California · Insurance Code

INS §1104.4: It shall be unlawful for any beneficial owner of an insurer, or director or officer thereof, described in Section 1104.

Misdemeanor

What this law says, in plain English

It is unlawful for certain insurer owners, directors, or officers to sell stock they do not own, or to fail to deliver or deposit owned stock within specified timeframes, with a good-faith inability defense available.

Read the full statutory text

It shall be unlawful for any beneficial owner of an insurer, or director or officer thereof, described in Section 1104.2, to, directly or indirectly, sell any stock of such insurer if he or his principal does not own the stock sold, or, if he or his principal owns the stock, he does not deliver it against such sale within 20 days thereafter, or does not within five days after such sale deposit it in the mails or other usual channels of transportation; but no person shall be deemed to have violated this section if he proves that notwithstanding the exercise of good faith he was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.

Verify at the official source: California legislative text

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.