California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4 - Insurer Securities Permits
Article 2 - The Insurance Securities Law (Insurance Code Sections 820-860)
Section 2602.07 - Effect of Sale Without Permit

The law provides that issuance of a security by an insurer without a permit in force at the time of issuance, under the circumstances such that one is required, shall be void. Every security issued by an insurer under the Commissioner's permit shall be void unless its provisions conform to the provisions, if any, required by the permit. (Sec. 831) Cf. Reed vs. Norman (1953) 41 Cal. 2d 17, 256 Pac. 2d 930; Wells vs. Comstock (1956) 46 Cal. 2d 528, 531, 297 Pac. 2d 961. An insurer is itself responsible for making a correct determination of whether under the circumstances a permit is required.