Cal. Ins. Code § 717

Current through the 2024 Legislative Session.

Section 717 - Qualifications of applicant considered

Before granting a certificate of authority or amended certificate of authority to any applicant, the commissioner shall consider the qualifications of said applicant in respect to the following subjects:

(a) capital and surplus;

(b) lawfulness and quality of investments;

(c) financial stability;

(d) reinsurance arrangements;

(e) competency, character, and integrity of management;

(f) ownership and control of issued and outstanding shares in the case of a capital stock insurer;

(g) whether claims under policies are promptly and fairly adjusted and are promptly and fully paid in accordance with law and the terms of policies;

(h) fairness and honesty of methods of doing business;

(i) method by which said applicant was promoted if any of its promoters remain as stockholders or in management; and

(j) hazard to policyholders or creditors.

Upon consideration of all relevant qualifications the commissioner shall issue a certificate of authority to such applicant, unless the commissioner shall have made a finding, or findings, that the applicant is materially deficient in respect to one or more of the items as outlined in (a) through (j), above.

Ca. Ins. Code § 717

Added by Stats. 1965, Ch. 1044.