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 2670.14 - Benchmark Number Three: Provisions for Dual Interest Credit Property Insurance on a Closed End Loan Secured by Personal Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When Coverage Is In Effect. Coverage is
				  in effect for the term of years set forth in the certificate of insurance, from
				  12:01 a.m. on the effective date of coverage to 12:01 a.m. on the expiration
				  date of coverage.
(b) Coverage
				  Provided. The insurance covers the interest of the master policy holder and the
				  certificate holder in personal property pledged as security for a closed end
				  loan made by the master policy holder to the certificate holder, which property
				  is specifically described in the security agreement.
(c) Perils Insured. The insurance provides
				  coverage for loss or damage caused by fire and lighting; and collision or
				  overturn, stranding, sinking, burning, or derailment, while the insured
				  property is in transit. Extended coverage covers loss or damage due to:
				  windstorm, cyclone, tornado, hail, rising water, tidal wave, overflow of water,
				  earthquake, collapse of bridges, falling objects, or explosion; riot, riot
				  attending a strike and civil commotion; aircraft or private passenger type
				  vehicles; smoke; flood; collapse of building; rupture, cracking, burning or
				  freezing of plumbing, heating or air conditioning systems and domestic
				  appliances except for water heaters; and robbery or burglary with evidence of
				  forced entry.
(d) Exclusions. Loss
				  or damage due to: decay, wet or dampness, or by being marred, scratched,
				  spotted, discolored, moldy, rusted or rotted unless the same is the direct
				  result of a peril insured against; frost, cold weather, ice, snow or sleet;
				  motor vehicles, land conveyances, farm equipment, aircraft or boats unless this
				  coverage is provided; deterioration unless it results from insured perils;
				  defective manufacturing, mechanical or electrical breakdown; the certificate
				  holder's neglect of the property during and after any covered loss to the
				  extent of the certificate holder's neglect; hostile or warlike action by any
				  government or sovereign power, legal or actual, or their military authority or
				  agent or by any armed forces; action taken by governmental authority in
				  hindering, combating, or defending against such an occurrence; by nuclear
				  reaction, nuclear radiation, or radioactive contamination; to all forms of
				  money or instruments; or to television antennas and outside wiring.
(e) Limit of Liability. The insurer's limit
				  of liability for loss or damage in the event of a partial loss will be equal to
				  the actual cash value of the insured property, not to exceed the cost to repair
				  or replace the insured property with property of like kind or quality. The
				  insurer's limit of liability in the event of a total loss will be equal to the
				  lesser of the actual cash value of the insured property or the original amount
				  of insurance. Coverage will not exceed the maximum limit of liability stated in
				  the certificate of insurance.
1. New
					 section filed 3-10-2003; operative 4-9-2003. Submitted to OAL for printing only
					 pursuant to Government Code section
					 11343.8 as
					 a regulation that establishes rates in accordance with Government Code section
					 11340.9(g)
					 (Register 2003, No. 11).
2. Change without regulatory effect
					 withdrawing and repealing section pursuant to settlement agreement in Consumer
					 Credit Insurance Association v. John Garamendi (California Superior Court No.
					 03CS00533) filed 5-27-2004 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2004, No. 22).
3. New section filed 4-28-2006;
					 operative 5-28-2006. Submitted to OAL for printing only pursuant to Government
					 Code section
					 11343.8 as
					 a regulation that establishes rates in accordance with Government Code section
					 11340.9(g)
					 (Register 2006, No. 17).
Note: Authority cited: Sections
						779.21,
						779.36,
						12921 and
						12926,
						Insurance Code; Credit Insurance General Agents Association v. Payne, 16 Cal.3d
						651 (1976); and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						779.36,
						1861.01 and
						1861.05,
						Insurance Code.