California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 6 - California Financing Law
Article 7 - Credit Insurance
Section 1512 - Limitation on Sale of Credit Disability Insurance: Illusory Benefit

Universal Citation: 10 CA Code of Regs 1512

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) A finance company shall not sell credit disability insurance, as prohibited by current regulations of the Insurance Commissioner, to a borrower who is a member of the Armed Forces of the United States.

(b) A finance company shall not sell credit disability insurance, as prohibited by current regulations of the Insurance Commissioner, to a borrower which would, in effect, provide a substantially illusory benefit. This would include the sale to a borrower who is not normally employed.

1. Amendment filed 3-20-78; effective thirtieth day thereafter (Register 7, No. 12).
2. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).
3. Change without regulatory effect amending NOTE filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).

Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22150, 22314 and 22315, Financial Code.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.