State Codes and Statutes

Statutes > California > Ins > 100-124.5

INSURANCE CODE
SECTION 100-124.5



100.  Insurance in this state is divided into the following classes:
   (1) Life
   (2) Fire
   (3) Marine
   (4) Title
   (5) Surety
   (6) Disability
   (7) Plate glass
   (8) Liability
   (9) Workmen's compensation
   (10) Common carrier liability
   (11) Boiler and machinery
   (12) Burglary
   (13) Credit
   (14) Sprinkler
   (15) Team and vehicle
   (16) Automobile
   (17) Mortgage
   (18) Aircraft
   (19) Mortgage guaranty
   (19.5) Insolvency
   (19.6) Legal insurance
   (20) Miscellaneous



101.  Life insurance includes insurance upon the lives of persons or
appertaining thereto, and the granting, purchasing, or disposing of
annuities.


102.  Fire insurance includes:
   (a) Insurance against loss by fire, lightning, windstorm, tornado,
or earthquake.
   (b) Insurance against loss of, or destruction of, or damage to,
any of the following property, when such insurance includes loss
thereof by fire and excludes coverage of property while in the
custody of, or possession of, or being transported by, any carrier
for hire or in the mail:
   1. Accounts, books, maps, manuscripts, indexes and other valuable
papers, documents and records incidental to the business or
profession or activity in which the insured is engaged, resulting
from any cause, but excluding any article constituting stock in trade
or used as a sample or sold or held for sale.
   2. Moneys, stamps, coins, bullion, securities, notes, drafts,
acceptances or instruments of like kind or character, resulting from
any cause, except:
   (i) Forgery.
   (ii) Any dishonest, fraudulent or criminal act of any officer,
employee, partner, director, trustee or authorized representative of
the insured.
   (c) Insurance by means of an all-risk policy of the type commonly
known as the "Personal Property Floater" against any and all kinds of
loss of or damage to, or loss of use of, any personal property other
than merchandise.
   The provisions of Section 2070 shall not apply to insurance
written pursuant to subdivisions (b) or (c).




103.  Marine insurance includes insurance against any and all kinds
of loss of or damage to:
   (a) Vessels, craft, aircraft, cars, automobiles and vehicles of
every kind (excluding aircraft and automobiles operating under their
own power or while in storage not incidental to transportation), as
well as all goods, freights, cargoes, merchandise, effects,
disbursements, profits, money, bullion, securities, choses in action,
evidences of debt, valuable papers, bottomry and respondentia
interests and all other kinds of property, and interests therein, in
respect to, appertaining to or in connection with any and all risks
or perils of navigation, transit, or transportation, including war
risks, on or under any seas or other waters, on land or in the air,
or while being assembled, packed, crated, baled, compressed or
similarly prepared for shipment or while awaiting the same, or during
any delays, storage, transshipment, or reshipment incident thereto
including marine builder's risks, and all personal property floater
risks.
   (b) Person or to property in connection with or appertaining to a
marine, inland marine, transit or transportation insurance including
liability for loss of or damage arising out of or in connection with
the construction, repair, maintenance or use of the subject matter of
such insurance (but not including life insurance or surety bonds);
but except as herein specified, shall not mean insurances against
loss by reason of bodily injury to the person. Inland marine
insurance shall be deemed to include hull insurance on water pleasure
craft not used for commercial purposes of a size and type to be
determined by the commissioner.
   (c) Precious stones, jewels, jewelry, gold, silver and other
precious metals, whether used in business or trade or otherwise and
whether the same be in course of transportation or otherwise.



104.  Title insurance means insuring, guaranteeing or indemnifying
owners of real or personal property or the holders of liens or
encumbrances thereon or others interested therein against loss or
damage suffered by reason of:
   (a) Liens or encumbrances on, or defects in the title to said
property;
   (b) Invalidity or unenforceability of any liens or encumbrances
thereon; or
   (c) Incorrectness of searches relating to the title to real or
personal property.


105.  Surety insurance includes:
   (a) The guaranteeing of behavior of persons and the guaranteeing
of performance of contracts (including executing or guaranteeing
bonds and undertakings required or permitted in all actions or
proceedings or by law allowed), other than insurance policies and
other than for payments secured by a mortgage, deed of trust, or
other instrument constituting a lien or charge on real estate.
   (b) Insurance against loss resulting from the forgery or
alteration of any instrument of any kind or character or of any
signature thereon. Nothing in this section shall be deemed to limit
any of the powers of title insurers.
   (c) Any of the following insurance when included as a part of
contract containing any such guarantee of behavior or performance or
in a contract indemnifying any bank, banker, broker, financial or
moneyed corporation or association, any state, political subdivision,
public or municipal corporation, or any officer of any state,
political subdivision, public or municipal corporation: Insurance
indemnifying the insured named therein against loss or destruction
from any cause of any evidences of debt of any kind or character,
evidences of ownership of any kind or character, deeds, mortgages,
warehouse receipts, bills of lading, certificates of stock, bonds,
notes, drafts, checks, instruments of similar character, stamps,
documents, money, precious metals of any kind or character, refined
or unrefined, and articles made therefrom, jewelry, watches,
necklaces, bracelets, gems and precious and semiprecious stones, and
also against loss or damage, except by fire, to the insured's
premises, furnishings, fixtures, equipment, safes and vaults therein
caused by burglary, robbery, holdup, theft or larceny or attempt
thereat. No such insurance indemnifying against loss of any property
as specified herein shall indemnify against loss of any such property
occurring while in the mail or in the exclusive custody or
possession of a common carrier for the purpose of transportation,
except for the purpose of transportation by an armored motor vehicle.
   (d) No insurance may be written as surety insurance if it falls
within the definition of financial guaranty insurance as set forth in
Section 12100.



106.  (a) Disability insurance includes insurance appertaining to
injury, disablement or death resulting to the insured from accidents,
and appertaining to disablements resulting to the insured from
sickness.
   (b) In statutes that become effective on or after January 1, 2002,
the term "health insurance" for purposes of this code shall mean an
individual or group disability insurance policy that provides
coverage for hospital, medical, or surgical benefits. The term
"health insurance" shall not include any of the following kinds of
insurance:
   (1) Accidental death and accidental death and dismemberment.
   (2) Disability insurance, including hospital indemnity, accident
only, and specified disease insurance that pays benefits on a fixed
benefit, cash payment only basis.
   (3) Credit disability, as defined in subdivision (2) of Section
779.2.
   (4) Coverage issued as a supplement to liability insurance.
   (5) Disability income, as defined in subdivision (i) of Section
799.01.
   (6) Insurance under which benefits are payable with or without
regard to fault and that is statutorily required to be contained in
any liability insurance policy or equivalent self-insurance.
   (7) Insurance arising out of a workers' compensation or similar
law.
   (8) Long-term care.
   (c) In a statute that becomes effective on or after January 1,
2008, the term "specialized health insurance policy" as used in this
code shall mean a policy of health insurance for covered benefits in
a single specialized area of health care, including dental-only,
vision-only, and behavioral health-only policies.




107.  Plate glass insurance includes insurance against breakage of
glass.


108.  Liability insurance includes:
   (a) Insurance against loss resulting from liability for injury,
fatal or nonfatal, suffered by any natural person, or resulting from
liability for damage to property, or property interests of others but
does not include worker's compensation, common carrier liability,
boiler and machinery, or team and vehicle insurance.
   (b) (1) With respect to operations or property covered by a policy
of liability insurance as defined in subdivision (a), insurance of
medical, hospital, surgical and funeral loss or expense of the
insured or other persons injured, and in the case of an automobile
liability policy disability benefits to the insured or other persons
injured and in the event of their death, funeral and accidental death
benefits to their dependents, beneficiaries or personal
representatives irrespective of legal liability of the insured, when
issued with or supplemental to the insurance defined in subdivision
(a);
   (2) When issued with or supplemental to the insurance defined in
subdivision (a), disability insurance covering the insured and
members of his household, or other persons who customarily operate
any automobile covered by such a policy and who are named in such
policy; and such disability insurance may cover against accidental
injury, death or dismemberment caused by any or all hazards as
defined in such coverage;
   (c) Insurance covering injuries sustained by an insured resulting
from a tort committed by a third party against which such third party
is not himself covered by liability insurance;
   (d) Insurance coverage against the legal liability of the insured,
and against loss, damage, or expense incident to a claim arising out
of the death or injury of any person as the result of negligence or
malpractice in rendering professional services by any person who
holds a certificate or license issued pursuant to Chapter 5
(commencing with Section 2000) of Division 2 of the Business and
Professions Code, a license issued pursuant to the Osteopathic
Initiative Act, or license as a community clinic defined in
subdivision (a) of Section 1203 of the Health and Safety Code, or a
license as a health facility pursuant to Chapter 2 (commencing with
Section 1250) of Division 2 of the Health and Safety Code.
   (e) The provisions of this code relating to disability insurance
do not apply to insurance defined in this section.




108.1.  Insurers admitted to transact liability insurance are also
deemed to be admitted to transact workers' compensation insurance for
the purpose of covering those persons defined as employees of
subdivision (d) of Section 3351 of the Labor Code.




