Cal. Code Regs. tit. 10 § 40.814

Current through Register 2024 Notice Reg. No. 52, December 27, 2024

Section 40.814 - Requirement of Notice to Borrower in Event of Increase of an Insurance Premium

If an insurance premium is increased subsequent to the sale of the insurance in connection with a loan, the industrial loan company shall notify the borrower in writing of the increase. The notice to the borrower shall state the reason for the increase, the amount of the additional premium, any change in terms and the amount of any additional charges. If the increase is not due to any fault of the borrower, the notice shall give the borrower the option of providing insurance and state that, if the option is exercised, the borrower will receive a pro rata refund of the premium for the insurance previously placed.

Cal. Code Regs. Tit. 10, § 40.814

1. Change without regulatory effect renumbering former section 1197 to new section 40.814 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: Sections 18290 and 18294, Financial Code.

1. Change without regulatory effect renumbering former section 1197 to new section 40.814 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).