Section 12926.2 Of Article 1. Generally From California Insurance Code >> Division 3. >> Chapter 2. >> Article 1.
12926.2
. (a) As used in this section, "extraordinary circumstances"
means circumstances outside of the control of a licensee that
severely and materially affect the licensee's ability to conduct
normal business operations.
(b) In determining noncompliance with this code and regulations
adopted pursuant to this code, and appropriate penalties, if any, the
commissioner may consider evidence concerning the existence of
extraordinary circumstances.
(c) A settlement agreement between the commissioner and an insurer
may not contain a provision referencing the existence of
extraordinary circumstances relative to the subject matter at issue,
unless the agreement specifies the precise period of time during
which extraordinary circumstances were in existence. Except as
provided in subdivision (d), extraordinary circumstances may not be
stated to exist for a duration of more than six months.
(d) A settlement agreement may concede the existence of
extraordinary circumstances for a period of time exceeding six months
if all of the following conditions are met:
(1) The commissioner makes a finding in the agreement that
extraordinary circumstances existed for more than six months, and
documents in that finding facts supporting that conclusion.
(2) The finding identifies the public purpose justifying the
extension of extraordinary circumstances beyond the six-month period.
(3) The beginning and ending date, by month and year, of the
commencement and termination of the extraordinary circumstances are
identified.