Insurance Code — Part 18 | INS — United States — California law | Esheria

Insurance Code

Part 18 of 23 · provisions 3,401–3,600

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This section defines “underwriters’ corps” for this chapter. This chapter must not impair or interfere with the powers or duties of a municipality’s regular fire department. An owner of property cannot treat an underwriters’ corps act as a justification for abandoning the property. Certain domestic insurance-underwriter corporations may maintain an underwriter’s corps at their own expense if they meet the stated fire-prevention and local-business conditions. An underwriter’s corps may enter certain burning or fire-exposed buildings and may remove or protect property from fire or water damage while a fire is happening and immediately after.

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Provisions of Insurance Code

Showing 200 of 4,461

  1. 1876.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. )

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    This section says that two terms used in the article have the same meaning as in Section 1874.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 6. Deposit of Automobile Insurance Claims Information [1876 - 1876.5] ( Heading of Article 6 amended by Stats. 1997, Ch. 501, Sec. 4. ) ## 1876.5. As used in this article, “authorized governmental agency” and “insurer” have the same meaning as is given by Section 1874.1. (Added by Stats. 1989, Ch. 1119, Sec. 3.)
  2. 1877.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. )

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    This article is named the Workers’ Compensation Insurance Fraud Reporting Act and may be cited by that name.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. ) ## 1877. This article shall be known and may be cited as the Workers’ Compensation Insurance Fraud Reporting Act. (Added by Stats. 1991, Ch. 116, Sec. 19.)
  3. 1877.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. )

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    This section defines key terms used in the article, including authorized governmental agency, relevant, insurer, licensed rating organization, and when information is deemed important.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. ) ## 1877.1. The following definitions govern the construction of this article, unless the context requires otherwise: (a) “Authorized governmental agency” means the district attorney of any county, any city attorney whose duties include criminal prosecutions, any law enforcement agency investigating workers’ compensation fraud, the office of the Attorney General, the Department of Insurance, the Department of Industrial Relations, the Employment Development Department, the Department of Corrections and Rehabilitation, the Public Employees’ Retirement System, and any licensing agency governed by the Business and Professions Code. (b) “Relevant” means having a tendency to make the existence of any fact that is of consequence to the investigation or determination of an issue more probable or less probable than it would be without the information. (c) “Insurer” means an insurer admitted to transact workers’ compensation insurance in this state, the State Compensation Insurance Fund, an employer that has secured a certificate of consent to self-insure pursuant to subdivision (b) or (c) of Section 3700 of the Labor Code, or a third-party administrator that has secured a certificate pursuant to Section 3702.1 of the Labor Code. (d) “Licensed rating organization” means a rating organization licensed by the Insurance Commissioner pursuant to Section 11750.1. (e) Information shall be deemed important if, within the sole discretion of the authorized governmental agency, that information is requested by that authorized governmental agency. (Amended by Stats. 2008, Ch. 369, Sec. 6. Effective January 1, 2009.)
  4. 1877.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. )

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    For this article, “authorized governmental agency” also includes any licensing agency governed by the Chiropractic Initiative Act.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. ) ## 1877.2. For the purposes of this article, “authorized governmental agency” includes, in addition to the entities listed in subdivision (a) of Section 1877.1, any licensing agency governed by the Chiropractic Initiative Act. (Added by Stats. 2005, Ch. 415, Sec. 4. Effective January 1, 2006.)
  5. 1877.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. )

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    Insurers, licensed rating organizations, and related agents must share relevant workers’ compensation fraud information with specified government agencies on request, report suspected fraud to the district attorney and Insurance Department fraud division, use the department’s form, and meet a 60-day outer limit for providing information.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. ) ## 1877.3. (a) Upon written request to an insurer or a licensed rating organization by an authorized governmental agency, an insurer, an agent authorized by that insurer, or a licensed rating organization to act on behalf of the insurer, shall release to the requesting authorized governmental agency any or all relevant information deemed important to the authorized governmental agency that the insurer or licensed rating organization may possess relating to any specific workers’ compensation insurance fraud investigation. (b) (1) When an insurer or licensed rating organization knows or reasonably believes it knows the identity of a person or entity whom it has reason to believe committed a fraudulent act relating to a workers’ compensation insurance claim or a workers’ compensation insurance policy, including any policy application, or has knowledge of such a fraudulent act, then, for the purpose of notification and investigation, the insurer, or agent authorized by an insurer to act on its behalf, or licensed rating organization shall notify the local district attorney’s office and the Fraud Division of the Department of Insurance, and may notify any other authorized governmental agency of that suspected fraud and provide any additional information in accordance with subdivision (a). The insurer or licensed rating organization shall state in its notice the basis of the suspected fraud. (2) Insurers shall use a form prescribed by the department for the purposes of reporting suspected fraudulent workers’ compensation acts pursuant to this subdivision. (3) This section does not abrogate or impair the rights or powers created under subdivision (a). (c) The authorized governmental agency provided with information pursuant to subdivision (a), (b), or (e) shall, upon request, unless it would violate federal law or otherwise compromise an investigation, release or provide that information in a confidential manner to any other authorized governmental agency for purposes of investigation, prosecution, or prevention of insurance fraud or workers’ compensation fraud. (d) An insurer or licensed rating organization providing information to an authorized governmental agency pursuant to this section shall provide the information within a reasonable time, but not exceeding 60 days from the day on which the duty arose. (e) Upon written request by an authorized governmental agency, as specified in subdivision (o) of Section 1095 of the Unemployment Insurance Code, the Employment Development Department shall release to the requesting agency any or all relevant information that the Employment Development Department may possess relating to any specific workers’ compensation insurance fraud investigation. If an authorized governmental agency seeks to disclose this information to any other governmental agency that is not authorized to receive that information pursuant to subdivision (o) of Section 1095 of the Unemployment Insurance Code or subdivision (c) of Section 603.9 of Title 20 of the Code of Federal Regulations, that agency shall submit a request to the Employment Development Department for approval prior to disclosure. Relevant information may include, but is not limited to, all of the following: (1) Copies of unemployment and disability insurance application and claim forms and copies of any supporting medical records, documentation, and records pertaining thereto. (2) Copies of returns filed by an employer pursuant to Section 1088 of the Unemployment Insurance Code and copies of supporting documentation. (3) Copies of benefit payment checks issued to claimants. (4) Copies of any documentation that specifically identifies the claimant by social security number, residence address, or telephone number. (Amended by Stats. 2023, Ch. 204, Sec. 13. (AB 1140) Effective January 1, 2024.)
  6. 1877.35.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. )

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    The Public Employees’ Retirement System may ask an insurer for information for a specific benefits-eligibility or unlawful-benefits investigation, and it may use received information for those purposes.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. ) ## 1877.35. (a) The Public Employees’ Retirement System may request information from an insurer for any specific investigation of eligibility for, and unlawful application or receipt of, benefits provided under Part 3 (commencing with Section 20000) of Division 5 of Title 2 of the Government Code. (b) Information received by the Public Employees’ Retirement System pursuant to this article may be used for purposes of determining eligibility for, and unlawful application or receipt of, benefits provided under Part 3 (commencing with Section 20000) of Division 5 of Title 2 of the Government Code. (Added by Stats. 2008, Ch. 369, Sec. 7. Effective January 1, 2009.)
  7. 1877.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. )

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    Certain information obtained under this article is confidential and generally may not be released or treated as public record. It is also privileged against subpoena, unless a court allows disclosure after notice and a hearing.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. ) ## 1877.4. (a) Any information acquired pursuant to this article shall not be a part of the public record. Except as otherwise provided by law, any authorized governmental agency, an insurer, or an agent authorized to act on its behalf, which receives any information furnished pursuant to this article shall not release that information to any person not authorized to receive the information under this article. Any person who violates the prohibition of this subdivision is guilty of a misdemeanor. (b) The evidence or information described in this section shall be privileged and shall not be subject to subpoena or subpoena duces tecum in a civil or criminal proceeding, unless, after reasonable notice to any insurer, an agent authorized by an insurer to act on its behalf, licensed rating organization, or authorized governmental agency which has an interest in the information, and a hearing, the court determines that the public interest and any ongoing investigation by the authorized governmental agency, insurer, or an agent authorized by the insurer to act on its behalf, or licensed rating organization will not be jeopardized by its disclosure, or by the issuance of and compliance with a subpoena or subpoena duces tecum. (Amended by Stats. 2003, Ch. 636, Sec. 3. Effective January 1, 2004.)
  8. 1877.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. )

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    Certain insurers, their authorized agents, licensed rating organizations, and authorized governmental agencies or employees are protected from civil liability when acting under this article in good faith and without malice.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 7. Workers’ Compensation Insurance Fraud Reporting [1877 - 1877.5] ( Article 7 added by Stats. 1991, Ch. 116, Sec. 19. ) ## 1877.5. No insurer, agent authorized by an insurer to act on its behalf, or licensed rating organization who furnishes information, written or oral, pursuant to this article, and no authorized governmental agency or its employees who (a) furnishes or receives information, written or oral, pursuant to this article, or (b) assists in any investigation of a suspected violation of Section 1871.1, 1871.4, 11760, or 11880, or of Section 549 of the Penal Code, or of Section 3215 or 3219 of the Labor Code conducted by an authorized governmental agency, shall be subject to any civil liability in a cause or action of any kind where the insurer, authorized agent, licensed rating organization, or authorized governmental agency acts in good faith, without malice, and reasonably believes that the action taken was warranted by the then known facts, obtained by reasonable efforts. Nothing in this chapter is intended to, nor does in any way or manner, abrogate or lessen the existing common law or statutory privileges and immunities of an insurer, agent authorized by that insurer to act on its behalf, licensed rating organization, or any authorized governmental agency or its employees. (Amended by Stats. 2003, Ch. 636, Sec. 4. Effective January 1, 2004.)
  9. 1879.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

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    This article’s purpose is to fight insurance fraud by improving detection, preventing fraud through prevention programs, requiring restitution of fraudulently obtained benefits, and reducing premium dollars used to pay fraudulent claims.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879. The purpose of this article is to confront aggressively the problem of insurance fraud in this state by facilitating the detection of insurance fraud, eliminating the occurrence of fraud through the development of fraud prevention programs, requiring the restitution of fraudulently obtained insurance benefits, and reducing the amount of premium dollars used to pay fraudulent claims. (Added by Stats. 1994, Ch. 1008, Sec. 1. Effective January 1, 1995.)
  10. 1879.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

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    The commissioner, a designated deputy commissioner, or a district attorney may convene meetings about suspected or completed insurance fraud, and certain department staff must attend and give antitrust guidance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879.1. (a) The commissioner or their designated deputy commissioner may convene meetings with representatives of insurance companies or representatives of self-insured employers to discuss specific information concerning suspected, anticipated, or completed acts of insurance fraud. (b) A district attorney may convene meetings with representatives of insurance companies or representatives of self-insured employers to discuss specific information concerning suspected, anticipated, or completed acts of insurance fraud. The commissioner, their designated deputy commissioner, or designated employees of the department from the department’s Fraud Division or the department’s legal division shall attend such a meeting. Only one meeting per month may be convened pursuant to this subdivision. If more than one district attorney seeks to convene a meeting in a given month or a district attorney seeks to convene more than one meeting in a given month, then the commissioner shall choose which meeting the commissioner, their designated deputy commissioner, or designated employees of the department shall attend. (c) The party that convenes a meeting pursuant to this section may invite a district attorney to participate in the meeting if the suspected, anticipated, or completed acts of insurance fraud to be discussed at the meeting previously occurred or may occur in the county that the district attorney represents. (d) Information shared at a meeting convened pursuant to this section regarding specific suspected, anticipated, or completed acts of insurance fraud shall not make a person subject to civil liability for libel, slander, or any other relevant cause of action provided that all of the following requirements are met at the meeting: (1) The commissioner, their designated deputy commissioner, or designated employees of the department from the department’s Fraud Division or the department’s legal division are present at the meeting or meetings. (2) The commissioner, their designated deputy commissioner, or a designated employee of the department from the department’s Fraud Division or the department’s legal division advises meeting participants, at the beginning of any meeting convened pursuant to this section, of guidelines to ensure compliance with federal and state antitrust laws. (3) There is no fraud or malice on the part of any of the following attending the meeting: (A) The representatives of the insurance companies. (B) The representatives of the self-insured employers. (C) The commissioner, their designated deputy commissioner, or designated employees of the department. (D) Any district attorney or their employees. (e) A report of a fraudulent claim made by an insurance company under Section 1872.4 or made by a self-insured employer under Section 1877.3 that is based on information obtained at a meeting convened pursuant to this section shall comply with all requirements set forth in Section 1872.4 or 1877.3, as applicable, as well as Article 2 of Subchapter 9 of Chapter 5 of Title 10 of the California Code of Regulations and all other applicable regulations. (f) If the commissioner reasonably believes or knows that a fraudulent claim is being made based on information obtained at a meeting convened pursuant to this section, the commissioner may share this information with any district attorney with whom the department has entered into a written agreement for the investigation and prosecution of insurance fraud. (g) A district attorney may be represented at a meeting convened pursuant to this section only by employees who are licensees of the State Bar of California. (Repealed and added by Stats. 2022, Ch. 861, Sec. 3. (AB 1681) Effective January 1, 2023.)
  11. 1879.3.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

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    The commissioner must appoint and assign certain insurance-fraud staff, and the Attorney General may send deputy attorneys general to help if requested.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879.3. The commissioner shall appoint supervisory and investigatory personnel within the bureau. In addition, the commissioner shall assign staff counsel who are employed by the department and are under the supervision of the department’s general counsel to advise the department’s fraud division, and to further the purposes of this article and Article 1 (commencing with Section 1871). The attorneys’ duties may include representing the commissioner and the department in civil lawsuits pursuant to Article 1 (commencing with Section 1871). Those persons shall be qualified by training and experience to perform the duties of their position. When so requested by the commissioner, the Attorney General may assign one or more deputy attorneys general to assist the commissioner in the performance of these duties. (Amended by Stats. 2005, Ch. 380, Sec. 2. Effective January 1, 2006.)
  12. 1879.4.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

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    The Chief of the Fraud Division and designated investigators may use funds for undercover activities, civilian operatives, and other lawful methods to investigate insurance or workers’ compensation fraud.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879.4. (a) The Chief of the Fraud Division and those investigators designated by him or her may expend funds to conduct undercover activities, employ civilian operatives, or in any other manner not prohibited by law to investigate insurance fraud or workers’ compensation fraud. (b) The money expended pursuant to subdivision (a) shall be paid out of the funds appropriated or made available by law for the support or use of the department. (Amended by Stats. 2005, Ch. 717, Sec. 17. Effective January 1, 2006.)
  13. 1879.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

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    People who believe a violation occurred may report it to the department right away, and the commissioner may require admitted insurers to keep records; good-faith reporters are protected from civil liability.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879.5. (a) Any person who believes that a violation of this article has been or is being made may notify the department immediately after discovery of the alleged violation and may send to the department, on a form and in a manner prescribed by the commissioner, the information requested and any additional information relative to the alleged violation as the department may request. The division shall review the reports and select those alleged violations as may require further investigation. It shall then cause an independent examination or evaluation of the facts surrounding the alleged violation to be made to determine the extent, if any, to which fraud, deceit, or intentional misrepresentation of any kind exists. (b) No person shall be subject to civil liability for libel, violation of privacy, or otherwise by virtue of the filing of reports or furnishing of other information, in good faith and without malice, provided pursuant to this section or requested by the department as a result of the authority conferred upon it by law. (c) The commissioner may, by regulation, require admitted insurers to keep any records and other information as he or she deems necessary for the effective enforcement of this article. (Added by Stats. 1994, Ch. 1008, Sec. 1. Effective January 1, 1995.)
  14. 1879.6.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

    Verify source ↗

    The commissioner may adopt administrative regulations needed to implement this article.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879.6. The commissioner may adopt administrative regulations as he or she deems necessary for the effective implementation of this article. (Added by Stats. 1994, Ch. 1008, Sec. 1. Effective January 1, 1995.)
  15. 1879.7.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

    Verify source ↗

    The commissioner must report to the Legislature every year on department activities and how cost-effective the article’s programs are.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879.7. The commissioner shall report annually to the Legislature as to the activities of the department and the cost-effectiveness of the programs established pursuant to this article. (Added by Stats. 1994, Ch. 1008, Sec. 1. Effective January 1, 1995.)
  16. 1879.8.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. )

