Cal. Code Regs. Tit. 10, § 2107 - Prevention of Fraud; Statement to Purchaser

All questions involving violation or alleged violation of these rules and regulations or of the provisions of the Insurance Code applicable to the transaction of insurance in connection with sales of or loans on motor vehicles will be viewed by the commissioner upon the basis of whether or not as to each such question there has been any violation of the following principles:

(a) The purpose of the rules and regulations is to prevent fraud or the transaction of insurance covering motor vehicles, where the premiums for such insurance are included in the purchase price or the amount loaned upon security of a motor vehicle.

(b) To accomplish this purpose it is necessary that in connection with such a transaction the purchaser or borrower receive at the time of the execution of the contract either a written statement conforming to Section 2114 or all of the information required to be placed in such statement in the manner and form permitted by Section 2114.5. The responsibility for delivery of such statement or for the transmittal of the information required to be placed in the statement and otherwise complying with Section 2114.5 rests upon the licensee who transacts the insurance involved.

Notes

Cal. Code Regs. Tit. 10, § 2107

1. Amendment filed 9-5-61; designated effective 1-1-62 (Register 61, No. 18).

Note: Authority cited for §§ 2107 to 2127: Section 383.5, Insurance Code.

1. Amendment filed 9-5-61; designated effective 1-1-62 (Register 61, No. 18).