SECTIONS 1110-1113 - California Statutes

INSURANCE CODE

SECTION 1110-1113

1110. This article does not apply to combination automobile
insurance policies in which one insurer issues a policy covering
certain classes of insurance on a risk, and another insurer covers
certain other classes of insurance on the same risk. This article
applies to:
(a) The issuance of a policy in which more than one insurer
indemnifies the insured severally, jointly, or jointly and severally
with other insurers for all or a specified portion of a risk.
(b) The issuance of a policy which is subject to an automatic
reinsurance agreement under which several insurers participate with
the insurer or insurers issuing the policy to the same extent as
though they were primary insurers, and the contract is negotiated
upon the basis of such reinsurance and the policy makes reference to
the fact of such reinsurance.
(c) Policies issued pursuant to a plan providing for the
allocation among various insurers of risks who have been unable to
procure such insurance without resort to the plan.

1111. Insurers desiring to issue policies to which this article is
applicable, and to pay commissions to persons who are licensed as
insurance agents, but not as agents for all insurers participating in
the risk, and who are not licensed as insurance brokers, may file
with the commissioner in such form as he may require, a statement of
the plan under which they intend to operate, and a list of the
insurers that will operate under the plan. If the commissioner finds
that the nature of the plan is not such that the interests of the
insuring public will be jeopardized by permitting an agent of one or
more of the insurers to act in a transaction with or for all the
insurers, or for the particular insurer paying the commission without
being licensed as agent for such insurer or as an insurance broker,
he may issue a permit authorizing the operation of the plan by or on
behalf of the insurers listed in the application, and the payment of
commissions pursuant to the plan as approved by the commissioner
shall be lawful.

1112. Within 10 days after the withdrawal of an insurer from the
plan or from the time additional insurers participate in the plan,
notice of the change shall be given the commissioner in writing, and
unless such notice is so given, the permit theretofore issued by the
commissioner shall expire on the tenth day after such change. Unless
the permit expires as provided in the preceding sentence, it shall
remain in force continuously unless the commissioner after hearing
finds that the insurers have deviated materially from the plan, and
that it is against public interest to continue its operation.

1113. For filing application for a permit issued pursuant to this
article, the commissioner shall charge and collect the sum of
forty-four dollars ($44).