---
title: "Representations and Warranties Insurance in California"
description: "Review California asset-sale votes, related-party approval thresholds, merger succession, and the difference between fraud deadlines and policy reporting terms."
canonical: "https://spot.insure/coverage/representations-warranties/california"
page-type: "coverage-state-guide"
updated-at: "2026-09-28"
---

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# Representations and Warranties Insurance in California

A California corporation’s out-of-course sale of all or substantially all assets generally needs board and outstanding-share approval; a sale to a controlling or commonly controlled buyer can require 90% approval unless the stated equity-consideration exception applies. California also gives fraud actions a three-year discovery-based period, but that lawsuit rule does not set your policy’s notice deadline or the negotiated survival of purchase-agreement representations.[^1][^3]

**Coverage:** [Representations and warranties](/coverage/representations-warranties) · [California](/coverage/states/california)

## What Is Representations And Warranties?

Representations and warranties insurance can cover a buyer’s or seller’s loss from inaccurate statements in a stock or asset purchase agreement. For a business sale, check who is insured, who can recover and how known issues are treated. [Read the national Representations and warranties guide](/coverage/representations-warranties).

## What to Watch for in California

### Asset Sale Approval

Corporations Code §1001 requires board approval and, outside the usual and regular course, approval of outstanding shares for a sale of all or substantially all assets. Have deal counsel tie the authority and no-conflict representations to the board resolution, shareholder approval, and the precise assets described in the agreement.[^1]

### Related-Party Vote

If the buyer controls or is under common control with the disposing corporation, §1001(d) generally calls for approval by at least 90% of voting power, with an exception for specified nonredeemable common-share consideration. For a management or affiliate-led deal, ask which ownership and consideration facts support the claimed approval route and disclose them consistently in underwriting materials.[^1]

### Merger Successor

Corporations Code §1107 makes the survivor subject to the disappearing corporations’ debts and liabilities and permits pending actions to continue against it. If the deal uses a merger, check that the policy schedule and the agreement’s seller/indemnitor names track the actual survivor and constituents; the statute does not decide policy coverage.[^2]

### Separate Claim Clocks

Code of Civil Procedure §338(d) gives an action for relief based on fraud or mistake three years from discovery of the facts constituting it. That is a civil-action limitation rule, not an R&W insurer’s claim-notice term; compare it separately with written-representation survival, seller-indemnity survival, and the policy’s reporting provisions.[^3]

## Who Regulates Insurance in California

**California Department of Insurance.** The California Department of Insurance regulates insurers and insurance producers, provides company and license-status searches, and accepts complaints through its Consumer Complaint Center. Its commercial-insurance guidance explains the Department’s limited jurisdiction over surplus-line insurers.[^6][^7][^8][^9][^19]

- [Regulator website](https://www.insurance.ca.gov/)
- [License lookup](https://www.insurance.ca.gov/01-consumers/120-company/)
- [File a complaint](https://cdiapps.insurance.ca.gov/CP/)
- Phone: (800) 927-4357

### Surplus-Lines Tax and Stamping Office

**Reported tax rate:** 3% of taxable premium when California is the insured's home state When California is your home state, the surplus-line broker tax is generally 3% of gross premiums less returned premiums. Ask the broker to show the home-state determination, taxable premium and any applicable exception; ordinary multistate reporting does not itself reduce the tax base. A broker generally must search the admitted market unless a California exemption or the qualified federal commercial-purchaser exception applies. CIGA does not protect claims under a surplus-line policy.[^10][^12][^17][^9][^11][^13][^14][^15][^18]
[Surplus Line Association of California](https://www.slacal.org/)

**California usually requires an admitted-market search:** Before most nonadmitted placements, a broker must search among admitted insurers. After a public hearing and the required statutory findings, California’s Commissioner may exempt qualifying coverage or risks through an Export List order. The confidential written report remains required under §1763.1. Separately, §1763(h) waives the search for a commercial insured meeting California’s §1760.1(b) definition: the broker must first give written disclosure about possible admitted-market availability and its potential greater protection and oversight, then receive the insured’s written request for nonadmitted placement. The broker must ensure eligibility, with a safe harbor for reasonable reliance on information supplied in good faith. The federal exempt-commercial-purchaser route under §8205 has its own §8206 definition and requires disclosure about possible admitted-market availability and its potential greater protection and oversight, followed by the purchaser’s written request. Ask which route and eligibility criteria the broker relies on.[^11][^14][^15][^4][^5][^20]