109.  Workmen's compensation insurance includes insurance against
loss from liability imposed by law upon employers to compensate
employees and their dependents for injury sustained by the employees
arising out of and in the course of the employment, irrespective of
negligence or of the fault of either party.



110.  Common carrier liability insurance includes insurance against
loss resulting from liability of a common carrier for accident or
injury, fatal or nonfatal, to any person but does not include
liability or workmen's compensation insurance.




111.  Boiler and machinery insurance includes insurance against loss
of property and liability for damage to persons or property from
explosion of, or accident to, boilers, tanks, pipes, pressure
vessels, engines, wheels, electrical machinery, or apparatus
connected therewith or operating thereby.



112.  Burglary insurance includes:
   (a) Insurance against loss by burglary or theft or both.
   (b) Insurance against loss of, or destruction of, or damage to,
any of the following property, resulting from any cause, when such
insurance includes loss thereof by burglary or theft, or both, and
excludes coverage of property while in the custody of, or possession
of, or being transported by, any carrier for hire or in the mail:
Moneys, stamps, coins, bullion, securities, notes, drafts,
acceptances or instruments of like kind or character, accounts,
books, maps, manuscripts, indexes and other valuable papers,
documents and records incidental to the business or profession or
activity in which the insured is engaged.
   (c) Insurance by means of an all-risk policy of the type commonly
known as the "Personal Property Floater" against any and all kinds of
loss of or damage to, or loss of use of, any personal property other
than merchandise.


113.  Credit insurance includes insurance of persons engaged in
business against loss by reason of extending credit to those dealing
with them, and insurance against loss from the failure of persons to
meet existing or contemplated obligations to the insured. However, no
insurance may be written as credit insurance if it falls within the
definition of financial guaranty insurance as set forth in Section
12100.



114.  Sprinkler insurance includes insurance against loss through
damage by water to goods or premises arising from the breakage or
leakage of sprinklers, pumps, or other apparatus placed for
extinguishing fires, or loss arising from the breakage or leakage of
water pipes, or through accidental injury to such sprinklers, pumps,
or other apparatus.



115.  Team and vehicle insurance includes insurance against loss
through damage or legal liability for damage, to property caused by
the use of teams or vehicles other than ships, boats, or railroad
rolling stock, whether by accident or collision or by explosion of
engine, tank, boiler, pipe, or tire of the vehicle, and insurance
against theft of the whole or part of such vehicle.



116.  (a) Automobile insurance includes insurance of automobile
owners, users, dealers, or others having insurable interests therein,
against hazards incident to ownership, maintenance, operation, and
use of automobiles, other than loss resulting from accident or
physical injury, fatal or nonfatal, to, or death of, any natural
person.
   (b) Automobile insurance also includes any contract of warranty,
or guaranty that promises service, maintenance, parts replacement,
repair, money, or any other indemnity in event of loss of or damage
to a motor vehicle or a trailer, as defined by Section 630 of the
Vehicle Code, or any part thereof from any cause, including loss of
or damage to or loss of use of the motor vehicle or trailer by reason
of depreciation, deterioration, wear and tear, use, obsolescence, or
breakage if made by a warrantor or guarantor who is doing an
insurance business.
   (c) Automobile insurance also includes any agreement that promises
repair or replacement of a motor vehicle, or part thereof, after a
mechanical or electrical breakdown, at either no cost or a reduced
cost for the agreement holder. However, automobile insurance does not
include a vehicle service contract subject to Part 8 (commencing
with Section 12800) of Division 2, or an agreement deemed not to be
insurance under that part.
   (d) The doing or proposing to do any business in substance
equivalent to the business described in this section in a manner
designed to evade the provisions of this section is the doing of an
insurance business.



116.5.  An express warranty warranting a motor vehicle lubricant,
treatment, fluid, or additive that covers incidental or consequential
damage resulting from a failure of the lubricant, treatment, fluid,
or additive, shall constitute automobile insurance, unless all of the
following requirements are met:
   (a) The obligor is the primary manufacturer of the product. For
the purpose of this section, "manufacturer" means a person who can
prove clearly and convincingly that the per unit cost of owned or
leased capital goods, including the factory, used to produce the
product, plus the per unit cost of nonsubcontracted labor used to
produce the product, exceeds twice the per unit cost of raw materials
used to produce the product. "Manufacturer" also means a person who
has formulated or produced, and continuously offered in this state
for more than nine years, a motor vehicle lubricant, treatment,
fluid, or additive.
   (b) The commissioner has issued a written determination that the
obligor is a manufacturer as defined in subdivision (a). An obligor
shall provide the commissioner with all information, documents, and
affidavits reasonably necessary for this determination to be made.
Approval by the commissioner shall be obtained prior to January 1,
2004, or prior to the issuance of a warranty subject to this section,
whichever is later. If the commissioner determines that the obligor
is not a manufacturer, the obligor may obtain a hearing in accordance
with Chapter 4.5 (commencing with Section 11400) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (c) The agreement covers only damage incurred while the product
was in the vehicle.
   (d) The agreement is provided automatically with the product at no
extra charge.


116.6.  (a) Notwithstanding Section 116, a warranty issued by the
warrantor of a vehicle protection product shall constitute an express
warranty, as defined in Section 1791.2 of the Civil Code, and shall
not constitute automobile insurance if the warrantor complies with
all of the following requirements:
   (1) The warrantor maintains an insurance policy with an admitted
insurer providing coverage for 100 percent of the warrantor's
obligations under the warranty. The insurance policy shall allow the
warrantyholder to make a direct claim for payment from the insurer
upon the failure of the warrantor to pay any covered claim within 60
days after a complete proof-of-loss has been filed with the party
designated in the warranty. In addition, all of the following shall
apply:
   (A) The warrantor shall file with the commissioner a copy of the
insurance policy. At any time, a warrantor may have on file with the
commissioner only one active policy from one insurer.
   (B) The insurer's liability under the policy shall not be negated
by a failure of the warrantor, for any reason, to report the issuance
of a warranty to the insurer or to remit moneys owed to the insurer.
   (C) No policy cancellation by an insurer shall be valid unless a
notice of the intent to cancel the policy is filed with the
commissioner not less than 30 days prior to the effective date of the
cancellation, or, in the event that the cancellation is due to
fraud, material misrepresentation, or defalcation by the warrantor,
not less than 10 days prior to that date.
   (D) In the event an insurer cancels a policy that a warrantor has
filed with the commissioner, the warrantor shall do either of the
following:
   (i) File a copy of a new policy with the commissioner, before the
termination of the prior policy, providing no lapse in coverage
following the termination of the prior policy.
   (ii) Discontinue acting as a warrantor as of the termination date
of the policy until a new policy becomes effective and is accepted by
the commissioner.
   (2) The warrantor does not use the words insurance, casualty,
surety, mutual, or any other words descriptive of the casualty,
insurance, or surety business or deceptively similar to the name or
description of any insurance company or casualty or surety company in
the vehicle protection product name or warranty or in any
advertising or other materials provided to prospective purchasers.
   (3) The warranty has been issued to a customer that is insured
under a comprehensive vehicle insurance policy for the vehicle
covered by the warranty agreement.
   (4) The warranty is in writing and provides all of the following:
   (A) The benefits are limited to the difference between the actual
cash value of the stolen vehicle and the vehicle's replacement cost,
temporary vehicle rental expenses, reimbursement for insurance policy
deductible, and registration fees and taxes on a replacement vehicle
or a fixed amount for those benefits.
   (B) A statement that the warrantyholder shall be entitled to make
a direct claim against the insurer covering the obligations of the
warranty upon the failure of the warrantor to pay any covered claim
within 60 days after a complete proof-of-loss has been filed with the
party designated in the warranty.
   (C) A disclosure stating clearly the name, address, and telephone
number of the insurer covering the obligations of the warrantor.
   (D) A toll-free telephone number established and operated by the
warrantor for the warrantyholder to call for questions about the
warranty or the procedures to file a claim.
   (E) A statement that clearly indicates the terms of the warranty,
whether new or used cars are eligible for the vehicle protection
product, the method for calculating the benefits paid and provided to
the warrantyholder, and the procedure for filing a claim under the
warranty.
   (F) A disclosure in 10-point type or larger that reads as follows:
"This agreement is a product warranty and is not insurance. It is
not subject to state insurance laws but is subject to state law
concerning warranties."
   (G) A disclosure in 10-point type or larger that reads as follows:
"To be eligible for this warranty, the warrantyholder must have
comprehensive insurance coverage on the vehicle that is protected by
the antitheft device."
   (5) The benefit is payable upon the theft of the vehicle, as
defined in the warranty, and subject to the satisfaction of the
procedural proof of claim requirements of the warranty.
   (b) For purposes of this section, the following definitions shall
apply:
   (1) "Warrantor" means the manufacturer or provider of a vehicle
protection product who, under the terms of a vehicle protection
product warranty, is the contractual obligor to the purchaser of a
vehicle protection product.
   (2) (A) "Vehicle protection product" means a vehicle protection
device, system, or service that is installed on, or applied to, a
vehicle, is designed to deter the theft of a vehicle, and includes a
written warranty that provides if the product fails to deter the
theft of the vehicle, that the warrantyholder shall be paid specified
incidental costs by the warrantor as a result of the failure of the
device, system, or service to perform pursuant to the terms of the
warranty.
   (B) For purposes of this section, "vehicle protection product"
shall also include alarm systems, window etch products, body part
marking products, steering locks, pedal and ignition locks, fuel and
ignition kill switches, and electronic, radio, and satellite tracking
devices.
   (c) The commissioner may issue a stop order pursuant to Section
12921.8 to a warrantor who is in violation of the requirements of
this section.
   (d) A warrantor shall have the burden of proving that a claim
filed in compliance with the terms and conditions of the warranty is
not covered by the warranty. A warrantor shall have the burden of
proving that a claim settlement amount fulfills the promises
contained in the warranty.
   (e) The requirements of this section shall not apply under either
of the following conditions:
   (1) The warrantor is a manufacturer of motor vehicles, as defined
pursuant to Section 672 of the Vehicle Code, or a distributor of
motor vehicles, as defined pursuant to Section 296 of the Vehicle
Code.
   (2) The warranty only provides for the repair or replacement of
the vehicle protection product subsequent to a mechanical or
electrical breakdown of the vehicle protection product.
   (f) Nothing in this section is intended to affect any pending
litigation.



