Cal. Code Regs. tit. 10 § 2605.06

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

Section 2605.06 - Applications by Large Established Insurers

A. In the case of those insurers who have any four of the following five qualifications, their applications may be simplified to the extent hereinafter permitted. Insofar as in the Commissioner's discretion may prove feasible, permits issued to such insurers will be abbreviated or simplified. The qualifications for such an insurer are that:

1. It (or a predecessor by merger, consolidation, 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 -counting the 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 continuously engaged in the insurance business for not less than 40 years.

2. It is, according to its latest annual statement on file with the Commissioner, admitted to do business in not less than 40 states of the United States of America.

3. It has, according to its latest annual statement on file with the Commissioner, a surplus as regards policyholders of not less than $50,000,000.

4. As part of the same transaction for which a permit is sought from the Commissioner, it has on file a current Registration Statement with the Securities and Exchange Commission for a public offering of securities; and applicant has made a registration of its shares effective with the Securities and Exchange Commission for such purpose on at least two prior occasions within the ten calendar years last preceding the current application to the Commissioner.

5. Trading in and market prices of its stock are regularly listed in at least one newspaper with nationwide circulation.

B. The application of any insurer described in paragraph A, above, may be abbreviated to the following extent:

1. It shall be subject to and comply with Sections 2603.01 through 2603.11, and 2603.16 through 2603.21 of Article 3, ante.

2. In addition, it shall allege: class or kind, par value (or face value), and number or amount of its securities applicant proposed to offer and sell to or exchange with California residents; the price per share and the expected gross California proceeds of such sale or other gross consideration expected therefor.

3. It shall refer to and incorporate the following exhibits which shall be attached to the application:

(a) a voided specimen of the certificate or paper representing each class or kind of security proposed to be issued;

(b) a copy of its Registration Statement to become currently effective; and

(c) the written communications, solicitations, or advertising sought to be approved.

4. If applicant is a foreign corporation, admitted or nonadmitted, it must file the certificate required by Insurance Code Section 837(a). See Sec. 2603.12, paragraph L., ante. If it is a foreign nonadmitted corporation, it must also comply with paragraph M. of Section 2603.12, ante.

5. The application shall be verified positively; a "verification" solely on information and belief is not acceptable. Section 2603.10, ante, contains forms of verification, q.v.

6. The application and all exhibits required to be filed (or incorporated by reference) shall be filed in duplicate by applicants filing in Los Angeles and in singular copy by applicants filing in Oakland.

Cal. Code Regs. Tit. 10, § 2605.06

1. Change without regulatory effect amending paragraph B.6. filed 8-27-2020 pursuant to section 100, title 1, California Code of Regulations (Register 2020, No. 35).