    Verify source ↗

    This article does not block other civil or criminal laws from applying to acts covered by it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 2. THE BUSINESS OF INSURANCE [680 - 1879.8] ( Part 2 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 12. The Insurance Frauds Prevention Act [1871 - 1879.8] ( Chapter 12 added by Stats. 1989, Ch. 1119, Sec. 3. ) ## ARTICLE 8. Insurance Fraud Prevention [1879 - 1879.8] ( Article 8 added by Stats. 1994, Ch. 1008, Sec. 1. ) ## 1879.8. Nothing in this article shall be construed to preclude the applicability of any other provision of civil or criminal law that applies to any act committed or alleged to have been committed by any person. (Added by Stats. 1994, Ch. 1008, Sec. 1. Effective January 1, 1995.)
  17. 1880.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    The owner of a ship always has an insurable interest in the ship, including when the ship is chartered to someone else who agrees to pay its value if it is lost.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1880. The owner of a ship has in all cases an insurable interest in it, even when it has been chartered by one who agrees to pay him its value in case of loss. (Enacted by Stats. 1935, Ch. 145.)
  18. 1881.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An owner of a ship hypothecated by bottomry has an insurable interest only to the extent that the ship’s value exceeds the amount secured by bottomry.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1881. The insurable interest of the owner of a ship hypothecated by bottomry is only the excess of its value over the amount secured by bottomry. (Enacted by Stats. 1935, Ch. 145.)
  19. 1882.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, “freightage” means the benefit the owner gets from chartering the ship or using it to carry the owner’s own goods or other people’s goods.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1882. Freightage, in marine insurance, signifies all the benefit derived by the owner, either from the chartering of the ship or its employment for the carriage of his own goods or those of others. (Enacted by Stats. 1935, Ch. 145.)
  20. 1883.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    The owner of a ship has an insurable interest in expected freightage that would certainly have been earned but for a peril insured against.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1883. The owner of a ship has an insurable interest in expected freightage which he would have certainly earned but for the intervention of a peril insured against. (Enacted by Stats. 1935, Ch. 145.)
  21. 1884.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section says when the marine insurance interest referred to in the previous section exists for a charter party or for carriage of goods.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1884. The interest mentioned in the last section exists, in the case of a charter party, when the ship has broken ground on the chartered voyage. If a price is to be paid for the carriage of goods it exists when they are actually on board, or there is some contract for putting them on board, and both ship and goods are ready for the specified voyage. (Enacted by Stats. 1935, Ch. 145.)
  22. 1885.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, a person with an interest in the source of expected profits has an insurable interest in those profits.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1885. In marine insurance, a person who has an interest in the thing from which profits are expected to proceed, has an insurable interest in the profits. (Enacted by Stats. 1935, Ch. 145.)
  23. 1886.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A ship charterer has an insurable interest in the ship, but only to the extent the charterer could be damaged by its loss.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Insurable Interests Peculiar to Marine Insurance [1880 - 1886] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 1886. The charterer of a ship has an insurable interest in it, to the extent that he is liable to be damaged by its loss. (Enacted by Stats. 1935, Ch. 145.)
  24. 19.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines “person” to include individuals and several business and organizational forms.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 19. “Person” means any person, association, organization, partnership, business trust, limited liability company, or corporation. (Amended by Stats. 1994, Ch. 1010, Sec. 172. Effective January 1, 1995.)
  25. 1900.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, each party must disclose all material information they know and tell the exact and whole truth about matters they represent or are asked to disclose.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 1900. In marine insurance each party is bound to communicate, in addition to what is required in the case of other insurance: (a) All the information which he possesses and which is material to the risk, except such as is exempt from such communication in the case of other insurance. (b) The exact and whole truth in relation to all matters that he represents or, upon inquiry assumes to disclose. (Enacted by Stats. 1935, Ch. 145.)
  26. 1901.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, information about a third person’s belief or expectation about a material fact counts as material.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 1901. In marine insurance, information of the belief or expectation of a third person in reference to a material fact, is material. (Enacted by Stats. 1935, Ch. 145.)
  27. 1902.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A person insured under a marine insurance contract is presumed to know about a prior loss if the information could have reached them through ordinary transmission and communication.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 1902. A person insured by a contract of marine insurance is presumed to have, at the time of insuring, knowledge of a prior loss, if the information might possibly have reached him in the usual mode of transmission and at the usual rate of communication. (Enacted by Stats. 1935, Ch. 145.)
  28. 1903.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, concealment about certain listed matters does not void the whole contract; it only relieves the insurer from a loss caused by the concealed risk.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 1903. In marine insurance, concealment in respect to any of the following matters does not vitiate the entire contract, but merely exonerates the insurer from a loss resulting from the risk concealed: (a) The national character of the insured. (b) The liability of the subject matter to capture and detention. (c) The liability to seizure from breach of foreign laws of trade. (d) The want of necessary documents. (e) The use of false and simulated papers. (Amended by Stats. 2006, Ch. 538, Sec. 462. Effective January 1, 2007.)
  29. 1904.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, if the insured makes an intentionally false representation, the insurer may rescind the entire contract even if the falsehood is not material.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 1904. In marine insurance, if a representation by the insured is intentionally false in any respect, whether material or immaterial, the insurer may rescind the entire contract. (Enacted by Stats. 1935, Ch. 145.)
  30. 1905.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If later circumstances do not match an expectation-based representation, marine insurance is not avoided unless there is fraud.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance [1900 - 1905] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 1905. The failure of subsequent circumstances to conform to a representation as to expectation does not, in the absence of fraud, avoid marine insurance. (Enacted by Stats. 1935, Ch. 145.)
  31. 1920.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance on a ship or transportation by ship, the ship is deemed warranted to be seaworthy.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1920. In every marine insurance upon a ship or involving transportation by ship, a warranty is implied that the ship is seaworthy. (Enacted by Stats. 1935, Ch. 145.)
  32. 1921.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A ship counts as seaworthy if it is reasonably fit for the services and ordinary perils of the contemplated voyage.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1921. A ship is seaworthy when reasonably fit to perform the services and encounter the ordinary perils of the voyage contemplated by the parties to the policy. (Enacted by Stats. 1935, Ch. 145.)
  33. 1922.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A marine insurance seaworthiness warranty is satisfied if the ship is seaworthy when the risk begins, with special rules for time policies and cargo transshipment.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1922. An implied warranty of seaworthiness is complied with if the ship is seaworthy at the time of the commencement of the risk, except in the following cases: (a) When the insurance is made for a specified length of time, the implied warranty is not complied with unless the ship is seaworthy at the commencement of every voyage it undertakes during that time. (b) When the insurance is upon the cargo and, by the terms of the policy, description of the voyage, or established custom of the trade, the cargo is to be transshipped at an intermediate port, the implied warranty is not complied with unless each vessel upon which the cargo is shipped or transshipped is seaworthy at the commencement of its particular voyage. (Enacted by Stats. 1935, Ch. 145.)
  34. 1923.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A warranty of seaworthiness covers not just the ship’s condition, but also requires it to be properly loaded and supplied.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1923. A warranty of seaworthiness extends not only to the condition of the structure of the ship itself, but also requires that it be properly laden and provided with: (a) A competent master. (b) A sufficient number of competent officers and seamen. (c) The requisite appurtenances and equipments. (d) Other necessary or proper stores and implements for the voyage. (Enacted by Stats. 1935, Ch. 145.)
  35. 1924.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    For a policy covering a voyage with different seaworthiness requirements in different parts, the seaworthiness warranty is satisfied if the ship is seaworthy for each part at the start of that part.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1924. Where any portion of the voyage contemplated by a policy differs from other portions in respect to the things requisite to make the ship seaworthy therefor, a warranty of seaworthiness is complied with if, at the commencement of each portion, the ship is seaworthy with reference to that portion. (Enacted by Stats. 1935, Ch. 145.)
  36. 1925.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If a ship becomes unseaworthy during the voyage and repairing the defect is unreasonably delayed, the insurer is not liable for losses caused by that defect.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1925. When a ship becomes unseaworthy during the voyage, an unreasonable delay in repairing the defect exonerates the insurer from liability on any loss arising from the defect. (Enacted by Stats. 1935, Ch. 145.)
  37. 1926.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A ship can be seaworthy for insuring the ship itself but unseaworthy for insuring the cargo if it is unfit to receive the cargo.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1926. A ship may be seaworthy for the purpose of insurance upon itself and, at the same time, unseaworthy for the purpose of insurance upon the cargo because of unfitness to receive the cargo. (Enacted by Stats. 1935, Ch. 145.)
  38. 1927.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If a ship or cargo is expressly warranted as national or neutral, the ship must carry the required documents and must not carry documents that create reasonable suspicion.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Implied Warranties Peculiar to Marine Insurance [1920 - 1927] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 1927. Where the nationality or neutrality of a ship or cargo is expressly warranted, it is implied that: (a) The ship will carry the requisite documents to show such nationality or neutrality. (b) It will not carry any documents which cast reasonable suspicion thereon. (Enacted by Stats. 1935, Ch. 145.)
  39. 1940.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If marine insurance describes a voyage by its starting and ending places, the insured voyage follows the course of sailing fixed by mercantile usage between those places.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 1940. When the voyage contemplated by marine insurance is described by the places of beginning and ending, the voyage insured is one which conforms to the course of sailing fixed by mercantile usage between those places. (Enacted by Stats. 1935, Ch. 145.)
  40. 1941.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If sailing directions are not fixed by mercantile usage, the insured voyage is the route between the named places that a skilled master would see as most natural, direct, and advantageous.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 1941. If the course of sailing is not fixed by mercantile usage, the voyage insured by marine insurance is that way between the places specified which, to a master of ordinary skill and discretion, would seem the most natural, direct, and advantageous. (Enacted by Stats. 1935, Ch. 145.)
  41. 1942.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines when there is a deviation in a marine voyage.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 1942. Deviation is: (a) A departure from the course of the voyage insured. (b) An unreasonable delay in pursuing the voyage. (c) The commencement of an entirely different voyage. (Enacted by Stats. 1935, Ch. 145.)
  42. 1943.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A ship’s deviation is considered proper if one of the listed conditions is met.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 1943. A deviation is proper: (a) When caused by circumstances over which neither the master nor the owner of the ship has any control. (b) When necessary to comply with a warranty, or to avoid a peril, whether or not the peril is insured against. (c) When made in good faith and upon reasonable grounds of belief in its necessity to avoid a peril. (d) When made in good faith, for the purpose of saving human life or relieving another vessel in distress. (Enacted by Stats. 1935, Ch. 145.)
  43. 1944.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A deviation not covered by the previous section is improper.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 1944. Every deviation not specified in the last section is improper. (Enacted by Stats. 1935, Ch. 145.)
  44. 1945.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An insurer is not liable for losses to marine-insurance property after an improper deviation.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Effect of Course of Voyage [1940 - 1945] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 1945. An insurer is not liable for any loss happening to the subject matter of marine insurance after an improper deviation. (Enacted by Stats. 1935, Ch. 145.)
  45. 1960.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A marine insurance loss is classified as either total or partial.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1960. A loss is either total or partial. (Enacted by Stats. 1935, Ch. 145.)
  46. 1961.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A total loss in marine insurance is either actual or constructive.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1961. A total loss is either actual or constructive. (Enacted by Stats. 1935, Ch. 145.)
  47. 1962.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines when a marine-insurance loss counts as an actual total loss.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1962. An actual total loss is caused by: (a) A total destruction of the subject matter of insurance. (b) The loss of the subject matter by sinking, or by being broken up. (c) Any damage to the subject matter which renders it valueless to the owner for the purposes for which he held it. (d) Any other event which entirely deprives the owner of the possession, at the port of destination, of the subject matter. (Enacted by Stats. 1935, Ch. 145.)
  48. 1963.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A constructive total loss gives the insured a right to abandon under section 1971.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1963. A constructive total loss is one which gives to a person insured a right to abandon, under section 1971. (Enacted by Stats. 1935, Ch. 145.)
  49. 1964.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An actual loss may be presumed when a ship has continued to be absent and has not been heard from.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1964. An actual loss may be presumed from the continued absence of a ship without being heard of. The length of time which is sufficient to raise this presumption depends on the circumstances of the case. (Enacted by Stats. 1935, Ch. 145.)
  50. 1965.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If a ship cannot finish the voyage at an intermediate port because of insured perils, the master must try to get another ship in the same or a nearby port to carry the cargo onward.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1965. When a ship is prevented, at an intermediate port and by the perils insured against, from completing the voyage, the master shall make every exertion to procure, in the same or a contiguous port, another ship for the purpose of conveying the cargo to its destination. The liability of a marine insurer on the cargo continues after it is thus reshipped and such insurer is additionally liable as prescribed in section 1966. (Enacted by Stats. 1935, Ch. 145.)
  51. 1966.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A marine insurer is liable, up to the amount insured, for certain cargo-saving costs and related expenses.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1966. In addition to the liability mentioned in section 1965, a marine insurer is liable, up to the amount insured, for damages, expenses of discharging, storage, reshipment, extra freightage, and all other expenses incurred in saving cargo reshipped pursuant to section 1965. (Enacted by Stats. 1935, Ch. 145.)
  52. 1967.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If there is an actual total loss, the insured is entitled to payment without giving notice of abandonment.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1967. Upon an actual total loss, the insured is entitled to payment without notice of abandonment. (Enacted by Stats. 1935, Ch. 145.)
  53. 1968.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If marine insurance is agreed to be free from particular average, the insurer is not liable for certain particular average losses, but remains liable for its share of general average loss.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1968. Where it has been agreed that an insurance upon a particular subject matter, or class of subject matter, is to be free from particular average, a marine insurer is not liable for any particular average loss not depriving the insured of the possession, at the port of destination of the whole of such subject matter or class, even though the subject matter or class becomes entirely worthless; but such insurer is liable for his proportion of all general average loss assessed upon the subject matter insured. (Enacted by Stats. 1935, Ch. 145.)
  54. 1969.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If marine insurance is limited to actual total loss, it does not cover constructive total loss, but it does cover losses that necessarily deprive the insured of the entire subject matter at the destination port.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1969. When insurance is confined in its terms to an actual total loss, it does not cover a constructive total loss, but it does cover any loss which necessarily results in depriving the insured of the possession, at the port of destination, of the entire subject matter insured. (Enacted by Stats. 1935, Ch. 145.)
  55. 1970.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, abandonment means the insured declares to the insurer that they are giving up their interest in the insured subject matter after a constructive total loss.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1970. Abandonment, in marine insurance, is the act of the insured by which, after a constructive total loss, he declares the relinquishment to the insurer of the insured’s interest in the subject matter. (Enacted by Stats. 1935, Ch. 145.)
  56. 1971.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In marine insurance, the insured may recover for a total loss after abandonment if specified loss or damage thresholds are met, subject to an exception for freightage.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1971. In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which is separately valued by the policy or otherwise separately insured, in a case where the cause of the loss is a peril insured against the insured may recover for a total loss, as described in section 1963, if: (a) More than half in value of the subject matter is actually lost by such peril, or would have to be expended to recover it from the peril. (b) The subject matter is injured to such an extent as to reduce its value more than half. (c) The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk which a prudent man would not take under the circumstances. (d) The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence and without incurring an expense to the insured of more than half the value of the subject matter or a risk which a prudent man would not take under the circumstances. But freightage can not in any case be abandoned unless the ship also is abandoned. (Enacted by Stats. 1935, Ch. 145.)
  57. 1972.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An abandonment in marine insurance cannot be partial or conditional.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1972. An abandonment can not be either partial or conditional. (Enacted by Stats. 1935, Ch. 145.)
  58. 1973.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An abandonment in marine insurance may be made only within the stated timing limits.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1973. An abandonment can be made only at a time limited by all of the following: (a) Within a reasonable time after the information of the loss. (b) After the commencement of the voyage. (c) Before the insured has information of the completion of the voyage. (Enacted by Stats. 1935, Ch. 145.)
  59. 1974.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An abandonment is not effective if the information supporting it turns out to be incorrect, or if the insured property has been restored enough that there is no total loss.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1974. Where the information upon which an abandonment has been made proves incorrect, or the subject matter of insurance is so far restored when the abandonment is made that there is in fact no total loss, the abandonment is not effective. (Enacted by Stats. 1935, Ch. 145.)
  60. 1975.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Abandonment is made by giving oral or written notice to the insurer.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1975. Abandonment is made by giving oral or written notice thereof to the insurer. (Enacted by Stats. 1935, Ch. 145.)
  61. 1976.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A notice of abandonment must be explicit and state the particular cause of abandonment.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1976. A notice of abandonment shall be explicit, and shall specify the particular cause of the abandonment, but need state only enough to show that there is probable cause therefor, and need not be accompanied with proof of interest or of loss. (Enacted by Stats. 1935, Ch. 145.)
  62. 1977.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An abandonment is valid only if it is based on the cause stated in the notice.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1977. An abandonment can be sustained only upon the cause specified in the notice thereof. (Enacted by Stats. 1935, Ch. 145.)
  63. 1978.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An abandonment is treated as a transfer of the insured’s interest to the insurer, including recovery and indemnity chances.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1978. An abandonment is equivalent to a transfer to the insurer of the insured’s interest, with all the chances of recovery and indemnity. (Enacted by Stats. 1935, Ch. 145.)
  64. 1979.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If a marine insurer pays a loss as though it were a total loss, it is entitled to what remains of the insured property, or its proceeds or salvage.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1979. Whenever a marine insurer pays for a loss as if it were an actual total loss, he is entitled to whatever remains of the subject matter insured, or its proceeds or salvage, to the same extent as in the case of a formal abandonment. (Enacted by Stats. 1935, Ch. 145.)
  65. 1980.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    After an abandonment, good-faith acts done after the loss by the insured’s agents are at the insurer’s risk and for the insurer’s benefit.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1980. Upon an abandonment, acts done subsequent to the loss and in good faith by persons who at the time were the insured’s agents in respect to the subject matter insured, are at the risk of the insurer, and for his benefit. (Enacted by Stats. 1935, Ch. 145.)
  66. 1981.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    The insured does not need the insurer’s acceptance of an abandonment for the insured’s rights to apply, and the insurer’s silence when notice is received does not by itself count as acceptance.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1981. An acceptance of an abandonment is not necessary to the rights of the insured, and is not to be presumed from the mere silence of the insurer at the time of receiving notice of abandonment. (Enacted by Stats. 1935, Ch. 145.)
  67. 1982.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If an abandonment is accepted, that acceptance is conclusive between the parties and means the loss and the abandonment’s sufficiency are admitted.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1982. The acceptance of an abandonment, whether express or implied, is conclusive upon the parties and admits the loss and the sufficiency of the abandonment. (Enacted by Stats. 1935, Ch. 145.)
  68. 1983.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An abandonment that has been made and accepted cannot be revoked, unless the reason for it later turns out to be unfounded.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1983. An abandonment once made and accepted is irrevocable, unless the ground upon which it was made proves to be unfounded. (Enacted by Stats. 1935, Ch. 145.)
  69. 1984.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    After an accepted abandonment of a ship, pre-loss freightage goes to the freightage insurer, while freightage earned later goes to the ship insurer.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1984. On an accepted abandonment of a ship, freightage earned previous to the loss belongs to the insurer of the freightage; but freightage subsequently earned belongs to the insurer of the ship. (Enacted by Stats. 1935, Ch. 145.)
  70. 1985.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If an insurer refuses a valid abandonment, the insurer is liable as for an actual total loss, with the loss reduced by any proceeds the insured has received from the insured subject matter.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1985. If an insurer refuses to accept a valid abandonment, he is liable as upon an actual total loss, after deducting from the amount of the loss any proceeds of the insured subject matter which have come to the hands of the insured. (Enacted by Stats. 1935, Ch. 145.)
  71. 1986.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If an insured does not abandon, the insured may still recover the actual loss.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1986. If an insured omits to abandon, he may nevertheless recover his actual loss. (Enacted by Stats. 1935, Ch. 145.)
  72. 1987.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A fraudulent valuation lets the marine insurer rescind the contract. If the insurance was procured without knowledge of a prior bottomry or respondentia hypothecation, the procuring person may state the real value. Otherwise, the policy valuation is conclusive between the parties when adjusting a partial or total loss, if the insured has an interest at risk and there is no fraud by the insured.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1987. (a) A valuation fraudulent in fact entitles a marine insurer to rescind the contract. (b) When the subject matter has been hypothecated by bottomry or respondentia, before its insurance and without the knowledge of the person actually procuring the insurance, such person may show the real value. (c) Otherwise a valuation in a policy of marine insurance is conclusive between the parties in the adjustment of either a partial or total loss if the insured has some interest at risk and there is no fraud on his part. (Enacted by Stats. 1935, Ch. 145.)
  73. 1988.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    For a partial loss, the marine insurer is liable only for a proportionate share of the insured amount.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1988. In a case of partial loss, a marine insurer is liable only for such proportion of the amount insured by him as the loss bears to the value of the whole interest of the insured in the subject matter. (Enacted by Stats. 1935, Ch. 145.)
  74. 1989.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If profits are separately insured in marine insurance and there is a loss, the insured may recover the portion of those profits measured by the value of the lost subject matter compared with the whole.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1989. Where profits are separately insured in marine insurance, in case of loss the insured is entitled to recover that proportion of such profits which the value of the subject matter lost bears to the value of the whole. (Enacted by Stats. 1935, Ch. 145.)
  75. 1990.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    For a valued marine insurance policy on freightage or cargo, if only part of the insured subject matter is at risk, the valuation is applied only proportionally to that part.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1990. In case of a valued policy of marine insurance on freightage or cargo, if only a part of the subject matter is exposed to risk, the valuation applies only in proportion to such part. (Enacted by Stats. 1935, Ch. 145.)
  76. 1991.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    In marine insurance, if profits are valued and insured, a loss of those profits is conclusively presumed when the property they were expected to come from is lost, and the valuation sets the amount.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1991. When profits are valued and insured by marine insurance, a loss of them is conclusively presumed from a loss of the property out of which they were expected to arise, and the valuation fixes their amount. (Enacted by Stats. 1935, Ch. 145.)
  77. 1992.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    This section sets the valuation rules used to estimate a loss under an open marine insurance policy.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1992. In estimating a loss under an open policy of marine insurance, the following rules are to be observed: (a) The value of a ship is its value at the beginning of the risk, including all articles or charges which add to its permanent value or which are necessary to prepare it for the voyage insured. (b) The value of cargo is either its actual cost to the insured, when laden on board, or, where that cost can not be ascertained, its market value at the time and place of lading, adding the charges incurred in purchasing and placing it on board, but without reference to: (1) Any losses incurred in raising money for its purchase. (2) Any drawback on its exportation. (3) The fluctuations of the market at the port of destination. (4) Expenses incurred on the way or on arrival. (c) The value of freightage is the gross freightage, exclusive of primage, without reference to the cost of earning it. (d) The cost of insurance is in each case to be added to the value thus estimated. (Enacted by Stats. 1935, Ch. 145.)
  78. 1993.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    If insured cargo suffers partial loss and arrives damaged at the destination port, the insured loss is calculated by a market-price comparison method.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1993. If cargo insured against partial loss arrives at the port of destination in a damaged condition, the loss of the insured is computed as follows: (a) Deduct the market price, at port of destination, of the damaged subject matter from its market price there when sound. (b) Take that proportion of the value which the remainder thus ascertained bears to such market price when sound. (Enacted by Stats. 1935, Ch. 145.)
  79. 1994.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    A marine insurer must cover certain expenses when a loss forces a ship into port for repairs, and may also have to cover expenses from the insured’s recovery efforts if agreed.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1994. A marine insurer is liable for all the expense attendant upon a loss which forces the ship into port to be repaired. Where it is agreed that the insured may labor for the recovery of the property, the insurer is liable for the expense incurred thereby. In either case, the liability for such expense is in addition to the liability for a subsequent total loss. (Enacted by Stats. 1935, Ch. 145.)
  80. 1995.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    In marine insurance, if an insured must contribute to a general average loss caused by an insured peril, the insurer is liable for the insured’s loss from that contribution.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1995. In marine insurance, when an insured is required to make a contribution in respect to the subject matter of insurance toward a general average loss, if the average was called for on a loss by a peril insured against, the insurer is liable for the insured’s loss through the contribution. (Enacted by Stats. 1935, Ch. 145.)
  81. 1996.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    In marine insurance, an insured may claim the whole loss from the insurer if the insured has a contribution claim against others, but not after contribution interests separate or the insured gives up or fails to pursue that claim.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1996. In marine insurance, where an insured has a demand against others for contribution, he may claim the whole loss from the insurer, subrogating the insurer to the insured’s right to contribution. But no such claim can be made upon the insurer after the separation of the interests liable to contribution, nor after the insured, having the right and opportunity to enforce contribution from others, neglects or waives the exercise of that right. (Enacted by Stats. 1935, Ch. 145.)
  82. 1997.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    For a partial loss of a ship or its equipment, old materials go toward the replacement cost, and the marine insurer generally pays only two-thirds of the remaining repair cost.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Loss in Marine Insurance [1960 - 1997] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 1997. In the case of a partial loss of a ship or its equipments, the old materials are to be applied towards payment for the new. Whether the ship is new or old, a marine insurer is liable for only two-thirds of the remaining cost of the repairs after such deduction, except that anchors and cannon must be paid for in full, and sheathing metal at a depreciation of only two and one-half per cent for each month that it has been fastened to the ship. (Enacted by Stats. 1935, Ch. 145.)
  83. 2.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section says matching parts of the Insurance Code are to be treated as restatements and continuations of earlier statutes, not as new laws.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 2. The provisions of this code in so far as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations thereof, and not as new enactments. (Enacted by Stats. 1935, Ch. 145.)
  84. 20.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section defines “Commissioner” as the Insurance Commissioner of this State.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 20. “Commissioner” means the Insurance Commissioner of this State. (Enacted by Stats. 1935, Ch. 145.)
  85. 20.5.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    In this code, certain references to the State Industrial Accident Commission or Industrial Accident Commission mean the Division of Industrial Accidents, and may include its administrative director or appeals board, depending on context.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 20.5. Whenever in this code the terms “State Industrial Accident Commission” or “Industrial Accident Commission” or “commission,” relating to the said “State Industrial Accident Commission” or the said “Industrial Accident Commission,” appear, said terms shall mean “Division of Industrial Accidents,” including “administrative director” of said division or “appeals board,” or both, as the context may require. (Added by Stats. 1965, Ch. 1513.)
  86. 2010.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 6. Exemptions [2010- 2010.] ( Article 6 enacted by Stats. 1935, Ch. 145. )

