Section 2274.5 - Risks Eligible for Automatic Extension DefinedThe risk to be bound under the covering note to be extended or renewed must be one for which, by reason of the unavailability of an average rate, the in ability to determine the value of the property, or the physical inability to make a survey or inspection of the hazards, it is impossible to issue an insurance policy in the ordinary course of business within 90 days. A covering note binding a risk which does not fall within on of the following categories shall not be eligible for automatic extension. A risk which does fall within one of the following categories shall be prima facie deemed to have met the requirements of this section.
(a) The property insured is in five or more separate locations.(b) The premium which it is estimated the risk will develop will be: (1) $400 or more per annum in the case of fire insurance.(2) $250 or more per annum in the case of insurance other than fire.(3) If the parties contemplate the issuance of a policy with a term other than one year, then the estimated premium must be at least in an amount which is either in the same ratio to the $400 or $250, respectively, as the term of the policy is to one year, or, if the insurer calculates its premiums for such a policy on a multiple or fraction of the one-year premium, equal to such multiple or fraction of the $400 or $250, respectively.(c) The risk is one which normally requires a survey or inspection and is located in excess of 100 miles by usual routes of travel from any city having, by the latest regular United States census, a population of 100,000 or more.Cal. Code Regs. Tit. 10, § 2274.5