Merritt Personal Lines Manual: Appendix: Sample State Insurance Code - Part 1

Throughout this Manual, we refer to and quote various state insurance codes. As a tool for reference, we are including the complete organization -- and links to the actual statute language -- for one state's code.

Since this Manual was originally designed to analyze California insurance markets, we are using the California Insurance Code (CIC). But, whatever state you operating in, the structure and organization of the insurance code is usually analogous to this. Check your state's Department of Insurance or other regulatory Web site for details.

The California Insurance Code (CIC)

GENERAL PROVISIONS ................ 1-48

DIVISION 1. GENERAL RULES GOVERNING INSURANCE

PART 1. THE CONTRACT

CHAPTER 1. CLASSES OF INSURANCE .......... 100-124.5

CHAPTER 1.5. RISK RETENTION ............ 125-140

CHAPTER 2. PARTIES, EVENTS, AND INTERESTS
Article 1. Parties to the Contract: Generally ...... 150-151
Article 2. Parties to Contract: Mortgagor and Mortgagee ... 170-172
Article 3. Events Subject to Insurance ........ 250-253
Article 4. Insurable Interest: Generally ....... 280-287
Article 5. Insurable Interest: Effect of Transfer .... 300-305

CHAPTER 3. NEGOTIATIONS BEFORE EXECUTION
Article 1. Concealment ............. 330-339
Article 2. Representation ............ 350-361

CHAPTER 4. THE POLICY
Article 1. Definition and Scope .......... 380-395
Article 2. Types of Policies ........... 410-413
Article 3. Insurer's Name on Policy .......... 430
Article 4. Warranties ............. 440-449
Article 5. Inception Hours ............ 460

CHAPTER 5. THE PREMIUM ............. 480-491

CHAPTER 5.2. RENEWAL NOTICES ............ 500

CHAPTER 5.3. CONSUMER COMPLAINTS .......... 510

CHAPTER 5.4. PROOF OF COVERAGE DISCLOSURE ........ 515

CHAPTER 6. LOSS
Article 1. Transfer of Interest After Loss ....... 520
Article 2. Causes of Loss ........... 530-533.7
Article 3. Notice and Proofs of Loss ........ 550-557.6
Article 4. Payment of Automobile Collision Repairs ..... 560
Article 5. Certain Insurance Covering Real Property .... 570-572