117.  Mortgage insurance includes the guaranteeing of the payment of
the principal, interest and other sums agreed to be paid under the
terms of any note or bond secured by mortgage, or other sums secured
under the terms of any such mortgage, in its entirety, or of any
undivided or other partial interest in any such mortgage, or in a
group of such mortgages, and the guaranteeing or insuring, directly
or indirectly, against loss thereon.



118.  Aircraft insurance includes insurance of aircraft owners,
users, dealers or others having insurable interests therein, against
loss through hazards incident to ownership, maintenance, operation
and use of aircraft, other than against loss resulting from accident
or physical injury, fatal or nonfatal, to any natural person.




119.  Mortgage guaranty insurance includes insurance against
financial loss by reason of the nonpayment of principal, interest and
other sums agreed to be paid under the terms of any note or bond or
other evidence of indebtedness secured by a mortgage, deed of trust,
or other instrument constituting a lien or charge on real estate.




119.5.  Insolvency insurance includes insurance against loss arising
from the failure of an insolvent insurer to discharge its
obligations under its insurance policies.



119.6.  Legal insurance includes the assumption of a contractual
obligation to reimburse the insured against all or a portion of his
fees, costs, and expenses related to or arising out of services
performed by or under the supervision of an attorney who is an active
member of the bar of any jurisdiction or jurisdictions of the United
States, in which these legal services are performed.
   Legal insurance does not include any of the following:
   (a) Retainer contracts made by an individual lawyer or law firm
with an individual client with the fee based on an estimate of the
nature and the amount of services that will be provided to that
specific client, and similar contracts made with a group of clients
involved in the same or closely related legal matters (such as class
actions);
   (b) Plans providing no benefits other than consultation and advice
on matters in connection with, or a part of, referral services.
   (c) Plans providing limited benefits on simple legal matters on a
voluntary and informal basis, not involving a legally binding
promise, in the context of an employment or educational or similar
relationship; or
   (d) Legal services provided by labor unions or employee
associations to their members in matters relating to employment or
occupation.
   (e) Legal service incidental to other insurance coverages.
   The foregoing is not intended as an exclusive list of legal
services plans or arrangements which do not constitute legal
insurance as defined by this section.



120.  Miscellaneous insurance includes insurance against loss from
damage done, directly or indirectly by lightning, windstorm, tornado,
earthquake or insurance under an open policy indemnifying the
producer of any motion picture, television, theatrical, sport, or
similar production, event, or exhibition against loss by reason of
the interruption, postponement, or cancellation of such production,
event, or exhibition due to death, accidental injury, or sickness
preventing performers, directors, or other principals from commencing
or continuing their respective performance or duties; and any
insurance not included in any of the foregoing classes, and which is
a proper subject of insurance.



121.  Except as otherwise stated, the enumeration in this chapter of
the kinds of insurance in a particular class does not limit any such
kind to any one of such particular classes, inasmuch as the
classification of similar insurance may vary with the subject matter,
risk, and connected insurances; but the fact that similar kinds of
insurance occur in different classes does not extend or change the
scope of any such class.



122.  (a) An insurer admitted for all the classes of insurance
defined in Sections 102, 107, 108, 112 and 120 is authorized, in
addition to the underwriting powers granted by such classes, to
include any and all insurance described in paragraph (b) in a policy
which contains fire coverage written on a form complying with either
Section 2070 or Section 2071 and which provides insurance covering
only noncommercial risks and covering either residence properties
(not more extensive than a four-family dwelling) and appurtenances,
or the contents thereof other than merchandise, or both.
   (b) Such insurance is any or all insurance against all risks of
physical loss of, damage to, or personal liability (except workmen's
compensation) for injury to person or damage to property incident to,
any or all of the following:
   (1) The location described and property covered by the fire
insurance policy as described in subdivision (a),
   (2) Personal effects,
   (3) Boats not over 16 feet in length (including furnishings,
equipment, outboard motors, and trailers); provided the physical loss
or damage coverage does not exceed five hundred dollars ($500),
   (4) Personal property intended primarily for residential or
recreational use, (excluding boats except as provided above),
   (5) Farm implements or self-propelled vehicles, excluding
automobiles and aircraft, and,
   (6) Horses, including accouterments and vehicles or implements to
be drawn thereby.



123.  An insurer admitted to transact liability insurance may extend
such insurance on noncommercial or farm risks to include insurance
of the legal liability of the insured for damage to property caused
by use of "teams" or "vehicles" as the meaning thereof is limited by
Section 115.


124.  "Financial guaranty insurance" means that insurance as defined
by Section 12100.



124.5.  "Homeowners' insurance" means insurance covering the risks
described in subdivision (a) of Section 675.


State Codes and Statutes

Statutes > California > Ins > 100-124.5

INSURANCE CODE
SECTION 100-124.5



100.  Insurance in this state is divided into the following classes:
   (1) Life
   (2) Fire
   (3) Marine
   (4) Title
   (5) Surety
   (6) Disability
   (7) Plate glass
   (8) Liability
   (9) Workmen's compensation
   (10) Common carrier liability
   (11) Boiler and machinery
   (12) Burglary
   (13) Credit
   (14) Sprinkler
   (15) Team and vehicle
   (16) Automobile
   (17) Mortgage
   (18) Aircraft
   (19) Mortgage guaranty
   (19.5) Insolvency
   (19.6) Legal insurance
   (20) Miscellaneous



101.  Life insurance includes insurance upon the lives of persons or
appertaining thereto, and the granting, purchasing, or disposing of
annuities.


102.  Fire insurance includes:
   (a) Insurance against loss by fire, lightning, windstorm, tornado,
or earthquake.
   (b) Insurance against loss of, or destruction of, or damage to,
any of the following property, when such insurance includes loss
thereof by fire and excludes coverage of property while in the
custody of, or possession of, or being transported by, any carrier
for hire or in the mail:
   1. Accounts, books, maps, manuscripts, indexes and other valuable
papers, documents and records incidental to the business or
profession or activity in which the insured is engaged, resulting
from any cause, but excluding any article constituting stock in trade
or used as a sample or sold or held for sale.
   2. Moneys, stamps, coins, bullion, securities, notes, drafts,
acceptances or instruments of like kind or character, resulting from
any cause, except:
   (i) Forgery.
   (ii) Any dishonest, fraudulent or criminal act of any officer,
employee, partner, director, trustee or authorized representative of
the insured.
   (c) Insurance by means of an all-risk policy of the type commonly
known as the "Personal Property Floater" against any and all kinds of
loss of or damage to, or loss of use of, any personal property other
than merchandise.
   The provisions of Section 2070 shall not apply to insurance
written pursuant to subdivisions (b) or (c).




103.  Marine insurance includes insurance against any and all kinds
of loss of or damage to:
   (a) Vessels, craft, aircraft, cars, automobiles and vehicles of
every kind (excluding aircraft and automobiles operating under their
own power or while in storage not incidental to transportation), as
well as all goods, freights, cargoes, merchandise, effects,
disbursements, profits, money, bullion, securities, choses in action,
evidences of debt, valuable papers, bottomry and respondentia
interests and all other kinds of property, and interests therein, in
respect to, appertaining to or in connection with any and all risks
or perils of navigation, transit, or transportation, including war
risks, on or under any seas or other waters, on land or in the air,
or while being assembled, packed, crated, baled, compressed or
similarly prepared for shipment or while awaiting the same, or during
any delays, storage, transshipment, or reshipment incident thereto
including marine builder's risks, and all personal property floater
risks.
   (b) Person or to property in connection with or appertaining to a
marine, inland marine, transit or transportation insurance including
liability for loss of or damage arising out of or in connection with
the construction, repair, maintenance or use of the subject matter of
such insurance (but not including life insurance or surety bonds);
but except as herein specified, shall not mean insurances against
loss by reason of bodily injury to the person. Inland marine
insurance shall be deemed to include hull insurance on water pleasure
craft not used for commercial purposes of a size and type to be
determined by the commissioner.
   (c) Precious stones, jewels, jewelry, gold, silver and other
precious metals, whether used in business or trade or otherwise and
whether the same be in course of transportation or otherwise.



