Cal. Code Regs. tit. 10 § 30.501

Current through Register 2024 Notice Reg. No. 44, November 1, 2024

Section 30.501 - Vendor's Single Interest (V.S.I.) Insurance

If a credit union ascertains that insurance required by Section 30.500 with respect to motor vehicles is not obtainable for a borrower, a V.S.I. insurance policy may be purchased and the cost may be added to the borrower's obligation account. In taking such action, the credit union must comply with the following:

(a) Obtain at the time the obligation is made (or at any time prior to the purchase of V.S.I. insurance) a written authorization from the borrower, which will enable the credit union to purchase V.S.I. insurance and add the cost of the premium to the borrower's obligation account in the event that such should become necessary. Such authorization shall include a statement (in 8-point bold type) in which the borrower acknowledges that such V.S.I. insurance is without benefit to him individually but is primarily for the protection of the credit union.

(b) Fifteen days (15) prior to the purchase of V.S.I. insurance, the credit union must give written notice to the borrower that it is its intention to procure such insurance (if a dual coverage policy is not obtained and presented) and that the cost of the V.S.I. premium will be added to the borrower's obligation account. Evidence of such a notification must be retained by the credit union in the member's file.

(c) Upon purchasing a V.S.I. policy, the credit union must immediately inform the borrower of such action, including the amount of the premium, the period of the coverage, and the fact that the premium has been added to his obligation account.

(d) A credit union may obtain a blanket V.S.I. insurance policy provided the premium is paid for by the credit union and not by borrowers individually. Where a credit union does have such a blanket policy in force, signed statements of the borrower ("Borrower's Agreement to Provide Insurance" or an equivalent statement), indicating his intention to obtain an individual policy of insurance from a carrier of his choice will be considered to be evidence of compliance with Section 30.500 of this Chapter.

Cal. Code Regs. Tit. 10, § 30.501

1. Change without regulatory effect renumbering and amending former section 943 to new section 30.501 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Amendment of first paragraph and subsection (d) filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9).

Note: Authority cited: Section 14201, Financial Code. Reference: Sections 14007, 14201, 14204, 14953, 14955 and 15100, Financial Code.