INSURANCE

California Rejects Aetna’s Move to Withdraw: The state Insurance Department rejected Aetna Life & Casualty Co.’s bid to withdraw from the California personal auto insurance market, saying the Hartford-based carrier failed to give adequate notice. Citing an inability to make an adequate profit, Aetna announced last week that it would stop writing new auto policies immediately and would decline to renew existing policies that expire on April 2 or later. But Insurance Commissioner John Garamendi said state law requires Aetna to give its agents 120 days’ notice and the department 60 days’ notice before such a move. The Insurance Department barred Aetna from refusing to accept new business or renewals until June 2. Aetna is a minuscule player in the California auto insurance market, with only 30,000 policyholders.