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California Insurance Code Section 790.06

Legal Research Home > California Laws > Insurance Code > California Insurance Code Section 790.06

790.06.  (a) Whenever the commissioner shall have reason to believe
that any person engaged in the business of insurance is engaging in
this state in any method of competition or in any act or practice in
the conduct of the business that is not defined in Section 790.03,
and that the method is unfair or that the act or practice is unfair
or deceptive and that a proceeding by him or her in respect thereto
would be in the interest of the public, he or she may issue and serve
upon that person an order to show cause containing a statement of
the methods, acts or practices alleged to be unfair or deceptive and
a notice of hearing thereon to be held at a time and place fixed
therein, which shall not be less than 30 days after the service
thereof, for the purpose of determining whether the alleged methods,
acts or practices or any of them should be declared to be unfair or
deceptive within the meaning of this article. The order shall specify
the reason why the method of competition is alleged to be unfair or
the act or practice is alleged to be unfair or deceptive.
   The hearings provided by this section shall be conducted in
accordance with the Administrative Procedure Act (Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code), except that the hearings may be conducted by
an administrative law judge in the administrative law bureau when the
proceedings involve a common question of law or fact with another
proceeding arising under other Insurance Code sections that may be
conducted by administrative law bureau administrative law judges. The
commissioner and the appointed administrative law judge shall have
all the powers granted under the Administrative Procedure Act. If the
alleged methods, acts, or practices or any of them are found to be
unfair or deceptive within the meaning of this article the
commissioner shall issue and service upon that person his or her
written report so declaring.
   (b) If the report charges a violation of this article and if the
method of competition, act or practice has not been discontinued, the
commissioner may, through the Attorney General of this state, at any
time after 30 days after the service of the report cause a petition
to be filed in the superior court of this state within the county
wherein the person resides or has his or her principal place of
business, to enjoin and restrain the person from engaging in the
method, act or practice. The court shall have jurisdiction of the
proceeding and shall have power to make and enter appropriate orders
in connection therewith and to issue any writs as are ancillary to
its jurisdiction or are necessary in its judgment to prevent injury
to the public pendente lite.
   (c) A transcript of the proceedings before the commissioner,
including all evidence taken and the report and findings shall be
filed with the petition. If either party shall apply to the court for
leave to adduce additional evidence and shall show, to the
satisfaction of the court, that the additional evidence is material
and there were reasonable grounds for the failure to adduce the
evidence in the proceeding before the commissioner, the court may
order the additional evidence to be taken before the commissioner and
to be adduced upon the hearing in the manner and upon the terms and
conditions as to the court may seem proper. The commissioner may
modify his or her findings of fact or make new findings by reason of
the additional evidence so taken, and shall file modified or new
findings with the return of the additional evidence.
   (d) If the court finds that the method of competition complained
of is unfair or that the act or practice complained of is unfair or
deceptive, that the proceeding by the commissioner with respect
thereto is to the interest of the public and that the findings of the
commissioner are supported by the weight of the evidence, it shall
issue its order enjoining and restraining the continuance of the
method of competition, act or practice.

Last modified: February 22, 2013