State Codes and Statutes

Statutes > California > Fin > 18290-18296

FINANCIAL CODE
SECTION 18290-18296



18290.  (a) As used in this division:
   (1) "Credit life insurance" and "credit disability insurance" have
the same meanings as defined in Section 779.2 of the Insurance Code.
   (2) "Credit loss-of-income insurance" means insurance issued to
provide indemnity for payments becoming due on a specific loan or
other credit transaction while the debtor is involuntarily
unemployed, as defined in the policy.
   (b) An industrial loan company may provide and collect the costs
for credit life insurance on the life of one or more of the
borrowers, or credit disability, or loss-of-income insurance, or any
combination of these coverages, to provide indemnity for payments
becoming due on the indebtedness, with his or her consent, the form
to be approved by the Insurance Commissioner, and a copy, together
with evidence of its approval by the Insurance Commissioner, to be
filed with the commissioner, and in an amount not in excess of the
amount of the indebtedness. The amount charged to the borrower for
credit life or disability insurance shall not exceed, in the case of
credit life insurance, fifty cents ($0.50) per year per one hundred
dollars ($100) of indebtedness (and in the same proportion for longer
or shorter maturities and larger or smaller amounts) or the amount
established by or pursuant to Section 779.35 of the Insurance Code,
whichever is less, or, in the case of credit disability insurance,
the amount established by or pursuant to Section 779.35 of the
Insurance Code.


18291.  (a) If credit life or disability insurance is provided
pursuant to this division, and if the insured borrower dies or
becomes disabled during the term of the loan contract, the insurance
shall be sufficient to pay the total amount due on the loan
(excluding unearned charges) outstanding on the date of death, or all
amounts which become due on the loan thereafter during the period of
disability, as the case may be, without any exception, reservation,
or limitation, subject, however, to the provisions of Section 18292.
   (b) Any credit life, disability, or loss-of-income insurance as
provided shall be in force as soon as the loan is made. An industrial
loan company shall not require any of these coverages as a condition
of making a loan.



18292.  (a) If credit disability insurance is provided pursuant to
this division, it shall not provide indemnity against the risk of a
borrower becoming disabled for a period of less than 14 days. The
insurance may provide indemnity for any single period of continuous
disability of 14 days or longer, after which the risk may become
compensable. The insurance may be offered with retroactive coverage
to an earlier date based upon the disability having continued for a
period stated in the policy, but if insurance with retroactive
coverage is offered, it shall also be offered without retroactive
coverage, and the premium rate for each coverage shall be separately
stated in writing to the borrower.
   (b) If insurance with retroactive coverage is provided, the
coverage shall provide for a prorated payment based upon the fraction
of the month during which the insured is disabled, provided that the
insured is continuously disabled during the waiting period set forth
in the policy. If insurance without retroactive coverage is
provided, the coverage shall provide for a prorated payment based
upon the fraction of the month during which the insured is disabled,
after first excluding the elimination period set forth in the policy.
For the purpose of this subdivision, a month is any period of 30
consecutive days.
   (c) Credit disability insurance, if made available by an
industrial loan company, shall be available on a monthly or annual
premium basis, and the premium by the month shall not exceed a pro
rata relationship to the annual premium. Credit disability insurance
need not be offered for a period less than the term of the loan to
which it is applicable and no credit disability insurance shall be
written for a period in excess of the term of the loan to which it is
applicable.
   (d) The monthly disability benefit payable with respect to an open
end loan shall not exceed the monthly payment computed pursuant to
Section 18300 on the outstanding balance at the time the disability
is incurred.



