SECTIONS 12350-12360 - California Statutes

INSURANCE CODE

SECTION 12350-12360

12350. Every title insurer, before issuing any policy, shall
deposit $100,000 with the Insurance Commissioner or other designated
official of its home State as a "guarantee fund" for the security and
protection of the holders of, or beneficiaries under, its title
policies.

12351. Any such deposit may be made either in lawful money of the
United States or in any of the securities, other than collateral
trust bonds or notes, authorized for investment, other than excess
funds investments, of all the assets of domestic incorporated
insurers.

12352. If the deposit is made in this State, it shall first be
approved by the commissioner, who shall forthwith make a special
deposit thereof in the State treasury, for the purpose specified in
section 12350. The Treasurer shall give his receipt therefor, to the
commissioner.

12353. Except as provided in section 12355, assets in such deposits
in this State may, with the approval of the commissioner, be
withdrawn or exchanged from time to time for other assets of like
character and value.

12354. As long as the depositing insurer continues solvent, it
shall receive the interest and dividends on any assets in the
deposit.

12355. Except on withdrawal of the insurer from this State, or
substitution pursuant to section 12353, assets in the deposit in this
State shall be subject to final sale, transfer, and disposal of the
proceeds thereof by the commissioner only on the order of a court of
competent jurisdiction and for the security and protection of the
holders of, or beneficiaries under, the depositing insurers title
insurance policies.

12356. When any part of the assets to be deposited in this State
consists of mortgage-secured notes or bonds, or loans upon real
property secured by mortgage, such mortgages shall be accompanied by
a policy of mortgage insurance issued under the provisions of this
code, or by evidence of title issued by a person designated or
approved by the commissioner and either authorized by law or found by
the commissioner to be competent to issue such evidence. Such
evidence of title shall consist either of a full abstract of title, a
full certificate of title, or a policy of title insurance, and shall
be assigned and approved by, or under the direction of, the
commissioner.
In any case where he ascertains that the expense thereof would not
be unreasonable or such as to make the deposit impracticable, the
commissioner may require a policy of title insurance or a guaranty
that the abstract is correct and that it shows title to be in the
proper party, issued by a corporation authorized to issue such
policies or guaranties.

12357. Unless the mortgage is covered by mortgage insurance, the
value of the property covered by each such mortgage constituting all
or part of such deposit in this State shall be appraised by one or
more appraisers selected or approved by the commissioner. The
appraisers shall be familiar with property values of the particular
type of property and generally in the region in which the property or
some part thereof is situated.

12358. The reasonable cost of examining such evidence of title and
of making such appraisement, shall be paid by the title insurer
making the deposit.

12359. A title insurer shall not transact any insurance in this
state unless it has paid-in capital represented by shares of stock of
at least five hundred thousand dollars ($500,000).

12360. An insurer which anywhere in the United States transacts any
class of insurance other than title insurance is not eligible for
the issuance of a certificate of authority to transact title
insurance in this State nor for the renewal thereof.