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Earlier editions: 2020-112018-11

DIVISION 1. GENERAL RULES GOVERNING INSURANCE 100-1879.8›PART 2. THE BUSINESS OF INSURANCE 680-1879.8›CHAPTER 2. Incorporated Insurers 1140-1260›ARTICLE 4. Property Authorized for Excess Funds Investments 1190-1202

§ 1196

California Insurance Code · 2026 edition · updated 2026-10-04 · California

Excess funds investments shall not be made in any stock or obligation unless:

(a) The stock or obligation qualifies as a sound investment.

(b) In case of a purchase, the price paid for the security is not in excess of the current market value at the date of purchase.

(c) In case of a loan, the amount loaned does not exceed eighty-five per cent of the market value, at the date of the loan, of the collateral taken as security.

(Amended by Stats. 1937, Ch. 738.)

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California Insurance Code

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