The Corporate Affairs Bureaus (CAB I and II) protect California consumers by exercising licensing, oversight and enforcement functions to ensure that insurers remain solvent and conduct their affairs in accordance with the law. Program areas handled by CAB include insurer corporate applications, troubled companies, surplus lines, company compliance, risk retention and risk purchasing groups, and providing legal advice and assistance to the Financial Surveillance Branch's regulatory programs.
CAB seeks to ensure that insurer licenses are issued to qualified applicants who demonstrate compliance with applicable law and who have the competence, character, integrity, experience and financial wherewithal to transact an insurance business in this state. In addition, CAB reviews corporate transactions such as mergers, stock issuances or bulk reinsurance agreements that require departmental approval. Additionally, CAB reviews all transactions with affiliates and most changes in ownership structure of California domestic insurers.
CAB II also provides in-house legal services to the CDI's Conservation & Liquidation Office (CLO). CAB II attorneys respond to the legal issues that arise during the conservation and/or liquidation of an insolvent insurance company. These issues include the administration of the companies in liquidation and management of outside counsel for tax, reinsurance and real estate matters. Attorneys providing support to CLO draft the conservation and liquidation pleadings, the contracts for outside services and vendors and work closely with the Attorney General's office and with outside counsel to protect and marshal the assets of the companies in liquidation, in order to maximize distributions to creditors.
Corporate Affairs Bureau I Chief - Assistant Chief Counsel Susan Stapp
Corporate Affairs Bureau II Chief - Assistant Chief Counsel Valerie Sarfaty
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