Section 12111 Of Article 5. Financial Guaranty Insurance From California Insurance Code >> Division 2. >> Part 4. >> Chapter 1. >> Article 5.
12111
. An admitted financial guaranty insurance corporation shall
adopt procedures reasonably calculated to ensure, to the extent it is
commercially feasible for the financial guaranty insurance
corporation, that any prospectus which discloses that a policy of
financial guaranty insurance has been issued also discloses that in
the event the financial guaranty insurance corporation were to become
insolvent, any claims arising under the policies of financial
guarantee insurance are excluded from coverage by the California
Insurance Guaranty Association, established pursuant to Article 15.2
(commencing with Section 1063) of Chapter 1 of Part 2 of Division 1.