Corporate Affairs Bureau
The Corporate Affairs Bureau (CAB) protect California consumers by effectively exercising licensing, oversight and enforcement functions so that insurers remain solvent and conduct their affairs in accordance with the law. Program areas handled by CAB include corporate applications, troubled companies, surplus lines, company compliance, risk retention and risk purchasing groups, conservation and liquidation of insurance companies, and providing essential legal advice and assistance in support of the Financial Surveillance Branch's regulatory programs.
CAB seeks to ensure that licenses are issued to qualified applicants who demonstrate compliance with the Insurance Code and regulations, and who have the competency, character, integrity, experience and financial wherewithal to transact insurance business in this State. The demands of insurers' businesses periodically necessitate corporate transactions such as mergers, stock issuances or bulk reinsurance agreements, which require departmental approval. In addition, the law requires that domestic insurers (California companies) obtain prior approval of all transactions with affiliates and most changes in ownership structure.
CAB also provides in-house legal services to CDI's Conservation & Liquidation Office (CLO). CAB 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 specialized outside counsel for tax, reinsurance and real estate matters. CAB attorneys 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
Carol F. Frair, Acting Assistant Chief Counsel
Corporate Affairs Bureau II
Valerie J. Sarfaty, Assistant Chief Counsel