reglab/statecodes huggingface dataset:
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12162.8.

12162.8. If any portion of the audit report required by paragraph (1) of subdivision (b) of Section 12162.6 includes a qualified opinion as to the financial condition of the motor club or its ability to exist as a going concern, the motor club shall be considered materially deficient under Section 717, and subject to Section 12164. Similarly, if a motor club qualifying under paragraph (2) of subdivision (b) of Section 12162.6 fails to demonstrate to the commissioner an amount of liquid assets sufficient to satisfy its current liabilities to members, it shall be considered materially deficient under Section 717 and subject to Section 12164.
(Added by Stats. 1992, Ch. 15, Sec. 4. Effective January 1, 1993.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12163.

12163. (a) The security required by subdivision (b) of Section 12162 shall thereafter be continuously maintained by a motor club in one of the forms prescribed. Failure of a motor club so to maintain the same shall be cause for revoking its certificate of authority.
(b) Such security shall be for the protection, use, and benefit of all persons whose applications for membership in a motor club have been accepted by such club or its representative and of this state as respects fees, fines, penalties, and taxes. Such security shall be subject to the following conditions, and, if a bond, shall be expressly so conditioned:
1. The club shall faithfully furnish and render to all persons whose applications for membership have been accepted any and all of the motor club benefits and services sold or offered for sale by it.
2. The club will faithfully conform to all provisions of law of the state pertaining to the sale and rendering of “motor club service” as defined and provided in Part 5 (commencing with Section 12140) of Division 2 of this code.
3. The club will promptly pay all fees, fines, penalties, and taxes which may be levied against it under authority of law.
4. If the club ceases to do business in this state as a motor club, it shall comply with the appropriate withdrawal procedure.
(c) Any person defrauded or injured by any wrongful act, misrepresentation, or failure on the part of the club with respect to the selling or rendering of any of its benefits or services may bring suit on the bond, if the security be a bond, in his own name. The commissioner may bring suit on such bond. If the security be a deposit of securities, any such a person or the commissioner may levy upon the same in execution of a judgment.
(Added by Stats. 1969, Ch. 858.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12164.

12164. (a) The commissioner may revoke or suspend the certificate of authority of a motor club whenever, after a hearing in accordance with the procedure provided in Section 701, he finds that any of the following circumstances exist:
1. The club has violated any provision of this part.
2. It or its officers refuse to submit to an examination, as provided for in Section 12169.
3. It is transacting business fraudulently.
4. It is no longer able to qualify for issuance to it of a certificate of authority as a motor club.
(b) The commissioner may give notice of such revocation or suspension to the public in such manner as he deems proper.
(c) All of the provisions of Article 14 (commencing with Section 1010) of Chapter 1 of Part 2 of Division 1 of this code not inconsistent with this part shall apply to motor clubs.
For the purpose of this part, “insolvency” means that a club’s assets are less than its liabilities.
(Added by Stats. 1969, Ch. 858.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12165.

12165. Subject to the annual fee provisions herein, every certificate of authority issued or held under this part shall be for an indefinite term and, unless sooner revoked by the commissioner, shall terminate upon occurrence of any of the following:
(a) Upon the holder’s ceasing to exist as a separate entity.
(b) Upon the winding up, or dissolution, or expiration, or forfeiture of the holder’s corporate existence.
(c) Upon completion of the withdrawal procedure prescribed by Article 15 (commencing with Section 1070) of Chapter 1 of Part 2 of Division 1 of this code and surrender by the holder of its certificate of authority and cancellation of the same by the commissioner. All provisions of such article not inconsistent with this part shall apply.
(d) Upon the entry of a final court order in a proceeding under said Article 14 (commencing with Section 1010), Chapter 1 of Part 2 of Division 1 of this code.
(Added by Stats. 1969, Ch. 858.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12166.