CHAPTER 7. DOUBLE INSURANCE ............ 590-591

CHAPTER 8. REINSURANCE ............. 620-623

CHAPTER 9. RESCISSION .............. 650-651

CHAPTER 9.5. FILING OF CERTIFICATES .......... 655

CHAPTER 9.6. REASONS FOR DENIAL OF MOTOR VEHICLE LIABILITY INSURANCE ............. 657-658

CHAPTER 10. CANCELLATION OR FAILURE TO RENEW ...... 660-669.5

CHAPTER 10.1. CERTAIN AUTOMOBILE INSURANCE ........ 669.7

CHAPTER 10.2. PROHIBITED CANCELLATIONS ........ 670

CHAPTER 10.25. AUTOMOBILE COLLISION AND COMPREHENSIVE COVERAGE .. 671

CHAPTER 10.27. AVAILABILITY OF COST ESTIMATES ....... 672

CHAPTER 10.3. CANCELLATION OF POLICIES WHEN PREMIUM FINANCED .. 673

CHAPTER 10.4. PRIOR NOTICE CONCERNING CANCELLATION OR NONRENEWAL ............ 674-674.9

CHAPTER 11. CANCELLATION AND FAILURE TO RENEW CERTAIN PROPERTY INSURANCE ............. 675-679.7

CHAPTER 11.5. DISCLOSURE REQUIREMENTS FOR CERTAIN PROPERTY INSURANCE ............. 679.9

CHAPTER 12. PROHIBITION OF DISCRIMINATORY PRACTICES BY CERTAIN ADMITTED INSURERS ....... 679.70-679.73

PART 2. THE BUSINESS OF INSURANCE

CHAPTER 1. GENERAL REGULATIONS
Article 1. Charter Requirements .......... 680
Article 1.5. Retaliation ............ 685-685.4
Article 1.7. Continuity of Management ........ 688-688.5
Article 2. Capital Structure ........... 690
Article 3. Certificate of Authority ......... 699-728
Article 4. Examination by Commissioner ........ 729-738
Article 4.1. Risk-Based Capital for Insurers ...... 739-739.12
Article 4.5. Special Provisions Regarding Health Coverage .. 740-742.1
Article 4.7. Multiple Employer Welfare Arrangements .. 742.20-742.43
Article 5. Unlawful Referrals ........... 750-754
Article 5.1. Unlawful Practices .......... 755-758.7
Article 5.2. Consumer Protection in Sales of Insurance by or Through Depository Institutions ...... 759-765
Article 5.3. Agents and Brokers .......... 769-769.55
Article 5.4. Managing General Agents ....... 769.80-769.87
Article 5.5. Insurance in Connection With Sales and Loans .. 770-776
Article 5.7. Free Insurance .......... 777.1-777.3
Article 5.8. Premium Financing .......... 778-778.4
Article 5.9. Credit Life and Disability Insurance ... 779.1-779.36
Article 6. Misrepresentation of Policies ........ 780-784
Article 6.3. Senior Insurance .......... 785-789.10
Article 6.5. Unfair Practices .......... 790-790.15
Article 6.6. Insurance Information and Privacy Protection Act 791-791.28
Article 6.7. Joint Activities .......... 795-795.7
Article 6.8. Claims Reviewers ......... 796.01-796.04
Article 6.9. Underwriting of AIDS Risks ....... 799-799.10
Article 7. Restrictions on Underwriting ........ 800-804
Article 7.3. Servicing of Insurance Contracts ...... 810
Article 7.5. Restrictions on Compensation of Adjusters ... 815-816
Article 8. Issue of Securities .......... 820-860
Article 9. Registration of Insurers' Names ....... 880-886
Article 10. Financial Statements of Insurers ...... 900-925.4
Article 10.1. California Insurance Community Investment .. 926.1-926.2
Article 10.3. Single Risk Limitation ......... 928
Article 10.5. National Association of Insurance Commissioners .. 930-934
Article 11. Deposit of Securities .......... 939-956
Article 13. Insolvency ............. 980-989
Article 13.3. Obligations of Automobile Insurers and Their Agents Under Contingent and Retrospective Compensation Arrangements ....... 995-995.7
Article 13.5. Disability Insurance Reserves ....... 997
Article 14. Proceedings in Cases of Insolvency and Delinquency 1010-1062
Article 14.2. California Insurance Guarantee Association .. 1063-1063.16
Article 14.25. Insurance Assessment Bond Fund .... 1063.50-1063.68
Article 14.26. Workers' Compensation Bond Fund ... 1063.70-1063.77
Article 14.3. Uniform Liquidation Act ...... 1064.1-1064.13
Article 14.5. Stop Order Power of the Commissioner ... 1065.1-1065.7
Article 14.7. California Life and Health Insurance Guarantee Association ........ 1067-1067.18
Article 14.8. Group Enrollment from Health Care Service Plans ............ 1068-1068.2
Article 15. Withdrawal of Insurers ........ 1070-1076
Article 15.5. Administrative Supervision ...... 1077-1077.95
Article 16. Approval of Reinsurance Plans ....... 1080-1091
Article 17. Loans and Investments ........ 1100-1107.1
Article 18. Multiple Insurer Operations ....... 1110-1113

CHAPTER 2. INCORPORATED INSURERS
Article 1. General .............. 1140-1142
Article 2. Restrictions on Activities ........ 1152-1155
Article 3. General Investments .......... 1170-1182
Article 3.5. Disclosure of Material Transactions .... 1185-1187
Article 4. Property Authorized for Excess Funds Investments .. 1190-1202
Article 4.5. Leeway Law ............. 1210
Article 4.6. Hedging ............. 1211-1212
Article 4.7. Insurance Holding Company System Regulatory Act ............. 1215-1215.16
Article 4.8. Business Transacted with Producer Controlled Insurer ............ 1216-1216.6
Article 5. Life Insurance Policies ........ 1220-1221
Article 5.5. Life Insurance Policy Loans ...... 1230-1239.5
Article 6. Foreign Investments .......... 1240-1241.1
Article 7. Valuation of Investments ........ 1250-1254
Article 8. Reinsurance Transactions .......... 1260

CHAPTER 3. RECIPROCAL INSURERS
Article 1. General Provisions .......... 1280-1284
Article 2. Organization of Exchange ........ 1300-1315
Article 3. Filing of Documents .......... 1320-1330
Article 4. Certificate of Authority ........ 1350-1350.5
Article 5. Finances ............. 1370-1375
Article 6. Assessment of Insurers ......... 1390-1402
Article 7. Dividends .............. 1420
Article 8. Reports and Examination ........ 1430-1434
Article 9. Suits .............. 1450-1453
Article 10. Policy .............. 1470
Article 11. Rebates
Article 12. Agents and Brokers ........... 1500
Article 13. Penalties ............ 1510-1512
Article 14. Tax Provisions ........... 1530-1531
Article 15. Merger .............. 1540
Article 16. Merger of Certain Reciprocal Insurers .... 1550-1559
Article 17. Conversion of Certain Reciprocal Insurers to Incorporated Stock Insurers ...... 1560-1560.19