18292.5.  If credit loss-of-income insurance is provided pursuant to
this division, it shall be subject to the following conditions:
   (a) The insurance shall provide indemnity in accordance with the
terms of the policy after any single period of continuous
unemployment of 45 days or less as determined by the policy, after
which benefits shall commence. The insurance may be offered with
retroactive coverage to an earlier date based upon unemployment
having continued for the period stated in the policy.
   (b) The statement required by Section 18293 shall include
disclosure of the term of the coverage, the conditions of coverage,
the benefits to be paid, and the exclusions from coverage.
   (c) The borrower shall sign a certificate of voluntary acceptance
of any credit loss-of-income insurance purchased. The certificate
shall state in boldface type which is larger than the type used in
the loan contract that purchase of the insurance is not a necessary
condition to receiving the loan and that the insurance may be
canceled by the borrower at any time within 15 days after it goes
into force, in which event a full refund shall be made of the premium
paid.
   (d) The minimum benefit shall be payment up to the agreed amount
on not less than four benefit payments, as stated in the policy,
which accrue during a covered period of unemployment, except that
during the first 60 days after inception of the policy, the minimum
benefit may be payment up to the agreed amount of one-half the number
of benefit payments, as stated in the policy, which accrue during a
covered period of unemployment. The maximum benefits shall be
established in the contract of insurance.
   (e) If combination credit disability and loss-of-income coverage
is offered, credit disability and credit loss-of-income coverages
shall also be offered separately.
   (f) Benefits may not be denied because the insured cannot
establish a valid claim for unemployment compensation benefits under
Part 1 (commencing with Section 100) of Division 1 of the
Unemployment Insurance Code solely because the former employer was
not required to contribute to the State Unemployment Fund.
   (g) If insurance with retroactive coverage is provided, the
coverage shall provide for a prorated payment based upon the fraction
of the month during which the insured is unemployed, provided that
the insured is continuously unemployed during the waiting period set
forth in the policy. If insurance without retroactive coverage is
provided, the coverage shall provide for a prorated payment based
upon the fraction of the month during which the insured is
unemployed, after first excluding the elimination period set forth in
the policy. For the purpose of this subdivision, a month is any
period of 30 consecutive days.
   (h) When unemployment continues for a number of months equal to or
greater than the maximum number of benefit payments stated in the
policy, the final payment shall be equal to the difference between a
benefit payment and the initial prorated payment.
   (i) As used in this section, "benefit payment" means payment of an
amount equal to a loan repayment installment or a maximum amount
established in the contract of insurance, whichever is less.
   (j)  The minimum benefit payment offered may not be less than the
amount of a loan repayment installment unless the borrower or
borrowers have two or more sources of income. If the maximum benefit
payment offered is less than the amount of a loan repayment
installment, the borrower shall also be offered coverage in which the
maximum benefit payment is equal to the amount of a loan repayment
installment.


18293.  If credit disability or loss-of-income insurance is provided
pursuant to this division, the industrial loan company shall also
deliver an understandable written statement to the borrower detailing
the conditions when the borrower will be entitled to make a claim
under the insurance policy and the procedure to be followed in making
the claim.



18294.  An industrial loan company may collect the costs for
insurance of tangible personal or real property offered as security
for a loan, reasonably insured against loss for a reasonable term
considering the circumstances of the loan, when the policy of
insurance is made payable to the borrower or any member of his
family, even though the customary mortgagee clause is attached, and
if the insurance is sold at standard rates through duly licensed
insurance agents.


18295.  An industrial loan company may collect the costs of title
insurance for loans secured primarily by real property. The costs for
such insurance may be collected if:
   (1) The principal amount of the loan is at least one thousand
dollars ($1,000);
   (2) The loan is secured by a lien of a deed of trust or mortgage
on real property which is the subject of such policy of title
insurance;
   (3) The policy of title insurance is made payable to the lender or
jointly to such lender and the borrower as their interests may
appear;
   (4) The coverage of such insurance may not exceed the lesser of
the principal amount of the loan or the fair market value of the real
property less prior encumbrances;
   (5) The insurance is placed at standard rates through a title
insurance company authorized to do business in the State of
California;
   (6) In connection with the renewal or extension of a loan, the
additional cash advance is at least one thousand dollars ($1,000).
   Such costs as herein authorized are not included in the maximum
charges which may be made under this division.



18296.  An industrial loan company may collect the costs of
insurance of the type defined by subdivision (a) of Section 12640.02
of the Insurance Code. Costs authorized by this section are not
included in the maximum charges which may be made under this
division.


