# What services does the CA Insurance Department provide to consumers and businesses?

Amelia Palmer · August 4, 2026

> The California Department of Insurance (CDI) is the largest consumer protection agency in California, overseeing over 1,300 insurance companies and...

The California Department of Insurance (CDI) is the largest consumer protection agency in California, overseeing over 1,300 insurance companies and approximately 425,000 agents and brokers, ensuring that these entities comply with state regulations.

CDI provides a variety of consumer assistance programs, including the Low-Cost Auto Insurance Program designed to help low-income drivers obtain affordable insurance while meeting California's mandatory insurance requirements.

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The Senior Gateway program offers specialized resources and support for older adults, addressing their unique insurance needs, such as Medicare and long-term care insurance options.

CDI implements strict background checks on all applicants for insurance licenses, including criminal offender record information from both the California Department of Justice and the Federal Bureau of Investigation, ensuring that only qualified individuals are licensed.

The CDI has a dedicated hotline (800-927-4357) for consumer inquiries and complaints, providing a direct line for individuals seeking assistance with insurance-related issues or disputes.

The department actively investigates and prosecutes insurance fraud, which can cost consumers millions of dollars annually.

This includes a variety of fraudulent activities, from staged accidents to false claims.

CDI also enforces Proposition 103, a landmark law passed in 1988 that mandates specific regulations for insurance rates, aiming to ensure fairness and transparency in the pricing of insurance products.

The agency runs an online License Status Inquiry system, allowing consumers to check the licensing status of insurance agents and brokers, enhancing transparency and accountability within the insurance market.

CDI's Consumer Services Division helps individuals file complaints against insurance companies that are not complying with state laws or fulfilling their contractual obligations.

The department provides educational resources to consumers about their rights and responsibilities regarding insurance, helping individuals make informed decisions and understand complex policies.

California also has a program for those without private insurance coverage, designed to provide essential insurance options to homeowners who are unable to secure coverage from private insurers, particularly after natural disasters.

CDI offers detailed reports on insurance industry practices and trends, which can be valuable for researchers, policymakers, and the general public, providing insights into market dynamics and consumer behavior.

The department facilitates public workshops and forums aimed at increasing awareness and understanding of insurance topics among consumers, encouraging dialogue and education on important issues.

CDI is involved in developing regulations that govern emerging insurance technologies, such as telematics in auto insurance, ensuring that new innovations benefit consumers while protecting their privacy and data.

The department also collaborates with other state agencies and stakeholders to address systemic issues in the insurance industry, such as coverage disparities in underserved communities.

CDI has an active role in managing the California FAIR Plan, which provides basic property insurance for homeowners unable to obtain coverage due to high risk, particularly in areas prone to wildfires.

The agency monitors and reports on insurance market trends, including rate changes and coverage availability, aiding in the assessment of the overall health of the insurance market in California.

CDI's Fraud Division works in conjunction with law enforcement agencies to investigate and prosecute cases of insurance fraud, significantly impacting the overall integrity of the insurance system.

The department is also responsible for enforcing the Insurance Code, which outlines the legal framework within which insurance companies must operate, ensuring compliance and consumer protection.

Lastly, CDI's efforts in consumer advocacy have led to increased transparency in the insurance industry, resulting in more consumer-friendly practices and improved access to necessary insurance products across the state.

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