The provisions of this code in so far as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations thereof, and not as new enactments.
(Enacted by Stats. 1935, Ch. 145.)
All persons who, at the time this code goes into effect, hold office under any of the acts repealed by this code, which offices are continued by this code, continue to hold the same according to the former tenure thereof.
(Enacted by Stats. 1935, Ch. 145.)
No action or proceeding commenced before this code takes effect, and no right accrued, is affected by the provisions of this code, but all procedure thereafter taken therein shall conform to the provisions of this code so far as possible.
(Enacted by Stats. 1935, Ch. 145.)
Unless the context otherwise requires, the general provisions hereinafter set forth shall govern the construction of this code.
(Enacted by Stats. 1935, Ch. 145.)
Division, part, chapter, article, and section headings contained herein shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning, or intent of the provisions of any division, part, chapter, article, or section hereof.
(Enacted by Stats. 1935, Ch. 145.)
Whenever, by the provisions of this code, a power is granted to a public officer or a duty imposed upon such an officer, the power may be exercised or the duty performed by a deputy of the officer or by a person authorized pursuant to law by the officer, unless it is expressly otherwise provided.
(Enacted by Stats. 1935, Ch. 145.)
Writing includes any form of recorded message capable of comprehension by ordinary visual means. Whenever any notice, report, statement or record is required or authorized by this code, it shall be made in writing in the English language unless it is otherwise expressly provided.
(Enacted by Stats. 1935, Ch. 145.)
Whenever any reference is made to any portion of this code or of any other law of this State, such reference shall apply to all amendments and additions thereto now or hereafter made.
(Enacted by Stats. 1935, Ch. 145.)
?Section? means a section of this code unless some other statute is specifically mentioned and ?subdivision? or ?subsection? means a subdivision or subsection of the section in which that term occurs unless some other section is expressly mentioned.
(Amended by Stats. 1955, Ch. 471.)
The present tense includes the past and future tenses; and the future, the present.
(Enacted by Stats. 1935, Ch. 145.)
?Spouse? includes ?registered domestic partner,? as required by Section 297.5 of the Family Code.
(Added by Stats. 2016, Ch. 50, Sec. 56. (SB 1005) Effective January 1, 2017.)
The singular number includes the plural, and the plural the singular.
(Enacted by Stats. 1935, Ch. 145.)
As used in this code the word ?shall? is mandatory and the word ?may? is permissive, unless otherwise apparent from the context.
(Enacted by Stats. 1935, Ch. 145.)
?Signature? or ?subscription? includes mark when the signer or subscriber can not write, such signer?s or subscriber?s name being written near the mark by a witness who writes his own name near the signer?s or subscriber?s name; but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto.
(Enacted by Stats. 1935, Ch. 145.)
?Person? means any person, association, organization, partnership, business trust, limited liability company, or corporation.
(Amended by Stats. 1994, Ch. 1010, Sec. 172. Effective January 1, 1995.)
Whenever in this code the terms ?State Industrial Accident Commission? or ?Industrial Accident Commission? or ?commission,? relating to the said ?State Industrial Accident Commission? or the said ?Industrial Accident Commission,? appear, said terms shall mean ?Division of Industrial Accidents,? including ?administrative director? of said division or ?appeals board,? or both, as the context may require.
(Added by Stats. 1965, Ch. 1513.)
?Division,? and ?department,? in reference to the government of this state, mean the Department of Insurance of this state.
(Amended by Stats. 1990, Ch. 1239, Sec. 4.)
(a)?Administrative law bureau? or ?administrative hearing bureau? means the unit within the Department of Insurance that provides administrative hearings.
(b)An administrative law judge appointed by the commissioner pursuant to civil service rules shall be employed within the administrative law bureau and shall not be supervised directly by the commissioner or supervised directly or indirectly by an employee in the legal branch of the department.
(Added by Stats. 2002, Ch. 709, Sec. 1. Effective January 1, 2003.)
Insurance is a contract whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event.
