Ins. Code, § 1196 · Article 4. Property Authorized for Excess Funds Investments
Ins. Code, § 1196
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
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.
Notes and commentary — not statutory text
History
Amended by Stats. 1937, Ch. 738.
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=1196.
- Text hash
- sha256 a77aacca00584eb35a23ac06d7767e7adf9e33328b0fdccd2c45c0ffaca538be
- 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
Cited by 1 provision
Provisions in this library whose text cites Ins. Code, § 1196. Each shows the citation as that text prints it.
Insurance Code
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