§ 16527 Surety Insurer Qualification Certificate

• •The state's money manager (Treasurer) can ask for proof that an insurance company is good enough to guarantee deposits.
• •The Insurance Commissioner must then give a paper (certificate) saying if the insurance company is qualified or not.
• •This is about making sure the insurance company can back up deposits if something goes wrong.

The state wants to put money in a bank but wants to be sure the bank's insurance company can cover the money if the bank fails.

The Treasurer asks the Insurance Commissioner to check if the insurance company is strong enough. If it is, they get a certificate saying so, and the state can safely put money in the bank.