§ 1196. — 1196. (Amended by Stats. 1937, Ch. 738.)

California § 1196.

• Jurisdiction: California
• Code INS: Insurance Code - INS
• Div. 1.: DIVISION 1. GENERAL RULES GOVERNING INSURANCE
• Part 2.: PART 2. THE BUSINESS OF INSURANCE
• Ch. 2.: CHAPTER 2. Incorporated Insurers
• Art. 4.: ARTICLE 4. Property Authorized for Excess Funds Investments

Text

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.

Legislative History

Amended by Stats. 1937, Ch. 738.