California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4 - Insurer Securities Permits
Article 3 - Applications-in General
Section 2603.19 - Filing Fees
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
The filing fees required by Insurance Code Sections 857 to 859, inclusive, shall be paid not later than concurrently with the filing of the application. Applications transmitted by mail for filing should be accompanied by a check made payable to the order of the State of California Insurance Commissioner for the full amount of the filing fee. The Commissioner reserves the right to reject any application not so accompanied by the correct filing fee.
Such fees are for filing and are not refundable in the event a permit is refused. The statute should always be consulted in case of doubt as to the amount. A summary of the filing fee requirements with illustrative computations follows (Section 857):
Original application or supplemental application for permit to issue securities (except application for permit to issue securities evidencing any change in the rights, preferences, privileges or restrictions on outstanding securities): __________$75.00 plus the sum of the following computed on the aggregate value of the securities to be issued:--
| 20/100 of 1% of any excess over $1,000 and not exceeding $50,000 ($98) | _______________ |
| 10/100 of 1% of any excess over $50,000 and not exceeding $100,000 ($50) | _______________ |
| 5/100 of 1% of any excess over $100,000 and not exceeding $500,000 ($200) | _______________ |
| 2/100 of 1% of any excess over $500,000 and not exceeding $5,000,000 ($900) | _______________ |
| 1/100 of 1% of any excess over $5,000,000 and not exceeding $10,000,000 ($500) | _______________ |
| 1/500 of 1% of any excess over $10,000,000 | _______________ |
Application for permit to issue securities evidencing any change in the rights, preferences, privileges, or restrictions on outstanding securities (Section 857 (b)): .......................... $75.00.
Application for permit to issue rights, warrants, etc., except where the market price is higher than the selling price: .......................... $50.00
Application to amend existing permit (Section 859 (a): .......................... $37.50
Application for preorganization, subscription or negotiating permit (Section 859 (a)): .......................... $37.50
The following paragraphs summarize applicable Insurance Code sections governing the determination of value of the securities involved (Section 858):
A. Take par or face value, unless the consideration alleged in the application or as found by Commissioner is in excess thereof, or unless the securities when issued will have a value as determined by the Commissioner in excess of their par or face value,--in either of which events,take the larger figure. (Section 858(a))
B. If the securities have no nominal or par value and if issuance is otherwise lawful (Section 690), the value shall be taken as the proposed sale price, or the value alleged in the application, or the actual value of the consideration (if other than money) as determined by the Commissioner, or the value of the security when issued, whichever is greatest. (Section 858(b)) For securities reported on stock exchange, take value based on stock exchange price. For securities traded substantially over-the-counter, take average of recent daily mean between bid and asked. (Section 843)
C. In calculating the fee on stock rights, subscription warrants, stock options, etc., compute value at difference between the selling price of the securities represented thereby and market value of such securities on daybefore application was filed, provided the market price is higher than the selling price; otherwise, the rights, warrants, options, etc., shall be deemed to have no value and the fee for filing such application shall be $50.00. (Sections 858(c), 843)
D. In case of an application to issue securities containing conversion rights, compute value of securities to be issued at twice the amount of the consideration to be received therefor. (Section 858(d))
E. In case of a share dividend or share split, value of the securities to be issued shall be the amount of the surplus proposed to be transferred to paid-in capital. (Section 858(e))
1. Amendment filed 5-6-77 as procedural and organizational; effective upon filing (Register 77, No. 19).
Note: Authority cited: Section 857, Insurance Code. Reference: Sections 820- 860, Insurance Code.
