P&CCaliforniamedium
During a CDI investigation into alleged rebating by a California producer, the Commissioner needs to compel testimony and document production. Under Ins. Code § 12924, what authority does the Commissioner have?
ANone — the Commissioner must petition the superior court individually to obtain each subpoena before any compulsory process can issue
Issue subpoenas and subpoenas duces tecum and administer oaths in the course of any examination or investigation under the statute
COnly request voluntary production of records, and a licensed producer may decline to respond without any administrative or legal consequence
DRefer the entire matter to the Federal Bureau of Investigation, which performs all investigative subpoena and testimony work on the Commissioner's behalf
Why this is the answer
Ins. Code § 12924 vests the California Insurance Commissioner with broad investigatory authority: power to administer oaths, examine witnesses under oath, and issue subpoenas (including subpoenas duces tecum) for documents. The authority extends to financial and market-conduct examinations under Ins. Code §§ 730-738 and to enforcement investigations under Ins. Code §§ 1668, 790.03, and 12921.8. A refusal to comply is enforceable by petition to the superior court under Gov. Code §§ 11181-11188 (the general agency investigation statutes). See Ins. Code § 12924.
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