California Code
DIVISION 1 - GENERAL RULES GOVERNING INSURANCE
PART 1 - THE CONTRACT

CHAPTER 1 - Classes of Insurance

Section 100. - 100. Insurance in this state is divided into the following...

Section 101. - 101. Life insurance includes insurance upon the lives of persons...

Section 102. - 102. Fire insurance includes: (a) Insurance against loss by fire,...

Section 103. - 103. Marine insurance includes insurance against any and all kinds...

Section 104. - 104. Title insurance means insuring, guaranteeing or indemnifying owners of...

Section 105. - 105. Surety insurance includes: (a) The guaranteeing of behavior of...

Section 106. - 106. (a) Disability insurance includes insurance appertaining to injury, disablement...

Section 107. - 107. Plate glass insurance includes insurance against breakage of glass....

Section 108. - 108. Liability insurance includes: (a) Insurance against loss resulting from...

Section 108.1. - 108.1. Insurers admitted to transact liability insurance are also deemed...

Section 109. - 109. Workers’ compensation insurance includes insurance against loss from liability...

Section 110. - 110. Common carrier liability insurance includes insurance against loss resulting...

Section 111. - 111. Boiler and machinery insurance includes insurance against loss of...

Section 112. - 112. Burglary insurance includes: (a) Insurance against loss by burglary...

Section 113. - 113. Credit insurance includes insurance of persons engaged in business...

Section 114. - 114. Sprinkler insurance includes insurance against loss through damage by...

Section 115. - 115. Team and vehicle insurance includes insurance against loss through...

Section 116. - 116. (a) Automobile insurance includes insurance of automobile owners, users,...

Section 116.6. - 116.6. (a) Notwithstanding Section 116, a warranty issued by the...

Section 118. - 118. Aircraft insurance includes insurance of aircraft owners, users, dealers...

Section 119. - 119. Mortgage guaranty insurance includes insurance against financial loss by...

Section 119.5. - 119.5. Insolvency insurance includes insurance against loss arising from the...

Section 119.6. - 119.6. Legal insurance includes the assumption of a contractual obligation...

Section 120. - 120. Miscellaneous insurance includes insurance against loss from damage done,...

Section 121. - 121. Except as otherwise stated, the enumeration in this chapter...

Section 122. - 122. (a) An insurer admitted for all the classes of...

Section 123. - 123. An insurer admitted to transact liability insurance may extend...

Section 124. - 124. “Financial guaranty insurance” means that insurance as defined by...

Section 124.5. - 124.5. “Homeowners’ insurance” means insurance covering the risks described in...

CHAPTER 1.5 - Risk Retention

Section 125. - 125. This chapter shall be known and may be cited...

Section 126. - 126. The Legislature finds and declares that the provisions of...

Section 127. - 127. Unless the context otherwise requires, the general provisions hereinafter...

Section 128. - 128. The purposes of this chapter are as follows: (a)...

Section 130. - 130. The following definitions govern this chapter: (a) “Commissioner” means...

Section 131. - 131. (a) An entity seeking to be licensed in this...

Section 132. - 132. Risk retention groups chartered, incorporated, or licensed in states...

Section 133. - 133. (a) No risk retention group shall be required or...

Section 134. - 134. (a) A purchasing group that intends to do business...

Section 135. - 135. (a) No purchasing group may offer insurance policy coverage...

Section 136. - 136. The powers authorized by this chapter shall only be...

Section 137. - 137. (a) No person, firm, association, or corporation shall act...

Section 138. - 138. There shall be no civil liability on the part...

Section 140. - 140. The commissioner may order a purchasing group or risk...

CHAPTER 2 - Parties, Events, and Interests

ARTICLE 1 - Parties to the Contract: Generally

Section 150. - 150. Any person capable of making a contract may be...

Section 151. - 151. Any person except a public enemy may be insured....

ARTICLE 2 - Parties to Contract: Mortgagor and Mortgagee

Section 170. - 170. Unless the policy otherwise provides, if a mortgagor of...

Section 171. - 171. In case of such a provision or assignment, any...

Section 172. - 172. If an insurer assents to the transfer of insurance...

ARTICLE 3 - Events Subject to Insurance

Section 250. - 250. Except as provided in this article, any contingent or...

Section 251. - 251. A lottery or its outcome shall not be insured...

Section 252. - 252. A policy executed by way of gaming or wagering,...

Section 253. - 253. On and after January 1, 1986, no insurer shall...

ARTICLE 4 - Insurable Interest: Generally

Section 280. - 280. If the insured has no insurable interest, the contract...

Section 281. - 281. Every interest in property, or any relation thereto, or...

Section 282. - 282. An insurable interest in property may consist in: 1....

Section 283. - 283. A mere contingent or expectant interest in anything, not...

Section 284. - 284. Except in the case of a property held by...

