State Codes and Statutes

State Codes and Statutes

Statutes > California > Mvc > 989.4-989.9

SECTION 989.4-989.9

989.4.  The department shall maintain an Indemnity Fund, which is
hereby created in the State Treasury, for the purpose of indemnifying
eligible purchasers, for any of the following:
   (a) The cost of repairing structural damage in excess of five
hundred dollars ($500) caused by flood, including floods by surface
water, waves, tidal water, tidal wave, overflow of streams or other
bodies of water, spray from any of the foregoing, whether wind driven
or not, and water that backs up through sewers or drains.
   (b) The cost of repairing structural damage in excess of 5 percent
of the total covered loss or five hundred dollars ($500), whichever
is greater, caused by earthquake, volcanic eruption, landslide, or
   (c) Money accruing to the Indemnity Fund is hereby appropriated
for carrying out the purposes of this article.

989.5.  All purchasers shall participate in the Indemnity Fund.
Purchasers shall pay a reasonable charge, prescribed by the
department, in addition to the regular monthly installment. Money so
collected shall be deposited in the Indemnity Fund.

989.6.  The department shall, consistent with the purposes of this
article, prescribe and publish rules and regulations for the
administration of the Indemnity Fund.

989.7.  The department may purchase insurance against any risk, or
portion of any risk, otherwise payable out of appropriated moneys in
the fund. The department shall make an annual report on or before
September 1st of each year to the Legislature regarding any insurance
coverage implemented or required by it. The report shall include,
but not be limited to, the type of insurance coverage, its cost, the
reason for purchasing the insurance, and any changes in existing
insurance coverage and the reason for those changes.

989.8.  Eligible purchasers shall be indemnified pursuant to this
article solely from moneys in the Indemnity Fund, and the state shall
not be liable beyond the assets of the Indemnity Fund for any
obligation in connection therewith.

989.9.  Nothing in this article shall impose any liability upon a
purchaser electing to participate in the Indemnity Fund for any
obligation imposed under this article, except for participation
charges as provided in Section 989.5.