Cal. Insurance Code § 704
Cal. Insurance Code § 704
California · California Insurance Code · Status: effective
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- Citation
- Cal. Insurance Code § 704, California, version 1 as recorded 2026-07-25, yourstate.us, https://yourstate.us/provision/877293
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Full text
The commissioner may suspend the certificate of authority of an insurer for not exceeding one year whenever he finds, after proper hearing following notice, that such insurer engages in any of the following practices:
(a) Conducting its business fraudulently.
(b) Not carrying out its contracts in good faith.
(c) Habitually and as a matter of ordinary practice and custom compelling claimants under policies, or liability judgment creditors of the insured, to either accept less than the amount due under the terms of the policies or resort to litigation against such insurer to secure the payment of the amount due.
The order of suspension shall prescribe the period of such suspension.
The proceedings shall be conducted in accordance with Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.