Section 2196.3 - Disapproval(a) The Commissioner may disapprove any policy or bond forms which are unfair, unreasonable, or otherwise inconsistent with the provisions of the Insurance Code.(b) If the Commissioner reviews an application and determines that the application should be disapproved, the Commissioner shall issue a Notice of Determination to Hold Hearing. A Notice of Determination to Hold Hearing shall set forth the basis for disapproval.(c) Within fifteen days of service of a Notice of Determination to Hold Hearing, an applicant must elect to either(1) modify, supplement, amend or withdraw the application,(2) acknowledge receipt of the notice and request a hearing pursuant to section 2197.1, or(3) waive the right to a hearing and accept the disapproval. All elections must be written and filed. An applicant who fails to so elect will be deemed to have requested a hearing.(d) Absent good cause, hearings shall ordinarily commence within 45 days of service of a request for hearing. The time period set forth in this section is directory, not mandatory.(e) Service of a Notice of Determination to Hold Hearing shall constitute an act by the Commissioner on the policy or bond form application. No policy or bond form application shall be deemed approved after a Notice of Determination to Hold Hearing has been served.Cal. Code Regs. Tit. 10, § 2196.3
1. New section filed 10-5-90 as an emergency; operative 10-5-90 (Register 90, No. 45). A Certificate of Compliance must be transmitted to OAL by 2-4-90 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 2-4-91 as an emergency operative 2-4-91 (Register 91, No. 7). A Certificate of Compliance must be transmitted to OAL by 6-4-91 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 2-4-91 order transmitted to OAL 5-17-91 and filed 6-17-91 (Register 91, No. 36).
4. Editorial correction of printing error in subsection (b) (Register 91, No. 46). Note: Authority cited: Section 12921, Insurance Code; and CalFarm Insurance Company, et al. v. Deukmejian, et al. (1989) 48 Cal.3d 805, 824. Reference: Section 1855.5(b), Insurance Code.
1. New section filed 10-5-90 as an emergency; operative 10-5-90 (Register 90, No. 45). A Certificate of Compliance must be transmitted to OAL by 2-4- 90 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 2-4-91 as an emergency operative 2-4-91 (Register 91, No. 7). A Certificate of Compliance must be transmitted to OAL by 6-4-91 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 2-4-91 order transmitted to OAL 5-17-91 and filed 6-17-91 (Register 91, No. 36).
4. Editorial correction of printing error in subsection (b) (Register 91, No. 46).