Approval of Insurance Rates. (a)No rate shall be approved or remain in effect which is excessive, inadequate, unfairly discriminatory or otherwise in violation of this chapter. In considering whether a rate is excessive, inadequate or unfairly discriminatory, no consideration shall be given to the degree of competition
and the commissioner shall consider whether the rate mathematically reflects the insurance company’s investment income.
(b)Every insurer which desires to change any rate shall file a complete rate application with the commissioner. A complete rate application shall include all data referred to in Sections 1857.7, 1857.9, 1857.15, and 1864 and such other information as the commissioner may require. The applicant shall have the burden of proving that the requested rate change is justified and meets the requirements of this article.
(c)The commissioner shall notify the public of any application by an insurer for a rate change. The application shall be deemed approved sixty days after public notice unless (1) a consumer or his or her representative requests a hearing within forty-five days of public notice and the commissioner grants the hearing, or determines not to grant the
hearing and issues written findings in support of that decision, or (2) the commissioner on his or her own motion determines to hold a hearing, or (3) the proposed rate adjustment exceeds 7% of the then applicable rate for personal lines or 15% for commercial lines, in which case the commissioner must hold a hearing upon a timely request. In any event, a rate change application shall be deemed approved 180 days after the rate application is received by the commissioner (A) unless that application has been disapproved by a final order of the commissioner subsequent to a hearing, or (B) extraordinary circumstances exist. For purposes of this section, “received” means the date delivered to the department.
(d)For purposes of this section, extraordinary circumstances include the following:
(1)Rate change application hearings commenced during the 180-day period provided by subdivision
(c). If a hearing is commenced during the 180-day period, the rate change application shall be deemed approved upon expiration of the 180-day period or 60 days after the close of the record of the hearing, whichever is later, unless disapproved prior to that date.
(2)Rate change applications that are not approved or disapproved within the 180-day period provided by subdivision (c) as a result of a judicial proceeding directly involving the application and initiated by the applicant or an intervenor. During the pendency of the judicial proceedings, the 180-day period is tolled, except that in no event shall the commissioner have less than 30 days after conclusion of the judicial proceedings to approve or disapprove the application. Notwithstanding any other provision of law, nothing shall preclude the commissioner from disapproving an application without a hearing if a stay is in effect barring the commissioner from holding a hearing within the
180-day period.
(3)The hearing has been continued pursuant to Section 11524 of the Government Code. The 180-day period provided by subdivision (c) shall be tolled during any period in which a hearing is continued pursuant to Section 11524 of the Government Code. A continuance pursuant to Section 11524 of the Government Code shall be decided on a case by case basis. If the hearing is commenced or continued during the 180-day period, the rate change application shall be deemed approved upon the expiration of the 180-day period or 100 days after the case is submitted, whichever is later, unless disapproved prior to that date.
Notes of Decisions
20th Century Ins. v. Garamendi, 878 P.2d 566 (Cal. 1994).
· cites it 6× “" Insurance Code section 1861.05. Subdivision (a) articulates the substantive standard of the "prior approval" system.”
MacKay v. Superior Court, 188 Cal. App. 4th 1427 (Cal. Ct. App. 2010).
· cites it 5× “) A procedure - was established whereby (1) an insurer who desires to change a rate files a rate plan application with the commissioner (Ins. Code, § 1861.05, subd. (b)); (2) the commissioner gives notice to the public of the application (Ins.”
Leghorn v. Wells Fargo Bank, N.A., 950 F. Supp. 2d 1093 (N.D. Cal. 2013).
· cites it 3× “(citing Cal. Ins.Code §§ 1861.05(a), 1858.07). In addition, Wells Fargo argues that the California Insurance Code independently bars Plaintiffs’ challenge to the preapproved rate.”
State Farm Mut. Auto. Ins. v. Garamendi, 88 P.3d 71 (Cal. 2004).
“913-914), and expressly precludes him from approving rates that are “excessive, inadequate, unfairly discriminatory or otherwise in violation of’ chapter 9 of the Insurance Code (Ins. Code, § 1861.05, subd. (a)). Through Insurance Code section 1861.”
Barnes v. State Farm Mut. Auto. Ins., 93 Cal. Daily Op. Serv. 4380 (Cal. Ct. App. 1993).