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    These listed sections do not apply to ocean marine insurance defined in Section 481.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 1. The Marine Contract [1880 - 2010] ( Chapter 1 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 6. Exemptions [2010- 2010.] ( Article 6 enacted by Stats. 1935, Ch. 145. ) ## 2010. The provisions of Sections 481, 800, 801, 802, 803, and 804 shall not apply to ocean marine insurance as defined in Section 481. (Amended by Stats. 1977, Ch. 404.)
  87. 2030.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    An insurer may rescind a fire insurance contract if the insured changes the use or condition of the insured property, without the insurer’s consent, in a way within the insured’s control, and the change increases risk.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 2030. An insurer is entitled to rescind a contract of fire insurance upon an alteration in the use or condition of the subject matter insured from that to which it is limited by the policy, when such alteration is made without the consent of the insurer by means within the control of the insured, and increases the risk. (Enacted by Stats. 1935, Ch. 145.)
  88. 2031.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    A fire insurance contract is not affected by a change in use or condition if the change does not increase the risk, when the contract does not restrict that use or condition.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 2031. When a contract of fire insurance does not restrict use or condition of insured subject matter, such contract is not affected by an alteration in such use or condition if the alteration does not increase the risk. (Enacted by Stats. 1935, Ch. 145.)
  89. 2032.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    An insured person’s act does not affect a fire insurance contract unless it violates the policy provisions.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 2032. After the execution of a contract of fire insurance, an act of the insured does not affect the contract unless the act violates policy provisions, even though such act increases the risk and causes a loss. (Enacted by Stats. 1935, Ch. 145.)
  90. 2033.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Creates the California Safe Homes grant program and gives the department authority to administer it, set rules, prioritize grants, collect program information, and publish reports.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Change of Risk [2030 - 2033] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals: (1) Reducing local and statewide wildfire losses. (2) Improving insurability and resilience of vulnerable communities. (3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the department’s rules. (b) (1) The Sustainable Insurance Account is hereby established within the Insurance Fund. Funds in the Sustainable Insurance Account shall be available to the department for the program upon appropriation by the Legislature, upon receipt of federal grants or funds, or upon receipt of other sources of grants or funds. (2) Special funds in the Sustainable Insurance Account shall not be redistributed. Funds shall be used to support activities necessary to carry out the functions and purposes of the program. (c) The department may adopt rules and establish eligibility requirements and additional procedures as necessary for the effective administration of the program and in accordance with any conditions associated with grants or funds received by the program. The department may contract with a third party to assist with program administration. (d) When awarding grant funds under the program, the department shall prioritize the following, in descending order: (1) The replacement of roofs to align with the standards specified in the department’s Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations). (2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the department’s Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations). (3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities: (A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses. (B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations. (C) Anticipated benefit to insurance policyholders. (e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows: (1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met: (A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association. (B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection. (C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development. (2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance. (f) The department shall collect information to account for the performance of the program over time, including both of the following: (1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home. (2) Regional information on the geographic distribution of grant funding. (g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the department’s Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations). (h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the department’s internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. (Added by Stats. 2025, Ch. 536, Sec. 2. (AB 888) Effective January 1, 2026.)
  91. 2050.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A valuation in a fire policy has the same effect as a valuation in a marine policy.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2050. The effect of a valuation in a fire policy is the same as in a marine policy. (Enacted by Stats. 1935, Ch. 145.)
  92. 2051.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section sets how fire insurance indemnity is measured under an open policy, including actual cash value recovery.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2051. (a) Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time of the commencement of the fire. (b) Under an open policy that requires payment of actual cash value, the measure of the actual cash value recovery, in whole or partial settlement of the claim, for either a total or partial loss to the structure or its contents, shall be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. A deduction for physical depreciation shall apply only to components of a structure that are normally subject to repair and replacement during the useful life of that structure. (Amended by Stats. 2019, Ch. 59, Sec. 1. (AB 188) Effective January 1, 2020.)
  93. 2051.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section sets how replacement-cost fire insurance claims are paid, limits some time deadlines for insureds, and restricts insurers from adding terms that reduce payment because property is rebuilt or bought at a new location.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2051.5. (a) (1) Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less. (2) If the policy requires the insured to repair, rebuild, or replace the damaged property in order to collect the full replacement cost, the insurer shall pay the actual cash value of the damaged property, as defined in Section 2051, until the damaged property is repaired, rebuilt, or replaced. Once the property is repaired, rebuilt, or replaced, the insurer shall pay the difference between the actual cash value payment made and the full replacement cost reasonably paid to replace the damaged property, up to the limits stated in the policy. (b) (1) (A) A time limit of less than 12 months from the date that the first payment toward the actual cash value is made shall not be placed upon an insured in order to collect the full replacement cost of the loss, subject to the policy limit. (B) In the event of a loss relating to a “state of emergency,” as defined in Section 8558 of the Government Code, a time limit of less than 36 months from the date that the first payment toward the actual cash value is made shall not be placed upon the insured in order to collect the full replacement cost of the loss, subject to the policy limit. (C) This section does not prohibit an insurer from allowing the insured additional time to collect the full replacement cost. (2) An insurer shall provide to a policyholder one or more additional extensions of six months for good cause pursuant to subparagraph (A) or (B) of paragraph (1) if the insured, acting in good faith and with reasonable diligence, encounters a delay or delays in approval for, or reconstruction of, the home or residence that are beyond the control of the insured. Circumstances beyond the control of the insured include, but are not limited to, unavoidable construction permit delays, the lack of necessary construction materials, or the unavailability of contractors to perform the necessary work. (3) (A) In the event of a loss relating to a state of emergency, as defined in Section 8558 of the Government Code, an insurer shall not require the insured to provide proof of loss less than 100 days after the loss. (B) The insurer shall provide to the insured one or more additional extensions of three months for submission of proof of loss for good cause if the insured, acting in good faith and with reasonable diligence, encounters a delay in providing proof of loss that is beyond the control of the insured. Circumstances beyond the control of the insured may include, but are not limited to, any of the following, where applicable to the specific claim: (i) Delays by the insurer in acknowledging the claim or providing the claimant necessary forms, instructions, and reasonable assistance, including, but not limited to, specifying the information the claimant must provide for proof of loss. (ii) For personal property coverage, the fact that a personal property inventory is premature if the primary structure has not yet commenced construction. (iii) The unavailability of contractors to either perform the necessary work or create an estimate to rebuild, repair, or replace. (iv) The disability, injury, or incapacity of the insured. (v) The inability of the insured to access the insured property as a result of governmental action or because the insured property is located in an area that is exposed to hazardous materials posing a health risk. (c) (1) In the event of a total loss of the insured structure, a policy issued or delivered in this state shall not contain a provision that limits or denies, on the basis that the insured has decided to rebuild at a new location or to purchase an already built home at a new location, payment of the building code upgrade cost or the replacement cost, including any extended replacement cost coverage, to the extent those costs are otherwise covered by the terms of the policy or any policy endorsement. However, the measure of indemnity shall not exceed the replacement cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to repair, rebuild, or replace the insured structure at its original location. (2) Notwithstanding any other law, for a residential property insurance policy, the measure of damages available to a policyholder to use to rebuild or replace the insured home at another location shall be the amount that would have been recoverable had the insured dwelling been rebuilt at its original location, and a deduction for the value of land at the new location shall not be permitted from that measure of damages. However, the measure of indemnity shall not exceed the cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to rebuild the insured structure at its original location. (d) This section does not prohibit an insurer from restricting payment in cases of suspected fraud. (e) On and after July 1, 2026, all policy forms issued or renewed by an insurer shall comply with this section in its entirety, including the changes made to this section by the act that added this paragraph. (Amended by Stats. 2025, Ch. 542, Sec. 2. (SB 495) Effective January 1, 2026.)
  94. 2052.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If the insured wants a policy valuation for a building or structure insured against fire, the insured may require the insurer to examine it, and the examination cost must be paid by the insured.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2052. Whenever the insured desires to have a valuation named in his policy insuring any building or structure against fire, he may require such building or structure to be examined by the insurer and the value of the insured’s interest therein shall be fixed at that time by the parties. The cost of the examination shall be paid by the insured. (Enacted by Stats. 1935, Ch. 145.)
  95. 2053.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A valued policy must include a clause stating that the value of the insured’s interest in the insured building or structure has been fixed.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2053. A clause shall be inserted in such a valued policy, stating substantially that the value of the insured’s interest in the insured building or structure has been thus fixed. (Enacted by Stats. 1935, Ch. 145.)
  96. 2054.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This section requires the insurer to pay valued-policy losses, unless risk was increased without the insurer’s consent or the insured committed fraud, and subject to Sections 2056 and 2058.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2054. In the absence of any change increasing the risk without the consent of the insurer or of fraud on the part of the insured, and except as provided in Sections 2056 and 2058, the insurer under such a valued policy shall pay losses as follows: (a) In case of a total loss, the whole amount insured upon the insured’s interest in such building or structure, as stated in the policy and upon which the insurers have received a premium. (b) In case of a partial loss the full amount of the partial loss. (c) In case there are two or more policies covering the insured’s interest, each policy shall contribute pro rata to the payment of such whole or partial loss. (Amended by Stats. 1991, Ch. 602, Sec. 5.)
  97. 2055.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    Except for section 2056, an insurer cannot be required to pay more than the amount stated in a valued policy.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2055. Except as provided by section 2056, the insurer shall not be required to pay more than the amount stated in such a valued policy. (Enacted by Stats. 1935, Ch. 145.)
  98. 2056.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    In a valued fire insurance policy, stipulations about repairing, rebuilding, or replacing damaged or destroyed buildings or structures control over sections 2054 and 2055.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2056. Stipulations in a valued policy concerning the repairing, rebuilding or replacing of buildings or structures wholly or partially damaged or destroyed shall prevail over the provisions of sections 2054 and 2055. (Enacted by Stats. 1935, Ch. 145.)
  99. 2057.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A fire insurance company must pay the insured within 30 days after the loss amount and liability are agreed or settled in writing.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2057. Under a contract of fire insurance, payment to the insured shall be made within 30 days after the amount of the loss and the liability of the company have been agreed upon or settled by the insured and the company in writing. If the company fails to pay within the 30 days, the payment shall bear interest, beginning the 31st day, at the prevailing legal rate. The company also shall be liable for all costs of collection, including reasonable attorneys’ fees, if legal action is necessary to obtain payment after the company has willfully failed to pay within the 30 days. (Added by Stats. 1979, Ch. 1165.)
  100. 2058.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    For valued fire policies, the insured gets payment based on whether the loss is rebuilt or replaced.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2058. Notwithstanding any other provision of law, if a loss arising out of fire is rebuilt or replaced, an insured covered by a valued policy shall receive full payment for the loss up to the face amount of the policy. If the loss is not rebuilt or replaced, an insured covered by a valued policy shall receive either the replacement value of the loss or the face amount of the policy, whichever is less. As used in this section, “valued policy” has the meaning set forth in Section 412. This section applies only to valued policies issued or renewed on and after July 1, 1992. (Added by Stats. 1991, Ch. 602, Sec. 6.)
  101. 2060.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    For certain homeowners’ insurance claims, the insurer must give the insured a list of potentially covered additional living expenses and provide minimum coverage periods, with extensions in some cases.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2060. (a) In the event of a loss under a homeowners’ insurance policy for which the insured has made a claim for additional living expenses, the insurer shall provide the insured with a list of items that the insurer believes may be covered under the policy as additional living expenses. The list may include a statement that the list is not intended to include all items covered under the policy, but only those that are commonly claimed, if this is the case. If the department develops a list for use by insurers, the insurer may use that list. (b) (1) In the event of a covered loss relating to a state of emergency, as defined in Section 8558 of the Government Code, coverage for additional living expenses shall be for a period of no less than 24 months from the inception of the loss, but shall be subject to other policy provisions. An insurer shall grant an extension of up to 12 additional months, for a total of 36 months, if an insured acting in good faith and with reasonable diligence encounters a delay or delays in the reconstruction process that are the result of circumstances beyond the control of the insured. Circumstances beyond the control of the insured include, but are not limited to, unavoidable construction permit delays, lack of necessary construction materials, and lack of available contractors to perform the necessary work. Additional extensions of six months shall be provided to policyholders for good cause. (2) A policy that provides coverage for additional living expenses subject to this subdivision shall not limit the policyholder’s right to recovery if the insured home is rendered uninhabitable by a covered peril. However, an insurer may, in lieu of making living expense payments required by this subdivision, provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The additional living expense coverage subject to this section does not include a utility public safety power shut off event, which is the deenergization of a portion of the electrical distribution or transmission system to reduce the risk of wildfire ignition. (c) For a loss that is otherwise not subject to paragraph (1) or (2) of subdivision (b), in the event of a state of emergency, as defined in Section 8558 of the Government Code, that is accompanied by an order of civil authority restricting access to the home, related to a covered peril, additional living expense coverage shall be provided for at least two weeks. Additional extensions of two weeks shall be provided to a policyholder for good cause, but shall be subject to other policy provisions. (d) The amendments made by the act that added this subdivision shall be operative on July 1, 2021. (Amended by Stats. 2020, Ch. 261, Sec. 2. (SB 872) Effective January 1, 2021. Operative July 1, 2021, by its own provisions.)
  102. 2061.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    For certain residential property insurance claims after a state of emergency loss, insurers must make a minimum advance payment for living expenses, accept reasonable inventory forms, and accept grouped personal-property inventories.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2061. (a) In the event of a covered loss relating to a state of emergency, as defined in Section 8558 of the Government Code, the following special provisions shall apply under a residential property insurance policy: (1) If an insured has made a claim for additional living expenses related to a total loss, an insurer shall, upon request by an insured, render an advance payment of no less than four months of living expenses. Additional payment for additional living expenses shall be payable upon proper proof following the advance period. (2) If an insured has made a claim for contents related to a total loss of a primary residence, an insurer shall not require that the insured use a company-specific inventory form if the insured can provide an inventory using a form that contains substantially the same information. This subdivision does not limit the authority of an insurer to seek additional reasonable information from an insured upon receipt of an inventory form submitted by an insured. (3) If an insured has made a claim for contents related to a total loss of a primary residence, an insurer shall accept an inventory that includes groupings of categories of personal property, including clothing, shoes, books, food items, CDs, DVDs, or other categories of items for which it would be impractical to separately list each individual item claimed. (b) This section applies to a claim that arises on or after January 1, 2021. (Added by Stats. 2020, Ch. 261, Sec. 3. (SB 872) Effective January 1, 2021.)
  103. 2062.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    During a state of emergency, insurers must offer a 60-day grace period for premium payments on covered residential property insurance policies in the affected area.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Measure of Indemnity [2050 - 2062] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 2062. In the event of a state of emergency, as defined in Section 8558 of the Government Code, an insurer shall offer a 60-day grace period for payment of premiums for residential property insurance policies covering a property located within the affected area defined in the state of emergency for a period of 60 days after the emergency. This section does not require any change to insurer billing practices regarding billing, automatic payment, or cancellation for nonpayment if the insurer reinstates, without a lapse in coverage or late fees, any policy subject to this section that was canceled for nonpayment of premiums, if requested by the insured and upon reasonably timely payment of all premiums due. (Added by Stats. 2020, Ch. 261, Sec. 4. (SB 872) Effective January 1, 2021.)
  104. 2070.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Fire policies on California subject matter generally must use the standard form and cannot add extra terms, except where this article allows otherwise.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2070. All fire policies on subject matter in California shall be on the standard form, and, except as provided by this article shall not contain additions thereto. No part of the standard form shall be omitted therefrom except that any policy providing coverage against the peril of fire only, or in combination with coverage against other perils, need not comply with the provisions of the standard form of fire insurance policy or Section 2080; provided, that coverage with respect to the peril of fire, when viewed in its entirety, is substantially equivalent to or more favorable to the insured than that contained in such standard form fire insurance policy. (Amended by Stats. 1982, Ch. 124, Sec. 1.)
  105. 2070.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    An insurer must give written notice of the applicable statute of limitation to an insured who claims residential fire or property loss due in whole or part to corrosive soils, unless the insurer knows the insured is represented by an attorney.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2070.1. (a) Any insurer whose insured has made a claim under his or her residential fire or property insurance policy for loss due, in whole or in part, to corrosive soils shall, at least 30 days before the expiration of the applicable statute of limitation, notify its insured in writing of the statute of limitation applicable to the insured’s claim for damage. Failure of the insurer to provide the written notice shall operate to toll the applicable statute of limitation for a period of 30 days from the date written notice is actually given. The notice shall not be required if the insurer has received notice that the insured is represented by an attorney. This section applies only to claims presented and not denied prior to January 1, 1989, and to claims presented on or after January 1, 1989. (Added by Stats. 1988, Ch. 737, Sec. 1.)
  106. 2071.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    This section sets the California standard fire insurance policy and lists required policy terms, claim duties, exclusions, cancellation rules, appraisal steps, and suit deadlines.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2071. (a) The following is adopted as the standard form of fire insurance policy for this state: ## California Standard Form Fire Insurance Policy No. [Space for insertion of name of company or companies issuing the policy and other matter permitted to be stated at the head of the policy.] [Space for listing amounts of insurance, rates and premiums for the basic coverages insured under the standard form of policy and for additional coverages or perils insured under endorsements attached.] In consideration of the provisions and stipulations herein or added hereto and of ____ dollars premium this company, for the term of ________ from the ________ day of _______ , 20 _______ ⎫ At 12:01 a.m., to the __________ day of ________ , 20 ______ ⎭ standard time, at location of property involved, to an amount not exceeding ____ dollars, does insure ________ and legal representatives, to the extent of the actual cash value of the property at the time of loss, but not exceeding the amount which it would cost to repair or replace the property with material of like kind and quality within a reasonable time after the loss, without allowance for any increased cost of repair or reconstruction by reason of any ordinance or law regulating construction or repair, and without compensation for loss resulting from interruption of business or manufacture, nor in any event for more than the interest of the insured, against all LOSS BY FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE PERILS INSURED AGAINST IN THIS POLICY, EXCEPT AS HEREINAFTER PROVIDED, to the property described hereinafter while located or contained as described in this policy, or pro rata for five days at each proper place to which any of the property shall necessarily be removed for preservation from the perils insured against in this policy, but not elsewhere. Assignment of this policy shall not be valid except with the written consent of this company. This policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated, which are hereby made a part of this policy, together with any other provisions, stipulations and agreements as may be added hereto, as provided in this policy. IN WITNESS WHEREOF, this company has executed and attested these presents; but this policy shall not be valid unless countersigned by the duly authorized agent of this company at _____ _____ Secretary. _____ _____ President. Countersigned this day of , 20 _____ Agent ## Concealment, fraud This entire policy shall be void if, whether before or after a loss, the insured has willfully concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof, or the interest of the insured therein, or in case of any fraud or false swearing by the insured relating thereto. ## Uninsurable and excepted property This policy shall not cover accounts, bills, currency, deeds, evidences of debt, money or securities; nor, unless specifically named hereon in writing, bullion or manuscripts. ## Perils not included This company shall not be liable for loss by fire or other perils insured against in this policy caused, directly or indirectly, by: (a) enemy attack by armed forces, including action taken by military, naval or air forces in resisting an actual or an immediately impending enemy attack; (b) invasion; (c) insurrection; (d) rebellion; (e) revolution; (f) civil war; (g) usurped power; (h) order of any civil authority except acts of destruction at the time of and for the purpose of preventing the spread of fire, provided that the fire did not originate from any of the perils excluded by this policy; (i) neglect of the insured to use all reasonable means to save and preserve the property at and after a loss, or when the property is endangered by fire in neighboring premises; (j) nor shall this company be liable for loss by theft. ## Other insurance Other insurance may be prohibited or the amount of insurance may be limited by endorsement attached hereto. ## Conditions suspending or restricting insurance Unless otherwise provided in writing added hereto this company shall not be liable for loss occurring (a) while the hazard is increased by any means within the control or knowledge of the insured; or (b) while a described building, whether intended for occupancy by owner or tenant, is vacant or unoccupied beyond a period of 60 consecutive days; or (c) as a result of explosion or riot, unless fire ensues, and in that event for loss by fire only. ## Other perils or subjects Any other peril to be insured against or subject of insurance to be covered in this policy shall be by endorsement in writing hereon or added hereto. ## Added provisions The extent of the application of insurance under this policy and of the contribution to be made by this company in case of loss, and any other provision or agreement not inconsistent with the provisions of this policy, may be provided for in writing added hereto, but no provision may be waived except such as by the terms of this policy or by statute is subject to change. ## Waiver provisions No permission affecting this insurance shall exist, or waiver of any provision be valid, unless granted herein or expressed in writing added hereto. No provision, stipulation or forfeiture shall be held to be waived by any requirement or proceeding on the part of this company relating to appraisal or to any examination provided for herein. ## Cancellation of policy This policy shall be canceled at any time at the request of the insured, in which case this company shall, upon demand and surrender of this policy, refund the excess of paid premium above the customary short rates for the expired time. This policy may be canceled at any time by this company by giving to the insured a 20 days’ written notice of cancellation with or without tender of the excess of paid premium above the pro rata premium for the expired time, which excess, if not tendered, shall be refunded on demand. Notice of cancellation shall state that said excess premium (if not tendered) will be refunded on demand. If the reason for cancellation is nonpayment of premium, this policy may be canceled by this company by giving to the insured a 10 days’ written notice of cancellation. ## Mortgagee interests and obligations If loss hereunder is made payable, in whole or in part, to a designated mortgagee not named herein as the insured, the interest in this policy may be canceled by giving to the mortgagee a 10 days’ written notice of cancellation. If the insured fails to render proof of loss the mortgagee, upon notice, shall render proof of loss in the form herein specified within 60 days thereafter and shall be subject to the provisions hereof relating to appraisal and time of payment and of bringing suit. If this company shall claim that no liability existed as to the mortgagor or owner, it shall, to the extent of payment of loss to the mortgagee, be subrogated to all the mortgagee’s rights of recovery, but without impairing mortgagee’s right to sue; or it may pay off the mortgage debt and require an assignment thereof and of the mortgage. Other provisions relating to the interests and obligations of the mortgagee may be added hereto by agreement in writing. ## Pro rata liability This company shall not be liable for a greater proportion of any loss than the amount hereby insured shall bear to the whole insurance covering the property against the peril involved, whether collectible or not. ## Requirements in case loss occurs The insured shall give written notice to this company of any loss without unnecessary delay, protect the property from further damage, forthwith separate the damaged and undamaged personal property, put it in the best possible order, furnish a complete inventory of the destroyed, damaged and undamaged property, showing in detail quantities, costs, actual cash value and amount of loss claimed; and within 60 days after the loss, unless the time is extended in writing by this company, the insured shall render to this company a proof of loss, signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following: the time and origin of the loss, the interest of the insured and of all others in the property, the actual cash value of each item thereof and the amount of loss thereto, all encumbrances thereon, all other contracts of insurance, whether valid or not, covering any of said property, any changes in the title, use, occupation, location, possession or exposures of said property since the issuing of this policy, by whom and for what purpose any building herein described and the several parts thereof were occupied at the time of loss and whether or not it then stood on leased ground, and shall furnish a copy of all the descriptions and schedules in all policies and, if required and obtainable, verified plans and specifications of any building, fixtures or machinery destroyed or damaged. The insured, as often as may be reasonably required and subject to the provisions of Section 2071.1, shall exhibit to any person designated by this company all that remains of any property herein described, and submit to examinations under oath by any person named by this company, and subscribe the same; and, as often as may be reasonably required, shall produce for examinations all books of account, bills, invoices, and other vouchers, or certified copies thereof if the originals be lost, at any reasonable time and place as may be designated by this company or its representative, and shall permit extracts and copies thereof to be made. The insurer shall inform the insured that tax returns are privileged against disclosure under applicable law but may be necessary to process or determine the claim. The insurer shall notify every claimant that they may obtain, upon request, copies of claim-related documents. For purposes of this section, “claim-related documents” means all documents that relate to the evaluation of damages, including, but not limited to, repair and replacement estimates and bids, appraisals, scopes of loss, drawings, plans, reports, third-party findings on the amount of loss, covered damages, and cost of repairs, and all other valuation, measurement, and loss adjustment calculations of the amount of loss, covered damage, and cost of repairs. However, attorney work product and attorney-client privileged documents, and documents that indicate fraud by the insured or that contain medically privileged information, are excluded from the documents an insurer is required to provide pursuant to this section to a claimant. Within 15 calendar days after receiving a request from an insured for claim-related documents, the insurer shall provide the insured with copies of all claim-related documents, except those excluded by this section. Nothing in this section shall be construed to affect existing litigation discovery rights. After a covered loss, the insurer shall provide, free of charge, a complete, current copy of this policy within 30 calendar days of receipt of a request from the insured. The time period for providing this policy may be extended by the Insurance Commissioner. An insured who does not experience a covered loss shall, upon request, be entitled to one free copy of this policy annually. The policy provided to the insured shall include, where applicable, the policy declarations page. ## Appraisal In case the insured and this company shall fail to agree as to the actual cash value or the amount of loss, then, on the written request of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days of the request. Where the request is accepted, the appraisers shall first select a competent and disinterested umpire; and failing for 15 days to agree upon the umpire, then, on request of the insured or this company, the umpire shall be selected by a judge of a court of record in the state in which the property covered is located. Appraisal proceedings are informal unless the insured and this company mutually agree otherwise. For purposes of this section, “informal” means that no formal discovery shall be conducted, including depositions, interrogatories, requests for admission, or other forms of formal civil discovery, no formal rules of evidence shall be applied, and no court reporter shall be used for the proceedings. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this company shall determine the amount of actual cash value and loss. Each appraiser shall be paid by the party selecting him or her and the expenses of appraisal and umpire shall be paid by the parties equally. In the event of a government-declared disaster, as defined in the Government Code, appraisal may be requested by either the insured or this company but shall not be compelled. ## Adjusters If, within a six-month period, the company assigns a third or subsequent adjuster to be primarily responsible for a claim, the insurer, in a timely manner, shall provide the insured with a written status report. For purposes of this section, a written status report shall include a summary of any decisions or actions that are substantially related to the disposition of a claim, including, but not limited to, the amount of losses to structures or contents, the retention or consultation of design or construction professionals, the amount of coverage for losses to structures or contents and all items of dispute. ## Company’s options It shall be optional with this company to take all, or any part, of the property at the agreed or appraised value, and also to repair, rebuild or replace the property destroyed or damaged with other of like kind and quality within a reasonable time, on giving notice of its intention so to do within 30 days after the receipt of the proof of loss herein required. ## Abandonment There can be no abandonment to this company of any property. ## When loss payable The amount of loss for which this company may be liable shall be payable 60 days after proof of loss, as herein provided, is received by this company and ascertainment of the loss is made either by agreement between the insured and this company expressed in writing or by the filing with this company of an award as herein provided. ## Suit No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, and unless commenced within 12 months next after inception of the loss. If the loss is related to a state of emergency, as defined in subdivision (b) of Section 8558 of the Government Code, the time limit to bring suit is extended to 24 months after inception of the loss. ## Subrogation This company may require from the insured an assignment of all right of recovery against any party for loss to the extent that payment therefor is made by this company. (b) Any amendments to this section by the enactment of Senate Bill 658 of the 2001–02 Regular Session shall govern a policy utilizing the form provided in subdivision (a) when that policy is originated or renewed on or after January 1, 2002. (c) The amendments to this section made by the act adding this subdivision shall govern a policy utilizing the form provided in subdivision (a) when that policy is originated or renewed on or after January 1, 2004. (d) (1) The amendments to this section made by the act adding this subdivision govern a policy originated or renewed on or after the effective date of this act. (2) Notwithstanding paragraph (1), an insurer shall incorporate the revisions to the standard form of fire insurance policy made by the act adding this subdivision on or before July 1, 2019. (Amended by Stats. 2018, Ch. 639, Sec. 1. (AB 2594) Effective September 21, 2018.)
  107. 2071.1.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    This section limits examinations under oath of insureds and gives insureds specific rights, while requiring the insurer and department to do certain notice, disclosure, study, and reporting tasks.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2071.1. (a) This section applies to an examination of an insured under oath pursuant to Section 2071 labeled “Requirements in case loss occurs” and other relevant provisions of that section, and to any policy that insures property and contains a provision for examining an insured under oath, when the policy is originated or renewed on and after January 1, 2002. The following are among the rights of each insured who is requested to submit to an examination under oath: (1) An insurer that determines that it will conduct an examination under oath of an insured shall notify the insured of that determination and shall include a copy of this section in the notification. (2) An insurer may conduct an examination under oath only to obtain information that is relevant and reasonably necessary to process or investigate the claim. (3) An examination under oath may only be conducted upon reasonable notice, at a reasonably convenient place and for a reasonable length of time. (4) The insured may be represented by counsel and may record the examination proceedings in their entirety. (5) The insurer shall notify the insured that, upon request and free of charge, it will provide the insured with a copy of the transcript of the proceedings and an audio or video recording of the proceedings, if one exists. Where an insured requests a copy of the transcript, the recording, or both, of the examination under oath, the insurer shall provide it within 10 business days of receipt by the insurer or its counsel of the transcript, the recording, or both. An insured may make sworn corrections to the transcript so it accurately reflects the testimony under oath. (6) In an examination under oath, an insured may assert any objection that can be made in a deposition under state or federal law. However, if as a result of asserting an objection, an insured fails to provide an answer to a material question, and that failure prevents the insurer from being able to determine the extent of loss and validity of the claim, the rights of the insured under the contract may be affected. (7) An insured who submits a fraudulent claim may be subject to all criminal and civil penalties applicable under law. (b) The department shall conduct a study quantifying the number of examinations under oath performed by carriers regulated by the department and the number of contacts made by consumers regarding alleged concerns with the utilization of the examination under oath process for the resolution of pending claims. The department shall report both the number of examinations under oath performed by each carrier and the number of justified and unjustified claims alleged by insureds as defined in this code. To the best extent practicable, the department shall also determine if any of these complaints also resulted in suspected fraudulent claims with the department’s fraud division. (c) The department shall also survey licensed carriers as to the number of suspected fraudulent claims under residential property insurance policies that are submitted to the department’s fraud division as required by law, and that resulted, or eventually resulted, in the utilization of the examination under oath process. Policies of residential property insurance shall be as defined in Section 10087. (d) The department shall submit the findings of this report to the chairpersons of the Assembly and Senate Committees on Insurance no later than March 1, 2003. (Amended by Stats. 2009, Ch. 88, Sec. 70. (AB 176) Effective January 1, 2010.)
  108. 2072.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    This section says the policy does not have to be used for reinsurance between insurers.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2072. The policy is not required to be used for reinsurance between insurers. (Repealed and added by Stats. 1949, Ch. 556.)
  109. 2073.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Fire insurance policies must be plainly printed and use minimum type-size and legibility standards.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2073. The policy shall be plainly printed. The type shall not be smaller than eight-point and in a style not less legible than Century and subheads shall be in type larger than eight-point and in a style not less legible than Century. The lines of the policy following the countersignature clause shall be numbered consecutively. (Amended by Stats. 1953, Ch. 182.)
  110. 2074.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    The standard fire insurance form and any attached endorsement must have their blanks filled appropriately; the first page or an attached endorsement may use a schedule form to list insurance amounts, rates, premiums, and related data.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2074. Either the blanks in the standard form or those in an endorsement attached thereto shall be appropriately filled. The first page of the policy or an endorsement attached thereto may be arranged to show in schedule form the amounts of insurance, rates and premiums for the basic coverages insured under the standard form of policy and additional coverages or perils insured under endorsements attached, and such other data as may be conveniently included for duplication on daily reports for office records. If such a schedule clearly shows the amount at risk, the rate, and the premium in respect of fire insurance, the words, “the above specified” may be inserted in the blanks preceding the word “dollars” in the two places in which “dollars” appears in that portion of the standard form which precedes the countersignature clause, or in identical blanks in an endorsement attached to the standard form and containing the paragraph in the standard form in which the blanks appear. (Amended by Stats. 1949, Ch. 556.)
  111. 2074.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    The standard form fire insurance policy may state the coverage term in any clear form, and the period must start and end on specified dates at 12:01 a.m. standard time at the property location.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2074.5. In lieu of showing the term of coverage in the form set forth in Section 2071, the standard form policy may show the term in any form which clearly states the period during which the insurance is to continue. The period shall begin and end on specified dates at 12:01 a.m. standard time, at the location of the property involved. An example of a permissible method of showing the term is: “______ for the term of At 12:01 a.m. from (Standard Time) to At 12:01 a.m. (Standard Time) at location of property involved, ______” (Amended by Stats. 1971, Ch. 1564.)
  112. 2074.6.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    A standard fire insurance policy may use specified attestation wording instead of the Section 2071 attestation clause and signatures, but the policy is not valid unless a duly authorized agent countersigns it.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2074.6. In lieu of showing the attestation clause and official signatures in the form as set forth in Section 2071, the standard form policy may show, immediately following the policy provisions, the following: “In witness whereof, this company has executed and attested these presents; but this policy shall not be valid unless countersigned by the duly authorized agent of this company at the agency hereinbefore mentioned. Secretary President” (Added by Stats. 1953, Ch. 182.)
  113. 2074.7.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    The commissioner may issue orders that limit insurers’ ability to cancel certain fire insurance policies, but not the insured’s cancellation right.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2074.7. Notwithstanding the provisions of Section 2071 granting the right to both insured and insurer to cancel a policy of insurance, or the provisions of any policy conforming to that section, the right of the insurer, but not that of the insured, to so cancel shall be subject to modification by written general order or orders of the commissioner, if: (1) the property insured is in the State of California; (2) the insurance policy contains any “basic property insurance” as that term is defined in Chapter 9 (commencing with Section 10090) of Part 1, Division 2 of this code; and (3) the property insured is, on the date of the order or orders of the commissioner, within any geographic area to which any “Fair Plan” approved by the commissioner pursuant to that chapter is applicable. The commissioner’s order or orders may deny to insurers the right to cancel those policies on less than 60 days’ notice, or on a lesser number of days of notice that the commissioner may designate, except that the number of days of notice may not be less than 20. The commissioner’s order or orders shall apply uniformly to all insurers having those policies outstanding in all or any designated portions of such a geographic area. This section, and any order of the commissioner, shall not be effective as to any policy unless the property insured therein is then within a geographic area to which a “Fair Plan” is applicable. The orders of the commissioner may contain generally applicable exceptions of certain types of properties, certain types of policies, policies solicited in a particular manner, or policies obtained upon particular representations of the insured. The orders shall except policies upon which premiums or premium installments have not been paid in accordance with the agreement of the insured, whether payable directly to the insurer or its agent, or indirectly under any premium finance plan or plans for the extension of credit. No order shall be adopted by the commissioner pursuant to this section unless he or she has determined that the order is reasonably necessary to carry out the provisions of a “Fair Plan”. (Amended by Stats. 2003, Ch. 148, Sec. 3. Effective January 1, 2004.)
  114. 2074.8.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    This section lets the policy’s cancellation clause be replaced in certain fire policies and sets the cancellation notice and refund rules.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2074.8. Notwithstanding any of the other provisions of Sections 2071 and 6010, those paragraphs in Sections 2071 and 6010 captioned “Cancellation of policy” may, in any policy subject to Chapter 11 (commencing with Section 675) of Part 1 of Division 1, have that paragraph in the text of the policy stricken or changed by endorsement and the following paragraph substituted therefor: “This policy shall be canceled at any time at the request of the insured, in which case this company shall, upon demand and surrender of the policy, refund the excess of paid premiums above the customary short rate for the expired time. This policy may be canceled by this company by written notice mailed or delivered to the named insured at the address shown in the policy, with or without tender of the excess of paid premiums above the pro rata premiums for the expired time, stating when, not less than 20 days after that mailing or delivery, cancellation shall be effective. Notice of cancellation shall state that the excess premiums, if not tendered, will be refunded on demand, and contain those matters that are required to comply with Chapter 11 (commencing with Section 675) of Part 1 of Division 1.” (Amended by Stats. 2003, Ch. 148, Sec. 4. Effective January 1, 2004.)
  115. 2074.9.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    When countersignatures are not legally required, an insurer may leave out the Section 2071 countersignature provisions from its policies.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2074.9. During such time as countersignatures are not required by law, the provisions of Section 2071 requiring policies to make provision for countersignatures shall not be in effect and an insurer may omit such provisions from its policies. (Added by Stats. 1969, Ch. 506.)
  116. 2075.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    A special agreement added to or indorsed on the policy may waive appraisement or apportionment of loss, and may set the value of insured property in advance for a total loss.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2075. By special agreement indorsed on the policy or added thereto, the provisions regarding appraisement or apportionment of loss may be waived and the valuations of all or any of the insured subject matter in case of total loss may be agreed upon in advance of loss. (Enacted by Stats. 1935, Ch. 145.)
  117. 2076.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    The insurer may add certain information to the standard fire insurance form.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2076. The insurer may add to the standard form any matter relating to its financial condition, directors, officers, shareholders and history, and the address of its home office and principal office in the United States. (Enacted by Stats. 1935, Ch. 145.)
  118. 2077.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    The insurer may add red-ink provisions to the standard fire insurance form if those provisions are required or allowed in its policies by the State or country where it is organized.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2077. The insurer may add to the standard form, in red ink, any provisions required or permitted in its policies by the State or country of its organization, respecting limitation of liability of the insurer, its shareholders or members. (Enacted by Stats. 1935, Ch. 145.)
  119. 2078.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Clauses may be added to the standard fire policy form to define the rights, duties, and obligations of mortgagees, assignees, and other parties with an interest in the insured property.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2078. There may be added to the standard form, clauses providing for and defining the rights, duties and obligations of mortgagees, assignees and other parties having or acquiring an interest in, right to, or lien upon the insured subject matter. (Enacted by Stats. 1935, Ch. 145.)
  120. 2079.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    The standard fire insurance form may be supplemented with added clauses, including clauses covering additional risks, but nuclear-related loss or damage can be insured only by a written endorsement attached to the policy.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2079. Clauses may be added to the standard form: (a) Covering subject matter and risks not otherwise covered; provided that clauses covering loss or damage caused by nuclear reaction, nuclear radiation or radioactive contamination, all whether directly or indirectly resulting from an insured peril under the standard policy issued pursuant to Section 2071 may be insured under said policy only by a written endorsement providing such insurance, with such endorsement affixed to said standard policy. (b) Assuming greater liability than is otherwise imposed on the insurer. (c) Granting insured permits and privileges not otherwise provided. (d) Waiving any of the matters which may be waived and which avoid the policy or suspend the insurance. (e) Waiving any of the requirements imposed on the insured after loss. (f) As provided in Section 3047. (Amended by Stats. 1959, Ch. 1101.)
  121. 2080.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Some clauses may be attached to the standard fire insurance policy form if this article does not provide otherwise.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2080. Except as otherwise provided in this article, clauses imposing specified duties and obligations upon the insured and limiting the liability of the insurer may be attached to the standard form. Such clauses shall be in the rider or riders attached to the standard form of policy and shall be in type as provided in Section 2073. (Amended by Stats. 1982, Ch. 124, Sec. 2.)
  122. 2081.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    If a fire policy clause or rider limits liability for fire losses tied to hurricanes, volcanic action, or similar disturbances, the clause and a warning statement must be printed in the specified red/bold format. The section also says an insurer may not limit coverage for fire losses caused by or following an earthquake.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2081. Whenever a clause is inserted, or rider attached, affecting the standard form liability of the insurer for loss or damage by fire occasioned either directly or indirectly by hurricane, volcanic action or other disturbance of nature, the clause or rider shall be printed in red ink in type larger than small pica and at the head of the policy there shall be printed in red ink and in large boldfaced type the words, “This policy contains limitations of liability not permitted in the California standard form.” Nothing in this section exempts an insurer from, or permits an insurer to limit, its liability or obligation under a fire insurance policy to cover the losses from a fire that is caused by, or follows, an earthquake. (Amended by Stats. 1991, Ch. 665, Sec. 1. Effective October 9, 1991.)
  123. 2082.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Insurers that are not corporations and issue policies on subject matter in California must use the standard form, with only limited wording changes allowed.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2082. Any insurers, other than corporations, issuing policies on subject matter in California, shall use the standard form, changing only such words as refer to the corporation or company, to officers or agents of the corporation or company, or to its organization. Such other insurers may substitute, in place of the words having peculiar reference to corporations, appropriate words having similar reference to themselves. (Enacted by Stats. 1935, Ch. 145.)
  124. 2082.5.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    If an insurer has no president or secretary in the United States, the standard form may be signed by facsimile from its principal executive officer or manager residing in the United States.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2082.5. Where an insurer has no president or secretary in the United States, the facsimile signature on the standard form may be that of its principal executive officer or manager residing within the United States. (Added by Stats. 1950, 1st Ex. Sess., Ch. 5.)
  125. 2083.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    An insurer or agent must not countersign or issue a California fire policy that varies from the California standard form unless the article allows it.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2083. It is a misdemeanor for any insurer or any agent to countersign or issue a fire policy covering in whole or in part property in California and varying from the California standard form of policy otherwise than as provided by this article. Any policy so issued shall, notwithstanding, be binding upon the issuing insurer. (Enacted by Stats. 1935, Ch. 145.)
  126. 2084.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    Insurers must give insureds a free copy of the policy after a covered loss, and certain insureds can get one free copy annually on request.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2084. (a) After a covered loss under a policy covered by Section 2071, an insurer shall provide to the insured, free of charge, a complete copy of the policy that was in effect at the time of the loss within 30 calendar days of receipt of a request from the insured. The time period for providing the policy may be extended by the Insurance Commissioner. The policy provided to the insured shall include, where applicable and without limitation, the full insurance policy, any endorsements to the policy, and the policy declarations page. (b) An insured under a policy covered by Section 2071 who does not experience a covered loss shall, upon request, be entitled to one free copy of his or her policy annually. The policy provided to the insured shall include, where applicable and without limitation, the full insurance policy, any endorsements to the policy, and the policy declarations page. (c) (1) An insurer responding to a request made pursuant to subdivision (a) for a covered loss that was the result of a state of emergency, as defined in Section 8558 of the Government Code, may, and an insurer compliant with the electronic transaction requirements of Section 38.6 shall, upon the request of an insured who has not elected to receive electronic documents pursuant to Section 38.6, transmit or provide access to an electronic copy of the entire policy. Section 38.6 shall not apply to transmitting or providing access to a policy pursuant to this paragraph. (2) A request of an insured pursuant to paragraph (1) does not constitute a request to participate in electronic transactions or communications for any purpose other than receiving the documents described in this section. (Amended by Stats. 2018, Ch. 69, Sec. 1. (AB 1799) Effective January 1, 2019.)
  127. 2085.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. )

