Section 2248.4 - Premiums(a) The amount charged to a debtor for any credit life or credit disability insurance shall not exceed the premium rates filed with the Commissioner for the coverage provided or the premiums charged by the insurer, as computed at the time the charge to the debtor is determined, whichever is less.(b) If the creditor adds identifiable insurance charges or premiums for credit insurance to the total amount of the indebtedness and makes any direct or indirect finance, carrying, credit or service charge whatever to the debtor in connection with such insurance charge, the creditor is deemed to have loaned the premium or insurance charge to the debtor and the premium or insurance charge is deemed collected for the insurer as soon as it is added to the indebtedness, in which event, the creditor must remit and the insurer shall collect on a single premium basis only.(c) A creditor may remit and an insurer may collect premiums on the monthly balance basis on revolving credit accounts.(d) A creditor may remit and an insurer may collect premiums on the monthly balance basis on indebtedness repayable during a fixed period (non-revolving accounts) for both credit life insurance and credit disability insurance.(e) When premiums are remitted on the monthly balance basis, either on a revolving account or a fixed indebtedness period basis, the charge for the premium shall be shown separately from the balance of the loan and any payment received by the creditor shall first be applied to pay the credit insurance premium. Only in the event no payment is made or the payment made is insufficient to satisfy the premium charge, may the creditor add the unpaid premium to the loan and remit it to the insurers.Cal. Code Regs. Tit. 10, § 2248.4
1. Editorial correction of subsection referenced in subsection (f) (Register 79, No. 2).
2. Repealer of subsections (f)-(g) and amendment of NOTE filed 4-14-94; operative 5-16-94. Submitted to OAL for printing only pursuant to Government Code section 11343(a)(1) (Register 94, No. 15).
3. Amendment of subsection (c) filed 10-2-2006; operative 11-1-2006 (Register 2006, No. 40). Note: Authority cited: Section 779.21, California Insurance Code. Reference: Sections 779.21 and 779.13, California Insurance Code.
1. Editorial correction of subsection referenced in subsection (f) (Register 79, No. 2).
2. Repealer of subsections (f)-(g) and amendment of Note filed 4-14-94; operative 5-16-94. Submitted to OAL for printing only pursuant to Government Code section 11343(a)(1) (Register 94, No. 15).
3. Amendment of subsection (c) filed 10-2-2006; operative 11-1-2006 (Register 2006, No. 40).