Ins. Code, § 704 · Article 3. Certificate of Authority
Ins. Code, § 704
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
The commissioner may suspend the certificate of authority of an insurer for not exceeding one year whenever he finds, after proper hearing following notice, that such insurer engages in any of the following practices:
(a) Conducting its business fraudulently.
(b) Not carrying out its contracts in good faith.
(c) Habitually and as a matter of ordinary practice and custom compelling claimants under policies, or liability judgment creditors of the insured, to either accept less than the amount due under the terms of the policies or resort to litigation against such insurer to secure the payment of the amount due.
The order of suspension shall prescribe the period of such suspension.
The proceedings shall be conducted in accordance with Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.
Notes and commentary — not statutory text
History
Amended by Stats. 1959, Ch. 1452.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS§ionNum=704.
- Text hash
- sha256 b5acadf80421ee6bbad76576c80f0c58050755e552afccf7bba26e4de0d62ece
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 9 provisions
Provisions in this library whose text cites Ins. Code, § 704. Each shows the citation as that text prints it.
Insurance Code
- Ins. Code, § 383.5Printed as Section 704
- Ins. Code, § 704.7Printed as Section 704
- Ins. Code, § 725Printed as Section 704
- Ins. Code, § 783.5Printed as Section 704
- Ins. Code, § 1512Printed as Section 704
- Ins. Code, § 1760.5Printed as Section 704
- Ins. Code, § 10127.8Printed as Section 704
- Ins. Code, § 10199.8Printed as Section 704
- Ins. Code, § 10234.5Printed as Section 704
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.