Insurance Code § 1196

ARTICLE 4. Property Authorized for Excess Funds Investments

Current as of September 28, 2026Ins. Code, § 1196Official source ↗

Amended by Stats. 1937, Ch. 738.

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.