(Enacted by Stats. 1935, Ch. 145.)
The person who undertakes to indemnify another by insurance is the insurer, and the person indemnified is the insured.
(Enacted by Stats. 1935, Ch. 145.)
?Admitted,? in relation to a person, means entitled to transact insurance business in this state, having complied with the laws imposing conditions precedent to transaction of such business. The State Compensation Insurance Fund shall be deemed to be admitted pursuant to authority to transact workers? compensation insurance granted by the Legislature. The commissioner shall not revoke or suspend the State Compensation Insurance Fund?s authority to transact workers? compensation insurance.
(Amended by Stats. 2006, Ch. 740, Sec. 1. Effective January 1, 2007.)
?Nonadmitted,? in relation to a person, means not entitled to transact insurance business in this State, whether by reason of failure to comply with conditions precedent thereto, or by reason of inability so to comply.
(Enacted by Stats. 1935, Ch. 145.)
?Domestic? means organized under the laws of this State, whether or not admitted.
(Enacted by Stats. 1935, Ch. 145.)
?Foreign? means not organized under the laws of this State, whether or not admitted.
(Enacted by Stats. 1935, Ch. 145.)
?State? means the State of California, unless applied to the different parts of the United States. In the latter case, it includes the District of Columbia, the commonwealths and the territories.
(Amended by Stats. 1965, Ch. 373.)
?Mortgage? includes a trust deed, ?mortgagor? includes a trustor under such trust deed, ?mortgagee? includes a beneficiary under such trust deed, or a trustee exercising powers or performing duties granted to or imposed upon him thereunder, and ?lien? in respect to real or personal property includes a charge or incumbrance arising out of a trust deed.
(Enacted by Stats. 1935, Ch. 145.)
?Resident? means residing in this State, ?nonresident? means not residing in this State.
(Enacted by Stats. 1935, Ch. 145.)
?Insurance agent? means a person authorized, by and on behalf of an insurer, to transact all classes of insurance other than life, disability, or health insurance, on behalf of an admitted insurance company.
(Amended by Stats. 2010, Ch. 400, Sec. 1. (AB 2782) Effective January 1, 2011.)
(a)A life and accident and health or sickness licensee is a person authorized to act as a life agent on behalf of a life insurer or a disability insurer to transact any of the following:
(1)Life insurance.
(2)Accident and health or sickness insurance.
(3)Life and accident and health or sickness insurance.
(b)Licenses to act as a life agent under this chapter shall be of the types as set forth in Section 1626.
(c) A life agent may be authorized to transact 24-hour care coverage, as defined in Section 1749.02, pursuant to the requirements of subdivision (d) of Section 1749 or subdivision (b) of Section 1749.33.
(Amended by Stats. 2020, Ch. 184, Sec. 1. (SB 1255) Effective January 1, 2021.)
?Life and disability insurance analyst? means a person who, for a fee or compensation of any kind, paid by or derived from any person or source other than an insurer, advises, purports to advise, or offers to advise any person insured under, named as beneficiary of, or having any interest in, a life or disability insurance contract, in any manner concerning that contract or his or her rights in respect thereto.
(Amended by Stats. 1983, Ch. 962, Sec. 1.)
?Insurance broker? means a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health with, but not on behalf of, an insurer.
(Amended by Stats. 2010, Ch. 400, Sec. 2. (AB 2782) Effective January 1, 2011.)
(a)?Casualty broker-agent? means a person licensed pursuant to Section 1625.
(b)?Property broker-agent? means a person licensed pursuant to Section 1625.
(Amended by Stats. 2011, Ch. 411, Sec. 1. (AB 1416) Effective January 1, 2012.)
?Insurance solicitor? means a natural person employed to aid a property and casualty broker-agent acting as an insurance agent or insurance broker in transacting insurance other than life, disability, or health.
(Amended by Stats. 2010, Ch. 400, Sec. 3. (AB 2782) Effective January 1, 2011.)