Section 285. - 285. A carrier or depositary of any kind has an...

Section 286. - 286. An interest in property insured must exist when the...

Section 287. - 287. Every stipulation in a policy of insurance for the...

ARTICLE 5 - Insurable Interest: Effect of Transfer

Section 300. - 300. Except in the cases specified in the next four...

Section 301. - 301. A change of interest in a subject insured, after...

Section 302. - 302. A change of interest in one or more of...

Section 303. - 303. A change of interest by will or succession, on...

Section 304. - 304. In the case of partners, joint owners, or owners...

Section 305. - 305. The mere transfer of subject matter insured does not...

CHAPTER 3 - Negotiations Before Execution

ARTICLE 1 - Concealment

Section 330. - 330. Neglect to communicate that which a party knows, and...

Section 331. - 331. Concealment, whether intentional or unintentional, entitles the injured party...

Section 332. - 332. Each party to a contract of insurance shall communicate...

Section 333. - 333. Neither party to a contract of insurance is bound...

Section 334. - 334. Materiality is to be determined not by the event,...

Section 335. - 335. Each party to a contract of insurance is bound...

Section 336. - 336. The right to information of material facts may be...

Section 337. - 337. Information of the nature or amount of the interest...

Section 338. - 338. An intentional and fraudulent omission, on the part of...

Section 339. - 339. Neither party to a contract of insurance is bound...

ARTICLE 2 - Representation

Section 350. - 350. A representation may be oral or written. (Enacted by...

Section 351. - 351. A representation may be made at the time of,...

Section 352. - 352. The language of a representation is to be interpreted...

Section 353. - 353. A representation as to the future is a promise,...

Section 354. - 354. A representation cannot qualify an express provision in a...

Section 355. - 355. A representation may be altered or withdrawn before the...

Section 356. - 356. The completion of the contract of insurance is the...

Section 357. - 357. When an insured has no personal knowledge of a...

Section 358. - 358. A representation is false when the facts fail to...

Section 359. - 359. If a representation is false in a material point,...

Section 360. - 360. The materiality of a representation is determined by the...

Section 361. - 361. The provisions of this chapter apply as well to...

CHAPTER 4 - The Policy

ARTICLE 1 - Definition and Scope

Section 380. - 380. The written instrument, in which a contract of insurance...

Section 381. - 381. A policy shall specify: (a) The parties between whom...

Section 381.1. - 381.1. (a) The information described in subdivision (b) shall be...

Section 381.2. - 381.2. When a policy includes coverage for loss or damage...

Section 381.5. - 381.5. (a) Every policy issued, amended, delivered, or renewed in...

Section 382. - 382. Covering notes may be issued to bind insurance temporarily...

Section 382.5. - 382.5. A binder which is issued in accordance with this...

Section 383. - 383. It is a misdemeanor: (a) For any insurer, or...

Section 383.5. - 383.5. “Document,” as used in this section, means a policy...

Section 383.6. - 383.6. The phrase “motor vehicle” or “motor vehicles” as used...

Section 384. - 384. (a) A certificate of insurance or verification of insurance...

Section 386. - 386. All policies issued by incorporated insurers shall be subscribed...

Section 387. - 387. When the name of the person intended to be...

Section 388. - 388. When an insurance contract is executed with an agent...

Section 389. - 389. To render an insurance effected by one partner or...

Section 390. - 390. When the description of the insured in a policy...

Section 391. - 391. A policy may be so framed that it will...

Section 392. - 392. Any exception from the risk generally covered by a...

Section 394. - 394. (a) The commissioner may approve insurance policies and associated...

Section 395. - 395. After a covered loss, an insurer shall provide, free...

Section 396. - 396. (a) An insurer shall do either of the following:...

ARTICLE 2 - Types of Policies

Section 410. - 410. A policy is either open or valued. (Enacted by...

Section 411. - 411. An open policy is one in which the value...

Section 412. - 412. A valued policy is one which expresses on its...

Section 413. - 413. A running policy is one which contemplates successive insurances,...

ARTICLE 3 - Insurer s Name on Policy

Section 430. - 430. The policies issued by every insurer shall be entitled...

ARTICLE 4 - Warranties

Section 440. - 440. A warranty is either express or implied. (Enacted by...

Section 441. - 441. A statement in a policy of a matter relating...

Section 442. - 442. A particular form of words is not necessary to...

Section 443. - 443. Every express warranty made at or before the execution...

Section 444. - 444. A warranty may relate to the past, the present,...

Section 445. - 445. A statement in a policy, which imports that there...

Section 446. - 446. When, before the time arrives for the performance of...

Section 447. - 447. The violation of a material warranty or other material...

Section 448. - 448. Unless the policy declares that a violation of specified...

Section 449. - 449. A breach of warranty without fraud merely exonerates an...