State Codes and Statutes

Statutes > California > Fin > 18290-18296

FINANCIAL CODE
SECTION 18290-18296



18290.  (a) As used in this division:
   (1) "Credit life insurance" and "credit disability insurance" have
the same meanings as defined in Section 779.2 of the Insurance Code.
   (2) "Credit loss-of-income insurance" means insurance issued to
provide indemnity for payments becoming due on a specific loan or
other credit transaction while the debtor is involuntarily
unemployed, as defined in the policy.
   (b) An industrial loan company may provide and collect the costs
for credit life insurance on the life of one or more of the
borrowers, or credit disability, or loss-of-income insurance, or any
combination of these coverages, to provide indemnity for payments
becoming due on the indebtedness, with his or her consent, the form
to be approved by the Insurance Commissioner, and a copy, together
with evidence of its approval by the Insurance Commissioner, to be
filed with the commissioner, and in an amount not in excess of the
amount of the indebtedness. The amount charged to the borrower for
credit life or disability insurance shall not exceed, in the case of
credit life insurance, fifty cents ($0.50) per year per one hundred
dollars ($100) of indebtedness (and in the same proportion for longer
or shorter maturities and larger or smaller amounts) or the amount
established by or pursuant to Section 779.35 of the Insurance Code,
whichever is less, or, in the case of credit disability insurance,
the amount established by or pursuant to Section 779.35 of the
Insurance Code.


18291.  (a) If credit life or disability insurance is provided
pursuant to this division, and if the insured borrower dies or
becomes disabled during the term of the loan contract, the insurance
shall be sufficient to pay the total amount due on the loan
(excluding unearned charges) outstanding on the date of death, or all
amounts which become due on the loan thereafter during the period of
disability, as the case may be, without any exception, reservation,
or limitation, subject, however, to the provisions of Section 18292.
   (b) Any credit life, disability, or loss-of-income insurance as
provided shall be in force as soon as the loan is made. An industrial
loan company shall not require any of these coverages as a condition
of making a loan.



18292.  (a) If credit disability insurance is provided pursuant to
this division, it shall not provide indemnity against the risk of a
borrower becoming disabled for a period of less than 14 days. The
insurance may provide indemnity for any single period of continuous
disability of 14 days or longer, after which the risk may become
compensable. The insurance may be offered with retroactive coverage
to an earlier date based upon the disability having continued for a
period stated in the policy, but if insurance with retroactive
coverage is offered, it shall also be offered without retroactive
coverage, and the premium rate for each coverage shall be separately
stated in writing to the borrower.
   (b) If insurance with retroactive coverage is provided, the
coverage shall provide for a prorated payment based upon the fraction
of the month during which the insured is disabled, provided that the
insured is continuously disabled during the waiting period set forth
in the policy. If insurance without retroactive coverage is
provided, the coverage shall provide for a prorated payment based
upon the fraction of the month during which the insured is disabled,
after first excluding the elimination period set forth in the policy.
For the purpose of this subdivision, a month is any period of 30
consecutive days.
   (c) Credit disability insurance, if made available by an
industrial loan company, shall be available on a monthly or annual
premium basis, and the premium by the month shall not exceed a pro
rata relationship to the annual premium. Credit disability insurance
need not be offered for a period less than the term of the loan to
which it is applicable and no credit disability insurance shall be
written for a period in excess of the term of the loan to which it is
applicable.
   (d) The monthly disability benefit payable with respect to an open
end loan shall not exceed the monthly payment computed pursuant to
Section 18300 on the outstanding balance at the time the disability
is incurred.