**Separate tax calculation from allocation reporting:** Section 1775.5 generally counts the entire premium for nonadmitted insurance placed in one transaction with one underwriter or group for a California-home-state insured. It has a separate interstate-motor-transit formula and exclusions for premiums on insurance placed by or through a special-lines surplus line broker under §1760.5 and the defined risk-financing portion of specified Superfund remediation products. CDI’s calendar-year 2025 instructions include policy-related fees in gross premium, say it does not collect the tax on risks outside the United States, and treat multistate allocation percentages as informational. Have the broker explain how those rules apply to your placement.[^12][^16][^17]

## Providers With Documented State Licenses

These providers publish a national listing for Representations and warranties; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm that the product is available in California; [check the regulator’s license lookup](https://www.insurance.ca.gov/01-consumers/120-company/) and confirm state availability for your business when requesting a quote.

- [Corgi](/insurance-providers/corgi) — **Entity:** Corgi Insurance Services, Inc.; **role:** Insurance producer; **checked:** 2026-09-28. **Scope:** Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability.[^23]
- [Gallagher](/insurance-providers/gallagher) — **Entity:** Arthur J. Gallagher Risk Management Services, LLC; **role:** Insurance producer; **checked:** 2026-09-28. **Scope:** Gallagher Small Business’s legal-information page gives the producer identification associated with the disclosed California license. The provider record treats this identifier as company-reported and not independently verified; no other state is recorded.[^24]

## Questions to Ask Before You Buy in California

1. Is this an ordinary-course sale or an out-of-course sale of substantially all assets, and which California approval record supports that description?
2. Does the buyer’s existing control or common control trigger the 90% voting rule, and if not, what consideration exception applies?
3. Which deadline governs a seller fraud claim under the chosen law, and what separate notice and reporting dates appear in the policy?
4. Does the policy wording explain how recovery under seller indemnity or escrow affects an insured loss?

## Representations And Warranties in California: FAQ

### Does California require shareholder approval for a sale of substantially all assets?

Generally, yes when the sale is outside the corporation’s usual and regular course: the board and outstanding shares must approve the principal terms. A related-party buyer can trigger a 90% voting threshold, subject to the statutory equity-consideration exception.[^1]

### When does a California fraud claim deadline start?

For an action seeking relief on fraud or mistake, the three-year period does not accrue until the aggrieved party discovers the facts constituting the fraud or mistake. That rule does not replace any contractual survival period or insurer notice requirement.[^3]

## Representations And Warranties in Other States

- [Alabama](/coverage/representations-warranties/alabama)
- [Alaska](/coverage/representations-warranties/alaska)
- [Arizona](/coverage/representations-warranties/arizona)
- [Arkansas](/coverage/representations-warranties/arkansas)
- [Colorado](/coverage/representations-warranties/colorado)
- [Connecticut](/coverage/representations-warranties/connecticut)
- [Delaware](/coverage/representations-warranties/delaware)
- [District of Columbia](/coverage/representations-warranties/district-of-columbia)
- [Florida](/coverage/representations-warranties/florida)
- [Georgia](/coverage/representations-warranties/georgia)
- [Hawaii](/coverage/representations-warranties/hawaii)
- [Idaho](/coverage/representations-warranties/idaho)
- [Illinois](/coverage/representations-warranties/illinois)
- [Indiana](/coverage/representations-warranties/indiana)
- [Iowa](/coverage/representations-warranties/iowa)
- [Kansas](/coverage/representations-warranties/kansas)
- [Kentucky](/coverage/representations-warranties/kentucky)
- [Louisiana](/coverage/representations-warranties/louisiana)
- [Maine](/coverage/representations-warranties/maine)
- [Maryland](/coverage/representations-warranties/maryland)
- [Massachusetts](/coverage/representations-warranties/massachusetts)
- [Michigan](/coverage/representations-warranties/michigan)
- [Minnesota](/coverage/representations-warranties/minnesota)
- [Mississippi](/coverage/representations-warranties/mississippi)
- [Missouri](/coverage/representations-warranties/missouri)
- [Montana](/coverage/representations-warranties/montana)
- [Nebraska](/coverage/representations-warranties/nebraska)
- [Nevada](/coverage/representations-warranties/nevada)
- [New Hampshire](/coverage/representations-warranties/new-hampshire)
- [New Jersey](/coverage/representations-warranties/new-jersey)
- [New Mexico](/coverage/representations-warranties/new-mexico)
- [New York](/coverage/representations-warranties/new-york)
- [North Carolina](/coverage/representations-warranties/north-carolina)
- [North Dakota](/coverage/representations-warranties/north-dakota)
- [Ohio](/coverage/representations-warranties/ohio)
- [Oklahoma](/coverage/representations-warranties/oklahoma)
- [Oregon](/coverage/representations-warranties/oregon)
- [Pennsylvania](/coverage/representations-warranties/pennsylvania)
- [Rhode Island](/coverage/representations-warranties/rhode-island)
- [South Carolina](/coverage/representations-warranties/south-carolina)
- [South Dakota](/coverage/representations-warranties/south-dakota)
- [Tennessee](/coverage/representations-warranties/tennessee)
- [Texas](/coverage/representations-warranties/texas)
- [Utah](/coverage/representations-warranties/utah)
- [Vermont](/coverage/representations-warranties/vermont)
- [Virginia](/coverage/representations-warranties/virginia)
- [Washington](/coverage/representations-warranties/washington)
- [West Virginia](/coverage/representations-warranties/west-virginia)
- [Wisconsin](/coverage/representations-warranties/wisconsin)
- [Wyoming](/coverage/representations-warranties/wyoming)

