California Insurance Code 1240 – The following definitions shall apply in this …
The following definitions shall apply in this article:
(a) “Foreign currency” means a currency other than that of the United States.
Terms Used In California Insurance Code 1240
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Domestic: means organized under the laws of this State, whether or not admitted. See California Insurance Code 26
- Foreign: means not organized under the laws of this State, whether or not admitted. See California Insurance Code 27
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Person: means any person, association, organization, partnership, business trust, limited liability company, or corporation. See California Insurance Code 19
(b) “Foreign investment” means an investment in a foreign jurisdiction, or an investment in a person, real estate, or asset domiciled in a foreign jurisdiction, that is substantially of the same kind, class, and investment grade as those eligible for investment under this code, other than under Section 1210 or 1241. An investment shall not be a foreign investment if the issuing person, qualified primary credit source, or qualified guarantor is a domestic jurisdiction or a person domiciled in a domestic jurisdiction, unless both of the following apply:
(1) The issuing person is a shell business entity.
(2) The investment is not assumed, accepted, guaranteed, or insured or otherwise backed by a domestic jurisdiction or a person, that is not a shell business entity, domiciled in a domestic jurisdiction.
(c) For purposes of subdivision (b), the following definitions apply:
(1) “Shell business entity” means a business entity having no economic substance, except as a vehicle for owning interests in assets issued, owned, or previously owned by a person domiciled in a foreign jurisdiction.
(2) “Qualified guarantor” means a guarantor against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction.
(3) “Qualified primary credit source” means the credit source to which an insurer looks for payment as to an investment and against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction.
(d) “Foreign jurisdiction” means a jurisdiction other than the United States or any of its political subdivisions.
(Repealed and added by Stats. 2008, Ch. 129, Sec. 3. Effective January 1, 2009.)