Section 2199.3.3 - Disapproval(a) The Commissioner shall disapprove any manual which is found by the Commissioner to contemplate activities and practices that are unfair, unreasonable, or otherwise inconsistent with the provisions of the Insurance Code. A manual shall not be disapproved as contemplating activities and practices that are unfair, unreasonable or otherwise inconsistent with the Insurance Code based on technical or actuarial grounds unless the manual fails to meet the requirements of section 2199.3.5. A manual shall not be disapproved as contemplating activities and practices that are unfair, unreasonable or otherwise inconsistent with the provisions of the Insurance Code based on the grounds of an adverse effect on competition unless the requirements of section 2199.3.6 are met.(b) If the Department of Insurance 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 2199.4.4 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 commence within 60 days of service of a request for hearing. Hearings shall be conducted in accordance with the provisions of Insurance Code section 1861.08 and sections 2649.1-2662.8 of these regulations.(e) At all such hearings, the applicant shall have the burden of proving that the manual does not contemplate activities and practices that are unfair, unreasonable, or otherwise inconsistent with the provisions of the Insurance Code.Cal. Code Regs. Tit. 10, § 2199.3.3
1. New section filed 6-26-96; operative 7-26-96 (Register 96, No. 26).
2. Change without regulatory effect amending subsection (a) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20. Note: Authority cited: Section 12921, Insurance Code; and Calfarm Insurance Company, et al. v. Deukmejian, et al. (1989) 48 Cal. 3d 805, 824. Reference: Sections 1855.4 and 1855.5(b), 1861.08, Insurance Code.
1. New section filed 6-26-96; operative 7-26-96 (Register 96, No. 26).
2. Change without regulatory effect amending subsection (d) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.
3. Change without regulatory effect amending subsection (a) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.