Section 12372 Of Article 3. Title Insurers: Finances And Investments From California Insurance Code >> Division 2. >> Part 6. >> Chapter 1. >> Article 3.

. Any such domestic insurer, after having its required capital paid in and depositing its required guarantee fund with the State Treasurer, may invest its funds in the preparation and purchase of materials and plant necessary to enable it to engage in the title insurance business. In all statements and proceedings required by law for the ascertainment and determination of the condition of such insurer, such materials and plant shall be treated in one of the following ways:
  (a) They may be treated as an asset, valued at actual cost to the insurer not in excess of 50 per cent of the aggregate par value of the shares of the insurer's capital stock then issued outstanding, and apportioned to its title insurance department, including treasury shares;
  (b) They may be treated as an asset, at such lesser value than that permitted by paragraph (a) of this section as the insurer estimates;
  (c) They may be omitted entirely from the statement or proceeding.