SECTIONS 674-674.9 - California Statutes

INSURANCE CODE

SECTION 674-674.9

674. A policy of liability insurance issued to a local public
entity or state agency as a named insured shall not be canceled or
renewal of such a policy declined for reasons other than nonpayment
of premium unless notice is mailed to the named insured at least 45
days prior to the effective date of nonrenewal or at least 60 days
prior to the effective date of cancellation. Such notice need not be
sent if a renewal notice stating a premium for an additional period
of coverage has been sent the named insured at least 45 days before
cancellation or expiration of an existing policy and such premium has
not been tendered the insurer before such cancellation or
expiration. This section shall not require that notice of
cancellation or nonrenewal be given an additional insured added by
way of endorsement or certificate of insurance.

674.5. (a) No insurer shall cease to offer any particular class of
commercial liability insurance without prior notification to the
commissioner.
(b) The department shall adopt regulations implementing this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Division 3 of Title 2 of the
Government Code, except that for the purposes of Chapter 3.5
(commencing with Section 11340) of Division 3 of Title 2 of the
Government Code, any regulations adopted under this section shall be
deemed to be necessary for the immediate preservation of the public
peace, health and safety, or general welfare. These regulations shall
remain in effect for 180 days. Unless the regulation provides for
notification by some other classification or category, notification
pursuant to this section shall be made for each class of insurance as
defined by the Insurance Services Office.

674.6. (a) No insurer issuing policies of insurance subject to
Section 674.5 or 675 shall cease to offer any particular line of
coverage without prior notification to the commissioner.
(b) Except as provided in Section 674.9, an insurer shall notify
the department at least 60 days prior to the date it intends to
withdraw wholly or substantially from a line of (1) commercial
liability insurance, (2) any insurance defined in Section 660 or 675
when coverage is provided by a separate rider or endorsement for an
activity for which the insured receives compensation, a stipend, or
remuneration of any kind for the activity and then only to the extent
of the coverage, (3) any other insurance defined in Section 660, or
(4) any insurance issued to an individual or individuals covering a
risk not arising from a business or commercial activity. Upon receipt
of the notice, the commissioner may request and review additional
information, as deemed necessary, and investigate the market
conditions to determine whether that insurance may become not readily
available in the voluntary insurance market as a result of the
withdrawal.
(c) For purposes of this section, "intent to substantially
withdraw" means an insurer's intent to nonrenew in excess of 50
percent of its current policyholders in the line of coverage upon
their next renewal.
(d) The commissioner shall adopt appropriate rules, regulations,
and standards for purposes of implementing this section.
(e) Any insurer that has notified the commissioner pursuant to
subdivision (b) shall (1) notify the commissioner within 10 days
after the date given in the withdrawal notice if the insurer does not
in fact withdraw that line of insurance from the market, or (2)
notify the commissioner within 10 days after reentry if the insurer
reenters that line after the withdrawal.

674.9. (a) Notwithstanding subdivision (b) of Section 674.6, an
insurer issuing policies of liability insurance to long-term health
care facilities, residential care facilities for the elderly, or
physicians who provide or oversee the provision of services to
residents in long-term health care facilities or residential care
facilities for the elderly shall notify the department at least 90
days prior to the date it intends to cease, withdraw, or
substantially withdraw from offering liability policies to those
facilities or physicians.
(b) Each insurer writing liability insurance for long-term health
care facilities, residential care facilities for the elderly, or
physicians who provide or oversee the provision of services to
residents in long-term health care facilities or residential care
facilities for the elderly shall, by a date to be set by the
commissioner, but not more than once each calendar year, report to
the commissioner information specified by him or her regarding
liability policies for those facilities or physicians. The
information shall include, but not be limited to, the following:
(1) Whether the insurer is writing coverage for long-term health
care facilities, residential care facilities for the elderly, or
physicians who provide or oversee the provision of services to
residents in long-term health care facilities or residential care
facilities for the elderly, including new and renewal policies, and
the types of policies it is writing.
(2) The number and types of long-term health care facilities or
residential care facilities for the elderly and beds covered.
(3) The total amount of premiums from insureds, both written and
earned, during the immediately preceding five calendar years.
(4) The total number of claims received, including the amount per
claim.
(5) The number of claims incurred, together with the monetary
amount reserved for loss and defense and cost containment expense for
the immediately preceding accident year or report year.
(6) The number of claims closed with payment during the
immediately preceding five calendar years, the total monetary amount
paid for loss thereon, reported by the year the claim was incurred,
and the total defense and cost containment expense paid thereon,
reported by the year the claim was incurred.
(7) The monetary amount paid on claims, including the amount paid
per claim, during the immediately preceding five calendar years to be
reported separately by the year the claim was incurred, with defense
and cost containment expense paid.
(8) The number of claims closed without payment during the
immediately preceding five calendar years, reported by the year the
claim was incurred, and the defense and cost containment expense paid
thereon.
(9) The monetary amount reserved in the annual statement for loss
and defense and cost containment expense for the immediately
preceding calendar year for outstanding claims incurred but not
reported to the insurer.
(10) The number and types of lawsuits filed against the insureds
in the immediately preceding calendar year.
(11) Annualized information on investment income or loss, that
shall be consistent with the reported information provided by
insurers to the National Association of Insurance Commissioners.
(c) For the purposes of information collection conducted pursuant
to this section, first priority shall be given by the department and
commissioner to collecting and compiling information from insurers
concerning long-term health care facilities and physicians providing
services in those facilities, and, to the extent that departmental
resources allow, secondary priority shall then be given to the
collecting and compiling of information concerning residential care
facilities for the elderly and the physicians who provide services in
those facilities.
(d) Information that is collected for long-term health care
facilities and the physicians for those facilities shall be
collected, maintained, analyzed, and reported separately from
information that is collected, maintained, analyzed, and reported
concerning residential care facilities for the elderly, and the
physicians for those facilities.
(e) As used in this section, "long-term health care facility" has
the same meaning as that term is defined in Section 1418 of the
Health and Safety Code.
(f) As used in this section, "residential care facilities for the
elderly" has the same meaning as that term is defined in Section
1569.2 of the Health and Safety Code.
(g) Information collected by the department pursuant to this
section shall be deemed official information and subject to the
disclosure protections of Section 1040 of the Evidence Code. Nothing
in this section shall require individualized information that would
identify the amount paid by a specific insurer or facility to be
released. However, nothing in this subdivision shall prevent the
department from preparing reports and policy recommendations based on
the data collected pursuant to this section.