Cal. Code Regs. tit. 10 § 2605.05

Current through Register 2024 Notice Reg. No. 24, June 14, 2024

Section 2605.05 - Applications by Established Insurers

A. In the case of insurance company applicants who have the following qualifications, their applications and exhibits may be simplified to the extent hereinafter permitted. The qualifications for such an applicant are that (Section 843):

1. It has, prior to filing the application, made a registration filing with the Securities and Exchange Commission for a public offering of securities and a copy of its latest complete filing is attached to and incorporated by reference in the application.

2. It (or a predecessor by merger, sale and purchase transformation or other reorganization, provided that at least 50% of the gross business in force and at least 50% of the management--including total number of officers and directors--of applicant are in such case each comprised in excess of 50% of the business and management of the merged, purchased, transformed or reorganized predecessor) has been lawfully engaged in the insurance business for at least five years and currently is admitted to transact insurance in at least five states;

3. It currently has admitted assets of at least five million ($5,000,000) dollars; and

4. It has, prior to filing the application, obtained a written permit or consent to issue such securities from the authority in its domiciliary state having jurisdiction over issuance of its securities, and the statutory standards for obtaining such a permit or consent are comparable to the like standards of this state. The statutes of another state are not deemed "comparable" within the meaning of this subparagraph 4 unless they include requirements substantially like Insurance Code Section 839 (the "fair, just and equitable" section). See Section 2603.17, supra. (Section 843)

B. Applications for permits by insurers which allege and prove the qualifications set forth in paragraph A of this section are subject to and shall comply with Article 3 of these rules, except paragraphs D., I., J. and K. of Section 2603.12.

C. Any foreign applicant relying on this section shall allege that the statutes of its domiciliary state provide standards for obtaining such prior permit or consent that are comparable to the like standards of this state, and as proof thereof shall attach a copy of the statute and relevant regulations of its domiciliary state to its application.

Cal. Code Regs. Tit. 10, § 2605.05