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The California Department of Insurance provides helpful Consumer Guides to assist you in answering your insurance questions. This report provides a credibility audit of 1997 news releases, public statements, and education efforts by the California Department of Insurance (CDI).

Consumers Union conducted this review because we noticed a number of inaccuracies or misinformation from CDI during the past year. Additionally, news reporters and consumers frequently contacted us to assess the validity of claims made by CDI, sometimes expressing doubt that they could believe what they received from CDI. We then decided to review CDI news releases and public statements during the past year and document those instances where the agency provided information in a misleading manner.

A review of 1997 news releases and public statements by CDI shows a disturbing number of instances of misinformation. On several occasions, CDI statements contained misleading, inaccurate, false or incomplete information.The CDI supervises a multi-billion dollar industry. Virtually all Californians are impacted by the availability, cost, and coverage of insurance and the companies that provide it. In fact, California law requires drivers to purchase auto insurance, and no bank will make a home loan without the purchase of homeowners insurance.