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

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(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:
(1) hostile or warlike action in time of
				  peace or war, including action in hindering, combating or defending against an
				  actual, impending or expected attack (a) by any government or sovereign power
				  (de jure or de facto), or by any authority maintaining or using military, naval
				  or air forces; or (b) by military, naval, or air forces; or (c) by an agent of
				  any such government, power, authority or forces;
(2) any weapon of war employing atomic
				  fission or radioactive force whether in time of peace or war;
(3) insurrection, rebellion, revolution,
				  civil war, usurped power, or action taken by governmental authority in
				  hindering, combating or defending against such an occurrence, seizure or
				  destruction under quarantine or Customs regulations, confiscation by order of
				  any governmental or public authority, or risks of contraband or illegal
				  transportation or trade; loss or damage under any coverage due to radioactive
				  contamination; loss or damage to aircraft, motor vehicles, and boats and any
				  equipment pertaining thereto.