The California Department of Insurance (CDI) was created in 1868 as part of a national system of state-based insurance regulation. The insurance marketplace has changed dramatically over time, but consumer protection continues to be the core of CDI's mission. Today, CDI is the largest consumer protection agency in the state. California is the largest insurance market in the United States and the sixth largest insurance market in the world. More than 1,300 dedicated employees work at CDI to oversee more than 1,300 insurance companies and license more than 390,000 agents, brokers, adjusters, and business entities. In the normal course of business, CDI annually processes more than 7,000 rate applications, issues approximately 180,000 licenses (new and renewals) and performs hundreds of financial reviews and examinations of insurers doing business in California. CDI annually receives more than 170,000 consumer assistance calls, investigates more than 35,000 consumer complaints and, as a result, recovers more than $63 million a year for consumers. CDI also annually receives and processes roughly 29,000 referrals regarding suspected fraud against insurers and others and conducts cr...iminal investigations resulting in roughly 800 arrests. All of CDI's functions, including overseeing insurer solvency, licensing agents and brokers, conducting market conduct reviews, resolving consumer complaints, and investigating and prosecuting insurance fraud, are to protect consumers. Consumers, insurance companies, and licensees rely on CDI to ensure that insurance products and services are available to consumers in a timely way, and that they deliver fair and equal benefits. To meet these expectations, CDI ensures that insurers are solvent, consumer complaints are addressed in a reasonable manner, and insurers and licensees play fairly in the marketplace. CDI regulates insurers with more than $123 billion in annual direct premiums. In 1988, California voters passed Proposition 103, a citizen-led initiative. Proposition 103 expanded CDI's authority as well as changed the Insurance Commissioner from an appointee of the Governor to an independent statewide officer elected by popular vote. Proposition 103 also required prior approvals of property and casualty rates, including personal auto and homeowner insurance. CDI enforces the insurance laws of California and has authority over how insurers and licensees conduct business in California. License fees, assessments, and Proposition 103 recoupment fees are the primary sources of funding for CDI.