Section 40.807 - Vendors Single Interest Insurance and Participating Deductible Coverage Insurance(a) The premiums for vendors single interest insurance shall not be charged to borrowers.(b) The sale of any participating deductible coverage insurance shall be considered unreasonable unless, in addition to complying with the other applicable provisions of these rules, the following terms and conditions are satisfied: (1)(A) The borrower voluntarily requests participating deductible coverage insurance in lieu of standard dual coverage insurance after having been given an opportunity to purchase standard dual coverage insurance from an insurance agent of the industrial loan company, or(B) The industrial loan company provides written notice to the borrower stating that the industrial loan company intends to procure participating deductible coverage insurance if standard dual coverage insurance is not obtained and presented to it prior to the expiration of 15 days after the proper mailing or hand delivery of the notice, and that the cost of the insurance will be added to the borrower's account and may bear interest if not paid immediately.(2) If the borrower obtains standard dual coverage insurance, the industrial loan company cancels the participating deductible coverage insurance and retains as a charge not more than the amount of the premium earned as of the effective date of the standard dual coverage insurance or the policy fee of up to $15, whichever is greater.(3) If the borrower pays off an obligation prior to maturity, the industrial loan company refunds the premium which is unearned at the date the obligation is paid off, unless otherwise notified by the borrower.Cal. Code Regs. Tit. 10, § 40.807
1. Change without regulatory effect renumbering former section 1190.3 to new section 40.807 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34). Note: Authority cited: Section 18347, Financial Code. Reference: Section 18294, Financial Code.
1. Change without regulatory effect renumbering former section 1190.3 to new section 40.807 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).