California Administrative Code

Any broker-dealer and any agent employed by such a broker-dealer who recommends to a customer the purchase, sale or exchange of any security shall have reasonable grounds to believe that the recommendation is not unsuitable for such customer on the basis of information furnished …

No broker-dealer who is participating in a distribution of securities, whether acquired as an underwriter, a selling group member, or from a member participating in the distribution as an underwriter or selling group member, shall fail to make a bona fide public offering of all o…

§ 9.00. Definition. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/IFEA0DCC95B4C11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Defau…

(a) Definitions. As used in this rule, the following terms mean: (1) “Approved IAR Continuing Education Course” means a course approved by NASAA at the time the IAR takes the course and that is approved in accordance with the process set forth on pages 20 through 27 of the NASAA …

The following activities do not promote “fair, equitable or ethical principles,” as that phrase is used in Section 25238 of the Code: (a) Recommending to a client to whom investment supervisory, management or consulting services are provided the purchase, sale or exchange of any …

(a) An investment adviser's electronic signature on the Execution Page of Form ADV (Uniform Application for Investment Adviser Registration (17 CFR 279.1), filed with the Investment Adviser Registration Depository (“IARD”), shall constitute the consent to service of process requi…

(a) Unless otherwise provided by order of the Commissioner, every broker-dealer shall make, maintain, and preserve books and records in compliance with U.S. Securities and Exchange Commission rules 15c2-11 (17 CFR 240.15c2-11), 15g-2(c) (17 CFR 240.15g-2(c)), 15g-4(b)(2) (17 CFR …

(a) The Department is charged with the responsibility of administering regulatory statutes which vitally affect the interests of private citizens and of the general public. It is important that persons employed in the Department maintain unusually high standards of honesty, integ…

(a) Publications issued by the Commissioner shall be available for the charges set forth below, except that these charges shall not apply to other governmental agencies. (b) Individual Copies. Individual copies of the releases, notices of rule changes and other publications of th…

§ 6558. Foghorn. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I6DE339255B4D11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

An application for an insurer securities permit shall be typewritten in the English language on 8-1/2″ x 13″ paper. They shall be substantially in the form prescribed by this Article. Applications filed in the Los Angeles office shall be in duplicate. Applications filed in the Oa…

The office address of any legal counsel representing applicant in the application matter shall plainly appear on the first page of the application or on the letterhead of the letter transmitting it for filing.

In the event of appearance of new legal counsel after the filing of the initial application, authentic written authority from applicant for the appearance or substitution, as the case may be, shall accompany the first paper filed by the new or substituted attorney at law or shall…

If an application that otherwise complies with the law and these regulations is insufficient to enable the Commissioner to make the findings required by Insurance Code Section 839 and, if in the Commissioner's discretion the Commissioner so determines and requires, the findings (…

§ 372. Deer and Elk Tags, Persons Authorized to Validate. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I130B9BAE5B4D11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=…

Prior to issuance of an appropriate permit promoters may not lawfully do anything in this state which produces an agreement, express or implied, to buy an identified security. People vs. Jacques (1955) 138 Cal. App. 2d 823, 291 Pac. 2d. 124; Ogier vs. Pacific Oil and Gas Developm…

NOTE: Applicants most commonly apply directly for a definitive permit without any intervening formal steps or preliminary permits. The sections herein provided relative to preorganization and subscription permits are only designed to accommodate the limited situations described t…

§ 903. Order of Procedure. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I2B6855355B4D11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(s…

Refer to section 5207, Appendix E.

§ 4605. Lake Elsinore State Recreation Area. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I65F3F92A5B4D11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageI…

Various statutory provisions relating to paid-in capital, investments, insolvency and paid-up or unassigned surplus applicable to insurance companies (see especially Section 700.02(b)) render purely promotional securities difficult and impracticable. They were uniformally disappr…

In the event of a public offering, no securities will be authorized for promoters at less than the net public offering price.

All shares of insurance companies admitted or to be admitted must have a specified par value. (Sec. 690. Does not apply to noninsuring “insurers.”)

