California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 9 - Insurance Fraud
Article 2 - Special Investigative Unit
Section 2698.42 - Penalties
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) If the Commissioner acts pursuant to the provisions of California Insurance Code Section 1875.24( c) or (d) and finds that the insurer has failed to comply with the provisions of this article, the Commissioner shall impose a monetary penalty in an amount not to exceed $5,000 for each act of non-compliance. Where the Commissioner determines that an insurer has willfully failed to comply with this article, the Commissioner may impose a monetary penalty in an amount not to exceed $10,000 for each willful act of non-compliance. The Commissioner shall consider the factors enumerated at California Code of Regulations Title 10 Chapter 5, Subchapter 3,Section 2591.3(a)-(f) and determine if any of the enumerated factors are applicable to the insurer's conduct in the establishment and operation of its special investigative unit. If the Commissioner finds such factors are applicable to the insurer's conduct, the Commissioner may reduce the amount of the monetary penalty prescribed in subsection 2698.42(a).
(b) If the Commissioner acts pursuant to the provisions of California Insurance Code Section 1875.24(c) or (d) and determines that the acts of non-compliance are inadvertent and are solely relative to the maintenance and operation of the special investigative unit of the insurer, then the Commissioner shall consider such violations to be a single act for the purposes of imposition of a monetary penalty that is no greater than $5,000 for that single act. For all other inadvertent acts, the Commissioner shall impose a penalty in the amount of up to $5,000 per inadvertent act that is not in compliance with this article.
1. New section
filed 5-3-94; operative 6-2-94 (Register 94, No. 18).
2. Repealer and new
section filed 9-4-2003 as an emergency; operative 9-4-2003 (Register 2003, No. 36).
A Certificate of Compliance must be transmitted to OAL by 1-2-2004 or emergency
language will be repealed by operation of law on the following day.
3.
Repealer and new section refiled 1-2-2004 as an emergency; operative 1-3-2004.
(Register 2004, No. 1). A Certificate of Compliance must be transmitted to OAL by
5-3-2004 or emergency language will be repealed by operation of law on the following
day.
4. Repealer and new section refiled 5-4-2004 as an emergency;
operative 5-4-2004 (Register 2004, No. 19). A Certificate of Compliance must be
transmitted to OAL by 9-1-2004 or emergency language will be repealed by operation
of law on the following day.
5. Editorial correction of HISTORY 4
(Register 2004, No. 36).
6. Repealer and new section refiled 9-1-2004 as
an emergency; operative 9-1-2004 (Register 2004, No. 36). A Certificate of
Compliance must be transmitted to OAL by 12-30-2004 or emergency language will be
repealed by operation of law on the following day.
7. Reinstatement of
section as it existed prior to 9-4-2003 emergency action by operation of Government
Code section
11346.1(f)
(Register 2004, No. 53).
8. Repealer filed 12-28-2004 as an emergency;
operative 12-30-2004 (Register 2004, No. 53). A Certificate of Compliance must be
transmitted to OAL by 4-29-2005 or emergency language will be repealed by operation
of law on the following day.
9. Repealer refiled 4-29-2005 as an
emergency; operative 4-29-2005 (Register 2005, No. 17). A Certificate of Compliance
must be transmitted to OAL by 8-29-2005 or emergency language will be repealed by
operation of law on the following day.
10. Certificate of Compliance as
4-29-2005 order, including new section heading and section, transmitted to OAL
8-26-2005 and filed 10-7-2005 (Register 2005, No.
40).
Note: Authority cited: Sections 1875.24, 1879.5 and 1879.6, Insurance Code; Calfarm Ins. Co. v. Deukmejian (1989) 48 Cal.3d. 805, 824, 258 Cal. Rptr. 161, 771 P.2d 1247; Credit Ins. Gen. Agents Assn. v. Payne (1976) 16 Cal.3d 651, 656, 128 Cal. Rptr. 881, 547 P.2d 993; and Garris v. Carpenter (1939) 33 Cal. App. 2d. 649, 653, 92 P.2d 688. Reference: Sections 1875.20, 1875.21, 1875.24, 1879.5, 12921(a) and 12926, Insurance Code.
