California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4 - Insurer Securities Permits › Article 3 - Applications-in General › Section 2603.19 - Filing Fees

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The filing fees required by Insurance Code Sections
					 857 to
					 859,
					 inclusive, shall be paid not later than concurrently with the filing of the
					 application. Applications transmitted by mail for filing should be accompanied
					 by a check made payable to the order of the State of California Insurance
					 Commissioner for the full amount of the filing fee. The Commissioner reserves
					 the right to reject any application not so accompanied by the correct filing
					 fee.
Such fees are for filing and are not refundable in the
					 event a permit is refused. The statute should always be consulted in case of
					 doubt as to the amount. A summary of the filing fee requirements with
					 illustrative computations follows (Section
					 857):
Original application or supplemental application for permit
					 to issue securities (except application for permit to issue securities
					 evidencing any change in the rights, preferences, privileges or restrictions on
					 outstanding securities): __________$75.00 plus the sum of the following
					 computed on the aggregate value of the securities to be issued:--
20/100
							 of 1% of any excess over $1,000 and not exceeding $50,000
							 ($98)
_______________
10/100
							 of 1% of any excess over $50,000 and not exceeding $100,000
							 ($50)
_______________
5/100
							 of 1% of any excess over $100,000 and not exceeding $500,000
							 ($200)
_______________
2/100
							 of 1% of any excess over $500,000 and not exceeding $5,000,000
							 ($900)
_______________
1/100
							 of 1% of any excess over $5,000,000 and not exceeding $10,000,000
							 ($500)
_______________
1/500
							 of 1% of any excess over $10,000,000
_______________
Application for permit to issue securities evidencing any
					 change in the rights, preferences, privileges, or restrictions on outstanding
					 securities (Section
					 857 (b)):
					 .......................... $75.00.
Application for permit to issue rights, warrants, etc.,
					 except where the market price is higher than the selling price:
					 .......................... $50.00
Application to amend existing permit (Section
					 859 (a):
					 .......................... $37.50
Application for preorganization, subscription or
					 negotiating permit (Section
					 859 (a)):
					 .......................... $37.50
The following paragraphs summarize applicable Insurance
					 Code sections governing the determination of value of the securities involved
					 (Section 858):
A. Take par or face value, unless the
				  consideration alleged in the application or as found by Commissioner is in
				  excess thereof, or unless the securities when issued will have a value as
				  determined by the Commissioner in excess of their par or face value,--in either
				  of which events,take the larger figure. (Section
				  858(a))
B. If the securities have no nominal or par
				  value and if issuance is otherwise lawful (Section
				  690), the value shall be taken as
				  the proposed sale price, or the value alleged in the application, or the actual
				  value of the consideration (if other than money) as determined by the
				  Commissioner, or the value of the security when issued, whichever is greatest.
				  (Section 858(b)) For
				  securities reported on stock exchange, take value based on stock exchange
				  price. For securities traded substantially over-the-counter, take average of
				  recent daily mean between bid and asked. (Section
				  843)
C. In calculating the fee on stock rights,
				  subscription warrants, stock options, etc., compute value at difference between
				  the selling price of the securities represented thereby and market value of
				  such securities on daybefore application was filed, provided the market price
				  is higher than the selling price; otherwise, the rights, warrants, options,
				  etc., shall be deemed to have no value and the fee for filing such application
				  shall be $50.00. (Sections
				  858(c),
				  843)
D. In case of an application to issue
				  securities containing conversion rights, compute value of securities to be
				  issued at twice the amount of the consideration to be received therefor.
				  (Section 858(d))
E. In case of a share dividend or share
				  split, value of the securities to be issued shall be the amount of the surplus
				  proposed to be transferred to paid-in capital. (Section
				  858(e))
1. Amendment
					 filed 5-6-77 as procedural and organizational; effective upon filing (Register
					 77, No. 19).
Note: Authority cited: Section
						857,
						Insurance Code. Reference: Sections
						820-
						860,
						Insurance Code.