12166. Notwithstanding the preceding provisions for a certificate of authority of indefinite term, each holder of a certificate of authority under this chapter shall owe and pay in advance to the commissioner an annual fee of two hundred five dollars ($205) on account of that certificate of authority until its final termination or revocation. That fee shall be for annual periods commencing on July 1 of each year and ending on June 30 of each year and shall be due on each March 1 and shall be delinquent on and after each April 1.
(Amended by Stats. 2017, Ch. 534, Sec. 76. (AB 1699) Effective January 1, 2018.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12167.

12167. Qualification of a motor club for a certificate of authority under this part does not require prior qualification with the Secretary of State under the Corporations Code for an intrastate business, but the issuance to it of a certificate of authority under this part does not relieve such foreign applicant of any duty to qualify with the Secretary of State pursuant to the Corporations Code before transacting intrastate business in this state.
(Added by Stats. 1969, Ch. 858.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12168.

12168. Annually on or before March 1 of each year, copies of any instruments making any changes in articles of incorporation, bylaws, and membership certificate or identification card or service contract required by this part to be filed with the application for admission shall be filed with the commissioner. In the case of articles of incorporation, an amendment or certificate of amendment shall be certified by the official custodian of the original as a true copy of the same on file in his or her office. Amended bylaws or other papers shall be certified by the corporation secretary over the corporate seal to be true copies of the same currently adopted. The commissioner shall require the payment of fifty dollars ($50) for each annual filing of amended documents or papers pursuant to this article.
(Amended by Stats. 2017, Ch. 534, Sec. 77. (AB 1699) Effective January 1, 2018.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12169.

12169. (a) Whenever the commissioner has reasonable cause to believe that a motor club is insolvent or is transacting its business in a fraudulent manner, he may demand from the club a statement under oath setting forth its assets and liabilities. He may, for the purpose of verifying the correctness of such statement, examine the books and affairs of the club.
(b) If such statement is not furnished within 20 days from the time of such demand by the commissioner, or if, upon the examination of such records, the statement furnished or any record examined is found to contain any willful misstatement of fact, the expense of the examination shall be paid by the motor club.
(c) Whenever any foreign motor club applies for admission, the commissioner may make, or cause to be made by the motor club regulatory authority of its domiciliary state, an examination of the applicant’s motor club business and affairs. Whenever such an examination is made, all of the provisions of Article 4 (commencing with Section 730) Chapter 1 of Part 2 of Division 1 of this code not inconsistent with this part shall be applicable.
(Added by Stats. 1969, Ch. 858.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 2 - Certificate of Authority › Section 12170.

12170. Motor clubs certificated on the effective date of this chapter shall not be required to be recertificated, but thereafter shall be subject to the provisions of this chapter and shall be issued continuous certificates of authority subject to the conditions provided in this chapter.
(Added by Stats. 1969, Ch. 858.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 3 - The Service Contract › Section 12251.

12251. Every service contract executed, issued or delivered in this State shall be made in duplicate and shall be dated and signed by the motor club issuing it. Such contract shall be countersigned by a duly authorized agent of the club, and by the party purchasing the contract. One copy of the contract shall be kept by the club and the other copy shall be delivered to the purchasing party.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 3 - The Service Contract › Section 12252.

12252. A service contract shall not be executed, issued or delivered in this State unless it contains the following:
(a) The exact corporate or other name of the club.
(b) The exact location of its home office and of its usual place of business in this State, giving street number and city.
(c) A provision that the contract may be canceled at any time by either the club or the holder, and that the holder will, if he has actually paid the consideration, thereupon be entitled to the unused portion of the consideration paid for such contract, calculated on a pro rata basis over the period of the contract, without any deductions.
(d) A provision plainly specifying:
(1) The services promised.
(2) That the holder will not be required to pay any sum, in addition to the amount specified in the contract, for any services thus specified.
(3) The territory wherein such services are to be rendered.
(4) The date when such service will commence.
(e) A statement in not less than fourteen point modern type at the head of said contract stating, “This is not an insurance contract.”
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 3 - The Service Contract › Section 12253.

