California Insurance Code 12580-12584
12580. Before investing in any security or making or issuing any mortgage policy thereon or participation certificate therein, every mortgage insurer shall cause an appraisement of the real property with improvements thereon securing the same to be made by a competent person appointed as appraiser by resolution of the board of directors of the insurer. 12581. Such appointment of appraiser shall not be valid or effective unless and until approved by both the commissioner and the Commissioner of Financial Institutions. Such appointment shall be revocable at any time by either the commissioner or the Commissioner of Financial Institutions should they or either of them consider said appointee incompetent or any appraisals made by said appointee improper, after a hearing upon due notice thereof first given to the appraiser and the appointing insurer. 12582. Such approved appraiser shall examine and appraise the property and determine its fair market value without deducting therefrom the amount of any outstanding and unpaid taxes, bonds or assessments. He shall thereafter make his verified report to the mortgage insurer. 12583. Such appraiser's report shall state whether such property is improved or productive and shall contain a general statement showing: (a) The character of the property appraised. (b) The purposes for which it is being used. (c) The kind and condition of the improvements. (d) The fair market value of each parcel of land and of the improvements thereon. (e) Such other information as is ordered by the commissioner or the Commissioner of Financial Institutions. 12584. Reports of appraisals thus made by an approved appraiser shall, in the absence of any negligence, gross error, fraud or collusion, be conclusive as to the facts therein stated.
