Section 2509.13 - Required Value of Deposit(a) Generally. The value of securities to be deposited with a bank, savings and loan association or trust company shall be not less than one hundred percent (100%) of the amount required to be maintained on deposit pursuant to Sections 11691 and 11693 of the California Insurance Code. No withdrawal of securities, including preferred and common stock, shall be made by the insurer which results in the total value of the deposit being less than one hundred percent (100%) of the required deposit amount. The insurer shall, at all times, have on deposit sufficient securities to maintain the deposit value at not less than one hundred percent (100%) of the required amount.
(b) Promissory Notes Taken for Premiums --Additional Restrictions. (1) The total deposit value of all promissory notes taken for premium and which are placed on deposit with a bank, savings and loan association or trust company may not exceed fifty percent (50%) of the amount required to be maintained on deposit by Sections 11691 and 11693 of the California Insurance Code.(2) The insurer shall report quarterly to the Insurance Commissioner in a form prescribed by the Commissioner with regard to promissory notes taken for premium and which are placed on deposit with a bank, savings and loan association or trust company.Cal. Code Regs. Tit. 10, § 2509.13
1. Change without regulatory effect amending section and NOTE filed 4-28-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 18). Note: Authority cited: Section 11691, Insurance Code. Reference: Section 11691 and 11693, Insurance Code.
1. Change without regulatory effect amending section and Note filed 4-28-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 18).