Article 1 General
Article 2 Restrictions on Activities
Article 3 General Investments
Article 3.5 Disclosure of Material Transactions
Article 4 Property Authorized for Excess Funds Investments
Article 4.5 Leeway Law
Article 4.6 Hedging
Article 4.7 Insurance Holding Company System Regulatory Act
Article 4.8 Business Transacted with Producer Controlled Insurer
Article 5 Life Insurance Policies
Article 5.5 Life Insurance Policy Loans
Article 6 Foreign Investments
Article 7 Valuation of Investments
Article 8 Reinsurance Transactions

Terms Used In California Codes > Insurance Code > Division 1 > Part 2 > Chapter 2

  • Accredited state: means a state in which the insurance department or regulatory agency having jurisdiction over the business of insurance has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the National Association of Insurance Commissioners' (NAIC) Financial Regulation Standards and Accreditation Program. See California Insurance Code 1216.1
  • Action: includes a civil action and a special proceeding of a civil nature. See California Government Code 14172
  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
  • Agency: means the Labor and Workforce Development Agency. See California Education Code 32290
  • Alcohol: means any form or derivative of ethyl alcohol (ethanol). See California Insurance Code 1140
  • Alcohol concentration: means either grams of alcohol per 100 milliliters of blood or grams of alcohol per 210 liters of breath. See California Insurance Code 1140
  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Appraisal: A determination of property value.
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Arraignment: A proceeding in which an individual who is accused of committing a crime is brought into court, told of the charges, and asked to plead guilty or not guilty.
  • Arrest: Taking physical custody of a person by lawful authority.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Associated equipment: means any of the following, excluding radio equipment:

    California Insurance Code 1140

  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • bathing: means a person floating, swimming, wading, or bodysurfing, with or without the use of a flotation device, including, but not limited to, floating upon or with the aid of a surfboard, paddle board, surfmat, innertube, life preserver, or air mattress, except a flotation device which is designed to be propelled by sail, mechanical means, power, oars, or paddle. See California Insurance Code 1140.1
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Bequest: Property gifted by will.
  • Boat: means any vessel that is any of the following:

    California Insurance Code 1140

  • Chemical test: means a test that analyzes an individual's breath, blood, or urine for evidence of drug or alcohol use. See California Insurance Code 1140
  • City: includes city and county. See California Education Code 19480
  • City: includes "city and county. See California Education Code 25018.6
  • Civil forfeiture: The loss of ownership of property used to conduct illegal activity.
  • Commissioner: means the Insurance Commissioner of the state and any assistant to the Insurance Commissioner designated and authorized by the commissioner while acting under his or her designation as the Insurance Commissioner. See California Insurance Code 1215
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Continuance: Putting off of a hearing ot trial until a later time.
  • control: includes the terms "controlling" "controlled by" and "under common control with" and means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. See California Insurance Code 1215
  • controlled: has the meaning ascribed in Section 1215. See California Insurance Code 1216.1
  • Controlled insurer: means an admitted insurer which is controlled, directly or indirectly, by a producer. See California Insurance Code 1216.1
  • Controlling producer: means a producer who, directly or indirectly, controls an insurer. See California Insurance Code 1216.1
  • Conviction: A judgement of guilt against a criminal defendant.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • County: includes "city and county. See California Education Code 17389
  • County: includes "city and county. See California Education Code 1915
  • County: includes city and county. See California Education Code 19479
  • County: includes city and county. See California Education Code 24937
  • County: includes "city and county. See California Education Code 25018.5
  • Court: means the trial court in which the action is pending, unless otherwise specified. See California Government Code 14172
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Decedent: A deceased person.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Department: means Department of Industrial Relations. See California Education Code 32295.5
  • Department: means the Department of Boating and Waterways. See California Insurance Code 1140
  • Dependent: A person dependent for support upon another.
  • Deposition: An oral statement made before an officer authorized by law to administer oaths. Such statements are often taken to examine potential witnesses, to obtain discovery, or to be used later in trial.
  • Devise: To gift property by will.
  • Director: means the Director of Boating and Waterways. See California Insurance Code 1140
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Domestic: means organized under the laws of this State, whether or not admitted. See California Education Code 32031
  • Drug: means any substance or combination of substances other than alcohol that could so affect the nervous system, brain, or muscles of a person as to impair to an appreciable degree his or her ability to operate a vessel in the manner that an ordinarily prudent person, in full possession of his or her faculties, using reasonable care, would operate a similar vessel under like conditions. See California Insurance Code 1140
  • Educational institution: means a school district, a community college district, a state university, the University of California, and the State Department of Education special schools. See California Education Code 32220
  • Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See California Government Code 14172
  • Electronically stored information: means information that is stored in an electronic medium. See California Government Code 14172
  • Enterprise risk: means any activity, circumstance, or event or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including, but not limited to, anything that would cause the insurer's risk-based capital to fall into company action level as set forth in Article 4. See California Insurance Code 1215
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Executor: A male person named in a will to carry out the decedent
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • Felony: A crime carrying a penalty of more than a year in prison.
  • Fiduciary: A trustee, executor, or administrator.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Foreign: means not organized under the laws of this State, whether or not admitted. See California Education Code 32032
  • Fraud: Intentional deception resulting in injury to another.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Governing board: means the governing board of a school district or community college district, the Trustees of the California State University, and the Regents of the University of California. See California Education Code 32220
  • Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
  • Groupwide supervisor: means the insurance official authorized to engage in conducting and coordinating groupwide supervision activities who is determined or acknowledged by the commissioner pursuant to subdivision (a) of Section 1215. See California Insurance Code 1215
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • insurance holding company system: consists of two or more affiliated persons, one or more of which is an insurer. See California Insurance Code 1215
  • insurer: means any person, firm, association, or corporation admitted to transact any property or casualty insurance business in this state. See California Insurance Code 1216.1
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Internationally active insurance group: means an insurance holding company system that includes an insurer registered pursuant to Section 1215. See California Insurance Code 1215
  • 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.
  • Kiting: Writing a check in an amount that will overdraw the account but making up the deficiency by depositing another check on another bank. For example, mailing a check for the mortgage when your checking account has insufficient funds to cover the check, but counting on receiving and depositing your paycheck before the mortgage company presents the check for payment. Source: OCC
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Legislative session: That part of a chamber's daily session in which it considers legislative business (bills, resolutions, and actions related thereto).
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • licensee: means an insurer, agent, broker, or any other person who is required to be licensed by the department. See California Education Code 32080
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Manufacturer: means any person engaged in any of the following:

    California Insurance Code 1140

  • Member of an athletic team: means member of any extramural athletic team engaged in athletic events on or outside the school grounds, maintained or sponsored by the educational institution or a student body organization thereof. See California Education Code 32220
  • Misdemeanor: Usually a petty offense, a less serious crime than a felony, punishable by less than a year of confinement.
  • Mortgage: includes a trust deed, "mortgagor" includes a trustor under such trust deed, "mortgagee" includes a beneficiary under such trust deed, or a trustee exercising powers or performing duties granted to or imposed upon him thereunder, and "lien" in respect to real or personal property includes a charge or incumbrance arising out of a trust deed. See California Education Code 32034
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Motorboat: means any vessel propelled by machinery, whether or not the machinery is the principal source of propulsion, but shall not include a vessel that has a valid marine document issued by the United States Coast Guard or any federal agency successor thereto. See California Insurance Code 1140
  • NAIC: means the National Association of Insurance Commissioners. See California Insurance Code 1215
  • Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
  • Oath: includes affirmation. See California Education Code 25020
  • Oath: includes an affirmation or declaration. See California Education Code 17389
  • 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.
  • Operator: means the person on board who is steering the vessel while underway. See California Insurance Code 1140
  • Oversight: Committee review of the activities of a Federal agency or program.
  • Owner: is a person having all the incidents of ownership, including the legal title, of a vessel whether or not that person lends, rents, or pledges the vessel. See California Insurance Code 1140
  • partnership: means the School/Law Enforcement Partnership established by this section. See California Education Code 32262
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Passenger: means every person carried on board a vessel other than any of the following:

