California Insurance Code 1077.4 – During the period of supervision, the commissioner or his or her …
During the period of supervision, the commissioner or his or her designated appointee shall serve as the administrative supervisor. The commissioner may provide that the insurer may not do any of the following things during the period of supervision, without the prior approval of the commissioner or his or her appointed supervisor:
(a) Dispose of, convey, or encumber any of its assets or its business in force.
Terms Used In California Insurance Code 1077.4
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the Insurance Commissioner of this State. See California Insurance Code 20
- Contract: A legal written agreement that becomes binding when signed.
- Insurer: means and includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of life or disability insurance or of annuities. See California Insurance Code 1077
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) Withdraw any of its bank accounts.
(c) Lend any of its funds.
(d) Invest any of its funds.
(e) Transfer any of its property.
(f) Incur any debt, obligation, or liability.
(g) Merge or consolidate with another company.
(h) Approve new premiums or renew any policies.
(i) Enter into any new reinsurance contract or treaty.
(j) Terminate, surrender, forfeit, convert, or lapse any insurance policy, certificate, or contract, except for nonpayment of premiums due.
(k) Release, pay, or refund premium deposits, accrued cash, or loan values, unearned premiums, or other reserves on any insurance policy, certificate, or contract.
(l) Make any material change in management.
(m) Increase salaries and benefits of officers or directors or the preferential payment of bonuses, dividends, or other payments deemed preferential.
(Added by Stats. 1991, Ch. 986, Sec. 8.)