The CA Dept of Insurance: Rate Comparisons

CDI History & Info By California's Citizens
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What is the CA Dept of Insurance?

The California Department of Insurance, CDI, is a state regulatory agency which is dedicated to regulating the insurance industry within California. Insurance companies, insurance agents, brokers, and bail agents are all licensed and controlled through the California Department of Insurance. The goal of the agency is to maintain a stable and fair insurance marketplace by overseeing that insurance promises are kept and ensuring economic security for all individuals, families, and businesses. In 1988, Californians passed Proposition 103 which further expanded the California department of Insurance’s authority. The California Department is in control of several different insurance processes, ranging from the public protection from unreasonable insurance rates to the investigation and persecution of insurance frauds. As long as the public continues to purchase auto, home, life, and health insurance, the California Department of Insurance is a critical tool in securing a safe and fair marketplace for all of California.

The CA Dept of Insurance is run by the insurance commissioner, who is currently Dave Jones. Previously, the Insurance Commissioner was appointed by the governor; however, Proposition 103 now allows the public to elect the Insurance Commissioner for the state. The Insurance Commissioner is in charge of all of the California Department of Insurance functions and enforcing the California Insurance Code. The Commissioner is required to regulate and license each insurance company that may enter the California market. The Insurance Commissioner must also address any public issues and complaints regarding the insurance industry at hand. The Insurance Commissioner will have control of a broad range of insurance issues like the protecting California’s seniors, reducing medical malpractice rates, and even investigating insurance fraud. The Insurance Commissioner holds a lot of responsibility regarding the entire state’s insurance e marketplace as the public depends on the officeholder to provide them with just insurance rates.

Higher Insurance Fees & Rates? No Thanks

Due to the large amount of responsibility and power that the Insurance Commissioner holds, it is important that Proposition 13 allows Californians to elect who they feel is most competent for the position. Therefore, it is even more important for voters to deeply research each Insurance Commissioner candidate to ensure that the new elect will always have the best interest of the public in mind.

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Vehicle information pamphlet

One of the ways that the California Department of Insurance fights to protect Californians is through insurance fraud investigation and the Low Cost Auto Insurance Program. The Investigation Division is responsible for addressing complaints of unlawful activity by agents, brokers, bail agents, and insurance companies. The Investigation Division is heavily dependent upon the public to help them detect any fraud that may occur. Some investigations can lead to criminal prosecution which can result in agents or insurance companies having their licenses suspended, restricted or even revoked. Other legal action that can occur includes Cease and Desist orders, restitution, and fines. It is important to be fully aware of your insurance policies and any suspicious action that may occur because it might be a criminal case of insurance fraud. The Investigation Division is very successful in handling such cases but needs assistance in detecting them.

Proposition 103

Is partly responsible for establishing the Rate Regulation Branch of the California Department of Insurance. The Rate Regulation Branch is in charge of reviewing any proposed automobile and homeowners insurance rates from each insurance company. The Rate Regulation Branch ensures that the rates of property and casualty insurance that companies are selling to the public comply with California Insurance Code and are fair, reasonable, and adequate. The Rate Regulation Branch’s responsibilities expand passed assessments of insurance rates. The Rate Regulation Branch also offers advice for the rate filing process, it addresses Workers’ Compensation issues, and performs Rollback calculations, among others. The duties of this branch are extremely important for protecting Californians from discriminatory insurance rates that could ultimately cause a great deal of loss and distress.

The Office of Ombudsman

This is a fairly new part of the California Department of Insurance which aids in the department’s commitment to serve and educate not only insurers, agents, and public officials, but the general public as well. The Office of Ombudsman can work within different levels of the California Department of Insurance and with a multitude of public agencies to ensure the best possible customer service. The California Department of Insurance will often publish brochures and update their website to help California’s consumers become aware of their rights within the insurance industry. The Office of Ombudsman is responsible for making all of the resources in its authority publicly available so consumers can make an informed insurance decision. The California Department of Insurance has even created an Education and Outreach program that sends speakers to public events throughout the state to further educate people about the California insurance industry and their rights. Ombudsman also implements the investigation of any department staff, initiates second reviews of cases, and serves as the primary contact for the legislative offices. The Office of ombudsman is completely dedicated to customer service and providing consumers with an abundance of education and fair, appropriate insurance policies across the board.

Current State Of The Office

With the abundance of services that the California Department of Insurance offers both insurance companies and insurance consumers, this agency proves to be a critical tool in ensuring a safe and open insurance industry marketplace within California. Without the California Department of Insurance, Californians would be at risk for insurance fraud, unreasonable insurance rates, and a completely unstable insurance industry marketplace. Californians should take advantage of the information and services that are available to them, so that they can become educated about the marketplace and their own individual insurance policies. Staying educated will be the best way to combat insurance fraud and receive the proper assistance you may need from the department. From health insurance to business insurance, the California Department of Insurance employs several different agencies, tactics and regulations to ultimately ensure that the public receives the most lawful, secure, and reasonable insurance coverage available.

Your Comments...

  • "I never had any idea that there was even a low cost auto program provided through the state's services. I had searched online for the department of insurance's website, but came across this one instead and let me tell you, I am glad I did."

    - Mary Poternick
  • "Dealing with the California Insurance Department (or any government office) is such a hassle. It seriously takes years off of your life. I really don't know how people like that can go to work every day feeling good about themselves. Thanks for your work on this site."

    - Michaela Rodriguez
  • "It had not occurred to me to look into the office of Ombudsman before. My son had told me about this department before but I had put it off due to being lazy. It just so happens I was in need of renewing something with the state and your info reminded me. Thank you!"

    - Ursula Ownes