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State statute · California

California Insurance Code, Division 1 Part 2 Chapter 9 -- Rates and Rating and Other Organizations, complete (including the Proposition 103 articles 1861.01-1861.16)

Secs. 1850.4-1861.16

Publisher
California Legislative Counsel
Edition
California Insurance Code, current official text on California Legislative Information...
Last checked
2026-09-17
Status
US state statute
Edition and licensing notes

Publisher. California Legislative Counsel (leginfo.legislature.ca.gov)

Edition. California Insurance Code, current official text on California Legislative Information, the Legislative Counsel of California. The publisher prints no edition or currency statement on the code display pages themselves; the site states it publishes the code as amended and in effect.

Status. US state statute; public domain.

Read the official textPractice questions from this source

What this document is

California Insurance Code, Division 1 Part 2 Chapter 9 -- Rates and Rating and Other Organizations, complete (including the Proposition 103 articles 1861.01-1861.16) (Secs. 1850.4-1861.16) is a state statute published by California Legislative Counsel (leginfo.legislature.ca.gov). It is one of the California documents that insurance license exam questions are written from, including california property & casualty, california personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

  • Cal. Ins. Code § 1858.07(a) (Civil penalty for using a rate, rating plan, or rating system in violation of the chapter)
    “Any person who uses any rate, rating plan, or rating system in violation of this chapter is liable to the state for a civil penalty not to exceed five thousand dollars ($5,000) for each act, or, if the act or practice was willful, a civil penalty not to exceed ten thousand dollars ($10,000) for each act.”
  • Cal. Ins. Code § 1861.025(a) (Good Driver Discount eligibility; three-year licensing requirement)
    “A person is qualified to purchase a Good Driver Discount policy if he or she meets all of the following criteria: (a) He or she has been licensed to drive a motor vehicle for the previous three years.”
  • Cal. Ins. Code § 1861.05(a) (Rate approval standard; competition excluded, investment income required)
    “No rate shall be approved or remain in effect which is excessive, inadequate, unfairly discriminatory or otherwise in violation of this chapter. In considering whether a rate is excessive, inadequate or unfairly discriminatory, no consideration shall be given to the degree of competition and the...”
  • Cal. Ins. Code § 1861.05(c) (Rate change application; mandatory hearing above the personal-lines or commercial-lines percentage threshold)
    “The commissioner shall notify the public of any application by an insurer for a rate change. The application shall be deemed approved sixty days after public notice unless (1) a consumer or his or her representative requests a hearing within forty-five days of public notice and the commissioner...”
  • Cal. Ins. Code § 1861.03(c)(1) (Automobile insurance; closed list of grounds for an effective cancellation or nonrenewal notice)
    “Notwithstanding any other provision of law, a notice of cancellation or nonrenewal of a policy for automobile insurance shall be effective only if it is based on one or more of the following reasons: (A) nonpayment of premium; (B) fraud or material misrepresentation affecting the policy or insured;...”
  • Cal. Ins. Code § 1855.5(c) (Advisory organization policy or bond forms; deemed approved after commissioner inaction)
    “Notwithstanding the provisions of this section, if the commissioner fails to act within 90 days of the submission of a proposed policy or bond form, or manual by an advisory organization, the policy or bond form, or manual, shall be deemed approved.”
  • Cal. Ins. Code § 1858.01(a) (Rate complaint; deadline to determine probable cause, personal versus commercial line)
    “Whenever a written complaint has been filed with the commissioner, the commissioner shall review and investigate the matter complained of as provided by Section 1858 and shall make a determination whether there is probable cause to believe that a violation of this chapter has occurred. This...”
  • Cal. Ins. Code § 1851(c) (Rate-regulation chapter; marine insurance exemption, distinguished from inland marine)
    “Insurance of vessels or craft, their cargoes, marine builders’ risks, marine protection and indemnity, or other risks commonly insured under marine, as distinguished from inland marine, insurance policies.”
  • Cal. Ins. Code § 1861.02(a) (Automobile rating factors in decreasing order of importance)
    “Rates and premiums for an automobile insurance policy, as described in subdivision (a) of Section 660, shall be determined by application of the following factors in decreasing order of importance: (1) The insured’s driving safety record. (2) The number of miles he or she drives annually. (3) The...”

Practice this material

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Questions about this source

California Insurance Code, Division 1 Part 2 Chapter 9 -- Rates and Rating and Other Organizations, complete (including the Proposition 103 articles 1861.01-1861.16) (Secs. 1850.4-1861.16) is a state statute published by California Legislative Counsel (leginfo.legislature.ca.gov). Edition: California Insurance Code, current official text on California Legislative Information, the Legislative Counsel of California. The publisher prints no edition or currency statement on the code display pages themselves; the site states it publishes the code as amended and in effect..

No. This page summarizes the document and links to the official version. Always rely on the text published by California Legislative Counsel (leginfo.legislature.ca.gov) for the current law.

Practice questions for California Property & Casualty, California Personal Lines cite this document.

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