?Transact? as applied to insurance includes any of the following:
(a)Solicitation.
(b)Negotiations preliminary to execution.
(c)Execution of a contract of insurance.
(d)Transaction of matters subsequent to execution of the contract and arising out of it.
(Enacted by Stats. 1935, Ch. 145.)
?Paid-in capital? or ?capital paid-in? means:
(a)In the case of a foreign mutual insurer not issuing or having outstanding capital stock, the value of its assets in excess of the sum of its liabilities for losses reported, expenses, taxes, and all other indebtedness and reinsurance of outstanding risks as provided by law. Such foreign mutual insurer shall not be admitted, however, unless its paid-in capital is composed of available cash assets amounting to at least $200,000.00.
(b)In the case of a foreign joint stock and mutual insurer, its paid-in capital computed, according to its desire, pursuant to the provisions of subdivision (a) or subdivision (c) of this section. If computed pursuant to the provisions of subdivision (a), its admission is subject to the qualification therein expressed.
(c)In the case of all other insurers, the lower of the following amounts:
(1)The value of its assets in excess of the sum of its liabilities for losses reported, expenses, taxes, and all other indebtedness and reinsurance of outstanding risks as provided by law.
(2)The aggregate par value of its issued shares of stock, including treasury shares.
For the purpose of computing paid-in capital or capital paid-in, shares of stock are not taken as liabilities.
(Enacted by Stats. 1935, Ch. 145.)
Provisions of this code relating to a particular class of insurance or a particular type of insurer prevail over provisions relating to insurance in general or insurers in general.
(Enacted by Stats. 1935, Ch. 145.)
Unless expressly otherwise provided, any notice required to be given to any person by any provision of this code may be given by mailing notice, postage prepaid, addressed to the person to be notified, at his residence or principal place of business in this State. The affidavit of the person who mails the notice, stating the facts of such mailing, is prima facie evidence that the notice was thus mailed.
(Enacted by Stats. 1935, Ch. 145.)
(a)(1)A written record required to be given or mailed to a person by a licensee, including an offer of renewal required by Sections 663 and 678, the notice of policy change or cancellation requested by the insured as required by Section 667.5, the notice of conditional renewal required by Section 678.1, the offer of coverage or renewal or a disclosure required by Section 10086, the offer of renewal for a workers? compensation policy, Section 662, paragraph (2) of subdivision (a) of Section 663, Section 664, 667.5, 673, 677, paragraph (2) of subdivision (a) of Section 678, subdivisions (a), (b), and (c) of Section 678.1, or a written record required to be given or mailed to a person by a licensee relating to the business of life insurance, as defined in Section 101 of this code may, if not excluded by subdivision (b) or (c) of Section 1633.3 of the Civil Code, be provided by electronic transmission pursuant to Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code, if each party has agreed to conduct the transaction by electronic means pursuant to Section 1633.5 of the Civil Code, and if the licensee complies with this section. A valid electronic signature is sufficient for any law requiring a written signature.
(2)For purposes of this section, the definitions set forth in Section 1633.2 of the Civil Code apply. The term ?licensee? means an insurer, agent, broker, or any other person who is required to be licensed by the department.
(3)Notwithstanding subdivision (l) of Section 1633.2 of the Civil Code, for purposes of this section, ?person? includes, but is not limited to, the policy owner, policyholder, applicant, insured, or assignee or designee of an insured.
(b)In order to transmit a record listed in subdivision (a) electronically, a licensee shall comply with all of the following:
(1)A licensee, or licensee?s representative, acquires the consent of the person to opt in to receive the record by electronic transmission, and the person has not withdrawn that consent, prior to providing the record by electronic transmission. A person?s consent may be acquired verbally, in writing, or electronically. If consent is acquired verbally, the licensee shall confirm consent in writing or electronically. The licensee shall retain a record of the person?s consent to receive the record by electronic transmission with the policy information so that it is retrievable upon request by the department while the policy is in force and for five years thereafter.
