Insurance Code section 823

(a)

A privilege pertaining to a security giving the holder the privilege to convert such security into another security of the same insurer is not a sale of such other security.

(b)

A right pertaining to a security and entitling the holder of such right to subscribe to another security of the same insurer is not a sale of such other security, but the sale of such other security upon the exercise of such right shall be subject to the provisions of this article.

Source: Section 823, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=INS§ionNum=823.­ (updated Jan. 1, 1949; accessed Jun. 9, 2025).

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Verified:
Jun. 9, 2025

§ 823’s source at ca​.gov