[Other Coverage in California](/coverage/states/california)

## Sources

[^1]: [California Corporations Code §1001: Sale of Assets](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP&sectionNum=1001.) — California Legislative Information; §1001(a), (d)–(e); amendment effective January 1, 2023. Accessed 2026-09-28.
[^2]: [California Corporations Code §1107: Effect of Merger](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP&sectionNum=1107.) — California Legislative Information; §1107(a), (d). Accessed 2026-09-28.
[^3]: [California Code of Civil Procedure §338: Three-Year Actions](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CCP&sectionNum=338.) — California Legislative Information; §338(d). Accessed 2026-09-28.
[^4]: [California Insurance Code §1763](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=1763.) — California Legislature; §1763(a): diligent search; (h)(1): defined commercial-insured written disclosure and subsequent request; (h)(2): broker eligibility responsibility and reasonable good-faith reliance. Accessed 2026-09-28.
[^5]: [California Insurance Code §1760.1](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=1760.1.) — California Legislature; §1760.1(b): commercial-insured definition at placement, risk manager, prior premiums and size criteria with periodic monetary adjustments; (o): qualified risk manager. Accessed 2026-09-28.
[^6]: [California Department of Insurance](https://www.insurance.ca.gov/) — California Department of Insurance; Official agency homepage. Accessed 2026-09-28.
[^7]: [Company and Agent/Broker Information](https://www.insurance.ca.gov/01-consumers/120-company/) — California Department of Insurance; State page linking license-status checks, company information, and surplus-line insurer resources. Accessed 2026-09-28.
[^8]: [Consumer Complaint Center](https://cdiapps.insurance.ca.gov/CP/) — California Department of Insurance; Consumer Complaint Center entry point to file an insurance complaint. Accessed 2026-09-28.
[^9]: [Commercial Insurance Guide (Form 700, revised June 14, 2024)](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) — California Department of Insurance; Form 700 revision beneath heading; What Should I Expect from a Broker-Agent: CDI licensing role (line 333); Surplus Line Insurance: broker disclosure, limited CDI jurisdiction and CIGA exclusion (lines 448–449); Talk to Us: consumer hotline (line 942). Page retrieved September 28, 2026; revision date is not an access date.. Accessed 2026-09-28.
[^10]: [2024 Annual Report of the Commissioner](https://www.insurance.ca.gov/0400-news/0200-studies-reports/0700-commissioner-report/upload/2024-Annual-Report-of-the-Commissioner.pdf) — California Department of Insurance; Page 169: surplus-line brokers pay 3.00% of surplus-line premiums under CIC § 1775.5. Accessed 2026-09-28.
[^11]: [Export List Hearings](https://www.insurance.ca.gov/01-consumers/120-company/07-lasli/ExportListHearings.cfm) — California Department of Insurance; CIC §§ 1763 and 1763.1: diligent admitted-market search and commissioner exemption process. Accessed 2026-09-28.
[^12]: [California Insurance Code § 1775.5](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1775.5.&lawCode=INS) — California Legislature; §1775.5(a) 3% of gross premiums less returns and specified exclusions; (b) entire-premium rule and separate interstate-motor-transit deductions; (e) defined blended finite-risk and risk-financing terms. Accessed 2026-09-28.
[^13]: [15 U.S.C. §8201: Reporting, payment, and allocation of premium taxes](https://uscode.house.gov/view.xhtml?edition=prelim&num=0&req=granuleid%3AUSC-prelim-title15-section8201) — U.S. House of Representatives, Office of the Law Revision Counsel; §8201(a) exclusive home-State premium-tax authority; (b)(1) interstate allocation procedures; (c) allocation reporting. Accessed 2026-09-28.
[^14]: [15 U.S.C. § 8205: Streamlined application for commercial purchasers](https://uscode.house.gov/view.xhtml?edition=prelim&num=0&req=granuleid%3AUSC-prelim-title15-section8205) — U.S. House of Representatives, Office of the Law Revision Counsel; §8205(1)-(2): broker disclosure that admitted insurance may or may not be available with greater protection and oversight, then purchaser written request; ECP eligibility separately defined in §8206(5). Accessed 2026-09-28.
