Cal. Code Regs. Tit. 10, § 1512 - Limitation on Sale of Credit Disability Insurance: Illusory Benefit

(a) A finance company shall not sell credit disability insurance, as prohibited by current regulations of the Insurance Commissioner, to a borrower who is a member of the Armed Forces of the United States.

(b) A finance company shall not sell credit disability insurance, as prohibited by current regulations of the Insurance Commissioner, to a borrower which would, in effect, provide a substantially illusory benefit. This would include the sale to a borrower who is not normally employed.

Notes

Cal. Code Regs. Tit. 10, § 1512

1. Amendment filed 3-20-78; effective thirtieth day thereafter (Register 7, No. 12).
2. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).
3. Change without regulatory effect amending NOTE filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).

Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22150, 22314 and 22315, Financial Code.

1. Amendment filed 3-20-78; effective thirtieth day thereafter (Register 7, No. 12).
2. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).
3. Change without regulatory effect amending Note filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).