Consolidate Vehicle Assessment Invoices
SB 476 Auto Consumer Assessment –California Insurance Code (CIC) Section 1872.81 Commencing July 1, 2014, the assessment is reduced from $0.30 to $0.25 until January 1,2016, and not exceeding $0.25 thereafter, on each vehicle under an insurance policy issued in this state by the insurer. Thus, policies in force prior to July 1, 2014, will be assessed at the$0.30 rate and policies in force on or after July 1, 2014, will be assessed at the $0.25 rate.
Background Effective with the billing for the calendar quarter ended March 31, 2002, the California Department of Insurance has consolidated into a single invoice the three vehicle assessment billings which were invoiced separately in the past. Recent adoptions of conforming regulations [See the California Insurance Code (CIC) Sections and the California Code of Regulation CCR Sections referenced below] now provide uniform assessment guidelines which make consolidated invoicing practical for the following assessments:
- Investigation and prosecution of automobile insurance fraud - $1.00 annual fee per insured vehicle. CIC Section 1872.8, California Code of Regulations Section 2698.60 et. seq.
- Consumer service functions related to automobile insurance - $0.25 annual fee per insured vehicle. CIC 1872.81, California Code of Regulations Section 2698.68.
- Automobile fraud interdiction program - $0.50 annual fee per insured vehicle. CIC Section 1874.8, California Code of Regulations Section 2698.70 et. seq.
Please note that the quarterly assessment per insured vehicle is $0.4375. The $0.4375 assessment is determined by dividing the sum of the three annual fees by four ( $1.00 + $0.25 + $0.50 = $1.75/4 = $0.4375 ). The total amount of the assessment should be rounded to the nearest dollar.
For example: $0.4375 X 895,000 vehicles = $391,562.50. In this example the Insurer would remit $391,563.00.
Key Uniform Provisions For All Three Insured Automobile Assessments
We hope that the consolidated invoicing is as beneficial to insurers as it is to the Department. Should you have any questions regarding this message or the assessments described herein, please contact Wendy Kwong at (916) 492-3234 or Carolina Bravo (916) 492-3237.