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    After a declared disaster, the commissioner must send certain property information to insurers on request, and affected insurers must reply within 90 days, free of charge, unless they determine they did not issue a policy for the property.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. California Standard Form Fire Insurance Policy [2070 - 2085] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 2085. (a) (1) In the case of a declaration of a disaster by the President of the United States or the Governor, if a property owner or owner’s legal representative is unable to identify the insurer of the owner’s property that is located in the declared disaster area, the commissioner shall, at the request of the property owner or owner’s legal representative, electronically provide the property owner’s name, any contact information provided to the commissioner, and property location information to insurers that issue homeowners’ insurance policies subject to Section 2071. (2) The commissioner or an insurer may conclusively presume that a request submitted pursuant to paragraph (1) is a bona fide request from the property owner or owner’s legal representative. Information transmitted to the commissioner or an insurer pursuant to this section shall, within the meaning of subdivision (b) of Section 1798.24 of the Civil Code, constitute information provided with the voluntary written consent of the person transmitting the information and shall authorize the commissioner or an insurer to provide the information to others in accordance with this section. No reasonable expectation of privacy shall exist for the information provided to the commissioner or an insurer pursuant to this section and no cause of action shall arise nor shall any liability be imposed against the commissioner or an insurer, the commissioner’s or an insurer’s authorized representatives, or any department or insurer employee for statements made or conduct performed in good faith while carrying out the provisions of this section. (3) Communication between a property owner or owner’s legal representative and the commissioner, and between the commissioner and insurers, shall not constitute the filing of a claim. (b) An insurer that issues homeowners’ insurance policies subject to Section 2071 shall provide the commissioner with an email address for accepting an electronic transmission from the commissioner pursuant to subdivision (a). (c) (1) An insurer that issues homeowners’ insurance policies subject to Section 2071 shall respond to the property owner or owner’s legal representative within 90 days after receiving a transmission pursuant to subdivision (a) and shall indicate if the insurer issued a homeowners’ insurance policy on the property located in the disaster area and identified in the commissioner’s communication that was in force at the time that the disaster occurred. An insurer’s response to the property owner or owner’s legal representative pursuant to this paragraph shall not be an acknowledgment of a claim, and shall not constitute an admission of coverage under any policy for any loss. (2) Notwithstanding paragraph (1), neither the department nor the insurer shall be required to respond to a property owner or the owner’s legal representative if the insurer determines that it did not issue a policy for the property. (3) A response by an insurer to the property owner or the owner’s legal representative pursuant to paragraph (1) shall be provided free of charge. (Added by Stats. 2017, Ch. 361, Sec. 1. (SB 569) Effective January 1, 2018.)
  128. 2095.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Reduced Wildfire Risk [2095 - 2097] ( Article 5 added by Stats. 2025, Ch. 472, Sec. 1. )