18292.5.  If credit loss-of-income insurance is provided pursuant to
this division, it shall be subject to the following conditions:
   (a) The insurance shall provide indemnity in accordance with the
terms of the policy after any single period of continuous
unemployment of 45 days or less as determined by the policy, after
which benefits shall commence. The insurance may be offered with
retroactive coverage to an earlier date based upon unemployment
having continued for the period stated in the policy.
   (b) The statement required by Section 18293 shall include
disclosure of the term of the coverage, the conditions of coverage,
the benefits to be paid, and the exclusions from coverage.
   (c) The borrower shall sign a certificate of voluntary acceptance
of any credit loss-of-income insurance purchased. The certificate
shall state in boldface type which is larger than the type used in
the loan contract that purchase of the insurance is not a necessary
condition to receiving the loan and that the insurance may be
canceled by the borrower at any time within 15 days after it goes
into force, in which event a full refund shall be made of the premium
paid.
   (d) The minimum benefit shall be payment up to the agreed amount
on not less than four benefit payments, as stated in the policy,
which accrue during a covered period of unemployment, except that
during the first 60 days after inception of the policy, the minimum
benefit may be payment up to the agreed amount of one-half the number
of benefit payments, as stated in the policy, which accrue during a
covered period of unemployment. The maximum benefits shall be
established in the contract of insurance.
   (e) If combination credit disability and loss-of-income coverage
is offered, credit disability and credit loss-of-income coverages
shall also be offered separately.
   (f) Benefits may not be denied because the insured cannot
establish a valid claim for unemployment compensation benefits under
Part 1 (commencing with Section 100) of Division 1 of the
Unemployment Insurance Code solely because the former employer was
not required to contribute to the State Unemployment Fund.
   (g) If insurance with retroactive coverage is provided, the
coverage shall provide for a prorated payment based upon the fraction
of the month during which the insured is unemployed, provided that
the insured is continuously unemployed during the waiting period set
forth in the policy. If insurance without retroactive coverage is
provided, the coverage shall provide for a prorated payment based
upon the fraction of the month during which the insured is
unemployed, after first excluding the elimination period set forth in
the policy. For the purpose of this subdivision, a month is any
period of 30 consecutive days.
   (h) When unemployment continues for a number of months equal to or
greater than the maximum number of benefit payments stated in the
policy, the final payment shall be equal to the difference between a
benefit payment and the initial prorated payment.
   (i) As used in this section, "benefit payment" means payment of an
amount equal to a loan repayment installment or a maximum amount
established in the contract of insurance, whichever is less.
   (j)  The minimum benefit payment offered may not be less than the
amount of a loan repayment installment unless the borrower or
borrowers have two or more sources of income. If the maximum benefit
payment offered is less than the amount of a loan repayment
installment, the borrower shall also be offered coverage in which the
maximum benefit payment is equal to the amount of a loan repayment
installment.


18293.  If credit disability or loss-of-income insurance is provided
pursuant to this division, the industrial loan company shall also
deliver an understandable written statement to the borrower detailing
the conditions when the borrower will be entitled to make a claim
under the insurance policy and the procedure to be followed in making
the claim.



18294.  An industrial loan company may collect the costs for
insurance of tangible personal or real property offered as security
for a loan, reasonably insured against loss for a reasonable term
considering the circumstances of the loan, when the policy of
insurance is made payable to the borrower or any member of his
family, even though the customary mortgagee clause is attached, and
if the insurance is sold at standard rates through duly licensed
insurance agents.


18295.  An industrial loan company may collect the costs of title
insurance for loans secured primarily by real property. The costs for
such insurance may be collected if:
   (1) The principal amount of the loan is at least one thousand
dollars ($1,000);
   (2) The loan is secured by a lien of a deed of trust or mortgage
on real property which is the subject of such policy of title
insurance;
   (3) The policy of title insurance is made payable to the lender or
jointly to such lender and the borrower as their interests may
appear;
   (4) The coverage of such insurance may not exceed the lesser of
the principal amount of the loan or the fair market value of the real
property less prior encumbrances;
   (5) The insurance is placed at standard rates through a title
insurance company authorized to do business in the State of
California;
   (6) In connection with the renewal or extension of a loan, the
additional cash advance is at least one thousand dollars ($1,000).
   Such costs as herein authorized are not included in the maximum
charges which may be made under this division.



