§ 2602.05. When Permit Required -in General.

A permit is necessary for the sale by an insurer in this state of its treasury shares. A permit is required of domestic insurers, but is not normally required of foreign insurers, for stock splits, stock dividends, and amending articles of incorporation so as to change the rights, preferences and privileges or restrictions on outstanding securities. (There is no provision in the Insurance Securities Law comparable to subparagraphs (a) through (d) of Corporations Code Section 25500.) Insurers are further advised that in the opinion of this Department a permit is required where any of the following to be done by or on behalf of an insurer in connection with the original issue of its own securities will take place within the state: solicitation of the sale and purchase of a security; any act essential to sale or issuance of a security. Reference is suggested to the relevant court decisions, including Western Air Lines vs. Sobieski, 12 Cal. Rptr. 719, 191 Cal. App. 2d 399. (Secs. 821.5, 822, 827, 17 Ops. Cal. Atty. Gen. 217.)