California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4.10 - Rates for Credit Property Insurance and Credit Unemployment Insurance
Article 4 - Benchmark Programs for Credit Property Insurance
Section 2670.12 - Benchmark Number One: Provisions for Dual Interest Credit Property Insurance on an Open End Plan of Indebtedness
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) When Coverage Is In Effect. Coverage is effective on the date the certificate of insurance holder's (the "certificate holder's") account has a balance, and continues for as long as there is an open balance in the account(s). Coverage ends on the date the certificate holder's account does not reflect an open balance, and is automatically reinstated when there is an open balance. Coverage will continue for up to 36 months from the date the item of personal property was financed. Coverage covers the insured property anywhere in the world.
(b) Coverage Provided. The insurance covers the interest of the master policyholder and the certificate holder in personal property purchased by the certificate holder and financed under an open end plan of indebtedness. In the event of a loss to a pair, set, or parts, the insurer will provide the following coverage:
(c) Perils Insured. The insurance provides coverage for direct and accidental loss or damage to insured personal property by fire; smoke; lightning; windstorm; cyclone; tornado; flood; hail; earthquake; explosion; riot; riot attending a strike; civil commotion; marine perils while on ferries and/or in cars or transfers in connection with land conveyances; aircraft; vehicles; collision; vandalism and malicious mischief; and burglary (of which there must be visible evidence of forced entry).
(d) Exclusions. Coverage will not apply to purchases made while the certificate holder is receiving benefits under the certificate.
(e) Limit of Liability. The insurance covers the interest of the master policy holder and the certificate holder up to the maximum(s) stated in the certificate of insurance. Coverage for any one account will be limited to the maximum amount per account as stated in the certificate of insurance. If the certificate holder has more than one account, the maximum limit stated in the certificate of insurance applies, and the total insurance provided under all of a certificate holder's accounts cannot exceed this amount. The insurer's limit of liability for loss is the cost to repair or replace the property insured at the time of the loss, not to exceed the following maximum limits:
1. New article 4
(sections 2670.12-2670.14) and section filed 3-10-2003; operative 4-9-2003.
Submitted to OAL for printing only pursuant to Government Code section
11343.8 as a
regulation that establishes rates in accordance with Government Code section
11340.9(g)
(Register 2003, No. 11).
2. Change without regulatory effect withdrawing
and repealing article 4 (sections 2670.12-2670.14) and section pursuant to
settlement agreement in Consumer Credit Insurance Association v. John Garamendi
(California Superior Court No. 03CS00533) filed 5-27-2004 pursuant to section
100, title 1, California Code of
Regulations (Register 2004, No. 22).
3. New article 4 (sections
2670.12-2670.14) and section filed 4-28-2006; operative 5-28-2006. Submitted to OAL
for printing only pursuant to Government Code section
11343.8 as a
regulation that establishes rates in accordance with Government Code section
11340.9(g)
(Register 2006, No. 17).
Note: Authority cited: Sections 779.21, 779.36, 12921 and 12926, Insurance Code; Credit Insurance General Agents Association v. Payne, 16 Cal.3d 651 (1976); and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference: Sections 779.36, 1861.01 and 1861.05, Insurance Code.
