian, et al., 48 Cal.3d 805 (1989), 20th Century Insurance Company v. John Garamendi, 8 Cal.4th 216, 281, 32 Cal.Rptr.2d 807, 847 (1994).
