Cal. Ins. Code § 1196

Current through the 2023 Legislative Session.

Section 1196 - Requirements for investing stock or other obligations

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.

Ca. Ins. Code § 1196

Amended by Stats. 1937, Ch. 738.