California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 9.5 - Workers' Compensation Insurance Deposits
Section 2509.10 - Common Stock
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Common stock is acceptable for workers' compensation deposit subject to the requirements set forth in this Article, and all of the following requirements:
(a) the stock must be registered and traded on a national securities exchange as provided in the Securities Exchange Act of 1934, as amended; and
(b) the stock must not be stock of an affiliate of Applicant; and
(c) no more than ten percent (10%) of the deposited value shall be in the stock of any one corporation calculated on the basis of the minimum required deposit value which must be maintained by the depositing insurer; and
(d) the issuing corporation must have a net worth of at least one hundred million dollars ($100,000,000); and
(e) the issuing corporation shall have paid dividends on its common stock in each of the last five (5) years of operation; and
(f) the issuing corporation shall not have incurred a net loss in any more than one (1) of the last five (5) years of operation.
1. Change without regulatory effect amending NOTE filed 4-28-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 18).
Note: Authority cited: Section 11691, Insurance Code. Reference: Section 11691, Insurance Code.