(2)A licensee discloses, in writing or electronically, to the person all of the following:
(A)The opt in to receive the record by electronic transmission is voluntary.
(B)That the person may opt out of receiving the record by electronic transmission at any time, and the process or system for the person to opt out.
(C)A description of the record that the person will receive by electronic transmission.
(D)The process or system to report a change or correction in the person?s email address.
(E)The licensee?s contact information, that includes, but is not limited to, a toll-free number or the licensee?s internet website address.
(3)The opt-in consent disclosure required by paragraph (2) may be set forth in the application or in a separate document that is part of the policy approved by the commissioner and shall be bolded or otherwise set forth in a conspicuous manner. The person?s signature shall be set forth immediately below the opt-in consent disclosure. If the licensee seeks consent at any time prior to the completion of the application, consent and signature shall be obtained before the application is completed. If the person has not opted in at the time the application is completed, the licensee may receive the opt-in consent at any time thereafter, pursuant to the same opt-in requirements that apply at the time of the application. The licensee shall retain a copy of the signed opt-in consent disclosure with the policy information so that each is retrievable upon request by the department while the policy is in force and for five years thereafter.
(4)The email address of the person who has consented to electronic transmission shall be set forth on the consent disclosure. In addition, if the person who consented receives an annual statement, the email address of the person who has consented shall be set forth on that record.
(5)The licensee shall annually provide one free printed copy of any record described in this subdivision upon request by the person.
(6)If a provision of this code requires a licensee to transmit a record by first-class mail, regular mail, does not specify a method of delivery, or is a record that is required to be provided pursuant to Article 6.6 (commencing with Section 791), and if the licensee is not otherwise prohibited from transmitting the record electronically under subdivision (b) of Section 1633.8 of the Civil Code, then the record may be transmitted by electronic transmission if the licensee complies with all of the requirements of Sections 1633.15 and 1633.16 of the Civil Code.
(7)Notwithstanding subdivision (b) of Section 1633.8 of the Civil Code, if a provision of this code requires a licensee to transmit a record by return receipt, registered mail, certified mail, signed written receipt of delivery, or other method of delivery evidencing actual receipt by the person, and if the licensee is not otherwise prohibited from transmitting the record electronically under Section 1633.3 of the Civil Code and this section, then the licensee shall maintain a process or system that demonstrates proof of delivery and actual receipt of the record by the person consistent with this paragraph. The licensee shall document and retain information demonstrating delivery and actual receipt so that it is retrievable, upon request, by the department at least five years after the policy is no longer in force. The record provided by electronic transmission shall be treated as if actually received if the licensee delivers the record to the person in compliance with applicable statutory delivery deadlines. A licensee may demonstrate actual delivery and receipt by any of the following:
(A)The person acknowledges receipt of the electronic transmission of the record by executing an electronic signature.
(B)The record is posted on the licensee?s secure internet website, and there is evidence demonstrating that the person logged onto the licensee?s secure internet website and downloaded, printed, or otherwise acknowledged receipt of the record.
(C)The record is transmitted to the named insured through an application on a personal electronic device that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the person logged into the application and viewed or otherwise acknowledged receipt of the record.
(D)If a licensee is unable to demonstrate actual delivery and receipt pursuant to this paragraph, the licensee shall resend the record by regular mail to the person in the manner originally specified by the underlying provision of this code.
(8)Notwithstanding any other law, a notice of lapse, nonrenewal, cancellation, or termination of any product subject to this section may be transmitted electronically if the licensee demonstrates proof of delivery as set forth in paragraph (7) and complies with the other provisions in this section.
(9)If the record is not delivered directly to the electronic address designated by the person but placed at an electronic address accessible to the person, a licensee shall notify the person in plain, clear, and conspicuous language at the electronic address designated by the person that describes the record, informs that person that it is available at another location, and provides instructions to the person as to how to obtain the record.