12253. A person shall not solicit or aid in the solicitation of another person to purchase a service contract issued by a club not having a certificate of authority procured pursuant to this part.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 3 - The Service Contract › Section 12254.

12254. A club or an officer or agent thereof shall not in any manner misrepresent the terms, benefits or privileges of any service contract issued or to be issued by it.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 3 - The Service Contract › Section 12256.

12256. Any motor club may elect not to execute, issue, or deliver service contracts in this state. A club may distribute brochures, prospectuses, or advertisements which are not contracts. Such materials may be issued or delivered without prior approval of the commissioner.
If a club does not use service contracts it shall execute, issue, and deliver membership cards, tokens, or other indicia of membership to its members.
(Added by Stats. 1969, Ch. 858.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 4 - Agents › Section 12280.

12280. A club agent doing business in this State shall not execute, issue or deliver any service contract to any person owning or operating motor vehicles without first obtaining a license from the commissioner.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 4 - Agents › Section 12280.2.

12280.2. (a) The fee for filing application for license as motor club agent is eighty-five dollars ($85).
(b) Property broker-agents, casualty broker-agents, personal lines broker-agents, and limited lines automobile insurance agents licensed under Chapter 5 (commencing with Section 1621) of Part 2 of Division 1 need not be licensed to act as motor club agents under this chapter.
(c) This section shall not permit a motor club agent to have a certificate of convenience nor a nonresident license, but shall require only club appointments, and shall not require the keeping of records or fiduciary accounts. Appropriate licenses and license applications may be prescribed by the commissioner.
(Amended by Stats. 2017, Ch. 534, Sec. 78. (AB 1699) Effective January 1, 2018.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 5 - MOTOR CLUBS › CHAPTER 4 - Agents › Section 12281.

12281. Without first obtaining such license, a club agent shall not collect or receive from any person, in advance of the execution, issuance or delivery of any such service contract, any money or other thing of value upon any promise or agreement to execute, issue or deliver any such service contract.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.

12340. The definitions set forth in this article shall govern the construction of the terms used in this chapter, but shall not affect any other provisions of this code.
(Repealed and added by Stats. 1973, Ch. 1130.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.1.

12340.1. “Title insurance” means insuring, guaranteeing or indemnifying owners of real or personal property or the holders of liens or encumbrances thereon or others interested therein against loss or damage suffered by reason of:
(a) Liens or encumbrances on, or defects in the title to said property;
(b) Invalidity or unenforceability of any liens or encumbrances thereon; or
(c) Incorrectness of searches relating to the title to real or personal property.
(Added by Stats. 1973, Ch. 1130.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.2.

12340.2. “Title policy” means any written instrument or contract by means of which title insurance liability is assumed.
(Added by Stats. 1973, Ch. 1130.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.3.

12340.3. “Business of title insurance” includes:
(a) Issuing or proposing to issue any title policy as insurer, guarantor, or indemnitor;
(b) Transacting or proposing to transact any phase of title insurance, including solicitation, negotiation preliminary to execution, or execution of a title policy, insuring and transacting matters subsequent to the execution of a title policy and arising out of such policy, excluding reinsurance;
(c) The performance by a title insurer, an underwritten title company or a controlled escrow company of any service in conjunction with the issuance or contemplated issuance of a title policy including but not limited to the handling of any escrow, settlement or closing in connection therewith; or the doing of or proposing to do any business, which is in substance the equivalent of any of the above.
(d) The issuance, by a title insurer, of a letter of indemnity. Any such letter of indemnity shall be limited to and issued solely for the purpose of indemnifying the commissioner on behalf of any member of the public who transacts an escrow with an underwritten title company, with whom the title insurer has an underwriting agreement. A title insurer may charge a reasonable fee in connection with the issuance of any such letter. No rate or form filing shall be required with respect to any such letter of indemnity.
(e) The act of an insurer in furnishing in writing to a prospective purchaser of the insurer’s title policy a statement which assures, and assumes the liability for, the proper performance of services necessary to the conduct of a real estate closing performed by an underwritten title company with whom the insurer maintains an underwriting agreement. A title insurer may charge a reasonable fee in connection with the furnishing of any such statement. No rate or form filing shall be required with respect to any such statement.
(Amended by Stats. 1981, Ch. 479, Sec. 1.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.4.

