California Insurance Code ARTICLE 8 - Issue of Securities

• Section 820.
  The terms used in this article shall be given the meanings herein set forth, but such meanings shall not, merely by reason of enactment in...
• Section 821.
  “Security” means every instrument commonly known by that term, except:(a) Commercial paper when issued, given or acquired in a bona fide way in the ordinary course...
• Section 821.5.
  Without in any manner affecting the scope of the term “security” as set forth in section 821, and with the exceptions therein set forth, the...
• Section 822.
  Except as otherwise provided by this article, “sale” or “sell” means every disposition, or attempt or arrangement to dispose, of a security or interest in...
• Section 823.
  (a) A privilege pertaining to a security giving the holder the privilege to convert such security into another security of the same insurer is not a...
• Section 824.
  “Broker” means every person, other than an agent, who in this state engages either wholly or in part in the business of (a) dealing in...
• Section 825.
  “Agent” means every person employed or appointed by an insurer or broker who, within this State and for a compensation, sells any security.(Enacted by Stats....
• Section 826.
  “Insurer” for the purposes of this article includes every organization organized for the purpose of assuming the risk of loss under contracts of insurance or...
• Section 827.
  An insurer shall not sell in this state, except upon a sale for delinquent assessment made in accordance with the provisions of Section 423 of...
• Section 827.3.
  (a) As used in this section, the term “insurer” means an insurer which is domestic and admitted.(b) The transactions of an insurer set out in subdivisions (c)...
• Section 827.5.
  The term “insurer” as used in this section shall not include domestic insurers as defined in Section 26.The following transactions of an insurer described in...
• Section 827.6.
  Any offer or sale of voting common stock by an insurer incorporated in this state shall be exempt from the provisions of this article if,...
• Section 827.7.
  Where required by this article the commissioner is authorized to issue subscription and preorganization permits of and pertaining to insurers or proposed insurers. Applications for...
• Section 827.8.
  An offer or sale of voting common stock or preferred stock of and by a foreign or alien insurer to property broker-agents or casualty broker-agents,...
• Section 828.
  Except in the case of a broker holding a broker’s certificate issued by the commissioner under this code or by the Commissioner of Corporations under...
• Section 829.
  A person shall not issue, circulate, or publish any advertisement or writing concerning any security sold by him, unless either his name is subscribed thereto,...
• Section 830.
  A person shall not issue, circulate, or publish any such advertisement or writing after receipt of notice in writing from the commissioner that, in his...
• Section 831.
  Every security issued by any insurer without a permit of the commissioner authorizing the same in effect at the time of the issue, shall be...
• Section 831.1.
  Every security of a home protection company issued or authorized to be issued prior to December 31, 1978, shall be valid even though it has...
• Section 832.
  Every insurer that commits any of the following acts is guilty of a public offense and punishable by fine not exceeding ten thousand dollars:(a) Selling or...
• Section 833.
  Every person who commits any of the acts specified in this section is guilty of a public offense and punishable by a fine not exceeding...
• Section 834.
  The application for a permit to issue or sell securities shall be verified as provided in the Code of Civil Procedure for the verification of...
• Section 835.
  If the applicant is a partnership, unincorporated association, or joint stock company, it shall file with its application a copy of its articles of partnership...
• Section 836.
  If the applicant is a corporation, it shall file with its application a copy of all minutes of any proceedings of its directors, stockholders, or...
• Section 837.
  If the applicant is a foreign corporation or association, it shall also file with its application:(a) A certificate of the proper officer of the jurisdiction in...
• Section 838.
  Upon the filing of such application, the commissioner shall examine it and the other papers and documents filed therewith. He may, if he deems it...
• Section 838.5.
  Pursuant to this code, the commissioner has been and is authorized, in the instance of an application for a permit to issue securities in exchange...
• Section 839.
  The commissioner shall issue a permit if he finds that:(a) The proposed plan of business of the applicant and the proposed issuance of securities are fair,...
• Section 839.1.
  (a) In any case where a domestic insurer is directly affected by the total transaction for some part of which the permit applied for is needed,...
• Section 839.5.
  The commissioner shall not issue a permit for the sale of any securities of a domestic insurer in any case where he finds that the...
• Section 840.
  The commissioner may prescribe in the permit the amounts, considerations, terms, and conditions governing the issue and disposal of the securities and the permit authorizes...
• Section 841.
  Every permit shall recite in bold type that the issuance thereof is permissive only and does not constitute a recommendation or endorsement of the securities...
• Section 842.
  The commissioner may impose conditions requiring the deposit in escrow of securities and the impoundment of the proceeds from the sale thereof, limiting the expense...
• Section 843.
  The commissioner may, from time to time and for cause, amend, alter or revoke any permit issued by him hereunder, or temporarily suspend the rights...
• Section 844.
  Every insurer authorized by the commissioner to sell securities shall thereafter, at such times and in such form as he requires, make and file in...
• Section 845.
  (a) No person may sell or resell any security of a domestic, foreign, or alien insurer:(1) As an insurer with respect to securities of its own issue...
• Section 845.5.
  The certificate required by Section 845 to act as an agent of an insurer shall be secured as provided in Section 846 and shall expire...
• Section 846.
  To secure such certificate, the applicant shall make and file in the office of the commissioner an application therefor in writing, verified by or in...
• Section 847.
  At the time of filing an application for a broker’s certificate, the applicant shall file with the commissioner a bond for five thousand dollars, payable...
• Section 850.
  If the applicant is a foreign corporation or association, it shall file with its application:(a) A copy of its articles of incorporation or association.(b) A certificate of...
• Section 851.
  The commissioner shall examine such application, and shall make such further investigation of the applicant and its affairs as he deems advisable. He shall issue...
• Section 852.
  The commissioner may at any time in accordance with the procedure provided in Section 1738 suspend or revoke any broker’s or agent’s certificate issued by...
• Section 853.
  Every broker shall, at such times as the commissioner requires, make and file in the office of the commissioner a true and correct statement concerning...
• Section 854.
  After receipt of notice in writing from the commissioner, stating that the sale of a security would, in the commissioner’s opinion, be unfair, unjust, or...
• Section 855.
  All writings filed with the commissioner under this article shall be open to public inspection except where, in his judgment, the public welfare or the...
• Section 856.
  (a) The commissioner may at any time give or make public any information concerning any insurer, if in the commissioner’s judgment, the giving or publishing of...
• Section 857.
  The commissioner shall charge and collect the following fees:(a) For filing an original or supplemental application, or any amendments thereto, for a permit to issue securities,...
• Section 859.
  The commissioner shall also collect the following fees:(a) For filing any application for a broker’s certificate, two hundred eighty-three dollars ($283) for the first office or...
• Section 860.
  No fees shall be charged or collected for copies of papers, records, or official documents furnished to public officers for use in their official capacity...

Last modified: October 22, 2018