(10)(A)Upon a licensee receiving information indicating that the record sent by electronic transmission was not received by the person, the licensee shall, within five business days, comply with either clause (i) or (ii):
(i)Contact the person to confirm or update the person?s email address and resend the record by electronic transmission. If the licensee elects to resend the record by electronic transmission, the licensee shall demonstrate the transmission was received by the person, pursuant to paragraph (6), (7), or (8). If the licensee is unable to confirm or update the person?s email address, the licensee shall resend the record by regular mail to the licensee at the address shown on the policy, or, if the underlying statute requires delivery in a specified manner, send the record in that specified manner.
(ii)Resend the record initially provided by electronic transmission by regular mail to the insured at the address shown on the policy, or, if the underlying statute requires delivery in a specified manner, send the record in that specified manner.
(B)If the licensee sends the first electronic record within the time period required by law and the licensee complies with both paragraph (5) and subparagraph (A) of this paragraph, the record sent pursuant to clause (i) or (ii) of subparagraph (A) shall be treated as if mailed in compliance with the applicable statutory regular mail delivery deadlines.
(11)The licensee shall not charge any person who declines to opt in to receive a record through electronic transmission from receiving a record electronically. The licensee shall not provide a discount or an incentive to any person to opt in to receive electronic records.
(12)The licensee shall verify a person?s email address via paper writing sent by regular mail when more than 12 months have elapsed since the licensee?s last electronic communication.
(c)An insurance agent or broker acting under the direction of a party that enters into a contract by means of an electronic record or electronic signature shall not be held liable for any deficiency in the electronic procedures agreed to by the parties under that contract if all of the following are met:
(1)The insurance agent or broker has not engaged in negligent, reckless, or intentional tortious conduct.
(2)The insurance agent or broker was not involved in the development or establishment of the electronic procedures.
(3)The insurance agent or broker did not deviate from the electronic procedures.
(d)On or before January 1, 2022, the commissioner shall submit a report to the Governor and to the committees of the Senate and Assembly having jurisdiction over insurance and the judiciary, regarding insurer compliance with laws governing electronic transmissions of insurance transactions, including renewal offers, notices, or disclosures. The commissioner shall ensure the report addresses the use of electronic transmissions by insurers conducting the business of insurance, the department?s enforcement actions relating to those electronic transmissions, and the impact of those enforcement actions on insurer compliance rates.
(e)Notwithstanding paragraph (4) of subdivision (b) of Section 1633.3 of the Civil Code, a statutory requirement for a separate acknowledgment, signature, or initial that is not expressly prohibited by subdivision (c) of Section 1633.3 of the Civil Code may be transacted using an electronic signature, or by electronic transaction, subject to all applicable provisions of this section.
(f)(1)Whenever the commissioner has reason to believe that a licensee has been or is engaged in conduct in this state that violates this section, or if the commissioner believes that a licensee has been or is engaged in conduct outside this state that has an effect on an insurance risk located within this state and that violates this section, the commissioner shall issue and serve upon that licensee a statement of charges and notice of hearing to be held at a time and place fixed in the notice. The date for the hearing shall be not less than 30 days after the date of service.
(2)At the time and place fixed for the hearing, the licensee charged shall have an opportunity to answer the charges against it and present evidence on its behalf. Upon good cause shown, the commissioner shall permit any adversely affected person to appear and be heard at the hearing by counsel or in person.
(3)At any hearing conducted pursuant to this section, the commissioner may administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence. The commissioner shall have the power to subpoena witnesses, compel their attendance, and require the production of books, papers, records, correspondence, and other documents that are relevant to the hearing. A stenographic record of the hearing shall be made upon the request of any party or at the discretion of the commissioner. If no stenographic record is made and if judicial review is sought, the commissioner shall prepare a statement of the evidence for use on review. Hearings conducted under this section shall be governed by the same rules of evidence and procedure applicable to administrative proceedings conducted under the laws of this state.
