California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 1 - Admission Requirements
Section 2275 - General Consideration: Operating Record and Financial Condition: Minimum Capital Does Not Guarantee Admission
The commissioner will, in considering an applicant insurer for admission to transact business in California, determine each case largely upon its individual merits as to operating record and financial condition, and a reasonable surplus sufficient to meet all ordinary contingencies will be required in every case in addition to the minimum capital requirements specified in the statutes. The applicant must establish that its financial condition is such that the policyholders and creditors with which it will deal will be reasonably safe. Compliance with the minimum capital requirements does not guarantee admission. Each application for admission is determined after a consideration of all of the qualifications of the applicant.