CaliforniaExamined insurance businesses will have to fix violations in state reports
Businesses examined by California's insurance commissioner will have to correct listed legal violations by an agreed deadline or risk penalties of up to $20,000 per missed type of fix.
What it does
Examined insurance businesses will have to fix violations named in state reports. Missing an agreed deadline can bring up to $20,000 for each type of missed fix. Companies can ask for more time if they have good cause.
If the commissioner has reason to believe a company missed a required fix and believes a case serves the public, the company must get notice and a hearing. If the charges are upheld, it must pay a penalty and follow the report's recommendations.
Argument forRequired fixes could help consumers by pushing examined insurance businesses to correct violations identified by state reviewers.
Argument againstPenalties of up to $20,000 per missed type of fix could burden examined businesses that need more time to comply.
More detail
Examined companies must fix violations identified in state reports. The rule covers violations of laws, regulations, accounting standards, and other binding rules found in a state examination or operational report. Each missed type of fix can bring a penalty of up to $20,000. Companies can ask for more time for good cause, but the commissioner may deny requests made without an honest effort to comply. For licensed agents and brokers other than managing general agents, the commissioner must also weigh the violation and the business's size and complexity when setting a penalty. The company must act by a deadline agreed with the commissioner or staff. It may request 30 more calendar days or a longer period approved by the commissioner.
The commissioner must give a company notice and a hearing before ordering it to pay a penalty and follow the report's recommendations. This applies to an examined company suspected of failing to make a required correction. The commissioner must have reason to believe the company broke the correction rule and believe a case serves the public. If the charges are upheld, the commissioner must order the company to pay the penalty and follow the report's recommendations. The company can seek review of the case and order. The hearing must take place at least 30 days after the company is served with notice.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State. Chapter 1017, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 4Enrolled and presented to the Governor at 2 p.m.To Governor
- Aug 28Assembly amendments concurred in. (Ayes 31. Noes 0. Page 6089.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB1209 Allen Concurrence. Result: pass.Upper
- Aug 28In Senate. Concurrence in Assembly amendments pending.
- Aug 27Read third time. Passed. (Ayes 64. Noes 11. Page 6706.) Ordered to the Senate.Passed Assembly
- Vote recorded SB 1209 Allen Senate Third Reading By Calderon. Result: pass.Lower
- Aug 6Read second time. Ordered to third reading.Minor
- Aug 5From committee: Do pass. (Ayes 12. Noes 2.) (August 5).Minor
- Vote recorded Do pass. Result: pass.Lower
- Jun 17From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 1.) (June 17). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 10From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.Major
- May 26Referred to Com. on INS.Minor
- May 20In Assembly. Read first time. Held at Desk.Minor
- May 19Read third time. Passed. (Ayes 30. Noes 8. Page 4359.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading. Result: pass.Upper
- May 18Read second time. Ordered to third reading.Minor
- May 14Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- May 14From committee: Do pass as amended. (Ayes 5. Noes 1. Page 4269.) (May 14).Major
- May 8Set for hearing May 14.
- May 4May 4 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 24Set for hearing May 4.
- Apr 23From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 4012.) (April 22). Re-referred to Com. on APPR.Minor
- Apr 22
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Apr 10Set for hearing April 22.
- Mar 4Referred to Com. on INS.Minor
- Feb 20From printer. May be acted upon on or after March 22.
- Feb 19Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced
Consumer Protection