104.  Title insurance means insuring, guaranteeing or indemnifying
owners of real or personal property or the holders of liens or
encumbrances thereon or others interested therein against loss or
damage suffered by reason of:
   (a) Liens or encumbrances on, or defects in the title to said
property;
   (b) Invalidity or unenforceability of any liens or encumbrances
thereon; or
   (c) Incorrectness of searches relating to the title to real or
personal property.


105.  Surety insurance includes:
   (a) The guaranteeing of behavior of persons and the guaranteeing
of performance of contracts (including executing or guaranteeing
bonds and undertakings required or permitted in all actions or
proceedings or by law allowed), other than insurance policies and
other than for payments secured by a mortgage, deed of trust, or
other instrument constituting a lien or charge on real estate.
   (b) Insurance against loss resulting from the forgery or
alteration of any instrument of any kind or character or of any
signature thereon. Nothing in this section shall be deemed to limit
any of the powers of title insurers.
   (c) Any of the following insurance when included as a part of
contract containing any such guarantee of behavior or performance or
in a contract indemnifying any bank, banker, broker, financial or
moneyed corporation or association, any state, political subdivision,
public or municipal corporation, or any officer of any state,
political subdivision, public or municipal corporation: Insurance
indemnifying the insured named therein against loss or destruction
from any cause of any evidences of debt of any kind or character,
evidences of ownership of any kind or character, deeds, mortgages,
warehouse receipts, bills of lading, certificates of stock, bonds,
notes, drafts, checks, instruments of similar character, stamps,
documents, money, precious metals of any kind or character, refined
or unrefined, and articles made therefrom, jewelry, watches,
necklaces, bracelets, gems and precious and semiprecious stones, and
also against loss or damage, except by fire, to the insured's
premises, furnishings, fixtures, equipment, safes and vaults therein
caused by burglary, robbery, holdup, theft or larceny or attempt
thereat. No such insurance indemnifying against loss of any property
as specified herein shall indemnify against loss of any such property
occurring while in the mail or in the exclusive custody or
possession of a common carrier for the purpose of transportation,
except for the purpose of transportation by an armored motor vehicle.
   (d) No insurance may be written as surety insurance if it falls
within the definition of financial guaranty insurance as set forth in
Section 12100.



106.  (a) Disability insurance includes insurance appertaining to
injury, disablement or death resulting to the insured from accidents,
and appertaining to disablements resulting to the insured from
sickness.
   (b) In statutes that become effective on or after January 1, 2002,
the term "health insurance" for purposes of this code shall mean an
individual or group disability insurance policy that provides
coverage for hospital, medical, or surgical benefits. The term
"health insurance" shall not include any of the following kinds of
insurance:
   (1) Accidental death and accidental death and dismemberment.
   (2) Disability insurance, including hospital indemnity, accident
only, and specified disease insurance that pays benefits on a fixed
benefit, cash payment only basis.
   (3) Credit disability, as defined in subdivision (2) of Section
779.2.
   (4) Coverage issued as a supplement to liability insurance.
   (5) Disability income, as defined in subdivision (i) of Section
799.01.
   (6) Insurance under which benefits are payable with or without
regard to fault and that is statutorily required to be contained in
any liability insurance policy or equivalent self-insurance.
   (7) Insurance arising out of a workers' compensation or similar
law.
   (8) Long-term care.
   (c) In a statute that becomes effective on or after January 1,
2008, the term "specialized health insurance policy" as used in this
code shall mean a policy of health insurance for covered benefits in
a single specialized area of health care, including dental-only,
vision-only, and behavioral health-only policies.




107.  Plate glass insurance includes insurance against breakage of
glass.


108.  Liability insurance includes:
   (a) Insurance against loss resulting from liability for injury,
fatal or nonfatal, suffered by any natural person, or resulting from
liability for damage to property, or property interests of others but
does not include worker's compensation, common carrier liability,
boiler and machinery, or team and vehicle insurance.
   (b) (1) With respect to operations or property covered by a policy
of liability insurance as defined in subdivision (a), insurance of
medical, hospital, surgical and funeral loss or expense of the
insured or other persons injured, and in the case of an automobile
liability policy disability benefits to the insured or other persons
injured and in the event of their death, funeral and accidental death
benefits to their dependents, beneficiaries or personal
representatives irrespective of legal liability of the insured, when
issued with or supplemental to the insurance defined in subdivision
(a);
   (2) When issued with or supplemental to the insurance defined in
subdivision (a), disability insurance covering the insured and
members of his household, or other persons who customarily operate
any automobile covered by such a policy and who are named in such
policy; and such disability insurance may cover against accidental
injury, death or dismemberment caused by any or all hazards as
defined in such coverage;
   (c) Insurance covering injuries sustained by an insured resulting
from a tort committed by a third party against which such third party
is not himself covered by liability insurance;
   (d) Insurance coverage against the legal liability of the insured,
and against loss, damage, or expense incident to a claim arising out
of the death or injury of any person as the result of negligence or
malpractice in rendering professional services by any person who
holds a certificate or license issued pursuant to Chapter 5
(commencing with Section 2000) of Division 2 of the Business and
Professions Code, a license issued pursuant to the Osteopathic
Initiative Act, or license as a community clinic defined in
subdivision (a) of Section 1203 of the Health and Safety Code, or a
license as a health facility pursuant to Chapter 2 (commencing with
Section 1250) of Division 2 of the Health and Safety Code.
   (e) The provisions of this code relating to disability insurance
do not apply to insurance defined in this section.




108.1.  Insurers admitted to transact liability insurance are also
deemed to be admitted to transact workers' compensation insurance for
the purpose of covering those persons defined as employees of
subdivision (d) of Section 3351 of the Labor Code.




109.  Workmen's compensation insurance includes insurance against
loss from liability imposed by law upon employers to compensate
employees and their dependents for injury sustained by the employees
arising out of and in the course of the employment, irrespective of
negligence or of the fault of either party.



110.  Common carrier liability insurance includes insurance against
loss resulting from liability of a common carrier for accident or
injury, fatal or nonfatal, to any person but does not include
liability or workmen's compensation insurance.




111.  Boiler and machinery insurance includes insurance against loss
of property and liability for damage to persons or property from
explosion of, or accident to, boilers, tanks, pipes, pressure
vessels, engines, wheels, electrical machinery, or apparatus
connected therewith or operating thereby.



112.  Burglary insurance includes:
   (a) Insurance against loss by burglary or theft or both.
   (b) Insurance against loss of, or destruction of, or damage to,
any of the following property, resulting from any cause, when such
insurance includes loss thereof by burglary or theft, or both, and
excludes coverage of property while in the custody of, or possession
of, or being transported by, any carrier for hire or in the mail:
Moneys, stamps, coins, bullion, securities, notes, drafts,
acceptances or instruments of like kind or character, accounts,
books, maps, manuscripts, indexes and other valuable papers,
documents and records incidental to the business or profession or
activity in which the insured is engaged.
   (c) Insurance by means of an all-risk policy of the type commonly
known as the "Personal Property Floater" against any and all kinds of
loss of or damage to, or loss of use of, any personal property other
than merchandise.


113.  Credit insurance includes insurance of persons engaged in
business against loss by reason of extending credit to those dealing
with them, and insurance against loss from the failure of persons to
meet existing or contemplated obligations to the insured. However, no
insurance may be written as credit insurance if it falls within the
definition of financial guaranty insurance as set forth in Section
12100.



114.  Sprinkler insurance includes insurance against loss through
damage by water to goods or premises arising from the breakage or
leakage of sprinklers, pumps, or other apparatus placed for
extinguishing fires, or loss arising from the breakage or leakage of
water pipes, or through accidental injury to such sprinklers, pumps,
or other apparatus.



115.  Team and vehicle insurance includes insurance against loss
through damage or legal liability for damage, to property caused by
the use of teams or vehicles other than ships, boats, or railroad
rolling stock, whether by accident or collision or by explosion of
engine, tank, boiler, pipe, or tire of the vehicle, and insurance
against theft of the whole or part of such vehicle.



