California Insurance Code 704 – The commissioner may suspend the certificate of authority of an …
The commissioner may suspend the certificate of authority of an insurer for not exceeding one year whenever he finds, after proper hearing following notice, that such insurer engages in any of the following practices:
(a) Conducting its business fraudulently.
Terms Used In California Insurance Code 704
- Commissioner: means the Insurance Commissioner of this State. See California Insurance Code 20
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
(b) Not carrying out its contracts in good faith.
(c) Habitually and as a matter of ordinary practice and custom compelling claimants under policies, or liability judgment creditors of the insured, to either accept less than the amount due under the terms of the policies or resort to litigation against such insurer to secure the payment of the amount due.
The order of suspension shall prescribe the period of such suspension.
The proceedings shall be conducted in accordance with Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
(Amended by Stats. 1959, Ch. 1452.)