Cal. Code Regs. tit. 10, § 2522.10 – Accepted Assets List.

(a) The insurer shall establish and file for approval by the Insurance Commissioner a listing of accepted assets which may be held as investments in a segregated custodian account. The Accepted Assets List shall be extensive and expressed generally as to kinds of investments acceptable. Acceptability as to either a class of asset or as to any specific assets within a class shall be based upon the asset having a reasonably ascertainable market value available from reports of regular market trading or established by recurring commercial transactions not involving trading in assets, and compatibility of the asset with administrative procedures established by the insurer for the investing and accounting of assets within the account.
(b) The insurer shall also file with the Commissioner its standards for the amendment of its Accepted Assets List by the addition or deletion of classes of assets. The procedures for the addition or deletion of specific assets within a class shall also be filed at the time of filing the Accepted Assets List. In the event an asset is deleted as an acceptable asset, such asset may be required to be sold and the proceeds reinvested or its acceptability may be terminated with regard to future investments only.
(c) In the event that the insurer amends the Accepted Assets List or deletes a specific asset, it shall file notice of such action and the reason for such action, as specified in subsection (h) below, with the Insurance Commissioner.
(d) The following is an example of an Accepted Assets List:
1. (1) Securities listed and traded on the New York Stock Exchange, the American Stock Exchange or regional stock exchanges or successors to such exchanges having the same or similar qualifications;
2. (2) Securities listed on the NASDAQ System;
3. (3) Shares of an investment company registered pursuant to the Investment Company Act of 1940 other than an investment company affiliated with either the insurer or the custodian. Where such an investment company issues book shares in lieu of share certificates, such book shares shall be deemed to be adequate evidence of ownership;
4. (4) Obligations of or guaranteed by the United States government, the Canadian government, any state (or province of Canada), or municipality or governmental subdivision of a state;
5. (5) Savings accounts, passbook accounts and certificates of deposit issued by financial institutions which are insured by the FDIC or FSLIC, cash, and credit union loan accounts as such credit union loan accounts are otherwise permitted;
6. (6) New bond or debt issues which may reasonably be expected to be listed on an exchange regulated by the Securities Exchange Act of 1934;
7. (7) Life insurance the face amount of which is incidental in relationship to the anticipated annuity benefit payments. In accordance with current Internal Revenue Rulings and for the purpose of this Article, the word “incidental” as used in the preceding sentence means that life insurance shall be considered incidental if the face amount does not exceed one hundred(100) times the anticipated monthly annuity computed as if the percentage of net annual increase in the account value will be equal to the assumed investment increment rate underlying the actuarial assumption on which the amount of monthly annuity is based;
8. (8) Such other classes of assets which meet the standards of acceptability of the insurer after filing of such list with the Insurance Commissioner.
(e) The above example of classifications indicates the general classes of acceptable assets within which most individual assets will be acceptable. Acceptance of any particular assets, however, may be made dependent on its procedural compatibility with the insurer's systems and the insurer's general standards of acceptability.
(f) The policyowner shall have only one custodian at any one time. It is recognized that operational differences exist among different custodians and, therefore, some particular assets within an insurer's general class of accepted assets may not be available as investments with all custodians.
(g) The policy or the custodian account agreement, or both, may provide that it shall be the responsibility of the policyowner or the annuitant or the investment manager, if any, to determine, prior to purchase or exchange of an asset, that it is an acceptable asset.
(h) The insurer shall not reserve the right to approve the selection of assets within any account if such asset is being currently accepted for any segregated custodian account, The insurer may amend its Accepted Assets List in accordance with standards filed pursuant to subsection (b) of this Section and shall file notice of such changes in accordance with subsection (c) of this Section as follows:
1. (1) If an asset is removed as an accepted asset for future purchases because the asset is no longer available for purchase due to the suspension of trading in the asset, the withdrawal from sale of the asset by the issuer of the asset or for similar reasons, the insurer may take removal action without prior notice to the Commissioner; the insurer shall notify the Commissioner of such action as soon as reasonably possible.
2. (2) If the asset is removed as an accepted asset for future purchase because the asset no longer meets the standards of the insurer of acceptability as filed with the Commissioner, the insurer may take such removal action and must file notice of such action within seven (7) business days of the time of such action;
3. (3) If the asset is removed as an accepted asset for future purchase and the insurer requires the sale of such asset, the insurer may take such action thirty (30) days after the filing of notice with the Commissioner of such intended action if the Commissioner has not given notice of objection to such action prior to such thirty (30) days or has indicated no objection prior to such thirty (30) days.