California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40 - Industrial Loans
Article 9 - Credit Insurance
Section 40.900 - Limitation on Soliciting Sale of Credit Insurance
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) An industrial loan company shall not offer or sell credit insurance in any manner which restricts a borrower's ability to voluntarily select or reject credit life or credit disability insurance or both.
(b) An industrial loan company shall use a written form (which may be separate from or incorporated in the loan documents), which shall be signed or initialed by each of the insured borrowers. The form must be substantially as follows:
| "Sign or initial | Loan No. ___________________________ | ||
| your election | |||
| ___________________________ | |||
| I want credit life insurance. | |||
| ___________________________ | |||
| I do not want credit life insurance. | |||
| ___________________________ | |||
| I want credit disability insurance. | |||
| ___________________________ | |||
| I do not want credit disability insurance." | |||
1. Change without regulatory effect adding new article 9 (sections 40.900-40.906) and renumbering former section 1201 to new section 40.900 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
Note: Authority cited: Section 18347, Financial Code. Reference: Section 18290, Financial Code.