· cites it 2× “(Ins. Code, § 1861.05 et seq.)* **** 6 Although Barnes was granted leave to amend his first cause of action, he chose not to do so and the parties stipulated that a judgment dismissing the entire second amended complaint could be entered so that an appeal could be taken on the…”
Karuk Tribe of N. California v. California Reg'l Water Quality Control Bd., North Coast Region, 183 Cal. App. 4th 330 (Cal. Ct. App. 2010).
“…14023, 33264; Gov. Code, §§ 15606, 51133, 56810; *369 Harb. & Nav. Code, § 86; Health & Saf. Code, §§ 33363, 39661; Ins. Code, §§ 1861.05, 1861.16; Pen. Code, § 2910.5; Pub. Resources Code, §§ 2774.4, 21080, 21104.2; Pub. Util. Code, §§ 783, 25815; Rev. & Tax. Code, § 254.6;…”
King v. Nat'l Gen. Ins., 129 F. Supp. 3d 925 (N.D. Cal. 2015).
· cites it 2× “The procedure for obtaining the approval of the DOI for a proposed insurance rate is as follows: “(1) an insurer who desires to change a rate files a rate plan application with the commissioner (Cal. Ins.Code § 1861.05(b)); (2) the commissioner gives notice to the public of the…”
Ellsworth v. U.S. Bank, N.A., 908 F. Supp. 2d 1063 (N.D. Cal. 2012).
“57 at 12 (quoting Cal. Ins.Code § 1861.05(a)). Members of the public can challenge rates both before and after approval in administrative proceedings from which judicial review is available.”
Westcon Constr. Corp. v. Cnty. of Sacramento, 61 Cal. Rptr. 3d 89 (Cal. Ct. App. 2007).
“*196 In CAARP, the Insurance Commissioner argued on appeal that the hearing procedures established by Proposition 103 (Ins. Code, §§ 1861.05, subds. (b), (c), 1861.”
Ass'n of California Ins. Companies v. Poizner, 180 Cal. App. 4th 1029 (Cal. Ct. App. 2009).
“1, subdivision (h) defines “proceeding” to mean “any action conducted pursuant to Article 10 of Chapter 9 of Part 2 of Division 1 of the California Insurance Code, entitled ‘Reduction and Control of Insurance Rates,’ including a rate proceeding established upon the submission of…”
Chan v. Curran, 237 Cal. App. 4th 601 (Cal. Ct. App. 2015).
“(Ins. Code, § 1861.05.) Chan submitted the declaration of an actuary stating that between MICRA’s enactment in 1975, and Proposition 103’s enactment in 1988, medical malpractice insurance premiums rose an average of 14 percent per year, but since 1988, premiums have increased an…”
— Cal. Insurance Code § 1861.05(a) — 3 cases
Leghorn v. Wells Fargo Bank, N.A., 950 F. Supp. 2d 1093 (N.D. Cal. 2013).
“(citing Cal. Ins.Code §§ 1861.05(a), 1858.07). In addition, Wells Fargo argues that the California Insurance Code independently bars Plaintiffs’ challenge to the preapproved rate.”
Ellsworth v. U.S. Bank, N.A., 908 F. Supp. 2d 1063 (N.D. Cal. 2012).
“57 at 12 (quoting Cal. Ins.Code § 1861.05(a)). Members of the public can challenge rates both before and after approval in administrative proceedings from which judicial review is available.”
— Cal. Insurance Code § 1861.05(b) — 1 case
King v. Nat'l Gen. Ins., 129 F. Supp. 3d 925 (N.D. Cal. 2015).
“The procedure for obtaining the approval of the DOI for a proposed insurance rate is as follows: “(1) an insurer who desires to change a rate files a rate plan application with the commissioner (Cal. Ins.Code § 1861.05(b)); (2) the commissioner gives notice to the public of the…”
— Cal. Insurance Code § 1861.05(c) — 1 case
King v. Nat'l Gen. Ins., 129 F. Supp. 3d 925 (N.D. Cal. 2015).
“The procedure for obtaining the approval of the DOI for a proposed insurance rate is as follows: “(1) an insurer who desires to change a rate files a rate plan application with the commissioner (Cal. Ins.Code § 1861.05(b)); (2) the commissioner gives notice to the public of the…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.