12340.4. “Title insurer” means any company issuing title policies as insurer, guarantor or indemnitor.
“Domestic title insurer” means any title insurer organized under the laws of this state.
“Foreign title insurer” means any title insurer organized under the laws of any other jurisdiction.
(Added by Stats. 1973, Ch. 1130.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.5.

12340.5. “Underwritten title company” means any corporation engaged in the business of preparing title searches, title examinations, title reports, certificates or abstracts of title upon the basis of which a title insurer writes title policies.
(Added by Stats. 1973, Ch. 1130.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.6.

12340.6. (a) “Controlled escrow company” means any person, other than a title insurer or underwritten title company, whose principal business is the handling of escrows of real property transactions in connection with which title policies are issued, which person, if an artificial person, directly or indirectly, is controlled by, controls, or is under common control with a title insurer, or controls, is controlled by, or is under common control with an underwritten title company, or, if a natural person, is employed by, or controlled by, a title insurer or by an underwritten title company. As used in this section, the term “control” has the meaning set forth in subdivision (c) of Section 1215.
(b) Except for Article 6 (commencing with Section 12404), this section does not apply to any person or entity doing business under any law of this state or the United States relating to banks or savings and loan associations.
(Amended by Stats. 2017, Ch. 417, Sec. 31. (AB 1696) Effective January 1, 2018.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.7.

12340.7. Except as provided in Section 12401.8, and excluding miscellaneous charges, “rate” or “rates” means the charge or charges, whether denominated premium or otherwise, made to the public by a title insurer, an underwritten title company or a controlled escrow company, for all services it performs in transacting the business of title insurance. As used in this section miscellaneous charges means conveyancing fees, notary fees, inspection fees, tax service contract fees and such other fees as the commissioner by regulation may prescribe.
(Added by Stats. 1973, Ch. 1130.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.8.

12340.8. “Advisory organization” means every person or entity (other than a title insurer, underwritten title company, or controlled escrow company) which recommends or prepares policy forms or endorsements, or procedural manuals (but not including the making of rates, rating plans, or rating systems), or which collects and furnishes to its members or insurance supervisory officials loss and expense statistics or other statistical information and data relating to the business of title insurance and who otherwise acts in an advisory, as distinguished from a ratemaking, capacity. No duly authorized attorney at law acting in the usual course of his profession nor any entity engaging in the above activity on a nationwide basis shall be deemed to be an advisory organization.
(Amended by Stats. 1992, Ch. 991, Sec. 1. Effective January 1, 1993.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.9.

12340.9. “Willful” or “willfully” in relation to an act or omission which constitutes a violation of this chapter means with actual knowledge or belief that such act or omission constitutes such violation and with specific intent to commit such violation.
(Added by Stats. 1973, Ch. 1130.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.10.

12340.10. “Abstract of title” is a written representation, provided pursuant to a contract, whether written or oral, intended to be relied upon by the person who has contracted for the receipt of such representation, listing all recorded conveyances, instruments or documents which, under the laws of this state, impart constructive notice with respect to the chain of title to the real property described therein. An abstract of title is not a title policy as defined in Section 12340.2.
(Added by Stats. 1981, Ch. 55, Sec. 1.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.11.

12340.11. “Preliminary report”, “commitment”, or “binder” are reports furnished in connection with an application for title insurance and are offers to issue a title policy subject to the stated exceptions set forth in the reports and such other matters as may be incorporated by reference therein. The reports are not abstracts of title, nor are any of the rights, duties or responsibilities applicable to the preparation and issuance of an abstract of title applicable to the issuance of any report. Any such report shall not be construed as, nor constitute, a representation as to the condition of title to real property, but shall constitute a statement of the terms and conditions upon which the issuer is willing to issue its title policy, if such offer is accepted.
(Added by Stats. 1981, Ch. 55, Sec. 2.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12340.13.

