SECTIONS 12990-12995 - California Statutes

INSURANCE CODE

SECTION 12990-12995

12990. The department shall adopt an accounting system, as
recommended by the State Auditor in Report No. 93030, that will allow
the department to accurately identify costs by the regulatory
activities and to link the costs to fees collected for those
regulatory activities.

12991. On and after October 1, 1995, the department may not levy
any fee or fees under Section 736 or 12979 unless the fees are
created in compliance with Sections 12992 and 12993.

12992. (a) The department shall determine the actual cost of
providing each examination as authorized under Section 730 and
following. The department shall then set each fee levied under
Section 736 to be based on the actual cost of providing the
examination.
(b) The department shall determine the actual administrative and
operational costs arising from the provisions of Article 10
(commencing with Section 1861.01) of Chapter 9 of Part 2 of Division
1. The department shall then set the fees assessed under Section
12979 to be based on the actual administrative and operational costs
arising from the provisions of Article 10 (commencing with Section
1861.01) of Chapter 9 of Part 2 of Division 1.

12993. The department shall provide the schedule of fees created
under Section 12992, as well as the justification that the fees are
based on the actual cost of the regulatory activity, to the
Department of Finance, the Legislative Analyst, and the insurance
committees in each house of the Legislature.

12994. On or before October 1, 1995, the department shall publish a
schedule of all fees levied under Sections 736 and 12979. The fees
shall be calculated in accordance with Sections 12992 and 12993. On
or before January 15, 1996, the Bureau of State Audits shall complete
an audit of the schedule of fees created by this section. The audit
shall determine if the fees are in compliance with Section 12992.

12995. (a) Notwithstanding any other provision of this code, all
uncontested departmental billings for services or assessments
authorized herein, which are not paid within 45 days of the invoice
date, shall be subject to a late charge, unless waived or modified by
the department. The late charge shall be 1 1/2 percent per month of
the balance due. This late charge shall be compounded monthly.
(b) Billings from the department shall be postmarked within five
working days of the invoice date. If the billing is postmarked more
than five working days after the invoice date, the insurer shall be
given 45 days from the date of the postmark to pay the amount due. In
those instances where a billing is postmarked more than five working
days after the invoice date, the insurer is required to submit the
postmarked envelope with payment to avoid a late charge.
(c) Payments shall be postmarked by the due date to avoid a late
charge. Except as provided in subdivision (d), contested billings for
which the original amount is paid to the department after the 45 day
period shall be subject to the late charge, unless waived or
modified by the department. The insurer shall provide written notice
of the contested billing and shall set forth the basis for the
contestability in writing to the department prior to the due date.
(d) Late charges shall be tolled for the portion of the billing
that is contested by an insurer. The commissioner shall consider the
material submitted by the insurer and reach a decision on the
contested billing within 30 days of receiving written notification
that a billing is being contested. The commissioner's written
decision on contested amounts shall be final and written
notification, including a revised amount, if any, shall be provided
indicating the basis for the decision. This written notification
shall also include an invoice date from which an insurer shall be
given 30 days to remit payment. This section shall not preclude an
insurer from filing a petition for writ of mandate in accordance with
the provisions of the Code of Civil Procedure.
(e) All late charges collected pursuant to this section shall be
deposited into the General Fund.
(f) This section shall not apply to the Insurance Department
Schedule of Fees and Charges pursuant to Section 12978.