2009 California Insurance Code - Section 1220-1221 :: Article 5. Life Insurance Policies

1220.  Domestic incorporated life insurers may also invest any funds
in loans upon any of their own policies in an amount not exceeding
the reserve against such policy at the time the loan is made, but
policy loans shall not be deposited with the commissioner under
Article 2, Chapter 5, Part 2, Division 2.

1221.  The amount thus loaned by an insurer upon its own policies
shall be credited to the insurer in determining the amount of deposit
required to comply with the provisions of Article 2, Chapter 5, Part
2, Division 2. Such loans shall be deducted from the net value of
the registered policies.