CHAPTER 4. FOREIGN INSURERS
Article 1. Conditions of Doing Business ........ 1561
Article 2. Alien Insurers ........... 1580-1599
Article 3. Agent for Service of Process ....... 1600-1605
Article 4. Actions Against Nonadmitted Insurers ..... 1610-1620
Article 4.5. Unauthorized Insurers False Advertising Process Act .......... 1620.1-1620.7

CHAPTER 5. PRODUCTION AGENCIES
Article 1. Definitions ............ 1621-1624
Article 2. Comprehensive Definitions ........ 1625-1630
Article 3. Licensing ............. 1631-1651
Article 4. Applications ............ 1652-1661
Article 5. Bonds .............. 1662-1665
Article 6. License Qualifications ......... 1666-1673
Article 7. License Qualification Examinations ...... 1675-1684
Article 8. Certificates of Convenience ........ 1685-1700
Article 9. Issuance of Licenses ........ 1702-1707.51
Article 10. Termination of Licenses ........ 1708-1712.5
Article 11. License Terms ........... 1716-1723
Article 12. Conduct of Licensee ......... 1724-1736.5
Article 13. Disciplinary Actions ........ 1737-1748.5
Article 13.5. Prelicensing and Continuing Education ... 1749-1749.9
Article 14. Fees .............. 1750-1751.7
Article 15. Travel Insurance Agents ........ 1752-1757
Article 15.5. Cargo Shippers' Agents ....... 1757.1-1757.3
Article 16. Variable Contract Agents ....... 1758.1-1758.5
Article 16.1. Limited License for Retail Vendors of Communications Equipment ...... 1758.6-1758.693
Article 16.3. Self-Service Storage Agents ..... 1758.7-1758.792
Article 16.6. Rental Car Agents ........ 1758.8-1758.891
Article 16.7. Credit Insurance Agents ...... 1758.9-1758.994

CHAPTER 5A. ADMINISTRATORS .......... 1759-1759.10

CHAPTER 6. SURPLUS LINE BROKERS .......... 1760-1780

CHAPTER 6.1. SURPLUS LINE ADVISORY ORGANIZATION ... 1780.50-1780.67

CHAPTER 6.5. REINSURANCE INTERMEDIARIES ...... 1781.1-1781.14

CHAPTER 7. BAIL LICENSES Article 1. Qualification and Licensing ........ 1800-1823

CHAPTER 8. LIFE AND DISABILITY INSURANCE ANALYSTS .... 1831-1849

CHAPTER 9. RATES AND RATING AND OTHER ORGANIZATIONS
Article 1. Purpose and Scope of Chapter ...... 1850.4-1851.1
Article 2. Making and Use of Rates ........ 1853.5-1853.9
Article 2.5. Making and Use of Rates -- Insurance of Properties Being Purchased From Department of Veterans Affairs .... 1853.95-1853.97
Article 4. Advisory Organizations ........ 1855-1855.5
Article 5. Joint Underwriting and Joint Reinsurance .... 1856
Article 6. Records and Examinations ........ 1857-1857.4
Article 6.5. Recording and Reporting of Loss and Expense Experience ........... 1857.7-1857.9
Article 7. Hearings, Procedure and Judicial Review ... 1858-1858.7
Article 8. Penalties ............ 1859-1859.1
Article 9. Miscellaneous ........... 1860-1860.3
Article 10. (Reduction and Control of Insurance Rates) 1861.01-1861.16

CHAPTER 10. CHILD CARE INSURANCE ACT ........ 1862-1864

CHAPTER 10.5. RISK RETENTION ............ 1870

CHAPTER 12. THE INSURANCE FRAUDS PREVENTION ACT
Article 1. False and Fraudulent Claims ....... 1871-1871.9
Article 2. Bureau of Fraudulent Claims ....... 1872-1872.96
Article 3. Insurance Fraud Reporting ........ 1873-1873.4
Article 4. Motor Vehicle Theft and Motor Vehicle Insurance Fraud Reporting .......... 1874-1874.8
Article 4.5. Insurer Inspections ........ 1874.85-1874.87
Article 4.6. Auto Insurance Fraud Crisis Areas ...... 1874.90
Article 5. Arson Investigations ......... 1875-1875.8
Article 5.5. Insurance Claims Analysis Bureaus ... 1875.10-1875.18
Article 5.6. Insurer Fraud Investigation ..... 1875.20-1875.24
Article 6. Deposit of Automobile Insurance Claims Information ............ 1876-1876.5
Article 7. Workers' Compensation Insurance Fraud Reporting 1877-1877.5
Article 8. Insurance Fraud Prevention ....... 1879-1879.8

