Cal. Code Regs. tit. 10 § 2105.11

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 2105.11 - Enforcement

(a) The Department may revoke or suspend approval of a provider, issue approval on a restricted basis, and/or impose a monetary penalty, if:

(1) A basis exists that would have authorized the Department to deny approval to the provider;

(2) the provider violated these regulations or applicable provisions of the Insurance Code;

(3) The provider failed to exercise reasonable care in evaluating the competency, good character, and integrity of an instructor; or

(4) The provider allowed another person to use the provider's approved provider status or course approval status.

(b) A provider whose approval is revoked or suspended, or upon whom a monetary penalty is imposed, must reimburse the Department for its costs of investigating and prosecuting the provider for the violation.

(c) Insurance Code section 1742 shall apply to providers. For such purposes, "approval" shall be interpreted the same as "license." When warranted, the Department may issue a restricted approval, or may revoke an unrestricted approval and issue a restricted approval in lieu thereof.

(d) A provider shall be considered a "subject person," and be chargeable as such pursuant to Insurance Code section 1748.5.

(e) An unapproved provider or person representing that provider who states or implies that the provider is approved shall be chargeable pursuant to Insurance Code section 12921.8 as if the provider were an unlicensed insurance agent.

(f) Insurance Code sections 1669 and 1738 shall apply to approval as a provider and to an application for approval as a provider.

(g) A provider must pay the below monetary penalties, plus any investigation and prosecution costs, for the following violations. The exiastence of this monetary penalty schedule does not preclude the Department from revoking or suspending the approval of a provider, in addition to or in lieu of imposing a monetary penalty, if the facts warrant. The Department may impose a monetary penalty without commencing a formal enforcement action pursuant to California Government Code sections 11500et seq. However, if a provider upon whom such a penalty has been imposed requests a hearing within 10 business days of receiving written notice of the penalty, the Department must serve an Accusation pursuant to those sections or rescind the penalty. The fact that a violation is not recited in the below schedule does not mean that a monetary penalty, suspension or revocation may not be imposed by the Department.

Violation of Section	Penalty
Section 2105.3(a) --Provider approval	Automatic denial of any pending application for provider approval, and automatic denial of any application for provider approval filed within twenty four (24) months following the date on which course material was given to a student. Revocation of any approval already issued.
Section 2105.3(b) --Renewal of provider approval	A fine of one and one-half (1 1/2) times the amount of the course fees charged to all students completing courses provided after approval as a provider has expired and not yet been renewed, or $1,000 per course, whichever is more.
Section 2105.3(c) --Changes in provider information	$500 fine per failure to notify the Department of a change in provider information.
Section 2105.3(d) --Fictitious name	$10,000 total maximum fine for all uses of a particular unapproved fictitious name.
Section 2105.4(a) --Qualified instructor	$5,000 fine for each class taught by an instructor when either requirement of section 2105.4(a) has not been met.
Section 2105.4(b) --Use of disqualified instructor	Automatic revocation of provider's approval for permitting a person to act as an instructor after express disapproval by the Department.
Section 2105.5 --Course approval	A fine of one and one-half (1 1/2) times the amount of the course fees charged to all students for all courses for which the course had not been approved, or $1,000 per course, whichever is more.
Section 2105.5(c) --Notification to Department of classes	$500 fine for each violation.
Section 2105.5(d), (e) and (m) --Advertisement of courses	$500 fine for each violation of (d) or (e); $10,000 fine for each violation of (m).
Section 2105.5(g) --Approval of course with major change	A fine equal to 50 percent of the amount of the course fees charged to all students completing courses after a major change without Department approval, or $1,000 per course, whichever is more.
Section 2105.5(h) --Notification of class change	$500 fine for any violation.
Section 2105.5(i) and (j) --Credit	A fine equal to 50 percent of the amount of the course fees charged to all students completing courses in which credit is awarded in violation of subdivisions (i) or (j), or $1,000 per course, whichever is more.
Section 2105.5(n) --Class cancellation	$1,000 fine for each violation
Section 2105.6(c) --Expired courses	A fine equal to 50 percent of the amount of course fees charged to all students for all courses for which the course expired and not yet been renewed, or $1,000 per course, whichever is more.
Section 2105.7 --Maintenance of required records...	$100 fine per record for each failure to maintain a required record or provide it upon request to the Department.
Section 2105.8 --Credit	A fine equal to 50 percent of the amount of the course fees charged to all students completing courses in which credit is awarded in violation of subdivisions (a) or (b).
Section 2105.9(a) and (c) Successful completion of a continuing education course	A fine equal to 50 percent of the amount of the course fees charged to all students completing courses in which credit is awarded in violation of subdivisions (a) or (c).
Section 2105.10(a) --Certificates of completion.	$200 fine per certificate for each certificate that a provider fails to provide to a student who has successfully completed a course.
Section 2105.10(b) --Attendance rosters.	$500 fine per roster for each roster that a provider fails to submit on time to the Department using electronic filing.
Section 2105.3(e) --Course fees.	$1,000 fine for each student charged a course fee that deviates from the course fee schedule in effect at the time the student enrolled. $1,000 fine for each student charged a course fee based on a fee schedule that did not comply with a provision of section 2105.3(e).

Cal. Code Regs. Tit. 10, § 2105.11

1. New section filed 8-20-2007; operative 9-19-2007 (Register 2007, No. 34).

Note: Authority cited: Sections 1812, 1813 and 1814, Insurance Code. Reference: Section 1810.7, Insurance Code.

1. New section filed 8-20-2007; operative 9-19-2007 (Register 2007, No. 34).