Poizner cited increased efficiencies at CDI as the explanation. In the 2009-2010 fiscal year, CDI will collect $23.9 million in fees, a reduction of 9.8 percent from the previous fiscal year. Fees in 2009-2010 are 19.5 percent lower than they were in FY 2006-2007, CDI says.
Commissioner Poizner described the top-down review he undertook of the insurance department's policies. The operating budget was slashed 15 percent as a result, and he elected to pass those cost savings to insurance adjusters, agents, and brokers.
Fees at CDI have been cut two other times, Poizner noted. He reduced the amount of a fraud assessment from $5,100 to $2,100, saving ratepayers an estimated $3.8 million. And in January 2009, he cut fees for independent insurers 6 percent, saving them an estimated $3.5 million on license renewals.
After he "streamlined the Department of Insurance and cut [his] state operations budget," Poizner's most recent fee reduction will result in a $2.6 million savings for insurance professionals.
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Posted: November 3, 2009
