California Property & Casualty Broker-AgentCalifornia LawHard
An admitted insurer in California decides to withdraw from a specific line of business. According to the California Insurance Code, what is the minimum advance notice period the insurer must provide to the Commissioner of Insurance before withdrawing from that line of business?
- A120 days
- B90 days
- C60 days
- D30 days
Show answer & explanationAnswer & explanation
Correct answer: A. 120 days
The California Insurance Code requires an admitted insurer to provide the Commissioner with at least 120 days' advance written notice before withdrawing from a line of business or substantially reducing its volume of insurance in the state.
Why the other options are wrong
- B. 90 days is a common regulatory period but not the specific requirement for an insurer's withdrawal from a line of business in California.
- C. 60 days is insufficient notice; the requirement is longer to allow for proper planning and consumer protection.
- D. 30 days is too short for a withdrawal notification; the code requires a longer period.
Insurer Withdrawal Notice
In California, an admitted insurer must provide the Commissioner of Insurance with a minimum of 120 days' advance written notice before withdrawing from a line of business or substantially reducing its insurance volume in the state.
- 120 days advance notice
- Written notification to Commissioner
- Applies to line of business withdrawal
Memory trick: 120 days to 'PACK' (Prepare, Advise, Communicate, Know) before leaving.