CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 713Introduced by Senator RubioFebruary 19, 2021 An act to amend, repeal, and add Section 1210 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTSB 713, as introduced, Rubio. Insurer investments.Existing law generally regulates the business of insurance in the state, including the types and amounts of investments that insurers may make. Existing law establishes the California Organized Investment Network (COIN) within the Department of Insurance to, among other things, pursue active measures to encourage insurers to make investments in Californias underserved and low-to-moderate-income communities. Existing law authorizes a domestic incorporated insurer to make discretionary investments after investment of an amount equal to its required minimum paid-in capital in specified securities. Under existing law, those discretionary investments may include the purchase of, or loans upon, properties and securities, but are limited to the lesser of 5% of the insurers admitted assets or 50% of the excess of admitted assets over the sum of capital paid up, liabilities, and a required surplus.This bill would, until January 1, 2027, increase that limitation if the Insurance Commissioner approves the amount and terms of the investment in advance and the investment has been identified by COIN or otherwise deemed a qualified investment under COIN. The bill would require the commissioner to submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on or before December 31, 2025, regarding the investments made due to the increased limitation.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1210 of the Insurance Code is amended to read:1210. (a) Any A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make such investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Articles Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), and Article 4 (commencing with Section 1190) of this chapter. 1190). Investments under this section shall not exceed, in the aggregate, the lesser of any either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and which that has been filed with the commissioner pursuant to as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section shall apply applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section which that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. Nothing in this subdivision is intended to This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) (1) The limitation in subdivision (a) shall be increased for an insurer if both of the following apply:(A) The amount and other terms of the investment have been approved by the commissioner for the insurer in advance.(B) The investment has been identified by the California Organized Investment Network (COIN) in an investment opportunity bulletin, or otherwise deemed a qualified investment, pursuant to Article 10.1 (commencing with Section 926) of Chapter 1.(2) On or before December 31, 2025, the commissioner shall submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on investments made pursuant to paragraph (1), with a focus on impact investments, high-impact investments, and community development investments, as defined in Article 10.1 (commencing with Section 926) of Chapter 1.(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.SEC. 2. Section 1210 is added to the Insurance Code, to read:1210. (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) This section shall become operative on January 1, 2027.
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 713Introduced by Senator RubioFebruary 19, 2021 An act to amend, repeal, and add Section 1210 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTSB 713, as introduced, Rubio. Insurer investments.Existing law generally regulates the business of insurance in the state, including the types and amounts of investments that insurers may make. Existing law establishes the California Organized Investment Network (COIN) within the Department of Insurance to, among other things, pursue active measures to encourage insurers to make investments in Californias underserved and low-to-moderate-income communities. Existing law authorizes a domestic incorporated insurer to make discretionary investments after investment of an amount equal to its required minimum paid-in capital in specified securities. Under existing law, those discretionary investments may include the purchase of, or loans upon, properties and securities, but are limited to the lesser of 5% of the insurers admitted assets or 50% of the excess of admitted assets over the sum of capital paid up, liabilities, and a required surplus.This bill would, until January 1, 2027, increase that limitation if the Insurance Commissioner approves the amount and terms of the investment in advance and the investment has been identified by COIN or otherwise deemed a qualified investment under COIN. The bill would require the commissioner to submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on or before December 31, 2025, regarding the investments made due to the increased limitation.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 713
Introduced by Senator RubioFebruary 19, 2021
Introduced by Senator Rubio
February 19, 2021
An act to amend, repeal, and add Section 1210 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 713, as introduced, Rubio. Insurer investments.
Existing law generally regulates the business of insurance in the state, including the types and amounts of investments that insurers may make. Existing law establishes the California Organized Investment Network (COIN) within the Department of Insurance to, among other things, pursue active measures to encourage insurers to make investments in Californias underserved and low-to-moderate-income communities. Existing law authorizes a domestic incorporated insurer to make discretionary investments after investment of an amount equal to its required minimum paid-in capital in specified securities. Under existing law, those discretionary investments may include the purchase of, or loans upon, properties and securities, but are limited to the lesser of 5% of the insurers admitted assets or 50% of the excess of admitted assets over the sum of capital paid up, liabilities, and a required surplus.This bill would, until January 1, 2027, increase that limitation if the Insurance Commissioner approves the amount and terms of the investment in advance and the investment has been identified by COIN or otherwise deemed a qualified investment under COIN. The bill would require the commissioner to submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on or before December 31, 2025, regarding the investments made due to the increased limitation.