12340.13. “Business location” means a facility or other place of business in this state where an underwritten title company or controlled escrow company engages in the business of conducting escrow services.
(Added by Stats. 2015, Ch. 370, Sec. 1. (AB 704) Effective January 1, 2016.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 1 - Definitions › Section 12342.

12342. For purposes of this chapter, “holders of liens or encumbrances” includes, but is not limited to, the institutional third parties described in Sections 1452 and 1717 of Title 12 of the United States Code.
(Added by Stats. 1995, Ch. 433, Sec. 1. Effective January 1, 1996.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12350.

12350. Every title insurer, before issuing any policy, shall deposit $100,000 with the Insurance Commissioner or other designated official of its home State as a “guarantee fund” for the security and protection of the holders of, or beneficiaries under, its title policies.
(Amended by Stats. 1935, Ch. 292.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12351.

12351. Any such deposit may be made either in lawful money of the United States or in any of the securities, other than collateral trust bonds or notes, authorized for investment, other than excess funds investments, of all the assets of domestic incorporated insurers.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12352.

12352. If the deposit is made in this state, it shall first be approved by the commissioner who shall make a special deposit thereof in the State Treasury, for the purpose specified in Section 12350. The Treasurer shall give his or her receipt therefor, to the commissioner.
(Amended by Stats. 2011, Ch. 426, Sec. 12. (SB 712) Effective January 1, 2012.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12353.

12353. Except as provided in section 12355, assets in such deposits in this State may, with the approval of the commissioner, be withdrawn or exchanged from time to time for other assets of like character and value.
(Amended by Stats. 1935, Ch. 292.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12354.

12354. As long as the depositing insurer continues solvent, it shall receive the interest and dividends on any assets in the deposit.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12355.

12355. Except on withdrawal of the insurer from this State, or substitution pursuant to section 12353, assets in the deposit in this State shall be subject to final sale, transfer, and disposal of the proceeds thereof by the commissioner only on the order of a court of competent jurisdiction and for the security and protection of the holders of, or beneficiaries under, the depositing insurers title insurance policies.
(Amended by Stats. 1935, Ch. 292.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12356.

12356. When any part of the assets to be deposited in this State consists of mortgage-secured notes or bonds, or loans upon real property secured by mortgage, such mortgages shall be accompanied by a policy of mortgage insurance issued under the provisions of this code, or by evidence of title issued by a person designated or approved by the commissioner and either authorized by law or found by the commissioner to be competent to issue such evidence. Such evidence of title shall consist either of a full abstract of title, a full certificate of title, or a policy of title insurance, and shall be assigned and approved by, or under the direction of, the commissioner.
In any case where he ascertains that the expense thereof would not be unreasonable or such as to make the deposit impracticable, the commissioner may require a policy of title insurance or a guaranty that the abstract is correct and that it shows title to be in the proper party, issued by a corporation authorized to issue such policies or guaranties.
(Amended by Stats. 1937, Ch. 732.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12357.

12357. Unless the mortgage is covered by mortgage insurance, the value of the property covered by each such mortgage constituting all or part of such deposit in this State shall be appraised by one or more appraisers selected or approved by the commissioner. The appraisers shall be familiar with property values of the particular type of property and generally in the region in which the property or some part thereof is situated.
(Amended by Stats. 1937, Ch. 732.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12358.

12358. The reasonable cost of examining such evidence of title and of making such appraisement, shall be paid by the title insurer making the deposit.
(Amended by Stats. 1937, Ch. 732.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12359.

12359. A title insurer shall not transact any insurance in this state unless it has paid-in capital represented by shares of stock of at least five hundred thousand dollars ($500,000).
(Amended by Stats. 1981, Ch. 479, Sec. 2.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 2 - Title Insurers; Capital and Guarantee Fund Requirements › Section 12360.