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    This section states legislative findings and intent about reducing wildfire risk and encouraging more home-hardening measures in California insurance regulations.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Reduced Wildfire Risk [2095 - 2097] ( Article 5 added by Stats. 2025, Ch. 472, Sec. 1. ) ## 2095. The Legislature finds and declares all of the following: (a) More than 2,000,000 California households, or approximately one in four residential structures in California, are located within or near “high” or “very high” fire hazard severity zones. These households are particularly vulnerable to increasingly catastrophic wildfires that pose urgent threats to lives, property, and resources in California. (b) The state has invested nearly three billion dollars ($3,000,000,000) since the Budget Act of 2019 into programs and projects to improve forest health and resilience, create fuel breaks, harden homes and communities, and build resilient lifeline infrastructure to withstand wildfire disasters when they do occur. (c) Chapter 391 of the Statutes of 2019, which created the California Wildfire Mitigation Program jointly administered by the Office of Emergency Services and the Department of Forestry and Fire Protection, recognized that “California must develop statewide options to encourage cost-effective structure hardening to create fire-resistant homes, businesses, and public buildings within wildfire hazard areas and with a focus on vulnerable communities.” (d) State support for home hardening incentive programs is especially critical now. California residents are finding homeowners’ insurance in very high risk fire areas to be increasingly difficult and costly to obtain, if coverage is even available. The Department of Insurance determined that the majority of nonrenewals, refusals to insure, and increased premiums resulted from insurers’ use of wildfire risk models that do not account for wildfire risk reduction or home hardening measures completed by the homeowner or community. (e) On September 21, 2023, Governor Newsom issued Executive Order No. N-13-23 asking the Insurance Commissioner to take “prompt regulatory action to strengthen and stabilize California’s marketplace for homeowners insurance and commercial property insurance,” including maintaining “the long-term availability of homeowners and commercial property insurance coverage.” (f) Regular review of and updates to the Department of Insurance’s Safer from Wildfires regulations will advance these goals. The Safer from Wildfires regulations incentivize homeowners to invest in specified wildfire risk reduction and home hardening measures by requiring admitted insurers to reflect and take into account these measures in their ratings plans. The voluntary home hardening measures included in the Safer from Wildfires regulations provide a higher level of fire protection than what is otherwise required by state law and help contain the spread of wildfires, reduce property damage, save lives, and encourage insurance companies to remain committed to the California insurance market. (g) It is the intent of the Legislature to further incentivize homeowners to invest in demonstrably effective home hardening measures by requiring the Department of Insurance to periodically review its Safer from Wildfires regulations and consider whether or not to amend the regulations to include additional communitywide mitigation programs and building hardening measures, including use of specified noncombustible construction materials that are included by the Office of the State Fire Marshal on the Building Materials Listing. Noncombustible construction materials, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations), provide the highest level of fire safety among materials included on the Building Materials Listing because these materials do not ignite, even when exposed to high temperatures for extended periods of time. Use of noncombustible construction materials is an effective means of reducing fire-related property damage and the contribution of structures to the spread of wildfires. (h) The Building Materials Listing includes construction materials that have been tested and analyzed by a laboratory accredited by the Office of the State Fire Marshal to confirm the materials meet established performance and reliability features. (Added by Stats. 2025, Ch. 472, Sec. 1. (AB 1) Effective January 1, 2026.)
  129. 2096.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Reduced Wildfire Risk [2095 - 2097] ( Article 5 added by Stats. 2025, Ch. 472, Sec. 1. )