ARTICLE 5 - Inception Hours

Section 460. - 460. On and after January 1, 1972, every printed form...

CHAPTER 5 - The Premium

Section 480. - 480. An insurer is entitled to payment of the premium...

Section 481. - 481. (a) Unless the insurance contract otherwise provides, a person...

Section 481.1. - 481.1. (a) In the event any conditional receipt, binder, or...

Section 481.5. - 481.5. (a) Whenever a policy of personal lines insurance terminates...

Section 482. - 482. Except as provided by section 481, or by the...

Section 483. - 483. A person insured is entitled to a return of...

Section 484. - 484. An acknowledgment in a policy of the receipt of...

Section 485. - 485. In case of an overinsurance by several insurers, the...

Section 486. - 486. When an overinsurance is effected by simultaneous policies, the...

Section 487. - 487. When an overinsurance is effected by successive policies, those...

Section 488. - 488. No insurer shall, in issuing or renewing a private...

Section 488.5. - 488.5. (a) An insurer shall not, in issuing or renewing...

Section 489. - 489. (a) Upon issuance of a policy of insurance described...

Section 491. - 491. The rating plan of a motor vehicle liability insurer...

CHAPTER 5.2 - Renewal Notices

Section 500. - 500. Whenever any insurer has, as a regular course of...

CHAPTER 5.3 - Consumer Complaints

Section 510. - 510. (a) Whenever a policy of insurance specified in Section...

CHAPTER 5.4 - Proof of Coverage Disclosure

Section 515. - 515. (a) (1) Notwithstanding any other law, an insurer issuing...

CHAPTER 6 - Loss

ARTICLE 1 - Transfer of Interest After Loss

Section 520. - 520. An agreement not to transfer the claim of the...

ARTICLE 2 - Causes of Loss

Section 530. - 530. An insurer is liable for a loss of which...

Section 530.5. - 530.5. If a loss or damage results from a combination...

Section 531. - 531. An insurer is liable: (a) Where the thing insured...

Section 532. - 532. If a peril is specially excepted in a contract...

Section 533. - 533. An insurer is not liable for a loss caused...

Section 533.5. - 533.5. (a) No policy of insurance shall provide, or be...

Section 533.7. - 533.7. Notwithstanding any other law, an insurer may defend a...

ARTICLE 3 - Notice and Proofs of Loss

Section 550. - 550. In case of loss upon an insurance against fire,...

Section 551. - 551. Except in the case of life, marine, or fire...

Section 552. - 552. When preliminary proof of loss is required by a...

Section 553. - 553. All defects in a notice of loss, or in...

Section 554. - 554. Delay in the presentation to an insurer of notice...

Section 555. - 555. If a policy requires, by way of preliminary proof...

Section 557. - 557. It is a misdemeanor for any person alone or...

Section 557.5. - 557.5. (a) A peace officer, member of the Department of...

ARTICLE 4 - Payment of Automobile Collision Repairs

Section 560. - 560. (a) An insurer that issues a policy providing automobile...

ARTICLE 5 - Certain Insurance Covering Real Property

Section 570. - 570. Except in the event that the insurer has previously...

Section 571. - 571. Where the insurer has authorized the work and its...

Section 572. - 572. As used in this article, the term “loss payee”...

ARTICLE 6 - Electronic Payment of Claims

Section 580. - 580. Every insurer required to make payment for a loss,...

CHAPTER 7 - Double Insurance

Section 590. - 590. A double insurance exists where the same person is...

Section 591. - 591. In case of double insurance, the several insurers are...

CHAPTER 8 - Reinsurance

Section 620. - 620. A contract of reinsurance is one by which an...

Section 621. - 621. A reinsurance is presumed to be a contract of...

Section 622. - 622. Where an insurer obtains reinsurance, he must communicate all...

Section 623. - 623. The original insured has no interest in a contract...

CHAPTER 9 - Rescission

Section 650. - 650. Whenever a right to rescind a contract of insurance...

Section 651. - 651. Whenever an insurer gives notice of rescission of an...

CHAPTER 9.5 - Filing of Certificates

Section 655. - 655. Every insurer issuing policies of motor vehicle liability insurance...

CHAPTER 9.6 - Reasons for Denial of Motor Vehicle Liability Insurance

Section 657. - 657. (a) Where any admitted insurer, licensed to issue motor...

Section 658. - 658. Where any admitted insurer, licensed to issue motor vehicle...

CHAPTER 10 - Cancellation or Failure to Renew

Section 660. - 660. As used in this chapter: (a) “Policy” means an...

Section 661. - 661. (a) A notice of cancellation of a policy shall...

Section 662. - 662. (a) A notice of cancellation of a policy shall...

Section 662.1. - 662.1. Proof of mailing or delivery of a notice of...

Section 663. - 663. (a) Before policy expiration, an insurer shall deliver to...