18296.  An industrial loan company may collect the costs of
insurance of the type defined by subdivision (a) of Section 12640.02
of the Insurance Code. Costs authorized by this section are not
included in the maximum charges which may be made under this
division.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 18290-18296

FINANCIAL CODE
SECTION 18290-18296



18290.  (a) As used in this division:
   (1) "Credit life insurance" and "credit disability insurance" have
the same meanings as defined in Section 779.2 of the Insurance Code.
   (2) "Credit loss-of-income insurance" means insurance issued to
provide indemnity for payments becoming due on a specific loan or
other credit transaction while the debtor is involuntarily
unemployed, as defined in the policy.
   (b) An industrial loan company may provide and collect the costs
for credit life insurance on the life of one or more of the
borrowers, or credit disability, or loss-of-income insurance, or any
combination of these coverages, to provide indemnity for payments
becoming due on the indebtedness, with his or her consent, the form
to be approved by the Insurance Commissioner, and a copy, together
with evidence of its approval by the Insurance Commissioner, to be
filed with the commissioner, and in an amount not in excess of the
amount of the indebtedness. The amount charged to the borrower for
credit life or disability insurance shall not exceed, in the case of
credit life insurance, fifty cents ($0.50) per year per one hundred
dollars ($100) of indebtedness (and in the same proportion for longer
or shorter maturities and larger or smaller amounts) or the amount
established by or pursuant to Section 779.35 of the Insurance Code,
whichever is less, or, in the case of credit disability insurance,
the amount established by or pursuant to Section 779.35 of the
Insurance Code.


18291.  (a) If credit life or disability insurance is provided
pursuant to this division, and if the insured borrower dies or
becomes disabled during the term of the loan contract, the insurance
shall be sufficient to pay the total amount due on the loan
(excluding unearned charges) outstanding on the date of death, or all
amounts which become due on the loan thereafter during the period of
disability, as the case may be, without any exception, reservation,
or limitation, subject, however, to the provisions of Section 18292.
   (b) Any credit life, disability, or loss-of-income insurance as
provided shall be in force as soon as the loan is made. An industrial
loan company shall not require any of these coverages as a condition
of making a loan.



18292.  (a) If credit disability insurance is provided pursuant to
this division, it shall not provide indemnity against the risk of a
borrower becoming disabled for a period of less than 14 days. The
insurance may provide indemnity for any single period of continuous
disability of 14 days or longer, after which the risk may become
compensable. The insurance may be offered with retroactive coverage
to an earlier date based upon the disability having continued for a
period stated in the policy, but if insurance with retroactive
coverage is offered, it shall also be offered without retroactive
coverage, and the premium rate for each coverage shall be separately
stated in writing to the borrower.
   (b) If insurance with retroactive coverage is provided, the
coverage shall provide for a prorated payment based upon the fraction
of the month during which the insured is disabled, provided that the
insured is continuously disabled during the waiting period set forth
in the policy. If insurance without retroactive coverage is
provided, the coverage shall provide for a prorated payment based
upon the fraction of the month during which the insured is disabled,
after first excluding the elimination period set forth in the policy.
For the purpose of this subdivision, a month is any period of 30
consecutive days.
   (c) Credit disability insurance, if made available by an
industrial loan company, shall be available on a monthly or annual
premium basis, and the premium by the month shall not exceed a pro
rata relationship to the annual premium. Credit disability insurance
need not be offered for a period less than the term of the loan to
which it is applicable and no credit disability insurance shall be
written for a period in excess of the term of the loan to which it is
applicable.
   (d) The monthly disability benefit payable with respect to an open
end loan shall not exceed the monthly payment computed pursuant to
Section 18300 on the outstanding balance at the time the disability
is incurred.



