Section 717 Of Article 3. Certificate Of Authority From California Insurance Code >> Division 1. >> Part 2. >> Chapter 1. >> Article 3.
717
. Before granting a certificate of authority or amended
certificate of authority to any applicant, the commissioner shall
consider the qualifications of said applicant in respect to the
following subjects: (a) capital and surplus; (b) lawfulness and
quality of investments; (c) financial stability; (d) reinsurance
arrangements; (e) competency, character, and integrity of management;
(f) ownership and control of issued and outstanding shares in the
case of a capital stock insurer; (g) whether claims under policies
are promptly and fairly adjusted and are promptly and fully paid in
accordance with law and the terms of policies; (h) fairness and
honesty of methods of doing business; (i) method by which said
applicant was promoted if any of its promoters remain as stockholders
or in management; and (j) hazard to policyholders or creditors.
Upon consideration of all relevant qualifications the commissioner
shall issue a certificate of authority to such applicant, unless the
commissioner shall have made a finding, or findings, that the
applicant is materially deficient in respect to one or more of the
items as outlined in (a) through (j), above.