116.  (a) Automobile insurance includes insurance of automobile
owners, users, dealers, or others having insurable interests therein,
against hazards incident to ownership, maintenance, operation, and
use of automobiles, other than loss resulting from accident or
physical injury, fatal or nonfatal, to, or death of, any natural
person.
   (b) Automobile insurance also includes any contract of warranty,
or guaranty that promises service, maintenance, parts replacement,
repair, money, or any other indemnity in event of loss of or damage
to a motor vehicle or a trailer, as defined by Section 630 of the
Vehicle Code, or any part thereof from any cause, including loss of
or damage to or loss of use of the motor vehicle or trailer by reason
of depreciation, deterioration, wear and tear, use, obsolescence, or
breakage if made by a warrantor or guarantor who is doing an
insurance business.
   (c) Automobile insurance also includes any agreement that promises
repair or replacement of a motor vehicle, or part thereof, after a
mechanical or electrical breakdown, at either no cost or a reduced
cost for the agreement holder. However, automobile insurance does not
include a vehicle service contract subject to Part 8 (commencing
with Section 12800) of Division 2, or an agreement deemed not to be
insurance under that part.
   (d) The doing or proposing to do any business in substance
equivalent to the business described in this section in a manner
designed to evade the provisions of this section is the doing of an
insurance business.



116.5.  An express warranty warranting a motor vehicle lubricant,
treatment, fluid, or additive that covers incidental or consequential
damage resulting from a failure of the lubricant, treatment, fluid,
or additive, shall constitute automobile insurance, unless all of the
following requirements are met:
   (a) The obligor is the primary manufacturer of the product. For
the purpose of this section, "manufacturer" means a person who can
prove clearly and convincingly that the per unit cost of owned or
leased capital goods, including the factory, used to produce the
product, plus the per unit cost of nonsubcontracted labor used to
produce the product, exceeds twice the per unit cost of raw materials
used to produce the product. "Manufacturer" also means a person who
has formulated or produced, and continuously offered in this state
for more than nine years, a motor vehicle lubricant, treatment,
fluid, or additive.
   (b) The commissioner has issued a written determination that the
obligor is a manufacturer as defined in subdivision (a). An obligor
shall provide the commissioner with all information, documents, and
affidavits reasonably necessary for this determination to be made.
Approval by the commissioner shall be obtained prior to January 1,
2004, or prior to the issuance of a warranty subject to this section,
whichever is later. If the commissioner determines that the obligor
is not a manufacturer, the obligor may obtain a hearing in accordance
with Chapter 4.5 (commencing with Section 11400) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (c) The agreement covers only damage incurred while the product
was in the vehicle.
   (d) The agreement is provided automatically with the product at no
extra charge.


116.6.  (a) Notwithstanding Section 116, a warranty issued by the
warrantor of a vehicle protection product shall constitute an express
warranty, as defined in Section 1791.2 of the Civil Code, and shall
not constitute automobile insurance if the warrantor complies with
all of the following requirements:
   (1) The warrantor maintains an insurance policy with an admitted
insurer providing coverage for 100 percent of the warrantor's
obligations under the warranty. The insurance policy shall allow the
warrantyholder to make a direct claim for payment from the insurer
upon the failure of the warrantor to pay any covered claim within 60
days after a complete proof-of-loss has been filed with the party
designated in the warranty. In addition, all of the following shall
apply:
   (A) The warrantor shall file with the commissioner a copy of the
insurance policy. At any time, a warrantor may have on file with the
commissioner only one active policy from one insurer.
   (B) The insurer's liability under the policy shall not be negated
by a failure of the warrantor, for any reason, to report the issuance
of a warranty to the insurer or to remit moneys owed to the insurer.
   (C) No policy cancellation by an insurer shall be valid unless a
notice of the intent to cancel the policy is filed with the
commissioner not less than 30 days prior to the effective date of the
cancellation, or, in the event that the cancellation is due to
fraud, material misrepresentation, or defalcation by the warrantor,
not less than 10 days prior to that date.
   (D) In the event an insurer cancels a policy that a warrantor has
filed with the commissioner, the warrantor shall do either of the
following:
   (i) File a copy of a new policy with the commissioner, before the
termination of the prior policy, providing no lapse in coverage
following the termination of the prior policy.
   (ii) Discontinue acting as a warrantor as of the termination date
of the policy until a new policy becomes effective and is accepted by
the commissioner.
   (2) The warrantor does not use the words insurance, casualty,
surety, mutual, or any other words descriptive of the casualty,
insurance, or surety business or deceptively similar to the name or
description of any insurance company or casualty or surety company in
the vehicle protection product name or warranty or in any
advertising or other materials provided to prospective purchasers.
   (3) The warranty has been issued to a customer that is insured
under a comprehensive vehicle insurance policy for the vehicle
covered by the warranty agreement.
   (4) The warranty is in writing and provides all of the following:
   (A) The benefits are limited to the difference between the actual
cash value of the stolen vehicle and the vehicle's replacement cost,
temporary vehicle rental expenses, reimbursement for insurance policy
deductible, and registration fees and taxes on a replacement vehicle
or a fixed amount for those benefits.
   (B) A statement that the warrantyholder shall be entitled to make
a direct claim against the insurer covering the obligations of the
warranty upon the failure of the warrantor to pay any covered claim
within 60 days after a complete proof-of-loss has been filed with the
party designated in the warranty.
   (C) A disclosure stating clearly the name, address, and telephone
number of the insurer covering the obligations of the warrantor.
   (D) A toll-free telephone number established and operated by the
warrantor for the warrantyholder to call for questions about the
warranty or the procedures to file a claim.
   (E) A statement that clearly indicates the terms of the warranty,
whether new or used cars are eligible for the vehicle protection
product, the method for calculating the benefits paid and provided to
the warrantyholder, and the procedure for filing a claim under the
warranty.
   (F) A disclosure in 10-point type or larger that reads as follows:
"This agreement is a product warranty and is not insurance. It is
not subject to state insurance laws but is subject to state law
concerning warranties."
   (G) A disclosure in 10-point type or larger that reads as follows:
"To be eligible for this warranty, the warrantyholder must have
comprehensive insurance coverage on the vehicle that is protected by
the antitheft device."
   (5) The benefit is payable upon the theft of the vehicle, as
defined in the warranty, and subject to the satisfaction of the
procedural proof of claim requirements of the warranty.
   (b) For purposes of this section, the following definitions shall
apply:
   (1) "Warrantor" means the manufacturer or provider of a vehicle
protection product who, under the terms of a vehicle protection
product warranty, is the contractual obligor to the purchaser of a
vehicle protection product.
   (2) (A) "Vehicle protection product" means a vehicle protection
device, system, or service that is installed on, or applied to, a
vehicle, is designed to deter the theft of a vehicle, and includes a
written warranty that provides if the product fails to deter the
theft of the vehicle, that the warrantyholder shall be paid specified
incidental costs by the warrantor as a result of the failure of the
device, system, or service to perform pursuant to the terms of the
warranty.
   (B) For purposes of this section, "vehicle protection product"
shall also include alarm systems, window etch products, body part
marking products, steering locks, pedal and ignition locks, fuel and
ignition kill switches, and electronic, radio, and satellite tracking
devices.
   (c) The commissioner may issue a stop order pursuant to Section
12921.8 to a warrantor who is in violation of the requirements of
this section.
   (d) A warrantor shall have the burden of proving that a claim
filed in compliance with the terms and conditions of the warranty is
not covered by the warranty. A warrantor shall have the burden of
proving that a claim settlement amount fulfills the promises
contained in the warranty.
   (e) The requirements of this section shall not apply under either
of the following conditions:
   (1) The warrantor is a manufacturer of motor vehicles, as defined
pursuant to Section 672 of the Vehicle Code, or a distributor of
motor vehicles, as defined pursuant to Section 296 of the Vehicle
Code.
   (2) The warranty only provides for the repair or replacement of
the vehicle protection product subsequent to a mechanical or
electrical breakdown of the vehicle protection product.
   (f) Nothing in this section is intended to affect any pending
litigation.



117.  Mortgage insurance includes the guaranteeing of the payment of
the principal, interest and other sums agreed to be paid under the
terms of any note or bond secured by mortgage, or other sums secured
under the terms of any such mortgage, in its entirety, or of any
undivided or other partial interest in any such mortgage, or in a
group of such mortgages, and the guaranteeing or insuring, directly
or indirectly, against loss thereon.



118.  Aircraft insurance includes insurance of aircraft owners,
users, dealers or others having insurable interests therein, against
loss through hazards incident to ownership, maintenance, operation
and use of aircraft, other than against loss resulting from accident
or physical injury, fatal or nonfatal, to any natural person.




119.  Mortgage guaranty insurance includes insurance against
financial loss by reason of the nonpayment of principal, interest and
other sums agreed to be paid under the terms of any note or bond or
other evidence of indebtedness secured by a mortgage, deed of trust,
or other instrument constituting a lien or charge on real estate.




119.5.  Insolvency insurance includes insurance against loss arising
from the failure of an insolvent insurer to discharge its
obligations under its insurance policies.



