Cal. INS § 1196
This is the official text of Cal. INS § 1196, part of California’s Insurance Code — regulates insurance companies and the insurance policies sold in California.
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Official statutory text
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.
(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.
Status: in_force · Read it on the official government site
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