reglab/housing_qa huggingface dataset:
CA Ins Code § 1194.82 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1194.82.

1194.82.  (a) An insurer may invest in notes or bonds secured by second mortgages or other second liens, including all inclusive or wraparound mortgages or liens, upon real property encumbered only by a first mortgage or lien which meets the requirements set forth in Section 1194.81, subject to either of the following conditions:(1) The insurer also owns the note or bond secured by the prior first mortgage or lien and the aggregate value of both loans does not exceed the loan to market value ratio requirements of Section 1194.81.(2) The note or bond is secured by an “all-inclusive” or “wraparound” lien or mortgage which conforms to the requirements specified in subdivision (b), provided that the aggregate value of the resulting loan does not exceed the loan to market value ratio requirements of Section 1194.81.(b)  “Wraparound” and “all-inclusive” lien or mortgage refer to a loan made by an insurer to a borrower on the security of a mortgage or lien on real property other than property containing a residence of one to four units or upon which a residence of one to four units is to be constructed, where the real property is encumbered by a first mortgage or lien and which loan is subject to all of the following:(1) There is no more than one preexisting mortgage or lien on the real property.(2) The total amount of the obligation of the borrower to the insurer under the loan is not less than the sum of the amount disbursed by the insurer on account of the loan and the outstanding balance of the obligation secured by the preexisting lien or mortgage.(3) The instrument evidencing the lien or mortgage by which the obligation of the borrower to the insurer under the loan is secured, is recorded, and the lien is insured under a policy of title insurance in an amount not less than the total amount of the obligation of the borrower to the insurer under the loan.(4) The insurer either (A) pursuant to Section 2924b of the Civil Code, files for record in the office of the recorder of the county in which the real property is located a duly acknowledged request for a copy of any notice of default or of sale under the preexisting lien, (B) otherwise arranges with the recorder of any county in which the real property is located to be advised in case of the filing for record of any notice of default or of sale with respect to any obligation secured by the preexisting lien, or (C) is entitled under applicable law to receive notice of default, sale, and foreclosure of the preexisting lien.(5) The amount disbursed by an insurer under any single wraparound or all-inclusive loan made pursuant to this section shall not exceed the greater of 1 percent of the insurer’s admitted assets or 10 percent of the aggregate of the insurer’s capital paid-up and unassigned surplus.(Amended by Stats. 2007, Ch. 130, Sec. 183. Effective January 1, 2008.)
CA Ins Code § 1194.85 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1194.85.

1194.85.  In any case in which a domestic insurer has requested the approval of the commissioner to make the investments specified in subdivision (a) or (c) of Section 1194.8, that insurer shall reimburse the department for all actual expenses, not to exceed seven hundred forty-eight dollars ($748), incurred by it in making a determination of whether to approve or disapprove that request.(Amended by Stats. 2017, Ch. 534, Sec. 27. (AB 1699) Effective January 1, 2018.)
CA Ins Code § 1194.86 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1194.86.

1194.86.  Every admitted incorporated insurer may purchase, hold, or convey real estate only for the following purposes and in the following manner:(a) The building in which it has its principal office and the land upon which that building stands. (b) Real estate requisite for its accommodation in the convenient transaction of its business. (c) Real estate acquired by it, or by any person for it, to secure the payment of loans previously contracted or for moneys due. (d) Real estate purchased at sales upon deeds of trust or upon judgments or decrees obtained for those loans or debts. (e) Real estate conveyed to it in satisfaction of debts previously contracted in the course of its dealings. (f) Real estate acquired by gift or devise. (g) Real estate acquired in part payment of the consideration of the sale of real property owned by it, if each such transaction shall not effect an increase in its investment in such real property.(h) Upon the written approval of the Insurance Commissioner, real estate requisite or desirable for the protection or enhancement of the value of other real or personal property owned by the insurers. (i) Real estate and improvements thereon which domestic insurers are permitted to invest pursuant to the provisions and subject to the conditions and limitations of Section 1194.8 or Section 1210.(Added by Stats. 1991, Ch. 539, Sec. 15.)
CA Ins Code § 1194.87 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1194.87.

