California department of insurance
California department of insurance is the primary law enforcing agency regarding insurance related laws in the state. It can be measured as a consumer protection group, as it works for the customers in controlling premium rates set by the insurance companies, detecting and prevent insurance fraud as well as acting as legal counsel for the insurance consumers.
The California department of insurance was formed in 1868 and since then has undergone several changes. With the proposition 103 passed by California voters in 1988,the authority of the department was extended in property and casualty area. Till then, the post of the commissioner was an appointed one by the governor and after the proposition 103, this became an elected post by the people. In 1900?s when the antifraud laws were passed, the department main role became a law enforcement which was an addition to the other already existing responsibilities.
The department of insurance also licenses and regulates the agents and brokers
of insurance in the state and the insurance ; companies doing business in
the state. The fees from these, premium tax and other fees imposed by the
department are the source of income for the department.
Law enforcement and industry regulation :
The California department of
insurance is the ultimate authority of law enforcement in the insurance
industry in the state. The law enforcement actions which can be and are done
on a daily basis by the department include cease and desist orders, notices
of non compliance, and administrative law hearings. According to the action
taken the result would be a fine or penalties against the licenses of the
insurers.
To ensure that the industry is run in an honest open manner, the agency offers
consumer protection by administering their policies and regulating the rates
set by the insurers.
The examination to provide licenses to agents and brokers according to the
California insurance code is also
conducted by the department. It also keeps a track of the performance of
the licensees to ensure that the code of conduct is maintained and the consumers
get the best of service possible.
The department investigates any complaints from the consumers against the
insurers to ensure that there is no insurance fraud committed in the state.
Preventive measures are also taken by educating the public regarding their
rights of insurance.
The insurance companies who want to extend their business to the state of
California need to take a certificate of authority from the department of
insurance which is provided only after complete verification of the company
and its financial status and customer service by the official from the department.
The necessary action which is needed to conserve, liquidate and rehabilitate
the insurance companies suffering from financial troubles are also taken by
the department.
The department also regulates the rates of premium of personal, auto and homeowners
insurance set by the insurers to ensure that they are fair and reasonable
and not a burden to the consumers.
The financial condition of the insurers doing business is ensured to be sound
by conducting regular checks on the financial statements submitted by the
insurers and also by performing regular audits of the companies. By doing
this the department makes sure that the customers of the insurance industry
in the state do not suffer because of the poor financial status of the insurers.
The department has over 1300 employees to ensure that all the activities of
the department are run in a smooth manner.
Customer services offered by the California department of insurance
:
A communication channel is kept open by installing a hotline number
for the customers. The public is free to call the departments toll free number
800-927-HELP(4357) and the department ensures the calls are attended promptly
and required information is provided immediately. There is staff with adequate
knowledge regarding the insurance industry and the insurers in the state and
other, even minute details, so that the customer calling the hotline is not
disappointed. The consumer can call in to check on the insurer that he is
planning to deal with and the agent who is in direct contact with him. The
department encourages the consumers to check on the company to make sure that
the company is financially sound and is prompt in customer service so that
he does not face problems at a later stage when the benefits of the policy
need to be paid. The consumers calling in to report any problems they face
from their insurers are also attended to and the details of the problems are
noted so that necessary investigation and action if found guilty can be taken
against the insurers in question. After listening to the complaint of the
consumer, the staff would decide to whether send a request for assistance
form to the consumer which duly filled in and submitted to the department
would initiate an investigation against the insurer.
The department provides free brochures to the public to educate them regarding
their rights. There are also direct programs conducted by the department.
Also the internet site of the department of insurance is a source of all information
required by the consumer. All the latest notices issued by the department
are also posted on the website. There are also discussions and decisions regarding
any legal hassle and the action taken by the department posted on the net,
so that the consumer can avoid getting in to the same trouble.
The commissioner :
The California department of
insurance is headed by Steve Poizner who took over as commissioner on
January 8,2007. He is a successful entrepreneur, has founded several companies,
the most recent is the one to in-build GPS receivers in to the mobile phones.
He has been in public service for a long time now. He was born and brought
up in HoustonTexas. He did his undergraduate studies from the university of
Texas and then masters in business administration from the Stanford university,
California. He lives with his wife Carol and daughter Rebecca.
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