California Auto Insurance: Department of Insurance - Looking Out for You

When shopping for insurance in California, residents can rest easy knowing that the California Department of Insurance (CDI) has their best interests in mind. Responsible for the regulation of California's $106 billion insurance industry, CDI oversees all types of insurance policies (including auto, health, home, life, long-term care and worker's compensation).

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The principal responsibility of CDI is to protect California consumers. CDI does this by:

• Licensing insurers and insurance companies to do business in California
• Regulating insurance contracts and rates
• Protecting against insurance fraud
• Ensuring that insurance companies comply with California law
• Ensuring that insurance companies abide by their own policy language
• Processing California insurance consumer complaints
• Monitoring and reporting annual insurance complaint rates
• Providing California residents with comprehensive insurance guides

Licensing Insurers
CDI manages the licensing process for all insurance companies, agents, adjusters, and groups in the state. Licensing procedures ensure not only that insurance companies are financially secure but also that individual agents are well-versed in California state insurance laws through pre-licensure and continuing education coursework. CDI also reviews all insurance products to verify that they comply with the California Insurance Code's rules regarding insurance contracts and rates.

Through CDI, consumers can verify:

• Whether an insurance company is licensed in California
• Whether an insurance company is licensed to sell a specific line of insurance
• Whether an agent is licensed in California and a legitimate representative of the insurance company Whether an insurance company has a good record of handling policy complaints

Protecting Consumers
Beyond licensing, CDI works on a number of fronts to protect California insurance consumer interests. The agency actively seeks to help consumers resolve their insurance-related disputes through mediation programs such as the Automobile Claims Mediation Program. The Consumer Communications Bureau (CCB) of the California Department of Insurance also serves as an information clearinghouse for Californians with insurance-related questions or problems.

In addition to managing consumer complaints, CDI polices all other insurance activities in California. The CDI Commissioner works diligently to protect consumers by prosecuting insurance fraud scams, revoking the insurance licenses of those who violate the California Insurance Code, and issuing cease & desist orders to stop sales of unlicensed insurance products. The Commissioner also publishes regulations to ensure the proper implementation of the California Insurance Code.

For more information regarding California insurance laws as well as complete information about the California Department of Insurance, please visit the CDI website.