Section 11621.4 Of Article 4. Assigned Risk Plans From California Insurance Code >> Division 2. >> Part 3. >> Chapter 1. >> Article 4.
11621.4
. (a) New plan assignments to a participating insurer may be
suspended or a participating insurer may be relieved of its
obligation to renew existing assigned risk policies at expiration
when a valid order of suspension is issued by the commissioner and
the suspension of assignments or policy renewals is approved by the
commissioner. Prior to the approval of a suspension of assignments or
policy renewals, the plan's advisory committee shall advise the
commissioner as to whether or not it recommends approval or denial of
the suspension.
(b) If an insurer granted relief pursuant to subdivision (a)
resumes writing business in this state, its quota shall reflect the
plan assignments it would have received and the assigned risk renewal
policies it would have issued during its period of suspension. The
required assignment adjustment shall be spread over a period of three
or more years, as determined by the commissioner. Prior to
determining this assignment adjustment, the plan's advisory committee
shall advise the commissioner as to whether or not it recommends
approval or denial of the adjustment.
(c) The adjustment of the insurer's quota shall be a percentage of
the insurer's under-assignments as determined by the commissioner.
Prior to determining this adjustment, the plans's advisory committee
shall advise the commissioner as to whether or not it recommends
approval or denial of the adjustment. After the approved period of
adjustment has expired, the insurer's normal quota will resume unless
the insurer shows good cause to and receives approval from the
commissioner for extension of the adjustment period. Prior to this
approval, the plan's advisory committee shall advise the commissioner
as to whether or not it recommends approval or denial of this
extension.