Ins. Code, § 1152 · Article 2. Restrictions on Activities
Ins. Code, § 1152
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Domestic incorporated stock insurers, except those governed by Sections 10530, 12373, and 12640.06, shall be governed by the provisions of this section and, if the insurer is subject to registration pursuant to Sections 1215.4 and 1215.5, as to payment or distribution of dividends to stockholders. Such insurers may make dividends only from earned surplus.
(b) No dividends shall be declared out of earned surplus derived from the mere net appreciation in the value of assets not yet realized, nor shall any dividends be declared from any part of such earned surplus derived from an exchange of assets, unless and until such earned surplus have been realized or unless the assets received are currently realizable in cash.
(c) An insurer may declare and distribute a dividend otherwise prohibited by this section if (1) following payment of the dividend the insurer’s surplus as regards policyholders is (A) reasonable in relation to its outstanding liabilities and (B) adequate to its financial needs as prescribed in Section 1215.5, and (2) the commissioner has given approval for the dividend prior to payment.
(d) For purposes of this section, “earned surplus” means unassigned funds, as required to be reported on the insurer’s annual statement.
Notes and commentary — not statutory text
History
Amended by Stats. 1993, Ch. 974, Sec. 1.8. Effective January 1, 1994.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS§ionNum=1152.
- Text hash
- sha256 3c1e3b3c22036a7733930a694b9997c9c61092afce06e0b242426258f904079d
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Insurance Code
- Ins. Code, § 1215.4Printed as Sections 1215.4 and 1215.5
- Ins. Code, § 1215.5Printed as Sections 1215.4 and 1215.5
- Ins. Code, § 10530Printed as Sections 10530, 12373, and 12640.06
- Ins. Code, § 12373Printed as Sections 10530, 12373, and 12640.06
- Ins. Code, § 12640.06Printed as Sections 10530, 12373, and 12640.06
Cited by 1 provision
Provisions in this library whose text cites Ins. Code, § 1152. Each shows the citation as that text prints it.
Insurance Code
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