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.
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