Chapter 1Appointment, Qualification, and Offices
Section § 12900
The Insurance Commissioner in California is elected by the public at the same time as the Governor and can serve up to two four-year terms. If the position becomes vacant before the term ends, the new commissioner must be confirmed by the legislature, following the specific process outlined in the California Constitution.
Section § 12901
This law specifies that the insurance commissioner and their deputies or employees must not have direct or indirect financial interests in insurance companies while serving in office, except if they hold a policy or are related by blood or marriage to someone in the industry. If they have any licenses related to the insurance industry, they are required to surrender them within 10 days of taking their official role. Once they leave their position, their license can be reinstated without any charge for the remaining term of the current license year.
Section § 12902
This law specifies that the annual salary of the insurance commissioner is determined by another part of the Government Code, which deals with government salaries.
Section § 12903
This section allows the insurance commissioner to hire necessary staff like actuaries, technical experts, and clerks to help fulfill their duties. They can also hire reporters for hearings. Employees’ roles and seniority will remain unchanged under civil service laws from before this section took effect. Travel and other necessary expenses for the commissioner's duties are authorized.
Section § 12903.1
This California law prohibits the commissioner from accepting or benefiting from travel payments or reimbursements from specific sources, like entities regulated by the commissioner, or private attorneys connected to the department or those seeking advocacy fees. It treats payments from a regulated party's representative the same as those made by the party itself.
If this rule is broken, the Attorney General or anyone in the state can sue for a penalty, which is three times the unlawful payment. Lawsuits must be launched within five years of the violation, but this period can be extended if the commissioner intentionally hides information about travel-related payments.
Section § 12903.5
This law allows the Personnel Board to set higher pay rates for insurance examiners who are working outside of California, if recommended by the insurance commissioner.
Section § 12904
This law allows the insurance commissioner in California to buy financial and character reports or other resources that they believe will help them manage and enforce insurance laws effectively.
Section § 12905
This law requires the insurance commissioner to have offices in four specific locations: Sacramento, Los Angeles, San Diego, and the San Francisco Bay area.
Section § 12906
This law updates the status of the Department of Insurance, turning it into an independent department, no longer part of the Business, Transportation and Housing Agency. The department is led by the Insurance Commissioner. This change does not affect the jobs or positions of current employees, unless specified by other related laws.
Additionally, the Insurance Commissioner is defined differently in terms of authority, meaning they are not considered the head of a department under certain sections of the Government Code.
Section § 12907
This law specifies certain positions within the California Department of Insurance that are appointed by the Governor and do not fall under the standard state civil service system. The positions include the chief executive officer, deputy commissioner for the office of the ombudsman, and a career executive assignment in the administration and licensing services division.