12360. An insurer which anywhere in the United States transacts any class of insurance other than title insurance is not eligible for the issuance of a certificate of authority to transact title insurance in this State nor for the renewal thereof.
(Amended by Stats. 1951, Ch. 542.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12370.

12370. Every title insurer shall annually set apart a sum equal to 10 percent of its premiums collected during the year. Such sums shall be allowed to accumulate until a fund is created equal in amount to 25 percent of the aggregate of the subscribed capital stock of the insurer, or one million dollars ($1,000,000), whichever is the lower amount. After the establishment by a title insurer of an unearned premium reserve, pursuant to Article 3.5 (commencing with Section 12380) of this chapter, such amount shall be reduced by the aggregate amount which shall be set aside and maintained by such insurer in such unearned premium reserve. Such fund shall be known as the “title insurance surplus fund.”
(Amended by Stats. 1971, Ch. 1318.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12371.

12371. The title insurance surplus fund shall be maintained as a further security to holders and beneficiaries of the title policies issued by the insurer. If all or any part of the fund shall at any time be in excess of the amount required by Section 12370, such excess may be transferred by the insurer to its general assets. If at any time the fund is impaired by reason of a loss, the amount by which it is impaired shall be restored in the manner provided for its accumulation. The reporting of a loss is an impairment of such fund for the purposes of this section.
(Amended by Stats. 1965, Ch. 272.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12372.

12372. Any such domestic insurer, after having its required capital paid in and depositing its required guarantee fund with the State Treasurer, may invest its funds in the preparation and purchase of materials and plant necessary to enable it to engage in the title insurance business. In all statements and proceedings required by law for the ascertainment and determination of the condition of such insurer, such materials and plant shall be treated in one of the following ways:
(a) They may be treated as an asset, valued at actual cost to the insurer not in excess of 50 per cent of the aggregate par value of the shares of the insurer’s capital stock then issued outstanding, and apportioned to its title insurance department, including treasury shares;
(b) They may be treated as an asset, at such lesser value than that permitted by paragraph (a) of this section as the insurer estimates;
(c) They may be omitted entirely from the statement or proceeding.
(Amended by Stats. 1939, Ch. 325.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12372.5.

12372.5. Notwithstanding the provisions of Section 12372, where a title plant is not being currently maintained, the asset value of such plant shall not exceed its asset value as of the last annual statement date preceding the first month such plant is not currently maintained, less
1
/
10
th thereof for each succeeding year or part thereof that such plant is not being currently maintained. For the purposes of this section, a title plant shall be deemed currently maintained so long as it is used in the normal conduct of the business of title insurance, and (1) the owner thereof continues regularly to obtain and index title record data to such plant or to a continuation thereof in a format other than that previously used, including, but not limited to, computerization of such data, or (2) the owner thereof is a participant, in an arrangement for joint use of a title plant system regularly maintained in any format, provided such owner is contractually entitled to receive a copy of the title record data contained in such jointly used title plant system during the period of such owner’s participation therein, either periodically or upon termination of such participation, at a cost not to exceed the actual cost of duplication of such title record data.
(Added by Stats. 1978, Ch. 846.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12373.

12373. A title insurer shall not make any dividends except from profits remaining on hand after retaining unimpaired assets aggregating in value an amount equal to the sum of the following:
(a) The aggregate par value of the shares of its capital stock issued and outstanding, including treasury shares;
(b) The amount required to be set apart as the title insurance surplus fund;
(c) The amount required to be maintained in the unearned premium reserve;
(d) The amount required to be maintained in the reserve for unpaid losses and loss adjustment expense;
(e) A sum sufficient to pay all liabilities for expenses and taxes and all other indebtedness.
(Amended by Stats. 1965, Ch. 272.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12374.

12374. Except as otherwise authorized by subdivision (g) of Section 1105, a title insurer shall not directly or indirectly make a loan from its assets to any of its officers, directors or employees, or to any member of the family of any officer or director. Any officer, director, agent, or employee of any such insurer who knowingly consents to any violation of this section is guilty of a misdemeanor.
(Amended by Stats. 1981, Ch. 55, Sec. 3.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12375.