Existing law generally regulates the business of insurance in the state, including the types and amounts of investments that insurers may make. Existing law establishes the California Organized Investment Network (COIN) within the Department of Insurance to, among other things, pursue active measures to encourage insurers to make investments in Californias underserved and low-to-moderate-income communities. Existing law authorizes a domestic incorporated insurer to make discretionary investments after investment of an amount equal to its required minimum paid-in capital in specified securities. Under existing law, those discretionary investments may include the purchase of, or loans upon, properties and securities, but are limited to the lesser of 5% of the insurers admitted assets or 50% of the excess of admitted assets over the sum of capital paid up, liabilities, and a required surplus.
This bill would, until January 1, 2027, increase that limitation if the Insurance Commissioner approves the amount and terms of the investment in advance and the investment has been identified by COIN or otherwise deemed a qualified investment under COIN. The bill would require the commissioner to submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on or before December 31, 2025, regarding the investments made due to the increased limitation.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 1210 of the Insurance Code is amended to read:1210. (a) Any A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make such investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Articles Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), and Article 4 (commencing with Section 1190) of this chapter. 1190). Investments under this section shall not exceed, in the aggregate, the lesser of any either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and which that has been filed with the commissioner pursuant to as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section shall apply applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section which that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. Nothing in this subdivision is intended to This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) (1) The limitation in subdivision (a) shall be increased for an insurer if both of the following apply:(A) The amount and other terms of the investment have been approved by the commissioner for the insurer in advance.(B) The investment has been identified by the California Organized Investment Network (COIN) in an investment opportunity bulletin, or otherwise deemed a qualified investment, pursuant to Article 10.1 (commencing with Section 926) of Chapter 1.(2) On or before December 31, 2025, the commissioner shall submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on investments made pursuant to paragraph (1), with a focus on impact investments, high-impact investments, and community development investments, as defined in Article 10.1 (commencing with Section 926) of Chapter 1.(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.SEC. 2. Section 1210 is added to the Insurance Code, to read:1210. (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) This section shall become operative on January 1, 2027.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 1210 of the Insurance Code is amended to read:1210. (a) Any A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make such investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Articles Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), and Article 4 (commencing with Section 1190) of this chapter. 1190). Investments under this section shall not exceed, in the aggregate, the lesser of any either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and which that has been filed with the commissioner pursuant to as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section shall apply applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section which that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. Nothing in this subdivision is intended to This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) (1) The limitation in subdivision (a) shall be increased for an insurer if both of the following apply:(A) The amount and other terms of the investment have been approved by the commissioner for the insurer in advance.(B) The investment has been identified by the California Organized Investment Network (COIN) in an investment opportunity bulletin, or otherwise deemed a qualified investment, pursuant to Article 10.1 (commencing with Section 926) of Chapter 1.(2) On or before December 31, 2025, the commissioner shall submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on investments made pursuant to paragraph (1), with a focus on impact investments, high-impact investments, and community development investments, as defined in Article 10.1 (commencing with Section 926) of Chapter 1.(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
SECTION 1. Section 1210 of the Insurance Code is amended to read:
### SECTION 1.
1210. (a) Any A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make such investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Articles Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), and Article 4 (commencing with Section 1190) of this chapter. 1190). Investments under this section shall not exceed, in the aggregate, the lesser of any either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and which that has been filed with the commissioner pursuant to as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section shall apply applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section which that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. Nothing in this subdivision is intended to This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) (1) The limitation in subdivision (a) shall be increased for an insurer if both of the following apply:(A) The amount and other terms of the investment have been approved by the commissioner for the insurer in advance.(B) The investment has been identified by the California Organized Investment Network (COIN) in an investment opportunity bulletin, or otherwise deemed a qualified investment, pursuant to Article 10.1 (commencing with Section 926) of Chapter 1.(2) On or before December 31, 2025, the commissioner shall submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on investments made pursuant to paragraph (1), with a focus on impact investments, high-impact investments, and community development investments, as defined in Article 10.1 (commencing with Section 926) of Chapter 1.(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
