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 2670.13 - Benchmark Number Two: Provisions for Dual Interest Credit Property Insurance on a Closed End Plan of Indebtedness

(a) When Coverage Is In Effect. Coverage is effective at 12:01 a.m. on the effective date specified in the certificate. The insurance attaches from the time the personal property is purchased or encumbered until the termination of the master policy holder's financial interest therein. Coverage applies within the United States and Canada, during transportation or otherwise, while the property is in the custody of the seller for packing or awaiting shipment or for repair or adjustment, and while in the custody of the certificate holder.

(b) Coverage Provided. The insurance covers the interests of the master policy holder and the certificate holder in personal property which is purchased by the certificate holder, in which the master policyholder has a financial interest, and which is financed under a closed end plan of indebtedness.

(c) Perils Insured. The insurance provides coverage for direct loss or damage to insured personal property by fire and lightning; collision (the coming together of cars during coupling not to be deemed a collision), derailment or overturning of a vehicle, collapse of bridges, while being transported by land conveyances; marine perils while on ferries and/or in cars or transfers in connection with land conveyances; burglary from within a building or room (of which there must be signs of forcible entry); and vandalism and malicious mischief. The insurance also provides extended coverage covering earthquake, windstorm, cyclone, tornado, hail, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles, smoke, flood rising waters, tidal wave, high water or overflow, whether driven by wind or not, falling objects, collapse of building caused by weight of ice, snow, sleet or otherwise, rupture, cracking, burning or freezing of plumbing, heating or air-conditioning systems or domestic appliances, excluding domestic appliances for heating water for domestic consumption.

(d) Exclusions. Loss or damage to goods by decay, wet or dampness, or by being marred, scratched, spotted, discolored, moldy, rusty, frosted, rotted, steamed or changed in flavor; unless the same is the direct result of a peril insured against; mechanical breakdown; against loss or damage due to short-circuiting, blowout or other electrical disturbances within the article(s) insured; loss or damage caused by the neglect of the master policyholder or certificate holder to use all reasonable means to save and preserve the property at and after any disaster insured against, or when the property is endangered by fire in neighboring premises; loss or damage caused by or resulting from:

(e) Limit of Liability. The insurer shall not be liable for more than the amount stated in the certificate of insurance on property sold or encumbered for any one certificate holder. The insurer's limit of liability for loss or damage in the event of a partial loss is the cost to effect repair of the insured property, if the property is repairable. If the property is not repairable, the insurer will pay the cost of replacing the insured property with no deduction for depreciation. The insurer will not be liable for more than the original amount of insurance stated in the certificate of insurance. The insurer's limit of liability for a total loss shall be the original amount of insurance stated in the certificate of insurance.