California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.8 - Review of Rates › Article 7 - Cost of Administration › Section 2647.1 - Costs of Administration and Operation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For purposes of this section, "insurer"
				  means every person holding a certificate of authority and writing insurance on
				  risks on operations in this state, except those insurers exclusively writing
				  insurance on lines or classes specified in section
				  1851 of the
				  Insurance Code, including credit, and financial guaranty insurance.
(b) Fees assessed and collected pursuant to
				  this section shall be deposited in a sub-account within the Insurance Fund
				  ("the Sub-Account"), for the sole purpose of collecting and disbursing funds
				  for the administrative and operational costs arising from the provisions of
				  article 10 of division 1, part 2, chapter 9 of the Insurance Code.
(c) Each insurer shall be assessed, and shall
				  pay, in quarterly installments as specified in this section, an annual fee, in
				  the amount determined as specified in this section, for each line of insurance
				  written in California (including surety, credit, and financial guaranty
				  insurance), excluding policies written in lines or classes specified in section
				  1851 of the
				  Insurance Code.
(1) The Department shall
				  adopt a Base Rate, which shall be calculated to produce a total assessment
				  equal to the appropriation contained in the State Budget for the administrative
				  and operational costs arising from the provisions of article 10 of division 1,
				  part 2, chapter 9 of the Insurance Code, plus or minus such amounts as the
				  Commissioner deems necessary as a contingency against unanticipated
				  fluctuations in expenditures and revenues and plus or minus such amounts as the
				  Commissioner deems necessary to correct for over-collections or
				  under-collections in prior years. The Base Rate shall reflect any revenues,
				  other than revenues from the assessment specified in this section, which
				  revenues are properly attributable to the administrative and operational costs
				  arising from the provisions of article 10 of division 1, part 2, chapter 9 of
				  the Insurance Code.
(2) The amount
				  of fee shall be based on the insurer's California derived direct premiums
				  written in the calendar year preceding the first day of the fiscal year in
				  which the assessment is made, calculated by annual statement line of
				  insurance.
(3) For each line of
				  insurance, the assessment shall equal the Base Rate multiplied by the
				  Assessment Factor contained in the following table:
For Each Line in Which the Derived Direct
							 Written Premiums Were Greater Than
And Less Than or
							 Equal to
Assessment Factor
$0
$250,000
1.0
250,000
500,000
2.0
500,000
1,000,000
4.0
1,000,000
2,000,000
7.0
2,000,000
4,000,000
14.0
4,000,000
7,000,000
25.0
7,000,000
12,000,000
35.0
12,000,000
20,000,000
50.0
20,000,000
30,000,000
70.0
30,000,000
45,000,000
100.0
45,000,000
65,000,000
140.0
65,000,000
100,000,000
180.0
100,000,000
150,000,000
250.0
150,000,000
250,000,000
360.0
250,000,000
500.0