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    This section defines “Building Materials Listing” and “Safer from Wildfires regulations” for use in this article.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Reduced Wildfire Risk [2095 - 2097] ( Article 5 added by Stats. 2025, Ch. 472, Sec. 1. ) ## 2096. For purposes of this article: (a) “Building Materials Listing” means the list of construction materials and equipment biennially prepared by the Office of the State Fire Marshal pursuant to Section 13144.1 of the Health and Safety Code as part of the Office of the State Fire Marshal’s Building Materials Listing Program. (b) “Safer from Wildfires regulations” means the regulations set forth in Section 2644.9 of Title 10 of California Code of Regulations. (Added by Stats. 2025, Ch. 472, Sec. 1. (AB 1) Effective January 1, 2026.)
  130. 2097.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Reduced Wildfire Risk [2095 - 2097] ( Article 5 added by Stats. 2025, Ch. 472, Sec. 1. )

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    The department must periodically consider updates to the Safer from Wildfires regulations, consult specified agencies and stakeholders, provide public participation, and start rulemaking within 30 days after publishing a final list if it makes one public.

    ## Insurance Code - INS ## DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.8] ( Division 2 enacted by Stats. 1935, Ch. 145. ) ## PART 1. FIRE AND MARINE INSURANCE [1880 - 10108.1] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. The Fire Insurance Contract [2030 - 2097] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Reduced Wildfire Risk [2095 - 2097] ( Article 5 added by Stats. 2025, Ch. 472, Sec. 1. ) ## 2097. (a) (1) On or before January 1, 2030, and every five years thereafter, the department shall consider whether to update the Safer from Wildfires regulations to include additional building hardening measures for property-level mitigation efforts and communitywide wildfire mitigation programs. (2) If the department updates the Safer from Wildfires regulations, it shall, as a part of its first consideration, consider whether to update these regulations to include in the regulations the installation of construction materials included by the Office of the State Fire Marshal on the Building Materials Listing or in compliance with the most recent provisions of Chapter 7A of the California Building Standards Code. (b) As part of its consideration pursuant to subdivision (a), the department shall do both of the following: (1) Consult with the Office of Emergency Services, the Department of Forestry and Fire Protection, the Public Utilities Commission, and the Office of Planning and Research to identify additional building hardening measures for property-level mitigation efforts and communitywide wildfire mitigation programs to consider. (2) Consult with relevant stakeholders to consider potential revisions to the Safer from Wildfires regulations. (3) Develop and implement a process that allows for meaningful public participation that includes, at a minimum, all of the following: (A) Holding at least one public meeting to allow interested persons to submit suggestions for additional building hardening measures for property-level mitigation efforts and communitywide wildfire mitigation programs for the department to consider. (B) Making available for public review and comment, including during at least one public meeting, a preliminary list of building hardening measures for property-level mitigation efforts and communitywide wildfire mitigation programs being considered by the department for inclusion in the Safer from Wildfires regulations. (C) Making available to the public a final list of building hardening measures for property-level mitigation efforts and communitywide wildfire mitigation programs the department proposes to include in the list of building hardening measures identified in the Safer from Wildfires regulations before amending the regulations pursuant to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (c) If the department makes public a final list of building hardening measures for property-level mitigation efforts and communitywide wildfire mitigation programs to be included in the list of building hardening measures identified in the Safer from Wildfires regulations pursuant to subparagraph (C) of paragraph (3) of subdivision (b), the department shall initiate the Administrative Procedure Act rulemaking process to amend the Safer from Wildfires regulations within 30 days of publishing the final list. (Added by Stats. 2025, Ch. 472, Sec. 1. (AB 1) Effective January 1, 2026.)
  131. 21.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    In this section, “Division” and “department” mean the Department of Insurance of this state.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 21. “Division,” and “department,” in reference to the government of this state, mean the Department of Insurance of this state. (Amended by Stats. 1990, Ch. 1239, Sec. 4.)
  132. 21.5.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    The section defines the administrative law bureau and requires certain appointed administrative law judges to work in it and not be directly or indirectly supervised by the commissioner or legal-branch employees.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 21.5. (a) “Administrative law bureau” or “administrative hearing bureau” means the unit within the Department of Insurance that provides administrative hearings. (b) An administrative law judge appointed by the commissioner pursuant to civil service rules shall be employed within the administrative law bureau and shall not be supervised directly by the commissioner or supervised directly or indirectly by an employee in the legal branch of the department. (Added by Stats. 2002, Ch. 709, Sec. 1. Effective January 1, 2003.)
  133. 22.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines insurance as a contract to indemnify another person against loss, damage, or liability from a contingent or unknown event.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 22. Insurance is a contract whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event. (Enacted by Stats. 1935, Ch. 145.)
  134. 23.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines who is the insurer and who is the insured under insurance.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 23. The person who undertakes to indemnify another by insurance is the insurer, and the person indemnified is the insured. (Enacted by Stats. 1935, Ch. 145.)
  135. 24.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    “Admitted” means a person is allowed to transact insurance business in the state only after meeting the legal conditions. The commissioner may not revoke or suspend the State Compensation Insurance Fund’s authority to transact workers’ compensation insurance.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 24. “Admitted,” in relation to a person, means entitled to transact insurance business in this state, having complied with the laws imposing conditions precedent to transaction of such business. The State Compensation Insurance Fund shall be deemed to be admitted pursuant to authority to transact workers’ compensation insurance granted by the Legislature. The commissioner shall not revoke or suspend the State Compensation Insurance Fund’s authority to transact workers’ compensation insurance. (Amended by Stats. 2006, Ch. 740, Sec. 1. Effective January 1, 2007.)
  136. 25.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    “Nonadmitted” means a person is not entitled to transact insurance business in this State.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 25. “Nonadmitted,” in relation to a person, means not entitled to transact insurance business in this State, whether by reason of failure to comply with conditions precedent thereto, or by reason of inability so to comply. (Enacted by Stats. 1935, Ch. 145.)
  137. 250.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    Certain contingent or unknown events may be insured against, unless this article says otherwise.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 250. Except as provided in this article, any contingent or unknown event, whether past or future, which may damnify a person having an insurable interest, or create a liability against him, may be insured against, subject to the provisions of this code. (Enacted by Stats. 1935, Ch. 145.)
  138. 251.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A lottery and its outcome may not be insured against.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 251. A lottery or its outcome shall not be insured against. (Enacted by Stats. 1935, Ch. 145.)
  139. 252.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A policy made by gaming or wagering is void.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 252. A policy executed by way of gaming or wagering, is void. (Enacted by Stats. 1935, Ch. 145.)
  140. 253.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An insurer may not issue or amend insurance contracts in California to cover damages awarded under Section 1029.8 of the Code of Civil Procedure, on and after January 1, 1986.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 3. Events Subject to Insurance [250 - 253] ( Article 3 enacted by Stats. 1935, Ch. 145. ) ## 253. On and after January 1, 1986, no insurer shall issue or amend contracts of insurance in this state to provide coverage for the payment of any damages awarded to a person because of Section 1029.8 of the Code of Civil Procedure. (Added by Stats. 1985, Ch. 895, Sec. 2.)
  141. 26.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    “Domestic” means organized under the laws of this State, whether or not admitted.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 26. “Domestic” means organized under the laws of this State, whether or not admitted. (Enacted by Stats. 1935, Ch. 145.)
  142. 27.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    “Foreign” means not organized under the laws of this State, even if admitted.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 27. “Foreign” means not organized under the laws of this State, whether or not admitted. (Enacted by Stats. 1935, Ch. 145.)
  143. 28.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    “State” means California, unless the term is used to refer to the different parts of the United States, in which case it also includes the District of Columbia, the commonwealths, and the territories.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 28. “State” means the State of California, unless applied to the different parts of the United States. In the latter case, it includes the District of Columbia, the commonwealths and the territories. (Amended by Stats. 1965, Ch. 373.)
  144. 280.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If the insured has no insurable interest, the insurance contract is void.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 280. If the insured has no insurable interest, the contract is void. (Enacted by Stats. 1935, Ch. 145.)
  145. 281.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An interest in property, or a related liability or relationship, counts as an insurable interest if a contemplated peril could directly harm the insured.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 281. Every interest in property, or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured, is an insurable interest. (Enacted by Stats. 1935, Ch. 145.)
  146. 282.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An insurable interest in property may be an existing interest, an inchoate interest based on an existing interest, or an expectancy tied to an existing interest.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 282. An insurable interest in property may consist in: 1. An existing interest; 2. An inchoate interest founded on an existing interest; or, 3. An expectancy, coupled with an existing interest in that out of which the expectancy arises. (Enacted by Stats. 1935, Ch. 145.)
  147. 283.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A mere contingent or expectant interest is not insurable unless it is based on an actual right to the thing or a valid contract for it.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 283. A mere contingent or expectant interest in anything, not founded on an actual right to the thing, nor upon any valid contract for it, is not insurable. (Enacted by Stats. 1935, Ch. 145.)
  148. 284.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    The provision says an insured’s insurable interest in property is measured by how much the insured would be harmed by loss or injury, except when the property is held by the insured as a carrier or depositary.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 284. Except in the case of a property held by the insured as a carrier or depositary, the measure of an insurable interest in property is the extent to which the insured might be damnified by loss or injury thereof. (Enacted by Stats. 1935, Ch. 145.)
  149. 285.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A carrier or depositary may have an insurable interest in property they hold, up to the property's value.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 285. A carrier or depositary of any kind has an insurable interest in a thing held by him as such, to the extent of its value. (Enacted by Stats. 1935, Ch. 145.)
  150. 286.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    An insurable interest must exist at the required time: property insurance requires it when coverage starts and when loss occurs, while life or health insurance requires it when coverage starts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 286. An interest in property insured must exist when the insurance takes effect, and when the loss occurs, but need not exist in the meantime; an interest in the life or health of a person insured must exist when the insurance takes effect, but need not exist thereafter or when the loss occurs. (Amended by Stats. 1935, Ch. 308.)
  151. 287.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A policy term requiring payment of loss regardless of whether the insured has an interest in the property, or treating the policy itself as proof of that interest, is void.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 4. Insurable Interest: Generally [280 - 287] ( Article 4 enacted by Stats. 1935, Ch. 145. ) ## 287. Every stipulation in a policy of insurance for the payment of loss whether the person insured has or has not any interest in the property insured, or that the policy shall be received as proof of such interest, is void. (Enacted by Stats. 1935, Ch. 145.)
  152. 29.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines “mortgage,” “mortgagor,” “mortgagee,” and “lien” to include certain trust deed-related roles and interests.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 29. “Mortgage” includes a trust deed, “mortgagor” includes a trustor under such trust deed, “mortgagee” includes a beneficiary under such trust deed, or a trustee exercising powers or performing duties granted to or imposed upon him thereunder, and “lien” in respect to real or personal property includes a charge or incumbrance arising out of a trust deed. (Enacted by Stats. 1935, Ch. 145.)
  153. 3.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    People who already hold an office under a repealed act keep that office if this code continues it.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 3. All persons who, at the time this code goes into effect, hold office under any of the acts repealed by this code, which offices are continued by this code, continue to hold the same according to the former tenure thereof. (Enacted by Stats. 1935, Ch. 145.)
  154. 30.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    This section defines “resident” as a person residing in this State and “nonresident” as a person not residing in this State.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 30. “Resident” means residing in this State, “nonresident” means not residing in this State. (Enacted by Stats. 1935, Ch. 145.)
  155. 300.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    If the insured interest changes without a matching change in the insurance, the insurance is suspended to that extent until both interests are held by the same person, except in the next four sections and for life or disability insurance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 300. Except in the cases specified in the next four sections, and in the cases of life and disability insurance, a change of interest in any part of a subject insured, unaccompanied by a corresponding change of interest in the insurance, suspends the insurance to an equivalent extent until the interest in the subject and the interest in the insurance are vested in the same person. (Enacted by Stats. 1935, Ch. 145.)
  156. 301.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A later change in the insured interest does not defeat the insured’s right to indemnity for a loss after injury.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 301. A change of interest in a subject insured, after the occurrence of an injury which results in a loss, does not affect the right of the insured to indemnity for the loss. (Enacted by Stats. 1935, Ch. 145.)
  157. 302.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. )

