DIVISION 1. GENERAL RULES GOVERNING INSURANCE 100-1879.8›PART 2. THE BUSINESS OF INSURANCE 680-1879.8›CHAPTER 3. Reciprocal Insurers 1280-1560.19›ARTICLE 5. Finances 1370-1375
§ 1374
California Insurance Code · 2018-11 edition · updated 2026-10-04 · California
In estimating the financial condition of any exchange the commissioner shall observe the following rules:
(a) He or she shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis.
(b) Surplus deposits of subscribers shall not be charged as a liability.
(c) All premium deposits and surplus deposits of subscribers due and unpaid for a period not exceeding 90 days shall be allowed as admitted assets, as in the case of incorporated insurers issuing nonassessable policies on a reserve basis.
(d) An assessment levied as provided in this chapter, and not collected shall in no event be allowed as an asset.
(e) The computation of reserves shall be based upon premium deposits without any deduction for the compensation of the attorney.
(Amended by Stats. 1984, Ch. 564, Sec. 2.)
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