California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4 - Insurer Securities Permits
Article 9 - Miscellaneous Requirements
Section 2609.04 - Price-Fair, Just and Equitable

A. The price stated in the application of an operating but unseasoned insurer will be judged with reference to Section 839 by the tangible results produced by applicant with the surplus expended during the time it has been in business. (Secs. 839, 840)

B. Market transactions of significant volume in a free market are given primary weight.

C. In the case of stocks widely traded, allegation of current bid and asked prices is usually sufficient in the absence of recent substantial fluctuations.

D. Where there is an impending merger or some other factor strongly influencing market price, the showing of market transactions should extend from a period antedating such influence down to the filing date, or as near thereto as practicable. (Secs. 839, 843)

E. In the case of an operating insurer whose stock is substantially traded but has not acquired a stable market price, the application should be supported by evidence covering a period of usually not less than three months showing approximately the number of shares traded and the prices paid. (Secs. 839, 843)