    Verify source ↗

    A change of interest in one or more separately insured subjects does not void the policy as to the others.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 302. A change of interest in one or more of several distinct subjects, separately insured by one policy, does not avoid the insurance as to the others. (Enacted by Stats. 1935, Ch. 145.)
  158. 303.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    A change of interest by will or succession after the insured’s death does not void the insurance, and the insurance interest passes to the person who takes the insured subject matter.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 303. A change of interest by will or succession, on the death of the insured, does not avoid insurance; and his interest in the insurance passes to the person taking his interest in the subject matter insured. (Enacted by Stats. 1935, Ch. 145.)
  159. 304.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    If jointly insured partners, joint owners, or common owners transfer an interest to one another, the insurance is not avoided, even if the policy says it should end on alienation.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 304. In the case of partners, joint owners, or owners in common, who are jointly insured, a transfer of interest by one to another thereof does not avoid insurance, even though it has been agreed that the insurance shall cease upon an alienation of the subject insured. (Enacted by Stats. 1935, Ch. 145.)
  160. 305.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. )

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    If the insured property is transferred, the insurance does not transfer with it and is suspended until one person owns both the insurance and the insured property.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 2. Parties, Events, and Interests [150 - 305] ( Chapter 2 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 5. Insurable Interest: Effect of Transfer [300 - 305] ( Article 5 enacted by Stats. 1935, Ch. 145. ) ## 305. The mere transfer of subject matter insured does not transfer the insurance, but suspends it until the same person becomes the owner of both the insurance and the subject matter insured. (Enacted by Stats. 1935, Ch. 145.)
  161. 31.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section defines “insurance agent” as a person authorized to transact most kinds of insurance for an insurer, excluding life, disability, and health insurance.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 31. “Insurance agent” means a person authorized, by and on behalf of an insurer, to transact all classes of insurance other than life, disability, or health insurance, on behalf of an admitted insurance company. (Amended by Stats. 2010, Ch. 400, Sec. 1. (AB 2782) Effective January 1, 2011.)
  162. 32.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section defines a life and accident and health or sickness licensee and says certain life-agent licenses must match the types listed in another section. It also allows a life agent to be authorized to transact 24-hour care coverage if the cited requirements are met.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 32. (a) A life and accident and health or sickness licensee is a person authorized to act as a life agent on behalf of a life insurer or a disability insurer to transact any of the following: (1) Life insurance. (2) Accident and health or sickness insurance. (3) Life and accident and health or sickness insurance. (b) Licenses to act as a life agent under this chapter shall be of the types as set forth in Section 1626. (c) A life agent may be authorized to transact 24-hour care coverage, as defined in Section 1749.02, pursuant to the requirements of subdivision (b) of Section 1749.33. (Amended by Stats. 2025, Ch. 566, Sec. 1. (AB 943) Effective January 1, 2026.)
  163. 32.5.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section defines “life and disability insurance analyst” as a person paid by someone other than an insurer who advises, or offers to advise, people about a life or disability insurance contract or their rights under it.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 32.5. “Life and disability insurance analyst” means a person who, for a fee or compensation of any kind, paid by or derived from any person or source other than an insurer, advises, purports to advise, or offers to advise any person insured under, named as beneficiary of, or having any interest in, a life or disability insurance contract, in any manner concerning that contract or his or her rights in respect thereto. (Amended by Stats. 1983, Ch. 962, Sec. 1.)
  164. 33.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    An insurance broker is defined as a person who, for compensation and on behalf of another person, transacts non-life, non-disability, and non-health insurance with an insurer, but not on behalf of the insurer.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 33. “Insurance broker” means a person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health with, but not on behalf of, an insurer. (Amended by Stats. 2010, Ch. 400, Sec. 2. (AB 2782) Effective January 1, 2011.)
  165. 33.5.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section defines “casualty broker-agent” and “property broker-agent” as persons licensed under Section 1625.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 33.5. (a) “Casualty broker-agent” means a person licensed pursuant to Section 1625. (b) “Property broker-agent” means a person licensed pursuant to Section 1625. (Amended by Stats. 2011, Ch. 411, Sec. 1. (AB 1416) Effective January 1, 2012.)
  166. 330.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    A party’s failure to communicate information it knows and ought to communicate is concealment.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 330. Neglect to communicate that which a party knows, and ought to communicate, is concealment. (Enacted by Stats. 1935, Ch. 145.)
  167. 331.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    If concealment occurs, whether intentional or unintentional, the injured party may rescind the insurance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 331. Concealment, whether intentional or unintentional, entitles the injured party to rescind insurance. (Enacted by Stats. 1935, Ch. 145.)
  168. 332.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Each party to an insurance contract must tell the other party, in good faith, all material facts it knows that it has no warranty for and that the other party cannot readily find out.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 332. Each party to a contract of insurance shall communicate to the other, in good faith, all facts within his knowledge which are or which he believes to be material to the contract and as to which he makes no warranty, and which the other has not the means of ascertaining. (Enacted by Stats. 1935, Ch. 145.)
  169. 333.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    In an insurance contract, neither party has to disclose the listed information unless the other party asks.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 333. Neither party to a contract of insurance is bound to communicate information of the matters following, except in answer to the inquiries of the other: 1. Those which the other knows. 2. Those which, in the exercise of ordinary care, the other ought to know, and of which the party has no reason to suppose him ignorant. 3. Those of which the other waives communication. 4. Those which prove or tend to prove the existence of a risk excluded by a warranty, and which are not otherwise material. 5. Those which relate to a risk excepted from insurance, and which are not otherwise material. (Enacted by Stats. 1935, Ch. 145.)
  170. 334.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Materiality is judged by the probable and reasonable influence of the facts on the recipient of the communication, not by what later happens.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 334. Materiality is to be determined not by the event, but solely by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantages of the proposed contract, or in making his inquiries. (Enacted by Stats. 1935, Ch. 145.)
  171. 335.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Each party to an insurance contract must know the general causes open to inquiry and the general usages of trade.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 335. Each party to a contract of insurance is bound to know: (a) All the general causes which are open to his inquiry equally with that of the other, and which may affect either the political or material perils contemplated. (b) All the general usages of trade. (Enacted by Stats. 1935, Ch. 145.)
  172. 336.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    The right to information of material facts may be waived in an insurance contract, including by the policy terms or by failing to ask about those facts when they are clearly implied by other disclosed facts.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 336. The right to information of material facts may be waived, either (a) by the terms of insurance or (b) by neglect to make inquiries as to such facts, where they are distinctly implied in other facts of which information is communicated. (Enacted by Stats. 1935, Ch. 145.)
  173. 337.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    One insured does not have to disclose the nature or amount of their interest unless asked in an inquiry, subject to listed exceptions.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 337. Information of the nature or amount of the interest of one insured need not be communicated unless in answer to an inquiry, except as prescribed by section 381, or by the provisions of the insurance contract if such provisions are prescribed by this code as part of a standard form. (Enacted by Stats. 1935, Ch. 145.)
  174. 338.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    If one insured intentionally and fraudulently omits to tell the insurer information that tends to prove a warranty is false, the insurer may rescind.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 338. An intentional and fraudulent omission, on the part of one insured, to communicate information of matters proving or tending to prove the falsity of a warranty, entitles the insurer to rescind. (Enacted by Stats. 1935, Ch. 145.)
  175. 339.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Neither party to an insurance contract has to disclose its own judgment about the matters in question, even if asked.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Concealment [330 - 339] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 339. Neither party to a contract of insurance is bound to communicate, even upon inquiry, information of his own judgment upon the matters in question. (Enacted by Stats. 1935, Ch. 145.)
  176. 34.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section defines “insurance solicitor” as a natural person employed to assist a property and casualty broker-agent in transacting non-life insurance.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 34. “Insurance solicitor” means a natural person employed to aid a property and casualty broker-agent acting as an insurance agent or insurance broker in transacting insurance other than life, disability, or health. (Amended by Stats. 2010, Ch. 400, Sec. 3. (AB 2782) Effective January 1, 2011.)
  177. 35.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    For insurance, “transact” includes solicitation, preliminary negotiations, executing an insurance contract, and later matters arising from that contract.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 35. “Transact” as applied to insurance includes any of the following: (a) Solicitation. (b) Negotiations preliminary to execution. (c) Execution of a contract of insurance. (d) Transaction of matters subsequent to execution of the contract and arising out of it. (Enacted by Stats. 1935, Ch. 145.)
  178. 350.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A representation can be made orally or in writing.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 350. A representation may be oral or written. (Enacted by Stats. 1935, Ch. 145.)
  179. 351.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A representation may be made when a policy is issued, or before issuance.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 351. A representation may be made at the time of, or before, issuance of the policy. (Enacted by Stats. 1935, Ch. 145.)
  180. 352.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    The language of a representation must be interpreted using the same rules that apply to contracts generally.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 352. The language of a representation is to be interpreted by the same rules as contracts in general. (Enacted by Stats. 1935, Ch. 145.)
  181. 353.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A statement about the future counts as a promise, unless it is only a belief or expectation.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 353. A representation as to the future is a promise, unless it is merely a statement of a belief or an expectation. (Enacted by Stats. 1935, Ch. 145.)
  182. 354.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A representation cannot qualify an express provision in an insurance contract, but it may qualify an implied warranty.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 354. A representation cannot qualify an express provision in a contract of insurance; but it may qualify an implied warranty. (Enacted by Stats. 1935, Ch. 145.)
  183. 355.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A representation may be changed or withdrawn before the insurance is effected, but not after that.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 355. A representation may be altered or withdrawn before the insurance is effected, but not afterwards. (Enacted by Stats. 1935, Ch. 145.)
  184. 356.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A representation is presumed to refer to the time when the insurance contract is completed.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 356. The completion of the contract of insurance is the time to which a representation must be presumed to refer. (Enacted by Stats. 1935, Ch. 145.)
  185. 357.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    An insured without personal knowledge of a fact may repeat information believed to be true or submit it to the insurer, and is generally not responsible for its truth unless it comes from the insured’s agent.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 357. When an insured has no personal knowledge of a fact, he may nevertheless repeat information which he has upon the subject, and which he believes to be true, with the explanation that he does so on the information of others; or he may submit the information, in its whole extent, to the insurer. In neither case is he responsible for its truth, unless it proceeds from an agent of the insured, whose duty it is to give the information. (Enacted by Stats. 1935, Ch. 145.)
  186. 358.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    A representation is false if the facts do not match what it says or requires.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 358. A representation is false when the facts fail to correspond with its assertions or stipulations. (Enacted by Stats. 1935, Ch. 145.)
  187. 359.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    If a representation is false in a material point, the injured party may rescind the contract.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 359. If a representation is false in a material point, whether affirmative or promissory, the injured party is entitled to rescind the contract from the time the representation becomes false. (Enacted by Stats. 1935, Ch. 145.)
  188. 36.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    This section defines “paid-in capital” for different kinds of insurers and sets a minimum $200,000 cash-asset requirement for admission of certain foreign mutual insurers.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 36. “Paid-in capital” or “capital paid-in” means: (a) In the case of a foreign mutual insurer not issuing or having outstanding capital stock, the value of its assets in excess of the sum of its liabilities for losses reported, expenses, taxes, and all other indebtedness and reinsurance of outstanding risks as provided by law. Such foreign mutual insurer shall not be admitted, however, unless its paid-in capital is composed of available cash assets amounting to at least $200,000.00. (b) In the case of a foreign joint stock and mutual insurer, its paid-in capital computed, according to its desire, pursuant to the provisions of subdivision (a) or subdivision (c) of this section. If computed pursuant to the provisions of subdivision (a), its admission is subject to the qualification therein expressed. (c) In the case of all other insurers, the lower of the following amounts: (1) The value of its assets in excess of the sum of its liabilities for losses reported, expenses, taxes, and all other indebtedness and reinsurance of outstanding risks as provided by law. (2) The aggregate par value of its issued shares of stock, including treasury shares. For the purpose of computing paid-in capital or capital paid-in, shares of stock are not taken as liabilities. (Enacted by Stats. 1935, Ch. 145.)
  189. 360.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    The materiality of a representation is judged by the same rule used for concealment.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 360. The materiality of a representation is determined by the same rule as the materiality of a concealment. (Enacted by Stats. 1935, Ch. 145.)
  190. 361.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. )