    California Insurance Code 1140

  • Person: is a n individual, a corporation, a limited liability company, a partnership, an association, a joint stock company, a business trust, an unincorporated organization, or any similar entity, or any combination thereof acting in concert. See California Insurance Code 1215
  • Person: includes a corporation as well as a natural person. See California Education Code 17389
  • Person: means an individual, partnership, firm, corporation, limited liability company, association, or other entity, but does not include the United States, the state, or a municipality or subdivision thereof. See California Insurance Code 1140
  • Person: means any person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company. See California Education Code 19500
  • Person: means any person, firm, association, organization, partnership, business trust, corporation, limited liability company, or company. See California Education Code 24942
  • Personal property: includes money, goods, chattels, things in action, and evidences of debt. See California Education Code 17389
  • Personal property: All property that is not real property.
  • Personal watercraft: means a vessel 13 feet in length or less, propelled by machinery, that is designed to be operated by a person sitting, standing, or kneeling on the vessel, rather than in the conventional manner of sitting or standing inside the vessel. See California Insurance Code 1140
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
  • Probable cause: A reasonable ground for belief that the offender violated a specific law.
  • Probate: Proving a will
  • Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
  • Process: signifies a writ or summons issued in the course of a judicial proceeding. See California Education Code 17389
  • Producer: means a fire and casualty licensee or licensees or any other person, firm, association, or corporation, when, for any compensation, commission, or other thing of value, the person, firm, association, or corporation acts or aids in any manner in soliciting, negotiating, or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association, or corporation. See California Insurance Code 1216.1
  • Property: includes both personal and real property. See California Education Code 17389
  • Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
  • Quorum: The number of legislators that must be present to do business.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
  • Recreational vessel: means a vessel that is being used only for pleasure. See California Insurance Code 1140
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Resident: means residing in this State, "nonresident" means not residing in this State. See California Education Code 32040
  • Service of process: The service of writs or summonses to the appropriate party.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Spouse: includes "registered domestic partner" as required by Section 297. See California Education Code 19477
  • State: includes the District of Columbia and the territories when applied to the different parts of the United States, and the words "United States" may include the district and territories. See California Education Code 17389
  • State: means a state of the United States, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the District of Columbia. See California Insurance Code 1140
  • State: means the State of California, unless applied to the different parts of the United States. See California Education Code 19510
  • State: means the State of California, unless applied to the different parts of the United States. See California Education Code 25000.5
  • Statute: A law passed by a legislature.
  • Student body organization: means any student organization under supervision of the educational institution or its officers. See California Education Code 32220
  • Subpoena: A command to a witness to appear and give testimony.
  • subscription: includes mark when the signer or subscriber can not write, such signer's or subscriber's name being written near the mark by a witness who writes his own name near the signer's or subscriber's name. See California Education Code 25021
  • Summons: Another word for subpoena used by the criminal justice system.
  • Surplus line broker: means a person licensed under Section 1765 and authorized to do business under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1. See California Education Code 32224
  • Testify: includes any mode of oral statement made under oath or affirmation. See California Education Code 17389
  • Testimony: Evidence presented orally by witnesses during trials or before grand juries.
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
  • Trustee: A person or institution holding and administering property in trust.
  • two-way communication devices: include , but are not necessarily limited to, telephones, intercoms, walkie-talkies, or portable radios. See California Education Code 32226
  • Undocumented vessel: means any vessel that is not required to have, and does not have, a valid marine document issued by the United States Coast Guard or any federal agency successor thereto. See California Insurance Code 1140
  • Uphold: The decision of an appellate court not to reverse a lower court decision.
  • Use: means operate, navigate, or employ. See California Insurance Code 1140
  • Verdict: The decision of a petit jury or a judge.
  • Vessel: includes every description of a watercraft or other artificial contrivance used or capable of being used as a means of transportation on water, except either of the following:

    California Insurance Code 1140

  • Vessel: includes ships of all kinds, steamboats, steamships, canal boats, barges, sailing vessels, and every structure adapted to be navigated from place to place for the transportation of merchandise or persons. See California Education Code 19511
  • Voting security: shall include any security convertible into or evidencing a right to acquire a voting security. See California Insurance Code 1215
  • Waters of this state: means any waters within the territorial limits of this state. See California Insurance Code 1140
  • Writ: means an order or precept in writing, issued in the name of the people, or of a court or judicial officer. See California Education Code 17389
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.
  • Writing: includes printing and typewriting. See California Education Code 17389