18292.5.  If credit loss-of-income insurance is provided pursuant to
this division, it shall be subject to the following conditions:
   (a) The insurance shall provide indemnity in accordance with the
terms of the policy after any single period of continuous
unemployment of 45 days or less as determined by the policy, after
which benefits shall commence. The insurance may be offered with
retroactive coverage to an earlier date based upon unemployment
having continued for the period stated in the policy.
   (b) The statement required by Section 18293 shall include
disclosure of the term of the coverage, the conditions of coverage,
the benefits to be paid, and the exclusions from coverage.
   (c) The borrower shall sign a certificate of voluntary acceptance
of any credit loss-of-income insurance purchased. The certificate
shall state in boldface type which is larger than the type used in
the loan contract that purchase of the insurance is not a necessary
condition to receiving the loan and that the insurance may be
canceled by the borrower at any time within 15 days after it goes
into force, in which event a full refund shall be made of the premium
paid.
   (d) The minimum benefit shall be payment up to the agreed amount
on not less than four benefit payments, as stated in the policy,
which accrue during a covered period of unemployment, except that
during the first 60 days after inception of the policy, the minimum
benefit may be payment up to the agreed amount of one-half the number
of benefit payments, as stated in the policy, which accrue during a
covered period of unemployment. The maximum benefits shall be
established in the contract of insurance.
   (e) If combination credit disability and loss-of-income coverage
is offered, credit disability and credit loss-of-income coverages
shall also be offered separately.
   (f) Benefits may not be denied because the insured cannot
establish a valid claim for unemployment compensation benefits under
Part 1 (commencing with Section 100) of Division 1 of the
Unemployment Insurance Code solely because the former employer was
not required to contribute to the State Unemployment Fund.
   (g) If insurance with retroactive coverage is provided, the
coverage shall provide for a prorated payment based upon the fraction
of the month during which the insured is unemployed, provided that
the insured is continuously unemployed during the waiting period set
forth in the policy. If insurance without retroactive coverage is
provided, the coverage shall provide for a prorated payment based
upon the fraction of the month during which the insured is
unemployed, after first excluding the elimination period set forth in
the policy. For the purpose of this subdivision, a month is any
period of 30 consecutive days.
   (h) When unemployment continues for a number of months equal to or
greater than the maximum number of benefit payments stated in the
policy, the final payment shall be equal to the difference between a
benefit payment and the initial prorated payment.
   (i) As used in this section, "benefit payment" means payment of an
amount equal to a loan repayment installment or a maximum amount
established in the contract of insurance, whichever is less.
   (j)  The minimum benefit payment offered may not be less than the
amount of a loan repayment installment unless the borrower or
borrowers have two or more sources of income. If the maximum benefit
payment offered is less than the amount of a loan repayment
installment, the borrower shall also be offered coverage in which the
maximum benefit payment is equal to the amount of a loan repayment
installment.


18293.  If credit disability or loss-of-income insurance is provided
pursuant to this division, the industrial loan company shall also
deliver an understandable written statement to the borrower detailing
the conditions when the borrower will be entitled to make a claim
under the insurance policy and the procedure to be followed in making
the claim.



18294.  An industrial loan company may collect the costs for
insurance of tangible personal or real property offered as security
for a loan, reasonably insured against loss for a reasonable term
considering the circumstances of the loan, when the policy of
insurance is made payable to the borrower or any member of his
family, even though the customary mortgagee clause is attached, and
if the insurance is sold at standard rates through duly licensed
insurance agents.


18295.  An industrial loan company may collect the costs of title
insurance for loans secured primarily by real property. The costs for
such insurance may be collected if:
   (1) The principal amount of the loan is at least one thousand
dollars ($1,000);
   (2) The loan is secured by a lien of a deed of trust or mortgage
on real property which is the subject of such policy of title
insurance;
   (3) The policy of title insurance is made payable to the lender or
jointly to such lender and the borrower as their interests may
appear;
   (4) The coverage of such insurance may not exceed the lesser of
the principal amount of the loan or the fair market value of the real
property less prior encumbrances;
   (5) The insurance is placed at standard rates through a title
insurance company authorized to do business in the State of
California;
   (6) In connection with the renewal or extension of a loan, the
additional cash advance is at least one thousand dollars ($1,000).
   Such costs as herein authorized are not included in the maximum
charges which may be made under this division.



18296.  An industrial loan company may collect the costs of
insurance of the type defined by subdivision (a) of Section 12640.02
of the Insurance Code. Costs authorized by this section are not
included in the maximum charges which may be made under this
division.


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