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    This chapter’s rules also apply when an insurance contract is modified, not just when it is first formed.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 3. Negotiations Before Execution [330 - 361] ( Chapter 3 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 2. Representation [350 - 361] ( Article 2 enacted by Stats. 1935, Ch. 145. ) ## 361. The provisions of this chapter apply as well to a modification of a contract of insurance as to its original formation. (Enacted by Stats. 1935, Ch. 145.)
  191. 37.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    Within this code, provisions about a particular class of insurance or a particular type of insurer take precedence over general insurance or insurer provisions.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 37. Provisions of this code relating to a particular class of insurance or a particular type of insurer prevail over provisions relating to insurance in general or insurers in general. (Enacted by Stats. 1935, Ch. 145.)
  192. 38.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    If another provision requires notice, that notice may be sent by prepaid mail to the person’s residence or principal place of business in the state, unless the code says otherwise.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 38. Unless expressly otherwise provided, any notice required to be given to any person by any provision of this code may be given by mailing notice, postage prepaid, addressed to the person to be notified, at his residence or principal place of business in this State. The affidavit of the person who mails the notice, stating the facts of such mailing, is prima facie evidence that the notice was thus mailed. (Enacted by Stats. 1935, Ch. 145.)
  193. 38.6.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    Insurance licensees may send certain required records electronically if the parties consent and the licensee follows the section’s notice, retention, delivery, and receipt rules.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 38.6. (a) (1) A written record required to be given or mailed to a person by a licensee, including an offer of renewal required by Sections 663 and 678, the notice of policy change or cancellation requested by the insured as required by Section 667.5, the notice of conditional renewal required by Section 678.1, the offer of coverage or renewal or a disclosure required by Section 10086, the offer of renewal for a workers’ compensation policy, Section 662, paragraph (2) of subdivision (a) of Section 663, Section 664, 667.5, 673, 677, paragraph (2) of subdivision (a) of Section 678, subdivisions (a), (b), and (c) of Section 678.1, or a written record required to be given or mailed to a person by a licensee relating to the business of life insurance, as defined in Section 101 of this code may, if not excluded by subdivision (b) or (c) of Section 1633.3 of the Civil Code, be provided by electronic transmission pursuant to Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code, if each party has agreed to conduct the transaction by electronic means pursuant to Section 1633.5 of the Civil Code, and if the licensee complies with this section. A valid electronic signature is sufficient for any law requiring a written signature. (2) For purposes of this section, the definitions set forth in Section 1633.2 of the Civil Code apply. The term “licensee” means an insurer, agent, broker, or any other person who is required to be licensed by the department. (3) Notwithstanding subdivision (l) of Section 1633.2 of the Civil Code, for purposes of this section, “person” includes, but is not limited to, the policy owner, policyholder, applicant, insured, or assignee or designee of an insured. (b) In order to transmit a record listed in subdivision (a) electronically, a licensee shall comply with all of the following: (1) A licensee, or licensee’s representative, acquires the consent of the person to opt in to receive the record by electronic transmission, and the person has not withdrawn that consent, prior to providing the record by electronic transmission. A person’s consent may be acquired verbally, in writing, or electronically. If consent is acquired verbally, the licensee shall confirm consent in writing or electronically. The licensee shall retain a record of the person’s consent to receive the record by electronic transmission with the policy information so that it is retrievable upon request by the department while the policy is in force and for five years thereafter. (2) A licensee discloses, in writing or electronically, to the person all of the following: (A) The opt in to receive the record by electronic transmission is voluntary. (B) That the person may opt out of receiving the record by electronic transmission at any time, and the process or system for the person to opt out. (C) A description of the record that the person will receive by electronic transmission. (D) The process or system to report a change or correction in the person’s email address. (E) The licensee’s contact information, that includes, but is not limited to, a toll-free number or the licensee’s internet website address. (3) The opt-in consent disclosure required by paragraph (2) may be set forth in the application or in a separate document that is part of the policy approved by the commissioner and shall be bolded or otherwise set forth in a conspicuous manner. The person’s signature shall be set forth immediately below the opt-in consent disclosure. If the licensee seeks consent at any time prior to the completion of the application, consent and signature shall be obtained before the application is completed. If the person has not opted in at the time the application is completed, the licensee may receive the opt-in consent at any time thereafter, pursuant to the same opt-in requirements that apply at the time of the application. The licensee shall retain a copy of the signed opt-in consent disclosure with the policy information so that each is retrievable upon request by the department while the policy is in force and for five years thereafter. (4) The email address of the person who has consented to electronic transmission shall be set forth on the consent disclosure. In addition, if the person who consented receives an annual statement, the email address of the person who has consented shall be set forth on that record. (5) The licensee shall annually provide one free printed copy of any record described in this subdivision upon request by the person. (6) If a provision of this code requires a licensee to transmit a record by first-class mail, regular mail, does not specify a method of delivery, or is a record that is required to be provided pursuant to Article 6.6 (commencing with Section 791), and if the licensee is not otherwise prohibited from transmitting the record electronically under subdivision (b) of Section 1633.8 of the Civil Code, then the record may be transmitted by electronic transmission if the licensee complies with all of the requirements of Sections 1633.15 and 1633.16 of the Civil Code. (7) Notwithstanding subdivision (b) of Section 1633.8 of the Civil Code, if a provision of this code requires a licensee to transmit a record by return receipt, registered mail, certified mail, signed written receipt of delivery, or other method of delivery evidencing actual receipt by the person, and if the licensee is not otherwise prohibited from transmitting the record electronically under Section 1633.3 of the Civil Code and this section, then the licensee shall maintain a process or system that demonstrates proof of delivery and actual receipt of the record by the person consistent with this paragraph. The licensee shall document and retain information demonstrating delivery and actual receipt so that it is retrievable, upon request, by the department at least five years after the policy is no longer in force. The record provided by electronic transmission shall be treated as if actually received if the licensee delivers the record to the person in compliance with applicable statutory delivery deadlines. A licensee may demonstrate actual delivery and receipt by any of the following: (A) The person acknowledges receipt of the electronic transmission of the record by executing an electronic signature. (B) The record is posted on the licensee’s secure internet website, and there is evidence demonstrating that the person logged onto the licensee’s secure internet website and downloaded, printed, or otherwise acknowledged receipt of the record. (C) The record is transmitted to the named insured through an application on a personal electronic device that is secured by password, biometric identifier, or other technology, and there is evidence demonstrating that the person logged into the application and viewed or otherwise acknowledged receipt of the record. (D) If a licensee is unable to demonstrate actual delivery and receipt pursuant to this paragraph, the licensee shall resend the record by regular mail to the person in the manner originally specified by the underlying provision of this code. (8) Notwithstanding any other law, a notice of lapse, nonrenewal, cancellation, or termination of any product subject to this section may be transmitted electronically if the licensee demonstrates proof of delivery as set forth in paragraph (7) and complies with the other provisions in this section. (9) If the record is not delivered directly to the electronic address designated by the person but placed at an electronic address accessible to the person, a licensee shall notify the person in plain, clear, and conspicuous language at the electronic address designated by the person that describes the record, informs that person that it is available at another location, and provides instructions to the person as to how to obtain the record. (10) (A) Upon a licensee receiving information indicating that the record sent by electronic transmission was not received by the person, the licensee shall, within five business days, comply with either clause (i) or (ii): (i) Contact the person to confirm or update the person’s email address and resend the record by electronic transmission. If the licensee elects to resend the record by electronic transmission, the licensee shall demonstrate the transmission was received by the person, pursuant to paragraph (6), (7), or (8). If the licensee is unable to confirm or update the person’s email address, the licensee shall resend the record by regular mail to the licensee at the address shown on the policy, or, if the underlying statute requires delivery in a specified manner, send the record in that specified manner. (ii) Resend the record initially provided by electronic transmission by regular mail to the insured at the address shown on the policy, or, if the underlying statute requires delivery in a specified manner, send the record in that specified manner. (B) If the licensee sends the first electronic record within the time period required by law and the licensee complies with both paragraph (5) and subparagraph (A) of this paragraph, the record sent pursuant to clause (i) or (ii) of subparagraph (A) shall be treated as if mailed in compliance with the applicable statutory regular mail delivery deadlines. (11) The licensee shall not charge any person who declines to opt in to receive a record through electronic transmission from receiving a record electronically. The licensee shall not provide a discount or an incentive to any person to opt in to receive electronic records. (12) The licensee shall verify a person’s email address via paper writing sent by regular mail when more than 12 months have elapsed since the licensee’s last electronic communication. (c) An insurance agent or broker acting under the direction of a party that enters into a contract by means of an electronic record or electronic signature shall not be held liable for any deficiency in the electronic procedures agreed to by the parties under that contract if all of the following are met: (1) The insurance agent or broker has not engaged in negligent, reckless, or intentional tortious conduct. (2) The insurance agent or broker was not involved in the development or establishment of the electronic procedures. (3) The insurance agent or broker did not deviate from the electronic procedures. (d) On or before January 1, 2022, the commissioner shall submit a report to the Governor and to the committees of the Senate and Assembly having jurisdiction over insurance and the judiciary, regarding insurer compliance with laws governing electronic transmissions of insurance transactions, including renewal offers, notices, or disclosures. The commissioner shall ensure the report addresses the use of electronic transmissions by insurers conducting the business of insurance, the department’s enforcement actions relating to those electronic transmissions, and the impact of those enforcement actions on insurer compliance rates. (e) Notwithstanding paragraph (4) of subdivision (b) of Section 1633.3 of the Civil Code, a statutory requirement for a separate acknowledgment, signature, or initial that is not expressly prohibited by subdivision (c) of Section 1633.3 of the Civil Code may be transacted using an electronic signature, or by electronic transaction, subject to all applicable provisions of this section. (f) (1) Whenever the commissioner has reason to believe that a licensee has been or is engaged in conduct in this state that violates this section, or if the commissioner believes that a licensee has been or is engaged in conduct outside this state that has an effect on an insurance risk located within this state and that violates this section, the commissioner shall issue and serve upon that licensee a statement of charges and notice of hearing to be held at a time and place fixed in the notice. The date for the hearing shall be not less than 30 days after the date of service. (2) At the time and place fixed for the hearing, the licensee charged shall have an opportunity to answer the charges against it and present evidence on its behalf. Upon good cause shown, the commissioner shall permit any adversely affected person to appear and be heard at the hearing by counsel or in person. (3) At any hearing conducted pursuant to this section, the commissioner may administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence. The commissioner shall have the power to subpoena witnesses, compel their attendance, and require the production of books, papers, records, correspondence, and other documents that are relevant to the hearing. A stenographic record of the hearing shall be made upon the request of any party or at the discretion of the commissioner. If no stenographic record is made and if judicial review is sought, the commissioner shall prepare a statement of the evidence for use on review. Hearings conducted under this section shall be governed by the same rules of evidence and procedure applicable to administrative proceedings conducted under the laws of this state. (4) Statements of charges, notice, orders, and other processes of the commissioner under this section may be served by anyone duly authorized to act on behalf of the commissioner. Service of process may be completed in the manner provided by law for service of process in civil actions or by registered mail or by a mailing service offered by a third-party with tracking capability that is not more expensive than registered mail. A copy of the statement of charges, notice, order, or other process shall be provided to the person or persons whose rights under this section have been allegedly violated. A verified return setting forth the manner of service, the return postcard receipt in the case of registered mail, or signed receipt documentation shall be sufficient proof of service. (5) If, after a hearing pursuant to paragraphs (1) through (4), the commissioner determines that the licensee charged has engaged in conduct or practices in violation of this section, the commissioner shall reduce their findings to writing and shall issue and cause to be served upon the licensee a copy of the findings and an order requiring the licensee to cease and desist from the conduct or practices constituting a violation of this section. As part of the order, the commissioner may suspend a licensee from providing records by electronic transmission if there is a pattern or practice that demonstrates the licensee has failed to comply with the requirements of this section. A licensee may appeal the suspension and resume its electronic transmission of records upon communication from the department that the changes the licensee made to its process or system to comply with the requirements of this section are satisfactory. (6) Until expiration of the time allowed using the procedure set forth in paragraph (7) for filing a petition for review or until the petition is actually filed, whichever occurs first, the commissioner may modify or set aside any order issued under this section. After expiration of the time allowed under paragraph (7) for filing a petition for review, if no petition has been duly filed, the commissioner may, after notice and opportunity for hearing, alter, modify, or set aside, in whole or in part, any order issued under this section whenever conditions of fact or law warrant that action or if the public interest requires. (7) A licensee subject to an order of the commissioner under this section or a person whose rights under this section were allegedly violated may obtain a review of an order of the commissioner by filing a petition in a court of competent jurisdiction, within 30 days from the date of the service of the order, pursuant to Section 1094.5 of the Code of Civil Procedure. The court shall have jurisdiction to make and enter a decree modifying, affirming, or reversing any order of the commissioner, in whole or in part. (8) An order issued by the commissioner under this section shall become final upon either of the following: (A) Upon the expiration of the time allowed for the filing of a petition for review, if no petition has been duly filed. However, the commissioner may modify or set aside an order to the extent provided in paragraph (6). (B) Upon a final decision of the court, if the court directs that the order of the commissioner be affirmed or the petition for review dismissed. (9) An order of the commissioner under this section or order of a court to enforce the order of the commissioner shall not in any way relieve or absolve a person or licensee affected by that order from liability under any law of this state. (10) A licensee who violates a cease and desist order of the commissioner under this section may, after notice and hearing and upon order of the commissioner, be subject to one of the following penalties at the discretion of the commissioner: (A) A civil penalty of not more than ten thousand dollars ($10,000) for each violation, except that the total civil penalty for violations of this section in a single investigation shall not exceed two hundred fifty thousand dollars ($250,000). (B) A civil penalty of not more than two hundred fifty thousand dollars ($250,000) if the commissioner finds that violations have occurred with such frequency as to constitute a general business practice. (C) Suspension or revocation of a licensee’s license if the licensee knew or reasonably should have known it was in violation of the cease and desist order. (Amended (as amended by Stats. 2017, Ch. 561, Sec. 137) by Stats. 2019, Ch. 235, Sec. 4. (AB 1065) Effective January 1, 2020.)
  194. 38.8.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. )

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    Insurers must keep systems that let policyholders electronically opt in and opt out of electronic transaction agreements, and they must retain electronic records for as long as written records would have to be kept.

    ## Insurance Code - INS ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1935, Ch. 145. ) ## 38.8. Insurers shall maintain a system for electronically confirming a policyholder’s decision to opt in to an agreement to conduct transactions electronically and a system that will allow the policyholder to electronically opt out of the agreement to conduct business electronically as specified in subdivision (c) of Section 1633.5. The insurer shall maintain the electronic records for the same amount of time the insurer would be required to maintain those records if the records were in written form. (Added by Stats. 2009, Ch. 433, Sec. 3. Effective January 1, 2010.)
  195. 380.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    This section says the written instrument that sets forth a contract of insurance is called the policy.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 380. The written instrument, in which a contract of insurance is set forth, is the policy. (Enacted by Stats. 1935, Ch. 145.)
  196. 381.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    A policy must state the parties, the insured property or life, the insured’s interest if not the absolute owner, the risks covered, the coverage period, and either the premium or, in some cases, the basis and rates used to calculate the final premium.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 381. A policy shall specify: (a) The parties between whom the contract is made. (b) The property or life insured. (c) The interest of the insured in property insured, if he is not the absolute owner thereof. (d) The risks insured against. (e) The period during which the insurance is to continue. (f) Either: (1) A statement of the premium, or (2) If the insurance is of a character where the exact premium is only determinable upon the termination of the contract, a statement of the basis and rates upon which the final premium is to be determined and paid. (Enacted by Stats. 1935, Ch. 145.)
  197. 381.1.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Insurers must give policyholders certain rating information when an auto policy is applied for, issued, or renewed, and they must not use abbreviations or codes unless a key is included.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 381.1. (a) The information described in subdivision (b) shall be provided to the policyholder at the time of application for, or issuance of, a policy of automobile insurance, as defined in Section 660, and in each renewal notice sent prior to the renewal of the policy. However, information described in paragraphs (1) and (2) of subdivision (b) may be provided to the policyholder separately upon request. The information shall not be presented as an abbreviation or code unless a key to the abbreviations or codes used is also included. (b) For each rated driver or vehicle, as applicable, the number of incidents or other relevant data that apply to each of the following categories: (1) Traffic convictions. (2) At-fault accidents (property damage or bodily injury). (3) Estimated annual mileage driven. (4) Years of driving experience. (5) Vehicle use (e.g., pleasure, commute, business). (6) ZIP Code of the location where the vehicle is garaged, if different from the mailing address of the policyholder. (7) Driver-related discounts applied. (8) Vehicle-related discounts or surcharges applied. (c) The disclosure of information required by this section may contain additional provisions that are not in conflict with, or derogation of, these provisions. (d) Each insurer shall comply with this section no later than March 1, 2004. (Added by Stats. 2003, Ch. 360, Sec. 1. Effective January 1, 2004.)
  198. 381.2.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    For certain insured personal property losses, the insurer must calculate total loss using the insured amount, use that amount as the pre-loss value for partial losses, and disclose any different loss-computation method in the policy and application in prominent type.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 381.2. When a policy includes coverage for loss or damage to a specific item of personal property of the insured, which item is separately listed and described and on which item a separate amount of insurance is placed, the insurer shall compute any total loss of such item of personal property as being the amount of insurance placed on it. In the adjustment of a partial loss or damage to such item of covered property, the separately listed amount of insurance applying to the specific item shall be used as the value of the item prior to its partial loss or damage. If a different method is to be used in the computation of loss, the policy, and any application therefor, shall set forth, in type of prominent size, the actual method of such loss computation used by the insurer. The provisions of this subdivision shall not apply to any property used for a business purpose or to any motor vehicle. If there are two or more policies insuring the same property against the loss, the loss shall be prorated among the policies. (Amended by Stats. 1974, Ch. 653.)
  199. 381.5.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Insurance policies covered by this section must give registered domestic partners the same coverage, terms, and conditions as spouses.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 381.5. (a) Every policy issued, amended, delivered, or renewed in this state shall provide coverage for the registered domestic partner of an insured or policyholder that is equal to, and subject to the same terms and conditions as, the coverage provided to a spouse of an insured or policyholder. A policy may not offer or provide coverage for a registered domestic partner if it is not equal to the coverage provided for the spouse of an insured or policyholder. This subdivision applies to all forms of insurance regulated by this code. (b) A policy subject to this section that is issued, amended, delivered, or renewed in this state on or after January 1, 2005, shall be deemed to provide coverage for registered domestic partners that is equal to the coverage provided to a spouse of an insured or policyholder. (c) It is the intent of the Legislature that, for purposes of this section, “terms,” “conditions,” and “coverage” do not include instances of differential treatment of domestic partners and spouses under federal law. (Added by Stats. 2004, Ch. 488, Sec. 3. Effective January 1, 2005.)
  200. 382.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. )

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    Covering notes may temporarily bind insurance, but a policy must be issued within 90 days. The commissioner may approve extensions or renewals beyond 90 days and may set rules for them.

    ## Insurance Code - INS ## DIVISION 1. GENERAL RULES GOVERNING INSURANCE [100 - 1879.8] ( Division 1 enacted by Stats. 1935, Ch. 145. ) ## PART 1. THE CONTRACT [100 - 679.75] ( Part 1 enacted by Stats. 1935, Ch. 145. ) ## CHAPTER 4. The Policy [380 - 460] ( Chapter 4 enacted by Stats. 1935, Ch. 145. ) ## ARTICLE 1. Definition and Scope [380 - 396] ( Article 1 enacted by Stats. 1935, Ch. 145. ) ## 382. Covering notes may be issued to bind insurance temporarily pending the issuance of the policy. Within 90 days after issue of a covering note a policy shall be issued in lieu thereof, including within its terms the identical insurance bound under the covering note and premium therefor. Covering notes may be extended or renewed beyond such 90 days with the written approval of the commissioner if the commissioner determines that such extension is not contrary to and is not for the purpose of violating any provision of this code. The commissioner may promulgate rules and regulations governing such extensions for the purpose of preventing such violations and may by such rules and regulations dispense with the requirement of written approval by him in the case of extensions in compliance with such rules and regulations. (Amended by Stats. 1943, Ch. 872.)

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