12375. Whenever a title insurer, upon withdrawing from insurance business in this State, desires to reinsure its policies with a title insurer whose “title insurance surplus fund” is not fully made up, the commissioner may require the reinsurer to increase its “title insurance surplus fund.” The amount of increase shall not be greater than the amount in the withdrawing insurer’s “title insurance surplus fund” nor greater than will fully make up the reinsurer’s title insurance surplus fund. Such increase may be made a condition of the commissioner’s approval of the reinsurance plan.
(Enacted by Stats. 1935, Ch. 145.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3 - Title Insurers: Finances and Investments › Section 12377.

12377. (a) All escrow funds received by an underwritten title company that are subject to Section 12413.5 shall not be considered part of the estate of the underwritten title company for purposes of liquidation, receivership, bankruptcy, or conservation pursuant to Article 14 (commencing with Section 1010) of Chapter 1 of Part 2 of Division 1.
(b) Where an underwritten title company is placed into conservation, receivership, or bankruptcy and the escrow accounts held by the company are found to have shortages, the department, conservator, liquidator, receiver, or bankruptcy trustee shall do everything reasonably possible to trace these moneys to other depository accounts or assets.
(c) Any real or personal property traceable to shortages in the escrow accounts shall not be considered part of the estate available to other claimants under Section 1033. Those assets shall be liquidated and paid in the following order: (1) if the commissioner has paid or advanced funds to subescrow or escrow accountholders from sources other than the escrow established pursuant to subdivision (c) of Section 12376, they shall be paid to the commissioner to the extent that the commissioner has not been repaid by title insurers having liability under Section 12376, (2) they shall be deposited into an escrow established pursuant to subdivision (c) of Section 12376, and (3) they shall be directly reimbursed to the title insurer or insurers that have reimbursed escrow depositors under Section 12376. In no event shall a title insurer be reimbursed an amount in excess of its liability as determined in Section 12376.
(Amended by Stats. 2002, Ch. 899, Sec. 4. Effective January 1, 2003.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3.5 - Unearned Premium Reserve and Reserve for Unpaid Losses and Loss Expense › Section 12380.

12380. Unless the provision or context otherwise requires, the following definitions govern the construction of this article:
(a) “Total charges for policies of title insurance” means (i) the total of fees and charges as shown on policies, as required by Section 12412, less any amount paid for coinsurance of such policy to any coinsuring title insurer and (ii) the total sum charged by any coinsuring title insurer for acting as a coinsurer in respect to any policy of title insurance.
(b) “Ceding company” means a title insurer which shall have purchased a policy or contract of reinsurance from a reinsuring company.
(c) “Reinsuring company” means a title insurer which shall have sold a policy or contract of reinsurance to a ceding company.
(d) “Unearned premium reserve” means that reserve that is generally known as the statutory premium reserve.
(Amended by Stats. 1993, Ch. 974, Sec. 7. Effective January 1, 1994.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3.5 - Unearned Premium Reserve and Reserve for Unpaid Losses and Loss Expense › Section 12381.

12381. Every domestic title insurer shall, in addition to other reserves, establish and maintain a reserve to be known as the “unearned premium reserve” for title insurance, which shall, at all times for all purposes, be deemed and shall constitute the unearned portion of premiums due or received on all of its business wherever transacted and shall be charged as a reserve liability of such title insurer in determining its financial condition. The unearned premium reserve shall be retained and held by such title insurer for the protection of the policyholders’ interest in policies which have not expired. Except as provided in Section 12385, assets equal to the amount of such reserve shall not be subject to distribution among depositors or other creditors or stockholders of such title insurer until all claims of holders of policies and contracts of title insurance of such title insurer have been paid in full and all liability on the policies or other contracts of title insurance, whether contingent or actual, has been discharged or lawfully reinsured. Income from the investment of all or any part of such reserve shall be the unrestricted property of the title insurer.
Every admitted foreign insurer shall maintain a like reserve under like conditions in respect to its California business.
(Added by Stats. 1965, Ch. 272.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3.5 - Unearned Premium Reserve and Reserve for Unpaid Losses and Loss Expense › Section 12382.

