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Insurance commissioner backs bill to give department more enforcement tools after examinations
Summary
The committee advanced a bill authorizing the insurance commissioner to require remediation and assess penalties when insurers fail to adopt corrective actions identified in departmental examinations; Commissioner Ricardo Lara testified the change would close a gap in enforcement.
A bill presented in the committee would give the California Department of Insurance clearer authority to require insurers to adopt corrective actions identified during market or financial examinations and to assess penalties when licensees fail to comply.
Insurance Commissioner Ricardo Lara testified the measure is intended to close an enforcement gap revealed during post‑disaster oversight. ‘‘A modern insurance market requires enforceable oversight,’’ Lara said, adding that examinations currently produce recommendations but lack a firm mechanism to require remediation within agreed time frames.
The bill would create a process for the commissioner to call insurers to hearings, require adoption of corrective actions within a specified schedule, and allow insurers to appeal decisions through existing Administrative Procedure Act channels. Lara said the bill includes amendments to consider company size and complexity when assessing penalties.
Committee action: With no lead opposition in the room, the bill was advanced to the Committee on Appropriations. Members and the commissioner said the bill balances consumer protection with consideration of insurer complexity and allows due process and appeals.
