California Insurance Law and Regulations
Regulators and rate law
The California Department of Insurance, headed by the elected Insurance Commissioner, enforces the Insurance Code and Title 10 of the California Code of Regulations. Proposition 103 (1988) imposed prior approval of rates, rollbacks, and consumer intervenor rights, and remains the framework for most property-casualty rate filings.
Claims conduct standards
Two layers overlap. The Unfair Insurance Practices Act, Insurance Code §790.03, lists prohibited practices including §790.03(h)'s claims-specific list: misrepresenting policy provisions, failing to act promptly on communications, failing to adopt reasonable standards for prompt investigation, failing to affirm or deny coverage within a reasonable time, and failing to explain a denial. The Fair Claims Settlement Practices Regulations, 10 CCR §2695 et seq., add concrete deadlines, including 15 calendar days to respond to communications, 40 calendar days to accept or deny after proof of claim, 30 calendar days to pay after settlement, and providing a copy of the regulations on request. These time standards primarily protect first-party claimants.
Licensing and markets
Adjusters, including public adjusters, must be licensed by the CDI under Insurance Code §14000 et seq. and must disclose their license number on business documents. Continuing education is required each license term. Residual markets include the FAIR Plan, the California Automobile Assigned Risk Plan, and the California Earthquake Authority.
Traps
Do not assume §790.03 gives a private lawsuit - under Moradi-Shalal v. Fireman's Fund there is no private cause of action. Do not count court days. Do not apply first-party time standards to third-party liability claimants uncritically.
Worked example
A homeowner reports a water loss; the adjuster responds within 15 days but coverage is unclear. The adjuster sends a reservation of rights, investigates, then accepts the claim within 40 days of proof of loss - compliant on both layers.