[^15]: [15 U.S.C. § 8206, Definitions](https://uscode.house.gov/view.xhtml?edition=prelim&num=0&req=granuleid%3AUSC-prelim-title15-section8206) — U.S. House of Representatives, Office of the Law Revision Counsel; §8206(5) ECP eligibility including qualified risk manager, prior premiums and adjusted size/other criteria; (6) home State and affiliated-insured rules; (13) qualified risk manager. Accessed 2026-09-28.
[^16]: [California Insurance Code § 1760.5](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1760.5.&lawCode=INS) — California Legislature, Legislative Counsel; §1760.5(g): premiums placed under the special-lines license are not subject to the §1775.5 broker tax. Accessed 2026-09-28.
[^17]: [CDI FS-006, Surplus Line Broker and Special Lines Surplus Line Broker Insurance (Premium) Tax Return Instructions, revised 2025-11, calendar-year 2025](https://www.insurance.ca.gov/0250-insurers/0300-insurers/0100-applications/tax-forms-instruct-and-info/2025/upload/2025SLBInstructions-FS-006-FINAL-5.pdf) — California Department of Insurance; Calendar-year 2025 instructions revised November 2025; page 2, lines 1–4: fees, outside-US risks, returns and 3%; page 5: allocation percentages informational. Accessed 2026-09-28.
[^18]: [Association Constitution](https://www.slacal.org/general-information/constitution) — Surplus Line Association of California; ArticleXV(1) Stamping Office filing function; XV(4) Commissioner-delegated duties subject to approved Plan of Operations. Accessed 2026-09-28.
[^19]: [About the Department](https://www.insurance.ca.gov/0500-about-us/02-department/) — California Department of Insurance; Department overview: insurer solvency oversight, agent/broker licensing, company market-conduct reviews, complaints, and insurance-industry regulation. Accessed 2026-09-29.
[^20]: [California Insurance Code §1763.1](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=1763.1.) — California Legislature; §1763.1(a): Commissioner order after public hearing and statutory findings; Export List exemptions retain confidential written report; restricted classes and continuing review.. Accessed 2026-09-29.
[^21]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
[^22]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22.
[^23]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28.
[^24]: [Legal Information](https://www.gallaghersmallbusiness.com/legal-information/) — Gallagher Small Business; Producer identification immediately above Quick Links. Accessed 2026-09-16.
[^25]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
[^26]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28.
[^27]: [Licenses & Disclosures](https://riskcubeai.com/licenses) — RiskCube; Property & Casualty Producer/Broker Licenses; February 11, 2026 version. Accessed 2026-09-16.
[^28]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28.
[^29]: [Hartford Fire Insurance Company](https://interactive.web.insurance.ca.gov/companyprofile/companyprofile?doFunction=getCompanyProfile&eid=2664&event=companyProfile) — California Department of Insurance; NAIC 19682; California Company ID 0085-1; authorized 01/07/1870; license status UNLIMITED-NORMAL; property and casualty; Connecticut domicile. No expiry/renewal field. Accessed 2026-09-28.. Accessed 2026-09-28.
[^30]: [Company Profile — Travelers Indemnity Company (The)](https://interactive.web.insurance.ca.gov/companyprofile/companyprofile?doFunction=getCompanyProfile&eid=103456&event=companyProfile) — California Department of Insurance; NAIC 25658; California Company ID 4772-0; authorized 06/17/2002; license status UNLIMITED-NORMAL; property and casualty; Connecticut domicile. No expiry/renewal field. Accessed 2026-09-28.. Accessed 2026-09-28.
[^31]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15.

Updated 2026-09-28.

This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). To suggest a correction, [contact Spot](/contact) with a supporting source.

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