Cal. Insurance Code § 1242 : California Insurance Code — General Rules Governing Insurance — Incorporated Insurers — Foreign Investments — Limitation on investment specified in section 1241 Date: 15 Sep 2016 TEXT PDF Current through the 2016 Legislative Session (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. (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. (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. Ca. Ins. Code § 1242 Added by Stats 2008 ch 129 (AB 2203),s 8, eff. 1/1/2009.