California Code, Insurance Code - INS § 12840

(a) Every obligor or its administrator shall maintain at its principal office complete and accurate accounts, books, and records of all transactions among the obligor, its administrator, if any, sellers, insurers, and purchasers.  Records maintained pursuant to this section shall be made available to the commissioner upon reasonable request.  Any computerized recordkeeping system must be capable of producing a legible hard copy of all required records.  Accounts, books, and records shall include:

(b) All required records pertaining to a service contract shall be maintained by the obligor, its administrator, or the insurer underwriting the contract, for at least three years after the expiration of the contract.

(c) Every insurer that has issued a policy to an obligor shall have an ongoing right to access that obligor's books and records in order to permit the insurer to fulfill all obligations to purchasers.

(d) The commissioner may examine and investigate the affairs of every obligor and any administrator of an obligor.  Any examination or investigation shall be at the expense of the obligor or the administrator, in the discretion of the commissioner.  Any information contained in the books and records, including, but not limited to, the identity and addresses of sellers and purchasers of service contracts, shall be confidential, except that the commissioner may use the information in any proceeding or investigation instituted against an obligor or an administrator.

(e) An obligor's failure to keep or maintain the required accounts, books, or records, or to provide the commissioner with full and immediate access to those records, shall be grounds for the immediate suspension or revocation of the obligor's vehicle service contract provider's license, and also shall be grounds for the commissioner to issue a cease and desist order pursuant to Section 1065.2.