§ 7015. — 7015. (Amended by Stats. 1997, Ch. 315, Sec. 20.)

California § 7015.

• Jurisdiction: California
• Code INS: Insurance Code - INS
• Div. 2.: DIVISION 2. CLASSES OF INSURANCE
• Part 1.: PART 1. FIRE AND MARINE INSURANCE
• Ch. 5.: CHAPTER 5. County Mutual Fire Insurers
• Art. 8.: ARTICLE 8. Assessments

Text

(a)
No assessment or assessments may be levied upon any policy in excess of three times the amount of the premium named therein. The liability to assessment on any policy may be further reduced or eliminated as provided in subdivisions (b), (c), (d), and (e).
(b)
Upon written request, and if the commissioner finds that an insurer has a surplus of admitted assets over liabilities of at least:
(1)
Seventy-five thousand dollars ($75,000) but less than one hundred fifty thousand dollars ($150,000).
(2)
One hundred fifty thousand dollars ($150,000) but less than two hundred fifty thousand dollars ($250,000), or
(3)
Two hundred fifty thousand dollars ($250,000); he or she shall issue his or her certificate stating that the insurer has a surplus of at least $____, but less than $____, filling in the applicable amounts, or of at least two hundred fifty thousand dollars ($250,000), as the case may be.
(c)
If, when a policy is issued, there is in force an unrevoked certificate issued by the commissioner stating that the insurer has a surplus of admitted assets over liabilities of at least:
(1)
Seventy-five thousand dollars ($75,000), but less than one hundred fifty thousand dollars ($150,000), no assessment or assessments may be levied on the policy in excess of twice the amount of the premium named therein.
(2)
One hundred fifty thousand dollars ($150,000), but less than two hundred fifty thousand dollars ($250,000), no assessment or assessments may be levied on the policy in excess of a sum equal to the amount of the premium stated therein.
(3)
Two hundred fifty thousand dollars ($250,000), no assessment or assessments may be levied on the policy.
(d)
Whenever the commissioner finds that the surplus of the insurer is less than the minimum specified in an outstanding certificate he or she shall revoke the certificate.
(e)
Upon revocation of the certificate no policy shall thereafter be issued nor be permitted to remain in force beyond the date fixed for the next payment of premium without provision therein or endorsement thereon providing for that assessment liability as may be applicable at the time of issuance or at the time for the payment of the premium.
(f)
As used in this section “liabilities” includes liabilities for losses reported, expenses, taxes and all other indebtedness, and provision for reinsuring all outstanding risks.

Legislative History

Amended by Stats. 1997, Ch. 315, Sec. 20. Effective January 1, 1998.