Cal. Ins. Code § 12850

Current through the 2023 Legislative Session.
Section 12850 - Burden of proving claim not covered by contract
(a) An obligor has the burden of proving that a claim is not covered by a service contract. An obligor has the burden of proving that a claim settlement amount is proper under the terms of the contract.
(b) No seller of a service contract who participates in or influences, directly or indirectly, the processing, administration, or adjustment of claims, shall enter into any agreement or understanding the effect of which is to make the amount of the seller's commission or compensation contingent upon savings effected in the adjustment, settlement, or payment of losses covered by the contract.

Ca. Ins. Code § 12850

Added by Stats 2003 ch 439 (AB 984), s 5, eff. 7/1/2004.