DIVISION 2. CLASSES OF INSURANCE

PART 1. FIRE AND MARINE INSURANCE

CHAPTER 1. THE MARINE CONTRACT
Article 1. Insurable Interests Peculiar to Marine Insurance .. 1880-1886
Article 2. Concealment and Representations -- Rules Peculiar to Marine Insurance ........... 1900-1905
Article 3. Implied Warranties Peculiar to Marine Insurance .. 1920-1927
Article 4. Effect of Course of Voyage ........ 1940-1945
Article 5. Loss in Marine Insurance ........ 1960-1997
Article 6. Exemptions .............. 2010

CHAPTER 2. THE FIRE INSURANCE CONTRACT
Article 1. Change of Risk ........... 2030-2032
Article 2. Measure of Indemnity .......... 2050-2060
Article 3. California Standard Form Fire Insurance Policy .. 2070-2084

CHAPTER 4. GENERAL MUTUAL INSURERS
Article 1. General Provisions .......... 4010-4019
Article 2. Directors ............. 4020-4023
Article 3. Management and Exclusive Agency Contracts ... 4030-4034
Article 4. Loans .............. 4040-4044
Article 5. Dividends to Policyholders ........ 4050-4052
Article 6. Nonassessable Policies ......... 4060-4064
Article 7. Insolvency .............. 4070
Article 8. Applicable Insurance Laws ........ 4080-4081
Article 9. Merger, Consolidation, Reinsurance, or Transfer of Assets and Liabilities ......... 4090-4096
Article 10. Conversion of an Incorporated Medical Malpractice Mutual Insurer into an Incorporated Stock Insurer ....... 4097-4097.20

CHAPTER 5. COUNTY MUTUAL FIRE INSURERS
Article 1. Formation and Organization ........ 5050-5063
Article 2. Powers .............. 5080-5081
Article 3. Membership ............ 5090-5094
Article 4. The Policy ............ 6010-6021
Article 5. Risks .............. 6040-6050
Article 6. Reinsurance ............ 6070-6072
Article 7. Loss .............. 6090-6091
Article 8. Assessments ............ 7010-7018
Article 9. Reports and Statements ......... 7030-7031
Article 9.5. Merger ............ 7040-7044.5
Article 9.6. Transformation ........... 7045-7049
Article 10. Dissolution ............. 7050
Article 11. Exemptions ............. 7060

CHAPTER 6. COUNTY MUTUAL FIRE REINSURERS
Article 1. Formation and Organization ........ 7080-7093
Article 2. Powers and Duties .......... 8010-8011
Article 3. Additional Memberships ......... 8030-8031
Article 4. Risks .............. 8050-8053
Article 5. Loss .............. 8070-8078
Article 6. Assessments and Coverage of Loss ...... 8090-8097
Article 7. Cancellation of Membership ........ 9010-9012
Article 8. Reports and Statements ......... 9030-9031
Article 9. Dissolution ............. 9050
Article 10. Exemptions ............. 9060

CHAPTER 7. FRATERNAL FIRE INSURERS ......... 9080-9103

CHAPTER 8. UNDERWRITERS FIRE PATROLS
Article 1. Scope of Chapter and Definitions ...... 10020-10022
Article 2. Formation and Organization ........ 10040
Article 3. Powers ............. 10050-10052
Article 4. Meetings and Assessments ........ 10070-10080

CHAPTER 8.5. EARTHQUAKE INSURANCE ........ 10081-10089.4

CHAPTER 8.6. CALIFORNIA EARTHQUAKE AUTHORITY .... 10089.5-10089.54

CHAPTER 8.9. INSURANCE MEDIATION ....... 10089.70-10089.83

CHAPTER 9. BASIC PROPERTY INSURANCE INSPECTION AND PLACEMENT PLAN .......... 10090-10100.2

CHAPTER 10. CALIFORNIA RESIDENTIAL PROPERTY INSURANCE DISCLOSURE ............ 10101-10107

CHAPTER 11. SMALL BUSINESS GUIDE TO COMMERCIAL INSURANCE .. 10108-10108.1