California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.9 - Rules of Practice and Procedure for Rate Proceedings › Article 8 - Stipulations and Settlements › Section 2656.1 - Proposal of Stipulations or Settlements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Parties may stipulate to the resolution
				  of an issue of fact or the applicability of a provision of law material to a
				  proceeding, or may agree to settlement on a mutually acceptable outcome to a
				  proceeding, with or without resolving material issues.
(b) Notice of the stipulation and a copy of
				  the stipulation shall be served on any intervenor at the time of filing.
				  However, no party to a proceeding pending before the Commissioner shall
				  compensate or agree to compensate an intervenor, and no intervenor shall
				  receive or agree to receive compensation from any party in connection with a
				  proceeding pending before the Commissioner, other than a compensation award
				  approved by the Commissioner in accordance with Article 14 of Subchapter 4.9.
				  No agreement concerning the merits of any matter pending before the
				  Commissioner may be conditioned upon the payment of compensation to an
				  intervenor.
(c) Stipulations and
				  settlements shall be filed with the administrative law judge for proposed
				  acceptance or rejection. When a stipulation or settlement is filed with the
				  administrative law judge, it shall also be served on all parties. If a
				  stipulation dispositive of the case or a settlement is proposed prior to the
				  taking of any testimony, the parties supporting the stipulation or settlement
				  shall file and serve supporting declarations indicating the reasons that the
				  settlement or stipulation is fundamentally fair, adequate, reasonable and in
				  the interests of justice. The administrative law judge shall reject any
				  stipulation or settlement which includes an agreement regarding intervenor
				  fees.
(d) Stipulations shall be
				  limited to the issues in the proceeding and shall have no precedential value
				  for future proceedings.
(e) A
				  settlement or stipulation involving an agreed-upon rate change shall list, for
				  each applicable subline and overall, the California written premium for the
				  prior calendar year, the rate change proposed in the rate application, and the
				  agreed-upon rate change.
(f) Any
				  party may discuss stipulations or settlement with any other party without
				  involving all parties.
(g) Any
				  party objecting to a proposed settlement or stipulation may, within five (5)
				  days of service of the proposed settlement or stipulation, file a written
				  objection and may request a hearing before the administrative law judge on the
				  proposed settlement or stipulation. When a hearing is requested, the
				  administrative law judge shall hold a hearing on the objections within ten (10)
				  business days of the filing of the request.
1. New
					 article 8 and section 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. Certificate of Compliance as to 8-18-95 order
					 transmitted to OAL 12-18-95 and filed 2-1-96 (Register 96, No.
					 5).
3. Amendment filed 10-16-2002; operative 11-15-2002 (Register
					 2002, No. 42).
Note: Authority cited: Section
						1861.055,
						Insurance Code, 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
						1861.055
						and
						1861.08,
						Insurance Code, Section
						11511.5,
						Government Code, CalFarm Insurance Company, et al. v. George Deukmejian, et
						al., 48 Cal.3d 805 (1989), 20th Century Insurance Company v. John Garamendi, 8
						Cal.4th 216, 281, 32 Cal.Rptr.2d 807, 847
						(1994).