The Commissioner cannot and will not abdicate the Commissioner's authority and duty under Insurance Code Section 839. Hence, blanket permits for unlimited numbers of shares to be sold for unstated prices to undetermined people pursuant to exercise of options granted for undescrib…

In order to be found fair, just and equitable, any plan of this nature shall ordinarily do not less than the following: A. Be clear and unambiguous in its terms and as simple as the subject matter permits. B. Provide that it shall be submitted to and approved by company's directo…

The exercise price to be stated in options issued pursuant to an authorized plan of the kind described in Section 2608.06, supra, shall bear a reasonable relationship to the actual value of the shares to be optioned. “Reasonable relationship” is understood to be not less than 75%…

Any application for authorization to issue options, whether pursuant to a plan described in this Article or otherwise, shall be supported by a certified copy of a resolution of applicant's board of directors containing its findings, as follows: A. In the case of an applicant who …

Complex capital structures involving more than one class of capital stock are disfavored. (Secs. 839, 843)

Every Report of Transaction shall be captioned as specified in Section 2603.07 for applications. It shall bear the same entitlement as a properly entitled application in the matter reported on (refer to Sec. 2603.08, ante). It shall be plainly labeled “REPORT OF TRANSACTIONS” if …

Applicants should take care to make and timely file the verified report of transactions in duplicate lawfully required by the permit, since failure to do so is a violation which could give rise to litigation and may have other consequences. (Secs. 844, 833(i), 843) The Commission…

(a) The Product Database shall be available on the Website and shall include information about the Licensee and all Licensee's Products. Licensees are responsible for inputting, maintaining and updating their own Product information. (b) It is the responsibility of each Licensee …

The body of the form of contribution certificate, when authorized, shall be substantially as shown herein. The following form is for an interinsurance exchange; other entities having to resort to this device shall adapt the substance thereof. ABC INSURANCE EXCHANGE 1 Market Stree…

For convenient reference the following composite example of a form of subscription agreement for use under an organizational permit is provided. It is required that the substance of the last three paragraphs thereof be contained in any form of subscription agreement used where pu…

The following affidavit will be required of the organizers, promoters, original officers and directors of all applicants for organizational permits, and may be required in the case of unseasoned applicants. Permit____________________ or Admission ____________________ Name of Comp…

The following represents a composite, sample form of an agreement the nature of which has been approved by the Commissioner: This Agreement made and entered into this __________ day of_______________, 199 __, by and between ABC LIFE INSURANCE COMPANY, a California corporation (he…

A framing and rough carpentry contractor performs any form work, framing or rough carpentry necessary to construct framed structures; installs or repairs individual components of framing systems and performs any rough carpentry or associated work, including but not limited to the…

(a) The administrative law judge or hearing officer may order the parties to attend and participate in a settlement conference. The chief administrative law judge shall assign an administrative law judge or hearing officer to conduct the settlement conference, other than the admi…

Prior to any witness' cross-examination, any witness may provide additional direct testimony responding to testimony elicited of any other witness. Any additional direct testimony which is likely to take more than one hour of hearing time to present shall meet all requirements ap…

§ 933.2.5. Even-Aged Size Limits. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I3260B21A5B4D11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&context…

(a) Any exhibit that a party wishes to be part of the evidentiary record of this proceeding shall be lodged with the administrative hearing bureau and served on all other parties in the manner and by the date directed by the administrative law judge or hearing officer. (b) A part…

(a) An enforcement action is commenced when the Department serves a written notice of noncompliance pursuant to California Insurance Code section 1858.1, which shall state in what manner and to what extent non-compliance is alleged to exist; specifying a reasonable time, not less…

(a) Parties may stipulate to the resolution of an issue of fact or the applicability of a provision of law material to a proceeding or may agree to settlement on a mutually acceptable outcome to a proceeding, with or without resolving material issues. (b) If the parties agree to …

(a) The Authority shall establish a loan amount and repayment period, for an approved loan, which shall be memorialized in a written Loan Agreement and subject to an interest rate equal to the lesser of either (1) the rate paid on moneys in the Pooled Money Investment Account as …

A proceeding shall stand submitted when the record is closed by the administrative law judge or hearing officer.

(a) The administrative law judge or hearing officer shall prepare within 60 days after the record is closed a proposed decision in a form that may be adopted by the Commissioner as the final decision in the case. Failure of the administrative law judge or hearing officer to deliv…

§ 935.6. Timber Harvesting. [Repealed] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I334609085B4D11EC976B000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(…

(a) The decision shall become effective 30 days after it is delivered or mailed to the parties unless: reconsideration is ordered within that time, or the administrative law judge or hearing officer or Commissioner orders that the decision shall become effective sooner.

(See Rule 1.9) John A. Jones, ) Case No. Complainant, ) vs. ) (Insert number ) of complaint) Smith Public Utility System, a corporation, ) Defendant. ) I hereby certify that I have this day served a copy of [title of document, e.g., “Applicant UtilCorp's Motion To Strike” or “Not…

(a) When an administrative law judge or hearing officer has been assigned to a proceeding, no continuance may be granted except by that administrative law judge or hearing officer, and only for good cause shown. (b) When seeking a continuance, a party shall apply for the continua…

§ 450.16. Change of Business or Corporate Name. [Renumbered] This database is current through 5/1/26 Register 2026, No. 18. Source: https://govt.westlaw.com/calregs/Document/I67CA42735A1E11EC8227000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=Category…