California Insurance Code

§ 12114

INS § 12114 Effective Jan 1, 2006Div. 2 · Part 4 · Ch. 1 · Art. 5

Statute text

(a)An insurer may insure obligations enumerated in subparagraphs (A), (B), and (C) of paragraph (1) of subdivision (b) of Section 12112 that are not investment grade so long as at least 95 percent of the insurer’s total net liability on the kinds of obligations enumerated in those subparagraphs is investment grade.

(b)The financial guaranty insurance corporation shall at all times maintain capital, surplus, and contingency reserve in the aggregate no less than the sum of the following:

(1)0.3333 percent of the total net liability under guaranties of municipal bonds and utility first mortgage obligations.

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Legislative history

Amended by Stats. 2005, Ch. 412, Sec. 7. Effective January 1, 2006.