California's Unfair Practices Act (CIC Sections 790-790.15) grants authority to enforce its prohibitions to:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The Unfair Practices Act, found in Article 6.5 of the Insurance Code, regulates trade practices in the business of insurance and prohibits unfair methods of competition and unfair or deceptive acts or practices. Enforcement authority under the Act rests with the Insurance Commissioner, who administers the Act through the Department of Insurance. Violations may be addressed through administrative proceedings initiated by the Commissioner. The Act does not create a private right of action for consumers, and it does not give the Attorney General or district attorneys the enforcement role, which is centralized in the Commissioner under the statute.
Why the other options are wrong
- A) The Act does not create a private right of action for aggrieved consumers. Enforcement is the responsibility of the Insurance Commissioner through administrative process. This option reflects a different rule and does not match the law that governs the transaction.
- C) The Attorney General is not the exclusive enforcer of the Act. The Insurance Commissioner holds the enforcement authority conferred by the statute. Accordingly, this plausible-sounding answer is one that examiners expect candidates to eliminate.
- D) District attorneys do not enforce the Unfair Practices Act. Enforcement under Sections 790 to 790.15 is centralized with the Insurance Commissioner. This statement does not survive the statutory analysis presented above and is therefore wrong.
Memory hook
One enforcer for unfair practices: the Commissioner. Consumers call CDI, not the courthouse.