The California Department of Insurance (CDI) plays a critical role in protecting consumers in the nation’s largest insurance market. Established in 1868, CDI has evolved alongside California’s growing population and complex insurance needs. Today, under the leadership of Insurance Commissioner Ricardo Lara, CDI remains committed to fairness, equity, and transparency in regulating the insurance industry.

With nearly 1,400 employees overseeing more than 1,400 insurance companies and licensing over 495,000 professionals, CDI’s impact reaches every corner of California. But what does the CDI actually do—and how does it protect you as a policyholder?

Consumer Protection at the Core

CDI’s top priority is ensuring that Californians are treated fairly by their insurance providers. Its responsibilities include:

• Regulating Insurance Rates: Ensuring that rates are fair and not excessive
• Monitoring Company Solvency: Protecting policyholders by ensuring insurers remain financially stable
• Investigating Fraud: Cracking down on fraudulent claims and dishonest practices
• Handling Consumer Complaints: Providing a formal process for consumers to dispute unfair treatment

These efforts help foster a transparent, reliable, and consumer-focused insurance marketplace.

Serving Both Consumers and the Industry

Beyond regulation, CDI serves as a mediator between insurance companies and consumers. Since the passage of Proposition 103 in 1988, CDI has been tasked with approving property and casualty insurance rates before they can take effect—ensuring consumers aren’t overcharged.

Whether through complaint resolution, educational resources, or community outreach, CDI works to make insurance products and services more accessible and equitable for Californians.

Resources Available Through CDI

CDI offers a wide range of resources for policyholders, including:

• Educational guides on your insurance rights
• Public meetings in areas impacted by natural disasters
• A complaint resolution system to address disputes with insurers
• Market data and regulatory reports to ensure industry transparency

These tools empower Californians to make informed decisions and seek accountability when necessary.

Oversight Through Market Research

A key part of CDI’s role is conducting market conduct exams and issuing data calls to insurance companies. These audits identify claim-handling violations and other unfair practices. If insurers are found in violation, CDI has the authority to take enforcement actions, ensuring policyholders get the fair treatment they deserve.

When You Still Need a Lawyer

While the California Department of Insurance provides vital oversight, it cannot always resolve every dispute—especially when you’re facing serious issues such as:

• Bad-faith insurance practices
• Underpayment or denial of claims
• Disputes over medical or accident-related coverage
• Delays in receiving your rightful benefits

That’s where Hillstone Law comes in. Our attorneys are experienced in California insurance law and know how to take on large insurance companies when they refuse to act in good faith.

Call Hillstone Law Today

If you’re struggling with an insurance company—even after contacting the California Department of Insurance—don’t face the battle alone. At Hillstone Law, we fight to ensure your rights are protected and that you receive the compensation and coverage you deserve.

Call us today at (310) 595-1222 for a free consultation. Let our team guide you through the complexities of insurance claims and stand up for your rights when it matters most.