Final answer:
In the context of the California Insurance Code, the word 'may' denotes permissive actions, suggesting that an action is allowed but not compulsory.
Step-by-step explanation:
According to the California Insurance Code, the word "may" is used to describe permissive actions. This means that when the word "may" appears in the legislation, it is typically granting permission for an action to be taken, but it is not requiring that action to take place. It is different from the word "shall", which is commonly used in legal contexts to indicate mandatory actions.