119.6.  Legal insurance includes the assumption of a contractual
obligation to reimburse the insured against all or a portion of his
fees, costs, and expenses related to or arising out of services
performed by or under the supervision of an attorney who is an active
member of the bar of any jurisdiction or jurisdictions of the United
States, in which these legal services are performed.
   Legal insurance does not include any of the following:
   (a) Retainer contracts made by an individual lawyer or law firm
with an individual client with the fee based on an estimate of the
nature and the amount of services that will be provided to that
specific client, and similar contracts made with a group of clients
involved in the same or closely related legal matters (such as class
actions);
   (b) Plans providing no benefits other than consultation and advice
on matters in connection with, or a part of, referral services.
   (c) Plans providing limited benefits on simple legal matters on a
voluntary and informal basis, not involving a legally binding
promise, in the context of an employment or educational or similar
relationship; or
   (d) Legal services provided by labor unions or employee
associations to their members in matters relating to employment or
occupation.
   (e) Legal service incidental to other insurance coverages.
   The foregoing is not intended as an exclusive list of legal
services plans or arrangements which do not constitute legal
insurance as defined by this section.



120.  Miscellaneous insurance includes insurance against loss from
damage done, directly or indirectly by lightning, windstorm, tornado,
earthquake or insurance under an open policy indemnifying the
producer of any motion picture, television, theatrical, sport, or
similar production, event, or exhibition against loss by reason of
the interruption, postponement, or cancellation of such production,
event, or exhibition due to death, accidental injury, or sickness
preventing performers, directors, or other principals from commencing
or continuing their respective performance or duties; and any
insurance not included in any of the foregoing classes, and which is
a proper subject of insurance.



121.  Except as otherwise stated, the enumeration in this chapter of
the kinds of insurance in a particular class does not limit any such
kind to any one of such particular classes, inasmuch as the
classification of similar insurance may vary with the subject matter,
risk, and connected insurances; but the fact that similar kinds of
insurance occur in different classes does not extend or change the
scope of any such class.



122.  (a) An insurer admitted for all the classes of insurance
defined in Sections 102, 107, 108, 112 and 120 is authorized, in
addition to the underwriting powers granted by such classes, to
include any and all insurance described in paragraph (b) in a policy
which contains fire coverage written on a form complying with either
Section 2070 or Section 2071 and which provides insurance covering
only noncommercial risks and covering either residence properties
(not more extensive than a four-family dwelling) and appurtenances,
or the contents thereof other than merchandise, or both.
   (b) Such insurance is any or all insurance against all risks of
physical loss of, damage to, or personal liability (except workmen's
compensation) for injury to person or damage to property incident to,
any or all of the following:
   (1) The location described and property covered by the fire
insurance policy as described in subdivision (a),
   (2) Personal effects,
   (3) Boats not over 16 feet in length (including furnishings,
equipment, outboard motors, and trailers); provided the physical loss
or damage coverage does not exceed five hundred dollars ($500),
   (4) Personal property intended primarily for residential or
recreational use, (excluding boats except as provided above),
   (5) Farm implements or self-propelled vehicles, excluding
automobiles and aircraft, and,
   (6) Horses, including accouterments and vehicles or implements to
be drawn thereby.



123.  An insurer admitted to transact liability insurance may extend
such insurance on noncommercial or farm risks to include insurance
of the legal liability of the insured for damage to property caused
by use of "teams" or "vehicles" as the meaning thereof is limited by
Section 115.


124.  "Financial guaranty insurance" means that insurance as defined
by Section 12100.



124.5.  "Homeowners' insurance" means insurance covering the risks
described in subdivision (a) of Section 675.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Ins > 100-124.5

INSURANCE CODE
SECTION 100-124.5



100.  Insurance in this state is divided into the following classes:
   (1) Life
   (2) Fire
   (3) Marine
   (4) Title
   (5) Surety
   (6) Disability
   (7) Plate glass
   (8) Liability
   (9) Workmen's compensation
   (10) Common carrier liability
   (11) Boiler and machinery
   (12) Burglary
   (13) Credit
   (14) Sprinkler
   (15) Team and vehicle
   (16) Automobile
   (17) Mortgage
   (18) Aircraft
   (19) Mortgage guaranty
   (19.5) Insolvency
   (19.6) Legal insurance
   (20) Miscellaneous



101.  Life insurance includes insurance upon the lives of persons or
appertaining thereto, and the granting, purchasing, or disposing of
annuities.


102.  Fire insurance includes:
   (a) Insurance against loss by fire, lightning, windstorm, tornado,
or earthquake.
   (b) Insurance against loss of, or destruction of, or damage to,
any of the following property, when such insurance includes loss
thereof by fire and excludes coverage of property while in the
custody of, or possession of, or being transported by, any carrier
for hire or in the mail:
   1. Accounts, books, maps, manuscripts, indexes and other valuable
papers, documents and records incidental to the business or
profession or activity in which the insured is engaged, resulting
from any cause, but excluding any article constituting stock in trade
or used as a sample or sold or held for sale.
   2. Moneys, stamps, coins, bullion, securities, notes, drafts,
acceptances or instruments of like kind or character, resulting from
any cause, except:
   (i) Forgery.
   (ii) Any dishonest, fraudulent or criminal act of any officer,
employee, partner, director, trustee or authorized representative of
the insured.
   (c) Insurance by means of an all-risk policy of the type commonly
known as the "Personal Property Floater" against any and all kinds of
loss of or damage to, or loss of use of, any personal property other
than merchandise.
   The provisions of Section 2070 shall not apply to insurance
written pursuant to subdivisions (b) or (c).




103.  Marine insurance includes insurance against any and all kinds
of loss of or damage to:
   (a) Vessels, craft, aircraft, cars, automobiles and vehicles of
every kind (excluding aircraft and automobiles operating under their
own power or while in storage not incidental to transportation), as
well as all goods, freights, cargoes, merchandise, effects,
disbursements, profits, money, bullion, securities, choses in action,
evidences of debt, valuable papers, bottomry and respondentia
interests and all other kinds of property, and interests therein, in
respect to, appertaining to or in connection with any and all risks
or perils of navigation, transit, or transportation, including war
risks, on or under any seas or other waters, on land or in the air,
or while being assembled, packed, crated, baled, compressed or
similarly prepared for shipment or while awaiting the same, or during
any delays, storage, transshipment, or reshipment incident thereto
including marine builder's risks, and all personal property floater
risks.
   (b) Person or to property in connection with or appertaining to a
marine, inland marine, transit or transportation insurance including
liability for loss of or damage arising out of or in connection with
the construction, repair, maintenance or use of the subject matter of
such insurance (but not including life insurance or surety bonds);
but except as herein specified, shall not mean insurances against
loss by reason of bodily injury to the person. Inland marine
insurance shall be deemed to include hull insurance on water pleasure
craft not used for commercial purposes of a size and type to be
determined by the commissioner.
   (c) Precious stones, jewels, jewelry, gold, silver and other
precious metals, whether used in business or trade or otherwise and
whether the same be in course of transportation or otherwise.



104.  Title insurance means insuring, guaranteeing or indemnifying
owners of real or personal property or the holders of liens or
encumbrances thereon or others interested therein against loss or
damage suffered by reason of:
   (a) Liens or encumbrances on, or defects in the title to said
property;
   (b) Invalidity or unenforceability of any liens or encumbrances
thereon; or
   (c) Incorrectness of searches relating to the title to real or
personal property.


105.  Surety insurance includes:
   (a) The guaranteeing of behavior of persons and the guaranteeing
of performance of contracts (including executing or guaranteeing
bonds and undertakings required or permitted in all actions or
proceedings or by law allowed), other than insurance policies and
other than for payments secured by a mortgage, deed of trust, or
other instrument constituting a lien or charge on real estate.
   (b) Insurance against loss resulting from the forgery or
alteration of any instrument of any kind or character or of any
signature thereon. Nothing in this section shall be deemed to limit
any of the powers of title insurers.
   (c) Any of the following insurance when included as a part of
contract containing any such guarantee of behavior or performance or
in a contract indemnifying any bank, banker, broker, financial or
moneyed corporation or association, any state, political subdivision,
public or municipal corporation, or any officer of any state,
political subdivision, public or municipal corporation: Insurance
indemnifying the insured named therein against loss or destruction
from any cause of any evidences of debt of any kind or character,
evidences of ownership of any kind or character, deeds, mortgages,
warehouse receipts, bills of lading, certificates of stock, bonds,
notes, drafts, checks, instruments of similar character, stamps,
documents, money, precious metals of any kind or character, refined
or unrefined, and articles made therefrom, jewelry, watches,
necklaces, bracelets, gems and precious and semiprecious stones, and
also against loss or damage, except by fire, to the insured's
premises, furnishings, fixtures, equipment, safes and vaults therein
caused by burglary, robbery, holdup, theft or larceny or attempt
thereat. No such insurance indemnifying against loss of any property
as specified herein shall indemnify against loss of any such property
occurring while in the mail or in the exclusive custody or
possession of a common carrier for the purpose of transportation,
except for the purpose of transportation by an armored motor vehicle.
   (d) No insurance may be written as surety insurance if it falls
within the definition of financial guaranty insurance as set forth in
Section 12100.