1210. (a) Any A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make such investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Articles Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), and Article 4 (commencing with Section 1190) of this chapter. 1190). Investments under this section shall not exceed, in the aggregate, the lesser of any either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and which that has been filed with the commissioner pursuant to as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section shall apply applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section which that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. Nothing in this subdivision is intended to This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) (1) The limitation in subdivision (a) shall be increased for an insurer if both of the following apply:(A) The amount and other terms of the investment have been approved by the commissioner for the insurer in advance.(B) The investment has been identified by the California Organized Investment Network (COIN) in an investment opportunity bulletin, or otherwise deemed a qualified investment, pursuant to Article 10.1 (commencing with Section 926) of Chapter 1.(2) On or before December 31, 2025, the commissioner shall submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on investments made pursuant to paragraph (1), with a focus on impact investments, high-impact investments, and community development investments, as defined in Article 10.1 (commencing with Section 926) of Chapter 1.(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
1210. (a) Any A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make such investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Articles Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), and Article 4 (commencing with Section 1190) of this chapter. 1190). Investments under this section shall not exceed, in the aggregate, the lesser of any either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and which that has been filed with the commissioner pursuant to as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section shall apply applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section which that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. Nothing in this subdivision is intended to This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) (1) The limitation in subdivision (a) shall be increased for an insurer if both of the following apply:(A) The amount and other terms of the investment have been approved by the commissioner for the insurer in advance.(B) The investment has been identified by the California Organized Investment Network (COIN) in an investment opportunity bulletin, or otherwise deemed a qualified investment, pursuant to Article 10.1 (commencing with Section 926) of Chapter 1.(2) On or before December 31, 2025, the commissioner shall submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on investments made pursuant to paragraph (1), with a focus on impact investments, high-impact investments, and community development investments, as defined in Article 10.1 (commencing with Section 926) of Chapter 1.(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
1210. (a) Any A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make such investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Articles Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), and Article 4 (commencing with Section 1190) of this chapter. 1190). Investments under this section shall not exceed, in the aggregate, the lesser of any either of the following:
(1) Five percent of the insurers admitted assets.
(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and which that has been filed with the commissioner pursuant to as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section shall apply applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).
(b) An investment originally made by an insurer pursuant to this section which that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170) 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.
(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. Nothing in this subdivision is intended to This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.
(d) (1) The limitation in subdivision (a) shall be increased for an insurer if both of the following apply:
(A) The amount and other terms of the investment have been approved by the commissioner for the insurer in advance.
(B) The investment has been identified by the California Organized Investment Network (COIN) in an investment opportunity bulletin, or otherwise deemed a qualified investment, pursuant to Article 10.1 (commencing with Section 926) of Chapter 1.
(2) On or before December 31, 2025, the commissioner shall submit a report to the committees of the Senate and Assembly having jurisdiction over insurance on investments made pursuant to paragraph (1), with a focus on impact investments, high-impact investments, and community development investments, as defined in Article 10.1 (commencing with Section 926) of Chapter 1.
(e) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
SEC. 2. Section 1210 is added to the Insurance Code, to read:1210. (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) This section shall become operative on January 1, 2027.
SEC. 2. Section 1210 is added to the Insurance Code, to read:
### SEC. 2.
1210. (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) This section shall become operative on January 1, 2027.
1210. (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) This section shall become operative on January 1, 2027.
1210. (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:(1) Five percent of the insurers admitted assets.(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.(d) This section shall become operative on January 1, 2027.
1210. (a) A domestic incorporated insurer, after investing an amount equal to its required minimum paid-in capital in securities specified in Article 3 (commencing with Section 1170), may make investments as it may see fit in the purchase of, or loans upon, properties and securities other than or in addition to or in excess of those set forth in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), and Article 4 (commencing with Section 1190). Investments under this section shall not exceed, in the aggregate, the lesser of either of the following:
(1) Five percent of the insurers admitted assets.
(2) Fifty percent of the excess of admitted assets over the sum of capital paid up, liabilities, and the surplus required by Section 700.02. The percentage or dollar value of admitted assets and capital paid up and liabilities shall be determined by the insurers last preceding annual statement of conditions and affairs made as of the preceding December 31st and that has been filed with the commissioner as required by law. The investments shall be subject to the provisions of Sections 1153.5, 1154, 1200, 1201, and 1202 as if they were excess funds investments. This section applies to an insurer other than a life insurer only if the insurer has aggregate capital and surplus of at least ten million dollars ($10,000,000).
(b) An investment originally made by an insurer pursuant to this section that subsequently meets the requirements of an investment contained in Article 2 (commencing with Section 1150), Article 3 (commencing with Section 1170), or Article 4 (commencing with Section 1190) may, at the election of the insurer, be considered to be held pursuant to any provision contained in those articles.
(c) Pursuant to the authority conferred by subdivision (a), notwithstanding Section 1100, an insurer may make discretionary investments in shares of an open-end diversified management investment company, as defined in the federal Investment Company Act of 1940, as amended. This subdivision does not prohibit any other discretionary investment, now or in the future, that might otherwise be made by an insurer, whether expressly identified in this section or not.
(d) This section shall become operative on January 1, 2027.