Section 2670.12 - Benchmark Number One: Provisions for Dual Interest Credit Property Insurance on an Open End Plan of Indebtedness(a) When Coverage Is In Effect. Coverage is effective on the date the certificate of insurance holder's (the "certificate holder's") account has a balance, and continues for as long as there is an open balance in the account(s). Coverage ends on the date the certificate holder's account does not reflect an open balance, and is automatically reinstated when there is an open balance. Coverage will continue for up to 36 months from the date the item of personal property was financed. Coverage covers the insured property anywhere in the world.(b) Coverage Provided. The insurance covers the interest of the master policyholder and the certificate holder in personal property purchased by the certificate holder and financed under an open end plan of indebtedness. In the event of a loss to a pair, set, or parts, the insurer will provide the following coverage: (1) For any article(s) that is a part of a pair or set: the insurer will pay a reasonable and fair proportion of the total value of the pair or set, with consideration given to the importance of such article(s). In no event will such loss mean total loss of the pair or set;(2) For any part of property which consists of several parts when complete: the insurer will be liable only for the value of the part lost or damaged.(c) Perils Insured. The insurance provides coverage for direct and accidental loss or damage to insured personal property by fire; smoke; lightning; windstorm; cyclone; tornado; flood; hail; earthquake; explosion; riot; riot attending a strike; civil commotion; marine perils while on ferries and/or in cars or transfers in connection with land conveyances; aircraft; vehicles; collision; vandalism and malicious mischief; and burglary (of which there must be visible evidence of forced entry).(d) Exclusions. Coverage will not apply to purchases made while the certificate holder is receiving benefits under the certificate.(e) Limit of Liability. The insurance covers the interest of the master policy holder and the certificate holder up to the maximum(s) stated in the certificate of insurance. Coverage for any one account will be limited to the maximum amount per account as stated in the certificate of insurance. If the certificate holder has more than one account, the maximum limit stated in the certificate of insurance applies, and the total insurance provided under all of a certificate holder's accounts cannot exceed this amount. The insurer's limit of liability for loss is the cost to repair or replace the property insured at the time of the loss, not to exceed the following maximum limits: (1) for the first 60 days after enrollment for the insurance: an amount up to the highest balance in the certificate holder's open ended account during that 60-day period; and(2) after the first 60 days after enrollment for the insurance: an amount up to the highest balance on which a premium has been assessed during the 36 months before the date of loss. It is the insurer's option, after giving notice of its intention to do so within 60 days after the receipt of proof of loss to: (1) take all or any part of the property at the agreed or appraised value; or(2) repair, rebuild or replace the destroyed or damaged property with other of like kind and quality within a reasonable time.Cal. Code Regs. Tit. 10, § 2670.12
1. New article 4 (sections 2670.12-2670.14) and section filed 3-10-2003; operative 4-9-2003. Submitted to OAL for printing only pursuant to Government Code section 11343.8 as a regulation that establishes rates in accordance with Government Code section 11340.9(g) (Register 2003, No. 11).
2. Change without regulatory effect withdrawing and repealing article 4 (sections 2670.12-2670.14) and section pursuant to settlement agreement in Consumer Credit Insurance Association v. John Garamendi (California Superior Court No. 03CS00533) filed 5-27-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 22).
3. New article 4 (sections 2670.12-2670.14) and section filed 4-28-2006; operative 5-28-2006. Submitted to OAL for printing only pursuant to Government Code section 11343.8 as a regulation that establishes rates in accordance with Government Code section 11340.9(g) (Register 2006, No. 17). Note: Authority cited: Sections 779.21, 779.36, 12921 and 12926, Insurance Code; Credit Insurance General Agents Association v. Payne, 16 Cal.3d 651 (1976); and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference: Sections 779.36, 1861.01 and 1861.05, Insurance Code.
1. New article 4 (sections 2670.12-2670.14) and section filed 3-10-2003; operative 4-9-2003. Submitted to OAL for printing only pursuant to Government Code section 11343.8 as a regulation that establishes rates in accordance with Government Code section 11340.9(g) (Register 2003, No. 11).
2. Change without regulatory effect withdrawing and repealing article 4 (sections 2670.12-2670.14) and section pursuant to settlement agreement inConsumer Credit Insurance Associationv.John Garamendi(California Superior Court No. 03CS00533) filed 5-27-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 22).
3. New article 4 (sections 2670.12-2670.14) and section filed 4-28-2006; operative 5-28-2006. Submitted to OAL for printing only pursuant to Government Code section 11343.8 as a regulation that establishes rates in accordance with Government Code section 11340.9(g) (Register 2006, No. 17).