Powers and DutiesFees
Section § 12970
Section § 12970.1
This law states that if you request a copy of a document from the commissioner's office and ask for it to be delivered through a method other than regular first-class mail, you'll need to pay extra to cover the cost of that delivery method.
Section § 12972
This law requires a $1 fee to be paid upfront when you need the commissioner's official seal added to any document that isn't specifically mentioned in the code.
Section § 12973
This law requires the insurance commissioner to charge fees for issuing certificates when no specific fee is stated elsewhere. If there's a pre-prepared form needing only blanks filled, the fee is $22. For other certificates, the fee is based on the actual cost to prepare them, capped at $50 for the first copy and $9 for each additional copy.
Section § 12973.5
This law section states that the commissioner must collect fees before processing certain applications. If you're applying for a license, permit, or certificate of authority and there's no specific fee listed in the code, you'll pay $22. If you're taking a qualifying exam that isn't covered by another fee in the code, and you're not an insurer, you'll pay $72.
Section § 12973.6
If you pay a tax, fee, or penalty with a check that bounces, meaning the bank doesn't pay it when first presented, an extra $14 fee will be added by the commissioner.
Section § 12973.7
This law states that if the insurance commissioner provides documents or materials but no specific fees are outlined in the law, the commissioner can set fair charges based on reasonable costs. Additionally, any publications or printed materials must be distributed and sold by the Department of General Services.
Section § 12973.9
This law explains that when insurance companies need approval from the commissioner for any insurance forms, applications, or related documents, they must pay a fee. This fee covers the costs of handling and storing these documents. The exact fee amount will be determined by the commissioner based on workload and document types. When setting these fees, the commissioner will consider their total annual costs and distribute them fairly per document. There will be public notice and a hearing before any fee changes are adopted, and new fees will take effect 90 days after being adopted, with the first schedule possibly applying retroactively. All collected fees go to the Insurance Fund. This section specifically applies to certain sections of the Insurance Code.
Section § 12975
This law explains that when the Insurance Commissioner has duties that need funding from any source other than the Insurance Fund, they can cover the costs with the Department of Insurance's budget, even if repayment isn't certain. If the money, up to $1,121, is to be repaid, it becomes a debt and a lien on the assets of whoever should have paid and is treated like a prioritized claim in bankruptcy, similar to wages or salaries owed to employees.
Section § 12975.1
This law states that any money collected by the Department of Insurance for examination expenses, specifically under certain sections like 736, 1061, and 1857.4, is allocated to the department itself. These funds are to be deposited into the Insurance Fund and credited to the department's current budget at the time of deposit.
Section § 12975.5
This law states that during investigations or hearings, the insurance commissioner can take depositions from witnesses who are either in-state or out-of-state, and the department's budget can cover these costs. The commissioner can also pay witnesses subpoenaed by them for travel expenses and a daily fee of $12 for attending the investigation or hearing. However, this section does not apply to certain government code proceedings, which follow different rules.
Section § 12975.7
This law section outlines how the insurance commissioner should handle funds received through fees, fines, and penalties. Money from fees goes into the Insurance Fund, while fines and other penalties go into the state's General Fund. The Insurance Fund is used to issue refunds and support the Department of Insurance, as specified in another section of the law. These funds help cover departmental costs and provide financial support according to the state's budget.
Section § 12975.8
This section explains how the Insurance Fund in California is composed and managed. The fund includes money allocated by law, fees, and reimbursements collected by the Department of Insurance, plus any remaining balance at the end of the fiscal year.
Funds in the Seismic Safety Account, part of the Insurance Fund, are allocated annually for specific purposes. If there's not enough money, the Insurance Fund can loan money to the Seismic Safety Account to cover costs, which is then repaid with future revenues.
The law allows any leftover funds in the Insurance Fund to be carried over to the next fiscal year. If the fund doesn't have enough to cover expenses, the Department of Insurance can borrow money as needed, with repayment required from that fiscal year's revenues.
Section § 12975.9
This law establishes the Seismic Safety Account, which is used to fund seismic safety initiatives in California. It requires a small annual fee, starting at $0.15, from property owners with insurance, to support the Alfred E. Alquist Seismic Safety Commission and related administrative costs. Insurers collect this fee from policyholders and can include details about it in billing statements. The funds, managed by the department, are specifically allocated to maintain and support seismic safety efforts.
Insurers must pay the state this fee within 45 days of receiving an invoice, or face a penalty. Any unremitted fees are debts owed to the state. Additionally, the department is required to report annually on how the fees are calculated and managed, ensuring transparency in the process.
Section § 12976
This law says that any money owed for fines, taxes, penalties, and similar charges under this insurance code must be paid when the commissioner requests it. If it's not paid within 10 days of the request, the commissioner can file a lawsuit on behalf of California to collect the money. These lawsuits must follow the legal procedures outlined in the Code of Civil Procedure.
Section § 12976.5
This law requires insurance companies that owe more than $20,000 in taxes each year to pay through electronic funds transfer. This rule applies to payments starting in 1995. Payment is considered complete when the bank processes the transfer by the next business day. If companies don't use electronic transfer, they face a 10% penalty on the taxes owed. However, if a company can prove that they couldn't comply due to circumstances beyond their control, they might be exempt from this penalty. To claim this exemption, the company must submit a detailed statement under oath explaining their situation.
Section § 12977
This law allows the refund of money paid for licenses, permits, or services if there was an overpayment, duplicate payment, or in cases where no payment was needed. It also covers situations where an insufficient fee was paid, preventing processing of the application or service, and circumstances involving late penalties if a valid reason is provided within 60 days. Refunds may be subject to approval by the Director of General Services as per other laws.
Section § 12978
This law allows the insurance commissioner to change the fees that the department charges to meet its budget needs. These fee changes can be up or down but can't exceed 10% without legislative approval. The department must announce any fee changes at least 90 days before they take effect, and can do so once each fiscal year. Legislators have 60 days to object to a fee change once announced, and if they do, changes will only be effective from February 1 of the following year unless rescinded by a legislative majority vote.
The department also plans its workload for the next three years to decide future fee levels, making adjustments as needed based on actual workload experience. The changes can't exceed the amount required to meet budget needs according to the Governor's Budget or the annual Budget Act.
Section § 12979
This law requires the commissioner to set up a schedule of filing fees for insurance companies. These fees are meant to cover any administrative or operational costs related to certain insurance regulations.
Section § 12980
This law creates the Financial Responsibility Penalty Account within the General Fund to be used for issues related to automobile insurance and the financial responsibility of vehicle owners and operators. The money in this account can only be spent if officially approved for such use.