(4)Statements of charges, notice, orders, and other processes of the commissioner under this section may be served by anyone duly authorized to act on behalf of the commissioner. Service of process may be completed in the manner provided by law for service of process in civil actions or by registered mail or by a mailing service offered by a third-party with tracking capability that is not more expensive than registered mail. A copy of the statement of charges, notice, order, or other process shall be provided to the person or persons whose rights under this section have been allegedly violated. A verified return setting forth the manner of service, the return postcard receipt in the case of registered mail, or signed receipt documentation shall be sufficient proof of service.
(5)If, after a hearing pursuant to paragraphs (1) through (4), the commissioner determines that the licensee charged has engaged in conduct or practices in violation of this section, the commissioner shall reduce their findings to writing and shall issue and cause to be served upon the licensee a copy of the findings and an order requiring the licensee to cease and desist from the conduct or practices constituting a violation of this section. As part of the order, the commissioner may suspend a licensee from providing records by electronic transmission if there is a pattern or practice that demonstrates the licensee has failed to comply with the requirements of this section. A licensee may appeal the suspension and resume its electronic transmission of records upon communication from the department that the changes the licensee made to its process or system to comply with the requirements of this section are satisfactory.
(6)Until expiration of the time allowed using the procedure set forth in paragraph (7) for filing a petition for review or until the petition is actually filed, whichever occurs first, the commissioner may modify or set aside any order issued under this section. After expiration of the time allowed under paragraph (7) for filing a petition for review, if no petition has been duly filed, the commissioner may, after notice and opportunity for hearing, alter, modify, or set aside, in whole or in part, any order issued under this section whenever conditions of fact or law warrant that action or if the public interest requires.
(7)A licensee subject to an order of the commissioner under this section or a person whose rights under this section were allegedly violated may obtain a review of an order of the commissioner by filing a petition in a court of competent jurisdiction, within 30 days from the date of the service of the order, pursuant to Section 1094.5 of the Code of Civil Procedure. The court shall have jurisdiction to make and enter a decree modifying, affirming, or reversing any order of the commissioner, in whole or in part.
(8)An order issued by the commissioner under this section shall become final upon either of the following:
(A)Upon the expiration of the time allowed for the filing of a petition for review, if no petition has been duly filed. However, the commissioner may modify or set aside an order to the extent provided in paragraph (6).
(B)Upon a final decision of the court, if the court directs that the order of the commissioner be affirmed or the petition for review dismissed.
(9)An order of the commissioner under this section or order of a court to enforce the order of the commissioner shall not in any way relieve or absolve a person or licensee affected by that order from liability under any law of this state.
(10)A licensee who violates a cease and desist order of the commissioner under this section may, after notice and hearing and upon order of the commissioner, be subject to one of the following penalties at the discretion of the commissioner:
(A)A civil penalty of not more than ten thousand dollars ($10,000) for each violation, except that the total civil penalty for violations of this section in a single investigation shall not exceed two hundred fifty thousand dollars ($250,000).
(B)A civil penalty of not more than two hundred fifty thousand dollars ($250,000) if the commissioner finds that violations have occurred with such frequency as to constitute a general business practice.
(C)Suspension or revocation of a licensee?s license if the licensee knew or reasonably should have known it was in violation of the cease and desist order.
(Amended (as amended by Stats. 2017, Ch. 561, Sec. 137) by Stats. 2019, Ch. 235, Sec. 4. (AB 1065) Effective January 1, 2020.)
Insurers shall maintain a system for electronically confirming a policyholder?s decision to opt in to an agreement to conduct transactions electronically and a system that will allow the policyholder to electronically opt out of the agreement to conduct business electronically as specified in subdivision (c) of Section 1633.5. The insurer shall maintain the electronic records for the same amount of time the insurer would be required to maintain those records if the records were in written form.
(Added by Stats. 2009, Ch. 433, Sec. 3. Effective January 1, 2010.)
If any provision of this code, or the application thereof to any person or circumstance, is held invalid, the remainder of the code, or the application of such provision to other persons or circumstances, shall not be affected thereby.
