California Cuts Regulatory Fees

California’s Department of Insurance is reducing fees by 9.8 percent.

The fee reduction is possible because the Department has increased efficiency, according to a press release. The fees fund the Department’s regulatory activities.

“When I came into office, I ordered the creation of a strategic plan — the first in recent history, a business process survey and a top down review,” said Insurance Commissioner Steve Poizner, who is running for govermor. “Because of that, I have been able to streamline the Department of Insurance and cut my state operations budget by nearly 15 percent. With these lower costs, I have ordered CDI to reduce the fees that we charge.”

Poizner said fees have been reduced by nearly $10 million since he took office.

Some of the activities that have been streamlined to achieve savings for the department are work related to rate filings and resolving rate rollback issues; providing consumer information and assistance in resolving insurance related problems; and studies relating to auto ratings, rate regulation, rate enforcement and fee assessment.

In fiscal year 2009-10, CDI will collect $23.8 million from these fees, a reduction of 9.8 percent compared to fiscal year 2008-09. These fees are now 19.5 percent lower than fiscal 2006-07, the year before Poizner took office. The total savings from the 9.8 percent rate cut is approximately $2.6 million.

In January 2009, Poizner reduced licensing fees for the state’s 300,000 insurance agents, brokers, and adjusters by 6 percent.

Latest Comments

• November 3, 2009 at 5:48 am

  El Jardinero says:

  HELLO! Insurance commissioner is the stepping stone for becoming the governor in Cali. He also get's free press and will push programs like the low cost auto. If he does not b... read more
• November 3, 2009 at 1:04 am

  Gray Cat says:

  I believe you are referring to the stamping fee that Surplus Lines Association of CA charges. The stamping fee is set by the CA SLA which is not part of the CA DOI so Poizner ... read more
• November 3, 2009 at 12:31 pm

  Mike Menegus says:

  That maybe so, but the surplus lines fees are going up effective 2/1/2010. I don't see much efficiency here.