California Insurance Code

§ 1194.87

INS § 1194.87 Effective Jan 1, 1993Div. 1 · Part 2 · Ch. 2 · Art. 4

Statute text

If, after a hearing, the commissioner is satisfied that an insurer is carrying upon its books any parcel or parcels of real estate at values exceeding the sound market value thereof, he or she may order the insurer to:

(a)Create an adequate contingency reserve against the book value of the parcel or parcels, or

(b)Reduce the book value of the parcel or parcels by a corresponding amount. In the case of real estate, not of a character described in subdivision (a), (b), (h), or (i) of Section 1194.86, which has been held by the insurer for more than five years, the commissioner may order the insurer to dispose of the real estate within six months if, after a hearing, the commissioner is satisfied that:

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Legislative history

Amended by Stats. 1992, Ch. 427, Sec. 115. Effective January 1, 1993.