California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2 - Corporate Securities
Article 4 - Standards for the Exercise of the Commissioner's Authority
Subarticle 8 - Investment Companies
Section 260.140.87 - Insurance Plan

(a) Any person selling such securities and insurance shall be the holder of (1) a valid certificate from the Commissioner authorizing him to act as a broker-dealer or agent, and (2) such authorization from the California Insurance Commissioner as may be required under the Insurance Code to act as an insurance broker or agent.

(b) The material features of the plan shall be fully and fairly disclosed to the prospective purchaser in a manner which will afford him an opportunity to make an informed judgment.

(c) The purchaser shall be billed on a form which shall clearly distinguish between the cost of the securities and the cost of the insurance.

(d) The purchaser shall have the right to cancel the insurance coverage at any time without forfeiting any securities already purchased or losing the right to continue purchasing securities.

(e) The purchaser shall have the right to discontinue the further purchase of securities without forfeiting any securities already purchased or canceling the insurance coverage; provided, however, that when the insurance coverage is declining balance term insurance, a requirement may be imposed that the insurance coverage will be canceled whenever the purchase of securities is discontinued.

(f) One or more policies of insurance shall be issued in the purchaser's name and delivered to him.

(g) The securities shall be issued to the purchaser and the security certificates shall be delivered to him, or such securities shall be issued and credited to his account or share record with the investment company and a memorandum of such entry shall be delivered to him.