(Enacted by Stats. 1935, Ch. 145.)
The existence of insurers formed prior to the date this code takes effect shall not be affected by the enactment of this code nor by any repeal of the laws under which they were formed, but such insurers shall thereafter operate under the provisions of this code.
(Enacted by Stats. 1935, Ch. 145.)
All insurance in this State is governed by the provisions of this code.
(Enacted by Stats. 1935, Ch. 145.)
The designation of insurance coverage as ?group? in any code or law of this state other than this code does not authorize its representation as a group coverage or as a group policy, certificate, or contract by any person licensed or certificated by the commissioner unless the policy providing the coverage is defined as group insurance by a specific provision of this code or of the laws of the state in which the policy, certificate, or contract is issued. This section shall apply only to life, disability, and workers? compensation insurance.
(Amended by Stats. 2018, Ch. 231, Sec. 1. (AB 2045) Effective January 1, 2019.)
Any person who willfully and knowingly makes, circulates, or transmits to another any false written or printed statement for the purpose of damaging the financial condition or stability of any insurance company doing business in this state is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000).
(Added by Stats. 1969, Ch. 839.)
(a)?Electronic funds transfer? means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape, so as to order, instruct, or authorize a financial institution to debit or credit an account. Electronic funds transfer shall be accomplished by an automated clearinghouse debit, an automated clearinghouse credit, a Federal Reserve Wire Transfer (Fedwire), or an international funds transfer, at the option of the insurer.
(b)For purposes of this section:
(1)?Automated clearinghouse? means any federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and that authorizes an electronic transfer of funds between those banks or bank accounts.
(2)?Automated clearinghouse debit? means a transaction in which any department of the state, through its designated depository bank, originates an automated clearinghouse transaction debiting the taxpayer?s bank account and crediting the state?s bank account for the amount of tax. Banking costs incurred for the automated clearinghouse debit transaction by the taxpayer shall be paid by the state.
(3)?Automated clearinghouse credit? means an automated clearinghouse transaction in which the taxpayer, through its own bank, originates an entry crediting the state?s bank account and debiting its own bank account. Banking costs incurred by the state for the automated clearinghouse credit transaction may be charged to the taxpayer.
(4)?Fedwire? means any transaction originated by the taxpayer and utilizing the national electronic payment system to transfer funds through federal reserve banks, pursuant to which the taxpayer debits its own bank account and credits the state?s bank account. Electronic funds transfers may be made by Fedwire only if prior approval is obtained from the department and the taxpayer is unable, for reasonable cause, to make payments pursuant to paragraph (2) or (3). Banking costs charged to the taxpayer and to the state may be charged to the taxpayer.
(5)?International funds transfer? means any transaction originated by the taxpayer and utilizing ?SWIFT,? the international electronic payment system to transfer funds in which the taxpayer debits its own bank account, and credits the funds to a United States bank that credits the state?s bank account. Banking costs charged to the taxpayer and to the state may be charged to the taxpayer.
(Added by Stats. 1993, Ch. 661, Sec. 1. Effective January 1, 1994.)
The Legislature hereby declares its intent that the term ?workmen?s compensation? shall hereafter also be known as ?workers? compensation.? In furtherance of this policy it is the desire of the Legislature that references to the term ?workmen?s compensation? in this code be changed to ?workers? compensation? when such code sections are being amended for any purpose. This act is declaratory and not amendatory of existing law.
(Added by Stats. 1974, Ch. 1454.)
?Surplus line broker? means a person licensed under Section 1765 and authorized to do business under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1.
(Added by Stats. 1998, Ch. 269, Sec. 1. Effective January 1, 1999.)
A ?surplus line broker certificate? means a certificate issued by a surplus line broker to an insurance purchaser as evidence of the placement of insurance with an eligible nonadmitted insurer in accordance with the requirements of Sections 1764, 1764.1, and 1764.2.
(Added by Stats. 1999, Ch. 255, Sec. 1. Effective January 1, 2000.)