SB-1209 • 2026

Insurance: examination of insurers.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Allen
Last action: 2026-04-24
Official status: Set for hearing May 4.
Effective date: Not listed

Plain English Breakdown

The exact penalties for non-compliance are not specified in the official source material.

Insurance Company Examinations

This law requires insurance companies to follow recommendations from their examination reports and sets penalties if they do not comply.

What This Bill Does

Requires insurance companies to comply with all the recommendations made in examination reports.
Gives the Insurance Commissioner power to order a company to explain why it did not follow the report's advice if there is reason to believe non-compliance has occurred.
Allows the commissioner to issue an order requiring the company to pay a specified penalty and to comply with and implement the recommendations contained in the report if charges are justified.

Who It Names or Affects

Insurance companies
The Insurance Commissioner

Terms To Know

Insurer: A company that provides insurance to people or businesses.
Examination Report: A document written by examiners after checking an insurer's operations and finances.

Limits and Unknowns

The bill does not specify the exact penalties for non-compliance.
It is unclear how often these examinations will be conducted under this new rule.

Bill History

2026-04-24 California Legislative Information
Set for hearing May 4.
2026-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 22). Re-referred to Com. on APPR.
2026-04-10 California Legislative Information
Set for hearing April 22.
2026-03-04 California Legislative Information
Referred to Com. on INS.
2026-02-20 California Legislative Information
From printer. May be acted upon on or after March 22.
2026-02-19 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1209, as introduced, Allen.
Insurance: examination of insurers.
Existing law authorizes the Insurance Commissioner to conduct examinations of insurers whenever they deem it appropriate, or for admitted insurers, at least once every 5 years. Existing law requires the examiner in charge to file a verified written report of the examination with the department. Existing law requires the department to transmit that report to the company examined with a notice that the company has 30 days to make a written submission or rebuttal to any matters contained in the report. Existing law requires the commissioner, within 30 days of the end of the period allowed for the company to reply, to fully consider the report and any submissions and either adopt the report as filed, with modifications, or reject the report with an order to reopen the examination.
This bill would require an examined company to comply with all of the
recommendations in the report. The bill would require the commissioner, if the commissioner has reason to believe that a company has not complied with a recommendation in the report, to issue and serve an order to show cause on the company with a statement of the charges, its potential liability, and a notice of hearing. If the charges are found to be justified, the bill would require the commissioner to issue an order requiring the company to pay a specified penalty and to comply with and implement the recommendations contained in the report. The bill would require the hearing be held in compliance with the Administrative Procedure Act and would state that these powers would be additional to any other powers currently vested in the commissioner to enforce the provisions of this code.

Current Bill Text

Read the full stored bill text

Download Bill PDF