California Insurance Code 1142 – In situations of hardship, financial embarrassment or where other …
In situations of hardship, financial embarrassment or where other good cause is shown the commissioner may, in his discretion, by written order, permit an insurer to acquire by gift, devise, bequest or other transfer an asset, or a part thereof, not otherwise permissible, or retain an asset, however obtained. Such order, or any amendments thereto, shall specify the asset and the mode of acquisition or retention which is to be permitted and shall specify such reasonable time as the commissioner may determine in his discretion for the retention, or further retention of such asset. At the end of such time or earlier if he determines circumstances warrant such action the commissioner may invoke the procedure of Section 1202 for the purpose of requiring the insurer to dispose of the asset, or a part thereof, so acquired or held.
This section shall not apply to any asset of an insurer which:
Terms Used In California Insurance Code 1142
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bequest: Property gifted by will.
- Commissioner: means the Insurance Commissioner of this State. See California Insurance Code 20
- Devise: To gift property by will.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
(1) Has been held for 25 years or more, and
(2) Consists entirely of corporate securities, and
(3) The value does not exceed more than one-tenth of 1 percent of the total assets of the insurer.
The insurer may retain such an asset.
(Added by Stats. 1965, Ch. 1547.)