1194.87.  If, after a hearing, the commissioner is satisfied that an insurer is carrying upon its books any parcel or parcels of real estate at values exceeding the sound market value thereof, he or she may order the insurer to:(a) Create an adequate contingency reserve against the book value of the parcel or parcels, or(b) Reduce the book value of the parcel or parcels by a corresponding amount.In the case of real estate, not of a character described in subdivision (a), (b), (h), or (i) of Section 1194.86, which has been held by the insurer for more than five years, the commissioner may order the insurer to dispose of the real estate within six months if, after a hearing, the commissioner is satisfied that:(1) The insurer has refused reasonable offers for the sale of the real estate, or(2) The real estate may be disposed of without undue hardship to the insurer.For the purpose of enabling him or her to determine whether to issue an order pursuant to this section, the commissioner, if he or she is not satisfied with the appraisal furnished at his or her request by the insurer, may appraise the real estate at the expense of the insurer.The commissioner may suspend or revoke the certificate of authority of an insurer failing to comply with any order issued under this section.(Amended by Stats. 1992, Ch. 427, Sec. 115. Effective January 1, 1993.)
CA Ins Code § 1194.88 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1194.88.

1194.88.  Every admitted incorporated insurer may, for the protection or enhancement of the value of real property acquired under the provisions of Section 1194.86, use its funds in the manner as it shall deem proper to repair, alter, remodel, rehabilitate, demolish, purchase furnishings or other personal property for use in or otherwise to improve the real estate.(Added by Stats. 1991, Ch. 539, Sec. 17.)
CA Ins Code § 1194.9 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1194.9.

1194.9.  If the commissioner shall decide, after due notice and hearing that the interest of any company having real estate acquired pursuant to the provisions of Section 1194.8 requires that any specific parcel or parcels of such real estate be disposed of, then such insurance company shall dispose of such real estate within such reasonable time as the commissioner shall direct.(Added by Stats. 1945, Ch. 1073.)
CA Ins Code § 1194.95 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1194.95.

1194.95.  Excess funds investments may be made in an electronic computer or data processing machine or system to be used in connection with the business of the insurer; provided, however, that this machine or system shall have an original cost of at least two hundred fifty thousand dollars ($250,000) and shall be amortized in full over a period not to exceed four full calendar years.(Amended by Stats. 1991, Ch. 539, Sec. 18.)
CA Ins Code § 1195 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1195.

1195.  This article does not authorize investments in any obligation unless the obligation is interest or income-bearing or dividend-paying.An obligation is interest or income-bearing within the meaning of this section if it is not in default in payment of interest or income on the date of acquisition by the insurer and if no such default was imminent on such date.Nothing in this section contained, however, shall limit or affect the authority conferred by section 1191 of this code.(Amended by Stats. 1939, Ch. 480.)
CA Ins Code § 1196 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1196.

1196.  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.(Amended by Stats. 1937, Ch. 738.)
CA Ins Code § 1197 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1197.

1197.  Excess funds investments shall not be made in a loan or any other obligation to any one borrower or obligor, including all affiliates which shall be treated as one borrower or obligor, in an amount exceeding 10 percent of the capital stock and surplus or 1 percent of the admitted assets of the lending insurer, whichever amount is greater.(Amended by Stats. 2009, Ch. 234, Sec. 9. (AB 299) Effective January 1, 2010.)
CA Ins Code § 1198 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1198.

1198.  Excess funds investments shall not be made in purchases of or loans upon shares of the capital stock of any one corporation in an amount exceeding 10 percent of the excess of the admitted assets of the investing insurer over the liabilities and required reserves of such insurer.Nor shall the excess amount of any such investment over and above 25 percent of the excess of the admitted assets of the owner thereof over the liabilities and required reserves of such owner be retained. The commissioner may determine the retention of such excess amount over said 25 percent to be a violation of the provisions of this article within the meaning of and subject to all the provisions of Section 1202.No investment which is permitted under Section 1199 shall be prohibited or its retention limited by this section.(Amended by Stats. 1963, Ch. 1974.)
CA Ins Code § 1199 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1199.

1199.  No domestic incorporated fire, life or marine insurer shall make excess funds investments in purchases of, or loans upon, more than 30 percent of the total in par value or number of outstanding shares of the capital stock of any one corporation, except:(a) In the purchase of the stock of another admitted domestic insurer; or(b) With the prior authorization of the commissioner, in the purchase of stock of any other insurance corporation organized under the laws of any other state, or of the Dominion of Canada or of any province of the Dominion of Canada, which is supervised by the state or dominions or provincial insurance commissioner or similar official, and the investments of which comply in substance with the investment requirements and limitations imposed by this code upon like domestic insurers; provided, that no such domestic insurer shall have in the aggregate more than 50 percent of its capital and surplus invested in the stocks of insurance corporations organized under the laws of this state or other states or of the Dominion of Canada or of any province of the Dominion of Canada.(c) In the purchase of stock of any corporation organized under the laws of this state for the exclusive purpose of engaging in the business of financing insurance premiums and any and all matters incidental thereto and engaging exclusively in such business and such matters.(d) Such insurer may purchase or otherwise acquire all or any percent of the issued and outstanding stock of any corporation which is any of the following:(1) A corporation providing investment advisory, management, or sales services to an investment company or separate account.(2) A real property holding, developing, managing, or leasing corporation.(3) A data processing or computer service corporation.(4) An investment company or companies as defined by the Investment Company Act of 1940, (Title 15, U.S.C., Sec. 80a-1, et seq.).(5) A corporation acting as administrative agent for a governmental instrumentality performing insurance-related functions, or for private health and welfare plans.(Amended by Stats. 1968, Ch. 685.)
CA Ins Code § 1200 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1200.

