California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 9 - Insurance Fraud › Article 2 - Special Investigative Unit › Section 2698.42 - Penalties

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) If the
				  Commissioner acts pursuant to the provisions of California Insurance Code
				  Section
				  1875.24( c) or
				  (d) and finds that the insurer has failed to
				  comply with the provisions of this article, the Commissioner shall impose a
				  monetary penalty in an amount not to exceed $5,000 for each act of
				  non-compliance. Where the Commissioner determines that an insurer has willfully
				  failed to comply with this article, the Commissioner may impose a monetary
				  penalty in an amount not to exceed $10,000 for each willful act of
				  non-compliance. The Commissioner shall consider the factors enumerated at
				  California Code of Regulations Title 10 Chapter 5, Subchapter 3,Section
				  2591.3(a)-(f) and
				  determine if any of the enumerated factors are applicable to the insurer's
				  conduct in the establishment and operation of its special investigative unit.
				  If the Commissioner finds such factors are applicable to the insurer's conduct,
				  the Commissioner may reduce the amount of the monetary penalty prescribed in
				  subsection
				  2698.42(a).
(b) If the Commissioner acts pursuant to the
				  provisions of California Insurance Code Section
				  1875.24(c) or
				  (d) and determines that the acts of
				  non-compliance are inadvertent and are solely relative to the maintenance and
				  operation of the special investigative unit of the insurer, then the
				  Commissioner shall consider such violations to be a single act for the purposes
				  of imposition of a monetary penalty that is no greater than $5,000 for that
				  single act. For all other inadvertent acts, the Commissioner shall impose a
				  penalty in the amount of up to $5,000 per inadvertent act that is not in
				  compliance with this article.
1. New
					 section filed 5-3-94; operative 6-2-94 (Register 94, No. 18).
2.
					 Repealer and new section filed 9-4-2003 as an emergency; operative 9-4-2003
					 (Register 2003, No. 36). A Certificate of Compliance must be transmitted to OAL
					 by 1-2-2004 or emergency language will be repealed by operation of law on the
					 following day.
3. Repealer and new section refiled 1-2-2004 as an
					 emergency; operative 1-3-2004. (Register 2004, No. 1). A Certificate of
					 Compliance must be transmitted to OAL by 5-3-2004 or emergency language will be
					 repealed by operation of law on the following day.
4. Repealer and
					 new section refiled 5-4-2004 as an emergency; operative 5-4-2004 (Register
					 2004, No. 19). A Certificate of Compliance must be transmitted to OAL by
					 9-1-2004 or emergency language will be repealed by operation of law on the
					 following day.
5. Editorial correction of HISTORY 4 (Register 2004,
					 No. 36).
6. Repealer and new section refiled 9-1-2004 as an
					 emergency; operative 9-1-2004 (Register 2004, No. 36). A Certificate of
					 Compliance must be transmitted to OAL by 12-30-2004 or emergency language will
					 be repealed by operation of law on the following day.
7.
					 Reinstatement of section as it existed prior to 9-4-2003 emergency action by
					 operation of Government Code section
					 11346.1(f)
					 (Register 2004, No. 53).
8. Repealer filed 12-28-2004 as an
					 emergency; operative 12-30-2004 (Register 2004, No. 53). A Certificate of
					 Compliance must be transmitted to OAL by 4-29-2005 or emergency language will
					 be repealed by operation of law on the following day.
9. Repealer
					 refiled 4-29-2005 as an emergency; operative 4-29-2005 (Register 2005, No. 17).
					 A Certificate of Compliance must be transmitted to OAL by 8-29-2005 or
					 emergency language will be repealed by operation of law on the following
					 day.
10. Certificate of Compliance as 4-29-2005 order, including new
					 section heading and section, transmitted to OAL 8-26-2005 and filed 10-7-2005
					 (Register 2005, No. 40).
Note: Authority cited: Sections
						1875.24,
						1879.5 and
						1879.6,
						Insurance Code; Calfarm Ins. Co. v. Deukmejian (1989) 48 Cal.3d. 805, 824, 258
						Cal. Rptr. 161, 771 P.2d 1247; Credit Ins. Gen. Agents Assn. v. Payne (1976) 16
						Cal.3d 651, 656, 128 Cal. Rptr. 881, 547 P.2d 993; and Garris v. Carpenter
						(1939) 33 Cal. App. 2d. 649, 653, 92 P.2d 688. Reference: Sections
						1875.20,
						1875.21,
						1875.24,
						1879.5,
						12921(a)
						and
						12926,
						Insurance Code.