Section 2249.3 - Administration of FormsIn addition to all other applicable statutes and regulations, the following rules shall be followed in administering the forms subject to this Article.
(a) Where a new policy or certificate is issued because of the renewal or refinancing of an indebtedness previously insured, any time which had accumulated toward the satisfaction of any waiting or elimination period under the preceding coverage shall be credited toward the satisfaction of such period under the new policy or certificate. Credit shall apply to the extent that the type of coverage is the same under the old and new policies or certificates and to the extent of the indebtedness carried over from the old indebtedness. Any eligibility requirement (such as "active-at-work") which was satisfied under the preceding coverage shall be waived under the new coverage to the extent of the type and amount of coverage carried over from the old policy or certificate.(b) If a closed-end loan terminates by pre-payment, renewal or refinancing during a period of covered disability, disability benefits shall continue to be paid as if the loan had not been prematurely terminated unless the insured requests cancellation.(c) Termination of a group policy shall not affect the coverage provided by single premium certificates issued thereunder.(d) A monthly premium certificate shall not be terminated due to termination of the group policy on less than 31 days advance notice given to the borrower, except where there is immediate replacement of coverage.(e) Coverage under a certificate for which premium is collected on other than a single premium or monthly premium basis shall not terminate due to termination of the master policy before the end of the period for which premium has been paid. Coverage under such a certificate shall be continued for the next premium period, subject to payment of the premium to the insurer, either directly or through the creditor, if notice of termination is not given to the borrower at least 31 days before the end of the period for which premium was paid, except where there is immediate replacement of coverage.(f) A copy of the Borrower's Application shall be attached when a Notice of Proposed Insurance is delivered.Cal. Code Regs. Tit. 10, § 2249.3
1. Repealer and new section filed 7-25-83; effective thirtieth day thereafter (Register 83, No. 31). Note: Authority cited: Sections 779.21 and 779.27, Insurance Code. Reference: Sections 779.1, 779.5, 779.7, 779.9 and 779.27, Insurance Code.
1. Repealer and new section filed 7-25-83; effective thirtieth day thereafter (Register 83, No. 31).