106.  (a) Disability insurance includes insurance appertaining to
injury, disablement or death resulting to the insured from accidents,
and appertaining to disablements resulting to the insured from
sickness.
   (b) In statutes that become effective on or after January 1, 2002,
the term "health insurance" for purposes of this code shall mean an
individual or group disability insurance policy that provides
coverage for hospital, medical, or surgical benefits. The term
"health insurance" shall not include any of the following kinds of
insurance:
   (1) Accidental death and accidental death and dismemberment.
   (2) Disability insurance, including hospital indemnity, accident
only, and specified disease insurance that pays benefits on a fixed
benefit, cash payment only basis.
   (3) Credit disability, as defined in subdivision (2) of Section
779.2.
   (4) Coverage issued as a supplement to liability insurance.
   (5) Disability income, as defined in subdivision (i) of Section
799.01.
   (6) Insurance under which benefits are payable with or without
regard to fault and that is statutorily required to be contained in
any liability insurance policy or equivalent self-insurance.
   (7) Insurance arising out of a workers' compensation or similar
law.
   (8) Long-term care.
   (c) In a statute that becomes effective on or after January 1,
2008, the term "specialized health insurance policy" as used in this
code shall mean a policy of health insurance for covered benefits in
a single specialized area of health care, including dental-only,
vision-only, and behavioral health-only policies.




107.  Plate glass insurance includes insurance against breakage of
glass.


108.  Liability insurance includes:
   (a) Insurance against loss resulting from liability for injury,
fatal or nonfatal, suffered by any natural person, or resulting from
liability for damage to property, or property interests of others but
does not include worker's compensation, common carrier liability,
boiler and machinery, or team and vehicle insurance.
   (b) (1) With respect to operations or property covered by a policy
of liability insurance as defined in subdivision (a), insurance of
medical, hospital, surgical and funeral loss or expense of the
insured or other persons injured, and in the case of an automobile
liability policy disability benefits to the insured or other persons
injured and in the event of their death, funeral and accidental death
benefits to their dependents, beneficiaries or personal
representatives irrespective of legal liability of the insured, when
issued with or supplemental to the insurance defined in subdivision
(a);
   (2) When issued with or supplemental to the insurance defined in
subdivision (a), disability insurance covering the insured and
members of his household, or other persons who customarily operate
any automobile covered by such a policy and who are named in such
policy; and such disability insurance may cover against accidental
injury, death or dismemberment caused by any or all hazards as
defined in such coverage;
   (c) Insurance covering injuries sustained by an insured resulting
from a tort committed by a third party against which such third party
is not himself covered by liability insurance;
   (d) Insurance coverage against the legal liability of the insured,
and against loss, damage, or expense incident to a claim arising out
of the death or injury of any person as the result of negligence or
malpractice in rendering professional services by any person who
holds a certificate or license issued pursuant to Chapter 5
(commencing with Section 2000) of Division 2 of the Business and
Professions Code, a license issued pursuant to the Osteopathic
Initiative Act, or license as a community clinic defined in
subdivision (a) of Section 1203 of the Health and Safety Code, or a
license as a health facility pursuant to Chapter 2 (commencing with
Section 1250) of Division 2 of the Health and Safety Code.
   (e) The provisions of this code relating to disability insurance
do not apply to insurance defined in this section.




108.1.  Insurers admitted to transact liability insurance are also
deemed to be admitted to transact workers' compensation insurance for
the purpose of covering those persons defined as employees of
subdivision (d) of Section 3351 of the Labor Code.




109.  Workmen's compensation insurance includes insurance against
loss from liability imposed by law upon employers to compensate
employees and their dependents for injury sustained by the employees
arising out of and in the course of the employment, irrespective of
negligence or of the fault of either party.



110.  Common carrier liability insurance includes insurance against
loss resulting from liability of a common carrier for accident or
injury, fatal or nonfatal, to any person but does not include
liability or workmen's compensation insurance.




111.  Boiler and machinery insurance includes insurance against loss
of property and liability for damage to persons or property from
explosion of, or accident to, boilers, tanks, pipes, pressure
vessels, engines, wheels, electrical machinery, or apparatus
connected therewith or operating thereby.



112.  Burglary insurance includes:
   (a) Insurance against loss by burglary or theft or both.
   (b) Insurance against loss of, or destruction of, or damage to,
any of the following property, resulting from any cause, when such
insurance includes loss thereof by burglary or theft, or both, and
excludes coverage of property while in the custody of, or possession
of, or being transported by, any carrier for hire or in the mail:
Moneys, stamps, coins, bullion, securities, notes, drafts,
acceptances or instruments of like kind or character, accounts,
books, maps, manuscripts, indexes and other valuable papers,
documents and records incidental to the business or profession or
activity in which the insured is engaged.
   (c) Insurance by means of an all-risk policy of the type commonly
known as the "Personal Property Floater" against any and all kinds of
loss of or damage to, or loss of use of, any personal property other
than merchandise.


113.  Credit insurance includes insurance of persons engaged in
business against loss by reason of extending credit to those dealing
with them, and insurance against loss from the failure of persons to
meet existing or contemplated obligations to the insured. However, no
insurance may be written as credit insurance if it falls within the
definition of financial guaranty insurance as set forth in Section
12100.



114.  Sprinkler insurance includes insurance against loss through
damage by water to goods or premises arising from the breakage or
leakage of sprinklers, pumps, or other apparatus placed for
extinguishing fires, or loss arising from the breakage or leakage of
water pipes, or through accidental injury to such sprinklers, pumps,
or other apparatus.



115.  Team and vehicle insurance includes insurance against loss
through damage or legal liability for damage, to property caused by
the use of teams or vehicles other than ships, boats, or railroad
rolling stock, whether by accident or collision or by explosion of
engine, tank, boiler, pipe, or tire of the vehicle, and insurance
against theft of the whole or part of such vehicle.



116.  (a) Automobile insurance includes insurance of automobile
owners, users, dealers, or others having insurable interests therein,
against hazards incident to ownership, maintenance, operation, and
use of automobiles, other than loss resulting from accident or
physical injury, fatal or nonfatal, to, or death of, any natural
person.
   (b) Automobile insurance also includes any contract of warranty,
or guaranty that promises service, maintenance, parts replacement,
repair, money, or any other indemnity in event of loss of or damage
to a motor vehicle or a trailer, as defined by Section 630 of the
Vehicle Code, or any part thereof from any cause, including loss of
or damage to or loss of use of the motor vehicle or trailer by reason
of depreciation, deterioration, wear and tear, use, obsolescence, or
breakage if made by a warrantor or guarantor who is doing an
insurance business.
   (c) Automobile insurance also includes any agreement that promises
repair or replacement of a motor vehicle, or part thereof, after a
mechanical or electrical breakdown, at either no cost or a reduced
cost for the agreement holder. However, automobile insurance does not
include a vehicle service contract subject to Part 8 (commencing
with Section 12800) of Division 2, or an agreement deemed not to be
insurance under that part.
   (d) The doing or proposing to do any business in substance
equivalent to the business described in this section in a manner
designed to evade the provisions of this section is the doing of an
insurance business.



116.5.  An express warranty warranting a motor vehicle lubricant,
treatment, fluid, or additive that covers incidental or consequential
damage resulting from a failure of the lubricant, treatment, fluid,
or additive, shall constitute automobile insurance, unless all of the
following requirements are met:
   (a) The obligor is the primary manufacturer of the product. For
the purpose of this section, "manufacturer" means a person who can
prove clearly and convincingly that the per unit cost of owned or
leased capital goods, including the factory, used to produce the
product, plus the per unit cost of nonsubcontracted labor used to
produce the product, exceeds twice the per unit cost of raw materials
used to produce the product. "Manufacturer" also means a person who
has formulated or produced, and continuously offered in this state
for more than nine years, a motor vehicle lubricant, treatment,
fluid, or additive.
   (b) The commissioner has issued a written determination that the
obligor is a manufacturer as defined in subdivision (a). An obligor
shall provide the commissioner with all information, documents, and
affidavits reasonably necessary for this determination to be made.
Approval by the commissioner shall be obtained prior to January 1,
2004, or prior to the issuance of a warranty subject to this section,
whichever is later. If the commissioner determines that the obligor
is not a manufacturer, the obligor may obtain a hearing in accordance
with Chapter 4.5 (commencing with Section 11400) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (c) The agreement covers only damage incurred while the product
was in the vehicle.
   (d) The agreement is provided automatically with the product at no
extra charge.