1200.  An excess funds investment shall not be made unless authorized or approved by the directors of the investor or by a committee thereof charged with the duty of supervising or making such investment. Such authorization or approval shall be entered upon the records or minutes of the investor and, if made upon authority of such a committee a report shall be submitted to the directors at their next meeting.(Amended by Stats. 1943, Ch. 872.)
CA Ins Code § 1201 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1201.

1201.  The entry of approval shall show:(a) The fact of making such investment.(b) The amount thereof.(c) The name of each director voting to approve the investment.(d) The amount, character and value of the security purchased or taken as collateral.(e) If the investment is a loan, the name of the borrower, the rate of interest thereon and the due date thereof.(Enacted by Stats. 1935, Ch. 145.)
CA Ins Code § 1202 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4 - Property Authorized for Excess Funds Investments|Section 1202.

1202.  The commissioner may, in his discretion and after hearing, by written order require the disposal of any investments made in violation of the provisions of this article, pending which disposal pursuant to such order no value shall be allowed for such investment in any statement, required by any provision of this code, purporting to show the financial condition of the owner thereof, or in measuring the financial condition of the owner thereof for the purpose of determining whether such owner is solvent or insolvent. The commissioner may also, for good cause, require the disposal of any excess funds investments.(Amended by Stats. 1943, Ch. 872.)
CA Ins Code § 1210 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4.5 - Leeway Law|Section 1210.

1210.  (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1152), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:(1) Five percent of the insurer’s admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurer’s last preceding annual statement of conditions and affairs made as of the preceding December 31 and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1152), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) This section shall become operative on January 1, 2027.(Repealed (in Sec. 3) and added by Stats. 2021, Ch. 627, Sec. 4. (AB 1511) Effective January 1, 2022. Operative January 1, 2027, by its own provisions.)
CA Ins Code § 1215.3 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4.7 - Insurance Holding Company System Regulatory Act|Section 1215.3.

1215.3.  The following shall be violations of this article:(a) The failure to file the statement required under subdivision (a) of Section 1215.2.(b) Effectuation or any attempt to effectuate an acquisition or control of, or merger with, a domestic insurer either within the 60-day period referred to in subdivision (d) of Section 1215.2, unless the commissioner has given his approval thereto, or after disapproval of such acquisition of control or merger.(Added by Stats. 1969, Ch. 1275.)
CA Ins Code § 1215.6 (2021)
2021 California Code|Insurance Code - INS|DIVISION 1 - GENERAL RULES GOVERNING INSURANCE|PART 2 - THE BUSINESS OF INSURANCE|CHAPTER 2 - Incorporated Insurers|ARTICLE 4.7 - Insurance Holding Company System Regulatory Act|Section 1215.6.

1215.6.  (a) Subject to the limitation contained in this section, and in addition to the powers which the commissioner has under Article 4 (commencing with Section 730) of Chapter 1 of this part relating to the examination of insurers, the commissioner shall also have the power to examine any insurer registered under Section 1215.4 and its affiliates to ascertain the enterprise risk to which the insurer is subjected by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis. The commissioner may also order any insurer registered under Section 1215.4 to produce the records, books, or other information or papers in the possession of the insurer or its affiliates, including a report on the enterprise risk to the insurer by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis, as shall be necessary to ascertain the financial condition or legality of conduct of that insurer.(b) The commissioner shall exercise his or her power under subdivision (a) only if the examination of the insurer under Article 4 (commencing with Section 730) of Chapter 1 of this part is inadequate or the interests of the policyholders of that insurer are being adversely affected.(c) The commissioner may retain at the registered insurer’s expense the attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner’s staff as shall be reasonably necessary to assist in the conduct of the examination under subdivision (a) of this section. Any persons so retained shall be under the direction and control of the commissioner and shall act in a purely advisory capacity.(d) Each registered insurer producing for examination records, books, and papers pursuant to subdivision (a) shall be liable for, and shall pay the expense of, that examination in accordance with Section 736.(Amended by Stats. 2015, Ch. 213, Sec. 6. (AB 553) Effective August 17, 2015.)