SECTIONS 1070-1076 - California Statutes

INSURANCE CODE

SECTION 1070-1076

1070. Any insurer, upon payment of the fees and costs therefor and
surrender to the commissioner of its certificate of authority, may
apply to withdraw from this State. Such application shall be in
writing, duly executed, accompanied by evidence of due authority for
such execution, and properly acknowledged.

1070.5. Whenever an admitted insurer fails to take any step
necessary to maintain continuance of its certificate of authority, or
whenever the certificate of authority admitting an insurer is
canceled or revoked, or whenever an admitted insurer as an entity
ceases doing an insurance business in this state for any reason, such
insurer shall apply to withdraw as an insurer and shall withdraw as
such insurer from this state pursuant to this article. Every
certificate of authority hereafter granted is so granted subject to
this withdrawal requirement. Acceptance of every such certificate of
authority is an agreement by the accepting insurer that it will
conform to the provisions of this article.

1070.6. The withdrawal procedure and fees prescribed by this
article shall not be required of a nonsurviving admitted constituent
to a merger or consolidation into another admitted insurer in
accordance with the applicable statutes and the commissioner's prior
written consent given pursuant to subdivision (c) of Section 1011,
provided the commissioner is satisfied by documents, authenticated so
as to be admissible in evidence over objection, filed with him,
that:
(a) Such constituent has discharged all of its liabilities to
residents of this state in the manner provided by Section 1071.5;
(b) There will be an admitted insurer directly available to such
constituent's policyholders: (1) to obtain policy changes and
endorsements, (2) to receive payment of premiums and refund unearned
premiums, (3) to serve notice of claim, proof of loss, summons,
process, and other papers, and (4) for purposes of suit;
(c) Such constituent shall timely file with the commissioner
appropriate financial statements reporting its insurance business
done in this state during the calendar year of the merger or
consolidation and all appropriate tax returns required by law for
such period, and shall timely pay all taxes found to be due on
account of such business; and
(d) Such constituent has surrendered its current California
certificate of authority to the commissioner for cancellation as of
the effective date of the merger.
The withdrawal procedure and fees prescribed by this article shall
not be required of an insurer which has been liquidated by a final
order of a court of record of this or any sister state provided a
certified copy of such order reciting the fact of liquidation and
discharge of all obligations has been filed with the commissioner.

1071. The commissioner shall publish such application for
withdrawal, daily, for one week, in each of two daily newspapers of
general circulation, one published in the city of San Francisco, and
the other in the city of Sacramento. The expense of such publication
shall be paid in advance by the insurer.

1071.5. Every insurer which withdraws as an insurer, or is required
to withdraw as an insurer, from this State shall, prior to such
withdrawal, discharge its liabilities to residents of this State. In
the case of its policies insuring residents of this State it shall
cause the primary liabilities under such policies to be reinsured and
assumed by another admitted insurer. In the case of such policies as
are subject to cancellation by the insurer, it may cancel such
policies pursuant to the terms thereof in lieu of such reinsurance
and assumption.

1072. The commissioner shall make, or cause to be made by the
insurance authority of the State where the insurer is organized, an
examination of the books and records of the insurer. If, upon such
examination, he finds that the insurer has no outstanding liabilities
to residents of this State and no policies in favor of the residents
of this State uncanceled or the primary liabilities under which have
not been reinsured and assumed by another admitted insurer, as
required by Section 1071.5, he shall cancel the insurer's
certificates of authority, if unexpired, and he shall permit the
insurer to withdraw. The commissioner may, in his discretion, waive
any or all of the above requirements if, after such examination, he
finds it to be in a solvent condition. The cost and expense of all
such examinations shall be paid as prescribed in Section 736.

1073. Whenever any insurer withdraws from business in this State,
and whenever for any reason the commissioner revokes or cancels the
certificate of authority admitting any insurer, the commissioner
shall thereafter cause a notice of the revocation, cancellation or
withdrawal to be published in one daily newspaper published in the
city of San Francisco and one daily newspaper published in the city
of Los Angeles. The expense of such publication shall be paid by the
insurer.

1074. Upon the failure of such insurer to pay the expense of such
advertising within thirty days after the presentation of the bill
therefor, the commissioner shall collect such fee from the surety in
the bond furnished in accordance with the provisions of Article 12 of
this chapter or out of securities furnished thereunder.

1076. The withdrawing insurer shall pay to the commissioner a fee
of five hundred ninety dollars ($590) for all services and expenses
in connection with the withdrawal.