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Section 12090 Of Article 3. Special Restrictions On Business From California Insurance Code >> Division 2. >> Part 4. >> Chapter 1. >> Article 3.
12090
. (a) An admitted surety insurer shall not become surety on
any one undertaking, or accept reinsurance on such undertaking, when
its liability thereon, in excess of the amount reinsured by it in an
admitted insurer, amounts to more than ten percent of its capital and
surplus as shown by its last statement on file in the office of the
commissioner.
(b) In determining its liability on an undertaking for purposes of subdivision (a), an admitted insurer may reduce its liability by either or both of the following:
(1) Deposits with the surety insurer, in a manner acceptable to the commissioner, or by conveyance to it in trust for its protection, of assets that would qualify as admitted assets.
(2) A clean and irrevocable letter of credit acceptable to the commissioner.
(b) In determining its liability on an undertaking for purposes of subdivision (a), an admitted insurer may reduce its liability by either or both of the following:
(1) Deposits with the surety insurer, in a manner acceptable to the commissioner, or by conveyance to it in trust for its protection, of assets that would qualify as admitted assets.
(2) A clean and irrevocable letter of credit acceptable to the commissioner.
