SECTIONS 800-804 - California Statutes

INSURANCE CODE

SECTION 800-804

800. This article shall not apply to:
(a) Insurers made exempt therefrom by other provisions of this
code.
(b) Insurance upon the interests of common carriers engaged in
interstate trade, or upon property in their custody.
(c) Insurance contracts executed without this state, but which
during the term thereof temporarily cover subject matter within this
state.
(d) Bid bonds issued by any admitted insurer in connection with
any public or private contract.

801. The amendments made in any sections contained in this article
by the Statutes of the 1969 Regular Session of the Legislature shall
not repeal, rescind or affect the interpretation of Article 1.5
(commencing with Section 685) of Chapter 1 of Part 2 of Division 1
of, or Section 1750.5 of this code.

802. Any admitted insurer may, by means of temporary binders,
execute contracts of insurance at offices outside this state upon
subject matter located in this state if policies therefor are
thereafter issued by it.

803. (a) No admitted insurer shall assume or reinsure the
liabilities of a nonadmitted insurer upon subject matter located in
this state for the purpose of circumventing the rate and form
provisions of this code, or the nonadmitted insurer provisions in
Chapter 6 (commencing with Section 1760) of Part 2, and their
implementing regulations. Notwithstanding Section 804, if, after
notice and hearing, the commissioner determines that a reinsurance
agreement was entered into in violation of this section, then the
insurer shall be subject to a fine not to exceed five thousand
dollars ($5,000), for each such reinsurance agreement, and the
commissioner may enter any other corrective order he or she deems
necessary.
(b) The commissioner shall issue a bulletin to govern the
reporting to the department by admitted insurers of their reinsurance
transactions with nonadmitted insurers. The bulletin shall specify
the types of reinsurance subject to reporting, the amounts which
shall be reported, and the manner in which that information shall be
reported. The bulletin shall require reporting of sufficient
information to enable the department to evaluate compliance with
subdivision (a).

804. Any insurer willfully violating any provision of this article
is guilty of a misdemeanor and is punishable by a fine not exceeding
one thousand dollars ($1,000) for each violation thereof, or the
commissioner may suspend the certificate of authority of such insurer
for the remainder of the term thereof.