California Insurance Code

§ 986

INS § 986Div. 1 · Part 2 · Ch. 1 · Art. 13

Statute text

A life insurer issuing policies on a reserve basis is insolvent whenever its assets are exceeded by the total of the following: (1) the amount necessary to provide for its liabilities; (2) the amount of paid-in capital, as defined in Section 36, required by the provisions of Sections 10510, 10511, and 10512; (3) the amount necessary to provide for reinsurance of all its outstanding risks at the following rates:

(a)In the case of contracts issued in a foreign country, upon the lives of residents thereof, by a domestic insurer authorized to and doing business in that foreign country, the rates shall be in accordance with the standard of mortality approved by the commissioner, as provided by law.

(b)In the case of group insurance, at the rates required by law for valuation thereof.

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Legislative history

Amended by Stats. 1974, Ch. 447.