Section 40.804 - Coverage of Insurance: Limitation(a) Subject to the provisions of Subsection (b), fire insurance on household goods, if the resulting coverage would exceed the lesser of the principal amount of the loan or the balance of the loan at the time the insurance is sold, rounded to the next $500, shall not be required, but may be sold if supported by a statement signed by at least one borrower to the effect that the insurance was purchased at the request of said borrower and was not a prerequisite to obtaining the loan.(b) Insurance on any property securing a loan shall not be required or sold if the resulting coverage would exceed the reasonable value of said property as established by a bona fide written appraisal, a statement of replacement value signed by the borrower, a recent sales invoice, or other evidence acceptable to the Commissioner.(c) A statement of replacement value of household goods signed by a borrower as provided in subsection (b) shall contain the following statement in type not smaller than 8-point bold face type: "COLLATERAL FIRE INSURANCE COVERAGE ON HOUSEHOLD GOODS MAY NOT BE REQUIRED IN EXCESS OF THE LESSER OF THE PRINCIPAL AMOUNT OF THE LOAN OR THE BALANCE OF THE LOAN AT THE TIME THE INSURANCE IS SOLD, ROUNDED TO THE NEXT $500."Cal. Code Regs. Tit. 10, § 40.804
1. Change without regulatory effect renumbering former section 1190 to new section 40.804 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34). Note: Authority cited: Section 18347, Financial Code. Reference: Section 18294. Financial Code.
1. Change without regulatory effect renumbering former section 1190 to new section 40.804 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).