California Insurance Code

§ 10089.10

INS § 10089.10 Effective Sep 27, 1996Div. 2 · Part 1 · Ch. 8.6

Statute text

To expand the capacity of the authority and achieve maximum capacity for writing earthquake coverage, the authority shall do both of the following acts, on prior approval of the commissioner:

(a)The authority shall purchase contracts of reinsurance at rates and on terms the board considers reasonable and appropriate.

(b)The authority, through the Treasurer, shall enter capital market contracts on terms as the board and Treasurer may consider reasonable and appropriate. The Treasurer shall not withhold approval except for good cause related to the purposes of the authority. Such terms may include indemnification and contribution provisions protecting parties to the capital market contracts of the authority against material misstatements in or material omissions from the authority’s official statements and other authority documents referred to in the capital markets contracts.

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Legislative history

Amended by Stats. 1996, Ch. 967, Sec. 7. Effective September 27, 1996.