SECTIONS 12900-12907 - California Statutes

INSURANCE CODE

SECTION 12900-12907

12900. (a) The commissioner shall be elected by the people in the
same time, place, and manner as the Governor not to exceed two
four-year terms.
(b) Should a vacancy occur during the term of office, legislative
confirmation shall be required for the position of commissioner in
the same manner and procedure as that required by Section 5 of
Article V of the California Constitution.

12901. The commissioner shall be a person competent and fully
qualified to perform the duties of the office. Neither the
commissioner nor any deputy or employee shall during his or their
tenure of office be an officer, agent or employee of an insurer or
directly or indirectly interested in any insurer or licensee under
this code, except (a) as a policyholder, or, (b) by virtue of
relationship by blood or marriage to any person interested in any
insurer or licensee.
If the commissioner or any deputy or employee holds any license or
permit issued under this code, he shall surrender it for
cancellation within 10 days after appointment and qualification. Upon
termination of his office or employment such license or permit shall
be reissued for the balance of the then current license or permit
year without fee or penalty.

12902. The annual salary of the commissioner is provided for by
Chapter 6 of Part 1 of Division 3 of Title 2 of the Government Code.

12903. The commissioner may employ such actuarial, technical, and
administrative assistants and clerks, as he may need to discharge in
proper manner the duties imposed upon him by law. He may also employ
stenographic reporters to take and transcribe the testimony in any
formal hearing or investigation before the commissioner, deputy or
person authorized by him.
Such persons so employed shall perform such duties as the
commissioner assigns to them, subject to the provisions of the civil
service laws. The commissioner may incur such traveling and other
expenses as are necessary, convenient, or advisable for the
performance of his duties. The provisions of this section shall not
be deemed to affect or modify positions or seniority of officers or
employees existing and held in the office of the commissioner
immediately prior to the date this section takes effect, and all such
persons then serving in any capacity therein shall continue and
remain in such capacity without change of position or seniority,
subject to the provisions of the law regulating civil service in the
same manner and to the same extent as prior to the date this section
takes effect.

12903.1. (a) The commissioner may not accept, use, or in any manner
benefit from payments or reimbursements made to the department for
travel from any of the following:
(1) A single source that is subject to regulation by the
commissioner.
(2) A private attorney or law firm that is under contract or is
bidding on or under consideration for a contract to represent either
the department or the commissioner in his or her official capacity.
(3) A private attorney or law firm that seeks to be awarded, or
has been awarded, advocacy fees under subdivision (b) of Section
1861.10.
(4) A private attorney or law firm that has a client subject to
regulation by the commissioner.
(b) For purposes of this section, any payment or reimbursement
provided by a representative of a person or entity subject to
regulation by the commissioner shall be deemed to be provided by the
regulated person or entity.
(c) (1) The Attorney General or any other person within this state
may bring a civil action for the violation of this section. The
court may assess a civil penalty in the amount of three times the
amount of the unlawful benefit or payment received by the
commissioner.
(2) An action under this subdivision shall be filed within five
years of the date on which the violation occurred. If the
commissioner engages in fraudulent concealment, the five-year period
shall be tolled for the period of the concealment. For the purposes
of this paragraph, "fraudulent concealment" means the commissioner
knowingly concealed facts related to his or her travel expenditures
or reimbursements.

12903.5. On the recommendation of the commissioner the Personnel
Board may establish rates of compensation for insurance examiners
engaged in examinations out of this State which are in excess of the
rates based on the regular monthly salary ranges established for such
examiners.

12904. In the administration of the provisions of this code and
other insurance laws, the commissioner may purchase reports of
financial and character reporting services, and such other books and
reports as in his opinion will aid in such administration.

12905. The commissioner shall keep his office in the cities of San
Francisco, Sacramento, Los Angeles, and San Diego.

12906. The governmental agency unit heretofore known as the
Department of Insurance in the Business, Transportation and Housing
Agency is hereby made an independent department. The Department of
Insurance is under the control of the Insurance Commissioner. The
removal from the Business, Transportation and Housing Agency of the
Department of Insurance, effected by this section, shall not affect
in any manner the deputies or employees of such governmental agency
unit, except as otherwise provided by the act enacted in the 1990
portion of the 1989-90 Regular Session that amended this section,
and, except as so provided, their employments and positions are
hereby expressly continued in existence. The Insurance Commissioner
is not a head of a department within the meaning of Sections 1061 and
11151 of the Government Code.

12907. The following existing positions in the Department of
Insurance shall be appointed by the Governor and are exempt from the
state civil service system:
(a) Chief executive officer.
(b) Deputy commissioner for the office of the ombudsman.
(c) Career executive assignment IV, in the administration and
licensing services division.