§ 717
178 words·~1 min read·
/ca/insurance-code/717A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Before granting a certificate of authority or amended certificate of authority to any applicant, the commissioner shall consider the qualifications of said applicant in respect to the following subjects:
(a)capital and surplus;
(b)lawfulness and quality of investments;
(c)financial stability;
(d)reinsurance arrangements;
(e)competency, character, and integrity of management;
(f)ownership and control of issued and outstanding shares in the case of a capital stock insurer;
(g)whether claims under policies are promptly and fairly adjusted and are promptly and fully paid in accordance with law and the terms of policies;
(h)fairness and honesty of methods of doing business;
(i)method by which said applicant was promoted if any of its promoters remain as stockholders or in management; and
(j)hazard to policyholders or creditors.
Upon consideration of all relevant qualifications the commissioner shall issue a certificate of authority to such applicant, unless the commissioner shall have made a finding, or findings, that the applicant is materially deficient in respect to one or more of the items as outlined in
(a)through (j), above.