The California Department of Insurance (CDI) was created in 1868 as part of a national system of state-based insurance regulation. The insurance market place has changed dramatically over time, but consumer protection continues to be the core of CDI's mission.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry.Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud.
Nearly1,400 dedicated employees work at CDI to oversee more than 1,400 insurance companies and licensemore than 495,000 agents, brokers, adjusters, bail agents, and business entities. In the normal course of business, CDI annually processes more than 8,000 rate applications, issues approximately 285,000 licenses (new and renewals) and performs hundreds of financial reviews and examinations of insurers doing business in California.CDI annually receives more than 170,000 consumer assistance calls, investigates more than 37,000 consumer complaints and, as a result, recovers more than $84 million a year for consumers. CDI also annually receives and processes tens of thousands of referrals regarding suspected fraud against insurers and others and conducts criminal investigations resulting in thousands of arrests every year.
All of CDI's functions, including overseeing insurer solvency, licensing agents and brokers, conducting market conduct reviews, resolving consumer complaints, and investigating and prosecuting insurance fraud, are to protect consumers.
Consumers, insurance companies, and licensees rely on CDI to ensure that insurance products and services are available to consumers timely, and that they deliver fair and equal benefits. To meet these expectations, CDI ensures that insurers are solvent, consumer complaints are addressed in a reasonable manner, and insurers and licensees play fairly in the marketplace.
In 1988, California voters passed Proposition 103, a citizen-led initiative. Proposition 103 expanded CDI's authority as well as changed the Insurance Commissioner from an appointee of the Governor to an independent statewide officer elected by popular vote. Proposition 103 also required prior approvals of property and casualty rates, including personal auto and homeowner insurance.
CDI enforces the insurance laws of California and has authority over how insurers and licensees conduct business in California.
License fees, assessments, and Proposition 103 recoupment fees are the primary sources of funding for CDI.
