California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 9.5 - Workers' Compensation Insurance Deposits
Section 2509.9 - Preferred Stock

(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) within the last ten (10) years there must not have been arrears of dividend payments on such preferred stock; and

(c) the issuing corporation shall have paid dividends on its common stock in each of the last five (5) years of operation; and

(d) the issuing corporation shall have a net worth of at least one hundred million dollars ($100,000,000); and

(e) the issuing corporation shall not have incurred a net loss in any more than one (1) of the last five (5) years of operation; and

(f) the issuing corporation shall not have been in default on any of its indebtedness or any of its sinking fund requirements; and

(g) except in the case of sinking fund preferred stock, the preferred stock must have a rating of at least "a3" by Moody's Investors Service, Inc. or "A-" by either Standard & Poor's or Fitch Ratings; and

(h) sinking fund preferred stock must have a rating of at least "baa3" by Moody's Investors Service, Inc., "BBB-" by Standard & Poor's or Fitch Ratings.