12382. The unearned premium reserve of every title insurer shall consist of:
(a) Such amount as would have been required to be set aside in said reserve on all policies or contracts of title insurance issued during the calendar years 1962, 1963 and 1964, if this article had been effective at and after the date that such policies or contracts were written, less the amount of withdrawals that would have been permitted if this article had been so effective; and
(b) The amount of all additions required to be made to such reserve by this article less the withdrawals therefrom permitted by this article.
(Added by Stats. 1965, Ch. 272.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3.5 - Unearned Premium Reserve and Reserve for Unpaid Losses and Loss Expense › Section 12382.3.

12382.3. The aggregate amount set aside in the unearned premium reserve shall be separately recorded and reserved in respect to such policies and contracts issued in each calendar year. All amounts set aside as additions to the unearned premium reserve, to the extent that the same have not previously been deducted from net profits or earned surplus, shall be deducted in determining net profits of any title insurer.
(Added by Stats. 1965, Ch. 272.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3.5 - Unearned Premium Reserve and Reserve for Unpaid Losses and Loss Expense › Section 12382.4.

12382.4. For the purpose of determining the amounts of the unearned premium reserve that may be withdrawn pursuant to Section 12382.5 and the interest of the policyholders therein under Section 12385, all policies and contracts of title insurance or reinsurance shall be considered as dated on July 1 of the year of issue.
(Added by Stats. 1965, Ch. 272.)
2023 California Code › Insurance Code - INS › DIVISION 2 - CLASSES OF INSURANCE › PART 6 - INSURANCE COVERING LAND › CHAPTER 1 - Title Insurance › ARTICLE 3.5 - Unearned Premium Reserve and Reserve for Unpaid Losses and Loss Expense › Section 12382.5.

12382.5. (a) The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subdivision (a) of Section 12382.2 shall be released from that reserve and restored to net profits pursuant to the following formula: one-tenth of that aggregate sum on July 1 of each of the five years next succeeding the year of addition to the reserve and one-thirtieth of that aggregate sum on July 1 of each succeeding year thereafter until the entire sum shall have been so released and restored to net profits. The aggregate of the amounts set aside in unearned premium reserve pursuant to subdivision (a) of Section 12382 shall be released from the reserve and restored to net profits and surplus pursuant to the foregoing formula, provided that the amounts so set aside shall be treated as if subdivision (a) of Section 12382 and this section had been effective during the calendar years 1962, 1963, and 1964.
(b) The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subdivision (b) of Section 12382.2 shall be released from the reserve and restored to net profits pursuant to the following formula: one-tenth of the aggregate sum on July 1 of each of the 10 years next succeeding the year of addition to the reserve until the entire sum shall have been so released and restored to net profits.
(c) The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subdivision (c) of Section 12382.2 shall be released from the reserve and restored to net profits over a period of 20 years pursuant to the following formula: 10 percent of the aggregate sum on July 1 of each of the five years next succeeding the year of addition; 9 percent of the aggregate sum on July 1 of each of the next succeeding five years; and one-half of 1 percent of the aggregate sum on July 1 of each of the last 10 years.
(d) The aggregate of the amounts set aside in unearned premium reserve in any calendar year as adjustments to the insurer’s unearned premium reserve pursuant to subdivision (d) of Section 12382.2 shall be released from the reserve and restored to net profits, or equity if the additions required by subdivision (d) of Section 12382.2 reduced equity directly, over a period not exceeding 10 years pursuant to the following table:
Year of addition
Release
1994, or earlier
Equally over 10 years
1995
Equally over 9 years
1996
Equally over 8 years
1997
Equally over 7 years
1998
Equally over 6 years
1999
Equally over 5 years
(Amended by Stats. 1994, Ch. 353, Sec. 2. Effective January 1, 1995.)