Section 663.5. - 663.5. (a) No insurer shall fail to renew a policy...

Section 664. - 664. Proof of mailing of notice of cancellation, or of...

Section 664.5. - 664.5. Any insurer who requires periodic physical examinations of an...

Section 665. - 665. When a policy of automobile liability insurance is canceled,...

Section 666. - 666. Where the reason for cancellation does not accompany or...

Section 667. - 667. There shall be no liability on the part of,...

Section 667.5. - 667.5. Unless a policy specifically provides otherwise, the cancellation of...

Section 668. - 668. Section 663 shall not apply to policies of liability...

Section 669. - 669. Any insurer willfully violating any provisions of Section 663...

Section 669.5. - 669.5. No insurer shall fail to renew any private automobile...

CHAPTER 10.1 - Certain Automobile Insurance

Section 669.7. - 669.7. Notwithstanding Section 660, an insurer may deliver or issue...

CHAPTER 10.2 - Prohibited Cancellations

Section 670. - 670. (a) No admitted insurer licensed to issue motor vehicle...

CHAPTER 10.25 - Automobile Collision and Comprehensive Coverage

Section 671. - 671. No insurer issuing an automobile collision policy, as defined...

CHAPTER 10.27 - Availability of Cost Estimates

Section 672. - 672. (a) Every admitted insurer or insurer group licensed to...

CHAPTER 10.3 - Cancellation of Policies When Premium Financed

Section 673. - 673. (a) As used in this section, “exercise the right...

CHAPTER 10.4 - Prior Notice Concerning Cancellation or Nonrenewal

Section 674. - 674. A policy of liability insurance issued to a local...

Section 674.5. - 674.5. (a) No insurer shall cease to offer any particular...

Section 674.6. - 674.6. (a) No insurer issuing policies of insurance subject to...

Section 674.9. - 674.9. (a) Notwithstanding subdivision (b) of Section 674.6, an insurer...

CHAPTER 11 - Cancellation and Failure to Renew Certain Property Insurance

Section 675. - 675. (a) Except as provided in Sections 676.8 and 679.6,...

Section 675.1. - 675.1. (a) In the case of a total loss to...

Section 675.5. - 675.5. (a) In addition to any policy of insurance specified...

Section 676. - 676. After a policy specified in Section 675 has been...

Section 676.1. - 676.1. (a) The arbitrary cancellation of a policy of homeowners’...

Section 676.2. - 676.2. (a) This section applies only to policies of commercial...

Section 676.3. - 676.3. Nothing in Section 676.2 shall preclude the imposition of...

Section 676.4. - 676.4. Nothing in Section 676.2 shall preclude, while the policies...

Section 676.5. - 676.5. (a) This section applies only to policies of commercial...

Section 676.6. - 676.6. (a) This section applies to commercial umbrella liability insurance...

Section 676.7. - 676.7. (a) No admitted insurer, licensed to issue and issuing...

Section 676.75. - 676.75. (a) No admitted insurer, licensed to issue and issuing...

Section 676.8. - 676.8. (a) This section applies only to policies of workers’...

Section 676.9. - 676.9. (a) This section applies to policies covered by Sections...

Section 676.10. - 676.10. (a) This section applies to policies covered by Section...

Section 677. - 677. (a) All notices of cancellation shall be in writing,...

Section 677.2. - 677.2. (a) This section applies only to policies covered by...

Section 677.4. - 677.4. A notice of cancellation with respect to a policy...

Section 678. - 678. (a) (1) At least 45 days before the policy...

Section 678.1. - 678.1. (a) This section applies only to policies of insurance...

Section 678.2. - 678.2. The provisions of subdivisions (c) and (e) of Section...

Section 678.5. - 678.5. No policy specified in Section 675 that is issued,...

Section 679. - 679. There shall be no liability on the part of,...

Section 679.5. - 679.5. Proof of mailing of a notice of cancellation and...

Section 679.6. - 679.6. The commissioner may, after hearing, exempt from the provisions...

Section 679.7. - 679.7. (a) Upon receiving a written request from an insured...

CHAPTER 11.5 - Disclosure Requirements for Certain Property Insurance

Section 679.9. - 679.9. If an insurer changes the annual premium under a...

CHAPTER 12 - Prohibition of Discriminatory Practices by Certain Admitted Insurers

Section 679.70. - 679.70. This chapter shall apply to policies of insurance, other...

Section 679.71. - 679.71. No admitted insurer that is licensed to issue any...

Section 679.72. - 679.72. No application for insurance specified in this chapter or...

Section 679.73. - 679.73. Nothing in this chapter shall prohibit use in an...

Section 679.74. - 679.74. (a) An admitted insurer that is licensed to issue...

Section 679.75. - 679.75. To reduce underwriting risk and ensure solvency, an insurer...