2009 California Insurance Code - Section 1853.5-1853.9 :: Article 2. Making And Use Of Rates

1853.5.  With respect to any matters pertaining to the making of
rates or rating systems, the preparation or making of insurance
policy or bond forms, underwriting rules, surveys, inspections and
investigations, the furnishing of loss or expense statistics or other
information and data, or carrying on of research, two or more
admitted insurers having a common ownership or operating in this
State under common management or control, are hereby authorized to
act in concert between or among themselves the same as if they
constituted a single insurer, and to the extent that such matters
relate to co-surety bonds, two or more admitted insurers executing
such bonds are hereby authorized to act in concert between or among
themselves the same as if they constituted a single insurer.

1853.8.  Agreements may be made among admitted insurers with respect
to the equitable apportionment among them of casualty insurance
which may be afforded applicants who are in good faith entitled to
but who are unable to procure such insurance through ordinary
methods, and with respect to the use of reasonable rate modifications
for such insurance, such agreements to be subject to the approval of
the commissioner.
   All such agreements shall be submitted in writing to the
commissioner for his consideration and approval, together with such
information as he may reasonably require. The commissioner shall
approve only such agreements as are found by him to contemplate (a)
the use of rates which meet the standards prescribed by this chapter
and (b) activities and practices that are not unfair, unreasonable or
otherwise inconsistent with the provisions of this chapter.
   At any time after such agreements are in effect the commissioner
may review the practices and activities of the adherents to such
agreements and if after a hearing upon not less than 10 days notice
to such adherents he finds that any such practice or activity is
unfair or unreasonable, or is otherwise inconsistent with the
provisions of this chapter, he may issue a written order to the
parties to any such agreement specifying in what respects such act or
practice is unfair or unreasonable or otherwise inconsistent with
the provisions of this chapter and requiring the discontinuance of
such activity or practice. For good cause, and after hearing upon not
less than 10 days notice to the adherents thereto, the commissioner
may revoke approval of any such agreement.

1853.9.  Upon compliance with the provisions of this chapter
applicable thereto any rating organization, advisory organization,
and any group, association or other organization of admitted insurers
which engages in joint underwriting or joint reinsurance through
such organization or by standing agreement among the members thereof,
may conduct operations in this State. As respects insurance risks or
operations in this State, no insurer shall be a member or subscriber
of any such organization, group or association that has not complied
with the provisions of this chapter applicable to it.