§ 623 Federal Agency Powers

Financial Code·California

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Key Takeaways

•If an insurance company is in big trouble, a special person (called a conservator, liquidator, or receiver) takes over to fix things.
•This special person has the same powers as the state insurance boss to control or close down the company.
•They can take charge of the company’s money and stuff, but they have to follow federal laws if there’s a conflict.

Example

An insurance company goes broke and can’t pay people’s claims after a big storm.

The special person steps in, takes control of the company’s money, and decides how to pay back customers fairly, just like the state insurance boss would.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 623 Federal Agency Powers

The Federal Insurance Agency conservator, liquidator, or receiver shall possess with respect to the insured licensee all the powers, rights, and privileges given the commissioner under this article with respect to the conservation or liquidation of a licensee, as appropriate, and the property and assets of which he or she has taken possession, except insofar as the same may be in conflict with the provisions of applicable federal law. (Added by Stats. 2011, Ch. 243, Sec. 2. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

insurance property commission possession license conservation liquidation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 623.

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Key Takeaways

Example

Key Terms

Related Statutes

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