California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.9 - Rules of Practice and Procedure for Rate Proceedings › Article 13 - Intervention › Section 2661.1 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following definitions shall apply to Articles 13 and 14
					 of this subchapter.
(a) "Advocacy
				  Fees" means costs, incurred or billed, by a party for the services of an
				  advocate in the proceeding. An advocate need not be an attorney. Advocacy fees
				  shall not exceed market rates as defined in this section.
(b) "Compensation" means payment for all or
				  part of advocacy fees, witness fees, and other expenses of participation and
				  intervention in any rate hearing or proceeding other than a rate
				  hearing.
(c) "Market Rate" means,
				  with respect to advocacy and witness fees, the prevailing rate for comparable
				  services in the private sector in the Los Angeles and San Francisco Bay Areas
				  at the time of the Commissioner's decision awarding compensation for attorney
				  advocates, non-attorney advocates, or experts with similar experience, skill
				  and ability. Billing rates shall not exceed the market rate.
(d) "Other Expenses" means reasonable, actual
				  out-of-pocket costs of an intervenor or petitioner. Out-of-pocket costs include
				  but are not limited to expenses such as travel costs, transcript charges,
				  postage charges, overnight delivery charges, telephone charges and copying
				  expenses. Out-of-pocket costs also includes the costs incurred in preparing a
				  request or amended request for award, defined in sections
				  2662.3 and
				  2662.4. The intervenor or
				  petitioner has the burden of substantiating any costs incurred, including
				  providing supporting documentation as requested by the Public
				  Advisor.
(e) "Proceeding" includes
				  those proceedings set forth in Insurance Code Section
				  1861.10(a).
(f) "Proceeding Other Than a Rate Proceeding"
				  means any proceeding, including those described in subdivision (e) above,
				  conducted pursuant to Chapter 9 of Part 2 of Division 1 of the Insurance Code
				  which is not a rate proceeding as defined in this section.
(g) "Public Advisor" means that official of
				  the Department of Insurance who monitors and assists participation by members
				  of the public in the Department of Insurance's proceedings. The Public Advisor
				  shall not represent any member of the public and shall not advocate any
				  substantive position on behalf of the public on any issues before the
				  Commissioner.
(h) "Rate Proceeding"
				  means any proceeding conducted pursuant to Insurance Code Sections
				  1861.01 and
				  1861.05.
				  For purposes of section
				  1861.05, a
				  "rate proceeding" is established upon the submission of a petition for hearing
				  in accordance with section
				  2653.1 of this subchapter, or if
				  no petition for hearing is filed, upon notice of hearing.
(i) "Rate Hearing" means a hearing noticed by
				  the Commissioner on the Commissioner's own motion or in response to a petition
				  for hearing pursuant to Insurance Code section
				  1861.05, which is conducted
				  pursuant to the applicable procedural requirements of Insurance Code section
				  1861.08,
				  and subchapters 4.8. and 4.9 of this chapter.
(j) "Represents the Interests of Consumers"
				  means that the intervenor represents the interests of individual insurance
				  consumer[s], or the intervenor is a group organized for the purpose of consumer
				  protection as demonstrated by, but is not limited to, a history of representing
				  consumers in administrative, legislative or judicial proceedings.
A party which represents, in whole or in part, any entity
					 regulated by the Commissioner shall not be eligible for compensation. However,
					 nothing in this subsection shall be construed to prohibit any person from
					 intervening or participating if that person is not seeking
					 compensation.
(k)
				  "Substantial Contribution" means that the intervenor substantially contributed,
				  as a whole, to a decision, order, regulation, or other action of the
				  Commissioner by presenting relevant issues, evidence, or arguments which were
				  separate and distinct from those emphasized by the Department of Insurance
				  staff or any other party, such that the intervenor's participation resulted in
				  more relevant, credible, and non-frivolous information being available for the
				  Commissioner to make the Commissioner's decision than would have been available
				  to a Commissioner had the intervenor not participated. A substantial
				  contribution may be demonstrated without regard to whether a petition for
				  hearing is granted or denied.
(l)
				  "Witness Fees" means recorded or billed costs for a witness, together with
				  associated expenses. Costs and expenses for a witness shall not exceed market
				  rate as defined in this section.
1.
					 Renumbering and amendment of former section
					 2616.1 to new section
					 2661.1 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. Renumbering and
					 amendment of former section
					 2616.1 to new section
					 2661.1 refiled 12-19-95 as an
					 emergency; operative 12-19-95 (Register 95, No. 51). A Certificate of
					 Compliance must be transmitted to OAL by 4-17-96 or emergency language will be
					 repealed by operation of law on the following day.
3. Certificate of
					 Compliance as to 12-19-95 order transmitted to OAL April 17, 1996; disapproved
					 by OAL and order of repeal as to 12-19-95 order filed 5-30-96 (Register 96, No.
					 22).
4. Renumbering and amendment of former section
					 2616.1 to new section
					 2661.1 filed 5-30-96 as an
					 emergency; operative 5-30-96 (Register 96, No. 22). A Certificate of Compliance
					 must be transmitted to OAL by 9-27-96 or emergency language will be repealed by
					 operation of law on the following day.
5. Certificate of Compliance
					 as to 5-30-96 order, including amendments to subsections (c), (d), (e) and (i),
					 transmitted to OAL 9-26-96 and filed 11-5-96 (Register 96, No.
					 45).
6. Amendment of subsections (d), (f) and (h), new subsection
					 (i), subsection relettering and amendment of newly designated subsection (k)
					 filed 12-29-2006; operative 1-28-2007 (Register 2006, No. 52).
7.
					 Change without regulatory effect amending subsections (i) and (k) filed
					 7-14-2021 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2021, No. 29). Filing deadline specified in Government
					 Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order
					 N-40-20.
Note: Authority cited: Section
						1861.10,
						Insurance Code; and 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
						1861.10(a)
						and
						1861.10(b),
						Insurance Code; and CalFarm Insurance Company, et al. v. George Deukmejian, et
						al., 48 Cal.3d 805 (1989), 20th Century Insurance Company et al. v. John
						Garamendi 8 Cal. 4th 216, 32 Cal. Rptr. 2d 807
						(1994).