Section 2109 - Terms Defined; Rules for ConstructionFor the purpose of the basic principles and rules and regulations, unless the context otherwise requires,
(a) "Motor vehicle insurance transaction" means(1) Any sale of a motor vehicle which includes in the cash or time selling price of such motor vehicle a premium for insurance covering any interest therein, and(2) Any loan where the security for the repayment for all or any portion thereof is a lien or encumbrance upon a motor vehicle and which includes in the amount involved in a loan agreement, chattel mortgage or other lien instrument a premium for insurance covering any interest of the borrower or mortgagor therein.(b) "Dealer" means any person who (1) As seller or lender enters into motor vehicle insurance transactions as a business, or(2) Who discounts or purchases contracts of sale and receives for its own use and benefit, either directly or indirectly, a commission on the insurance included therein.(c) "Dealer's Subsidiary" means any person duly licensed by the Department of Insurance who transacts insurance covering a motor vehicle which is the subject matter of a motor vehicle insurance transaction, where such insurance is not lawfully transacted by a duly licensed dealer.(d) "Licensee" means any person licensed by the Department of Insurance to transact insurance, including a duly licensed dealer or a dealer's subsidiary.(e) "Purchaser" includes borrower or mortgagor.(f) "Contract of sale" includes conditional sales contracts, loan agreements, financing agreements, chattel mortgages or other lien instruments, or any revision thereof, made in conjunction with a motor vehicle insurance transaction.(g) "Insurance coverage" includes "dual" and "single interest" insurance and any coverage in which the dealer acts as insurer or self-insurer.(h) "Gross premium" means the charge made to the purchaser for insurance coverage without deduction for commissions.(i) "Gross return premium" means the gross premium unearned as of the date of cancellation of the insurance contract.(j) "Unlawful rebate" includes the acts denounced by Sections 750 to 761 of the Insurance Code.(k) "Dealer's reserve" means that portion of the difference between the cash balance and the contract balance which is earned or given to the dealer and retained by the person purchasing or discounting the contract of sale as collateral security for any contingent liability of the dealer.(l) "Bonus" means a dealer's reserve which is earned or given to the dealer by the person purchasing or discounting the contract of sale, and not held as collateral security for any contingent liability.(m) Insurance Code Sections 11, 12, 13, 16, 19, 20, 22, 23 govern the construction of these rules and regulations. These rules and regulations are applicable to Vendor's Single Interest Insurance of all kinds.Cal. Code Regs. Tit. 10, § 2109
1. Amendment filed 9-5-61; designated effective 1-1-62 (Register 61, No. 18). 1. Amendment filed 9-5-61; designated effective 1-1-62 (Register 61, No. 18).