{"data":{"id":"us-ca/ins-1242","jurisdiction":"us-ca","citation":"INS § 1242","heading":"","body":"(a) (1) Except as otherwise specified in Section 1241, a domestic insurer shall not acquire directly or indirectly through an investment subsidiary, an investment under Section 1241 if, as a result of and after giving effect to the investment, the insurer would hold more than 3 percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person, or 5 percent of its admitted assets in investments in the voting securities of a depository institution or any company that controls the institution.\n(2) The 3 percent limitation in paragraph (1) shall not apply to the aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization.\n(b) A domestic insurer shall not acquire, directly or indirectly through an investment subsidiary, an investment under Section 1241 if, as a result of and after giving effect to the investment, the insurer’s aggregate medium and lower grade investments do not comply with the limitations of Section 1196.1.","path":["Insurance Code - INS","DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100. - 1879.8.]","PART 2. THE BUSINESS OF INSURANCE [680. - 1879.8.]","CHAPTER 2. Incorporated Insurers [1140. - 1260.]","ARTICLE 6. Foreign Investments [1240. - 1242.]"],"source_url":"https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zip","current_through":"2026-09-13","vintage":"","retrieved_at":"2026-09-14T05:56:33Z","sha256":"70f6e798c9d3e4fa57128f6cbf7bd6ac6c1850fb1f9aff44db00ef23070354a8","source_id":"us-ca","stale":false,"prev":"us-ca/ins-1241.2","next":"us-ca/ins-1250"},"notice":"GroundRules: Original legal text. Not legal advice."}