California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4 - Insurer Securities Permits
Article 7 - Promoters
Section 2607.01 - Promotional Stock Not Allowed

Various statutory provisions relating to paid-in capital, investments, insolvency and paid-up or unassigned surplus applicable to insurance companies (see especially Section 700.02(b)) render purely promotional securities difficult and impracticable. They were uniformally disapproved pursuant to Section 839. Fair, just, and equitable stock option plans for promoters, officers and employees are presently not regarded with disfavor.