116.6.  (a) Notwithstanding Section 116, a warranty issued by the
warrantor of a vehicle protection product shall constitute an express
warranty, as defined in Section 1791.2 of the Civil Code, and shall
not constitute automobile insurance if the warrantor complies with
all of the following requirements:
   (1) The warrantor maintains an insurance policy with an admitted
insurer providing coverage for 100 percent of the warrantor's
obligations under the warranty. The insurance policy shall allow the
warrantyholder to make a direct claim for payment from the insurer
upon the failure of the warrantor to pay any covered claim within 60
days after a complete proof-of-loss has been filed with the party
designated in the warranty. In addition, all of the following shall
apply:
   (A) The warrantor shall file with the commissioner a copy of the
insurance policy. At any time, a warrantor may have on file with the
commissioner only one active policy from one insurer.
   (B) The insurer's liability under the policy shall not be negated
by a failure of the warrantor, for any reason, to report the issuance
of a warranty to the insurer or to remit moneys owed to the insurer.
   (C) No policy cancellation by an insurer shall be valid unless a
notice of the intent to cancel the policy is filed with the
commissioner not less than 30 days prior to the effective date of the
cancellation, or, in the event that the cancellation is due to
fraud, material misrepresentation, or defalcation by the warrantor,
not less than 10 days prior to that date.
   (D) In the event an insurer cancels a policy that a warrantor has
filed with the commissioner, the warrantor shall do either of the
following:
   (i) File a copy of a new policy with the commissioner, before the
termination of the prior policy, providing no lapse in coverage
following the termination of the prior policy.
   (ii) Discontinue acting as a warrantor as of the termination date
of the policy until a new policy becomes effective and is accepted by
the commissioner.
   (2) The warrantor does not use the words insurance, casualty,
surety, mutual, or any other words descriptive of the casualty,
insurance, or surety business or deceptively similar to the name or
description of any insurance company or casualty or surety company in
the vehicle protection product name or warranty or in any
advertising or other materials provided to prospective purchasers.
   (3) The warranty has been issued to a customer that is insured
under a comprehensive vehicle insurance policy for the vehicle
covered by the warranty agreement.
   (4) The warranty is in writing and provides all of the following:
   (A) The benefits are limited to the difference between the actual
cash value of the stolen vehicle and the vehicle's replacement cost,
temporary vehicle rental expenses, reimbursement for insurance policy
deductible, and registration fees and taxes on a replacement vehicle
or a fixed amount for those benefits.
   (B) A statement that the warrantyholder shall be entitled to make
a direct claim against the insurer covering the obligations of the
warranty upon the failure of the warrantor to pay any covered claim
within 60 days after a complete proof-of-loss has been filed with the
party designated in the warranty.
   (C) A disclosure stating clearly the name, address, and telephone
number of the insurer covering the obligations of the warrantor.
   (D) A toll-free telephone number established and operated by the
warrantor for the warrantyholder to call for questions about the
warranty or the procedures to file a claim.
   (E) A statement that clearly indicates the terms of the warranty,
whether new or used cars are eligible for the vehicle protection
product, the method for calculating the benefits paid and provided to
the warrantyholder, and the procedure for filing a claim under the
warranty.
   (F) A disclosure in 10-point type or larger that reads as follows:
"This agreement is a product warranty and is not insurance. It is
not subject to state insurance laws but is subject to state law
concerning warranties."
   (G) A disclosure in 10-point type or larger that reads as follows:
"To be eligible for this warranty, the warrantyholder must have
comprehensive insurance coverage on the vehicle that is protected by
the antitheft device."
   (5) The benefit is payable upon the theft of the vehicle, as
defined in the warranty, and subject to the satisfaction of the
procedural proof of claim requirements of the warranty.
   (b) For purposes of this section, the following definitions shall
apply:
   (1) "Warrantor" means the manufacturer or provider of a vehicle
protection product who, under the terms of a vehicle protection
product warranty, is the contractual obligor to the purchaser of a
vehicle protection product.
   (2) (A) "Vehicle protection product" means a vehicle protection
device, system, or service that is installed on, or applied to, a
vehicle, is designed to deter the theft of a vehicle, and includes a
written warranty that provides if the product fails to deter the
theft of the vehicle, that the warrantyholder shall be paid specified
incidental costs by the warrantor as a result of the failure of the
device, system, or service to perform pursuant to the terms of the
warranty.
   (B) For purposes of this section, "vehicle protection product"
shall also include alarm systems, window etch products, body part
marking products, steering locks, pedal and ignition locks, fuel and
ignition kill switches, and electronic, radio, and satellite tracking
devices.
   (c) The commissioner may issue a stop order pursuant to Section
12921.8 to a warrantor who is in violation of the requirements of
this section.
   (d) A warrantor shall have the burden of proving that a claim
filed in compliance with the terms and conditions of the warranty is
not covered by the warranty. A warrantor shall have the burden of
proving that a claim settlement amount fulfills the promises
contained in the warranty.
   (e) The requirements of this section shall not apply under either
of the following conditions:
   (1) The warrantor is a manufacturer of motor vehicles, as defined
pursuant to Section 672 of the Vehicle Code, or a distributor of
motor vehicles, as defined pursuant to Section 296 of the Vehicle
Code.
   (2) The warranty only provides for the repair or replacement of
the vehicle protection product subsequent to a mechanical or
electrical breakdown of the vehicle protection product.
   (f) Nothing in this section is intended to affect any pending
litigation.



117.  Mortgage insurance includes the guaranteeing of the payment of
the principal, interest and other sums agreed to be paid under the
terms of any note or bond secured by mortgage, or other sums secured
under the terms of any such mortgage, in its entirety, or of any
undivided or other partial interest in any such mortgage, or in a
group of such mortgages, and the guaranteeing or insuring, directly
or indirectly, against loss thereon.



118.  Aircraft insurance includes insurance of aircraft owners,
users, dealers or others having insurable interests therein, against
loss through hazards incident to ownership, maintenance, operation
and use of aircraft, other than against loss resulting from accident
or physical injury, fatal or nonfatal, to any natural person.




119.  Mortgage guaranty insurance includes insurance against
financial loss by reason of the nonpayment of principal, interest and
other sums agreed to be paid under the terms of any note or bond or
other evidence of indebtedness secured by a mortgage, deed of trust,
or other instrument constituting a lien or charge on real estate.




119.5.  Insolvency insurance includes insurance against loss arising
from the failure of an insolvent insurer to discharge its
obligations under its insurance policies.



119.6.  Legal insurance includes the assumption of a contractual
obligation to reimburse the insured against all or a portion of his
fees, costs, and expenses related to or arising out of services
performed by or under the supervision of an attorney who is an active
member of the bar of any jurisdiction or jurisdictions of the United
States, in which these legal services are performed.
   Legal insurance does not include any of the following:
   (a) Retainer contracts made by an individual lawyer or law firm
with an individual client with the fee based on an estimate of the
nature and the amount of services that will be provided to that
specific client, and similar contracts made with a group of clients
involved in the same or closely related legal matters (such as class
actions);
   (b) Plans providing no benefits other than consultation and advice
on matters in connection with, or a part of, referral services.
   (c) Plans providing limited benefits on simple legal matters on a
voluntary and informal basis, not involving a legally binding
promise, in the context of an employment or educational or similar
relationship; or
   (d) Legal services provided by labor unions or employee
associations to their members in matters relating to employment or
occupation.
   (e) Legal service incidental to other insurance coverages.
   The foregoing is not intended as an exclusive list of legal
services plans or arrangements which do not constitute legal
insurance as defined by this section.



120.  Miscellaneous insurance includes insurance against loss from
damage done, directly or indirectly by lightning, windstorm, tornado,
earthquake or insurance under an open policy indemnifying the
producer of any motion picture, television, theatrical, sport, or
similar production, event, or exhibition against loss by reason of
the interruption, postponement, or cancellation of such production,
event, or exhibition due to death, accidental injury, or sickness
preventing performers, directors, or other principals from commencing
or continuing their respective performance or duties; and any
insurance not included in any of the foregoing classes, and which is
a proper subject of insurance.



121.  Except as otherwise stated, the enumeration in this chapter of
the kinds of insurance in a particular class does not limit any such
kind to any one of such particular classes, inasmuch as the
classification of similar insurance may vary with the subject matter,
risk, and connected insurances; but the fact that similar kinds of
insurance occur in different classes does not extend or change the
scope of any such class.



122.  (a) An insurer admitted for all the classes of insurance
defined in Sections 102, 107, 108, 112 and 120 is authorized, in
addition to the underwriting powers granted by such classes, to
include any and all insurance described in paragraph (b) in a policy
which contains fire coverage written on a form complying with either
Section 2070 or Section 2071 and which provides insurance covering
only noncommercial risks and covering either residence properties
(not more extensive than a four-family dwelling) and appurtenances,
or the contents thereof other than merchandise, or both.
   (b) Such insurance is any or all insurance against all risks of
physical loss of, damage to, or personal liability (except workmen's
compensation) for injury to person or damage to property incident to,
any or all of the following:
   (1) The location described and property covered by the fire
insurance policy as described in subdivision (a),
   (2) Personal effects,
   (3) Boats not over 16 feet in length (including furnishings,
equipment, outboard motors, and trailers); provided the physical loss
or damage coverage does not exceed five hundred dollars ($500),
   (4) Personal property intended primarily for residential or
recreational use, (excluding boats except as provided above),
   (5) Farm implements or self-propelled vehicles, excluding
automobiles and aircraft, and,
   (6) Horses, including accouterments and vehicles or implements to
be drawn thereby.



123.  An insurer admitted to transact liability insurance may extend
such insurance on noncommercial or farm risks to include insurance
of the legal liability of the insured for damage to property caused
by use of "teams" or "vehicles" as the meaning thereof is limited by
Section 115.


124.  "Financial guaranty insurance" means that insurance as defined
by Section 12100.



124.5.  "Homeowners' insurance" means insurance covering the risks
described in subdivision (a) of Section 675.