California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 1 - Production of Insurance
Article 3 - Motor Vehicle Insurance
Regulations
Section 2122 - Return Premium; Account to Purchaser
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Every licensed dealer or dealer's subsidiary who, in connection with a motor vehicle transaction, effects the cancellation of an existing insurance policy pursuant to written authority from the purchaser and takes from the purchaser an assignment of the return premium thereon, or who, in connection with such transaction, takes from the purchaser an assignment of any return premium which may develop upon a future cancellation shall, in either event, upon such cancellation apply the full amount of the gross return premium toward the purchase of replacing insurance required by the contract of sale; except that if the amount thereof be in excess of the amount required for replacing insurance, if there be no replacing insurance or if the premium for such replacing insurance is not included in any contract of sale, such excess or such gross return premium, as the case may be, shall be refunded to the purchaser in one of the following ways:
(1) By cash or check, immediately,
(2) By crediting the next payments due on the purchaser's contract of sale, or
(3) By crediting the last payments due on the purchaser's contract of sale; in which event such refund shall include a refund of all finance, interest, time price differential, service charges or other fees properly allocable to the amount of the refund from the date of such cancellation.
(4) If the contract of sale has been assigned, sold or transferred by payment to the holder thereof with instructions to credit or pay the refund in any one of the three preceding alternative ways.
1. New section filed 9-5-61; designated effective 1-1-62 (Register 61, No. 18).
