California Insurance Code

§ 1216.3

INS § 1216.3 Effective Jan 1, 1993Div. 1 · Part 2 · Ch. 2 · Art. 4.8

Statute text

(a)(1) The provisions of this section shall apply if, in any calendar year, the aggregate amount of gross written premium of business placed with a controlled insurer by a controlling producer is equal to or greater than 5 percent of the admitted assets of the controlled insurer, as reported in the controlled insurers’ quarterly statement filed as of September 30 of the prior year.

(2)Notwithstanding paragraph (1) of subdivision (a), the provisions of this section shall not apply if:

(A)The controlling producer both (i) places insurance only with the controlled insurer, or only with the controlled insurer and a member or members of the controlled insurer’s holding company system, or the controlled insurer’s parent, affiliate, or subsidiary and receives no compensation based upon the amount of premiums written in connection with that insurance; and (ii) accepts insurance placements only from nonaffiliated subproducers, and not directly from insureds.

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Legislative history

Added by Stats. 1992, Ch. 614, Sec. 7. Effective January 1, 1993.