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California Code, Insurance Code - INS § 1730.6

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) Every property broker-agent and every casualty broker-agent shall, prior to arranging premium financing or transacting any agreement for the periodic payment of premium for any new or renewal policy of insurance specified in Section 660, disclose to any applicant or prospective insured any options for premium financing or the periodic payment of premium from the insurer or, if applicable, the California Automobile Assigned Risk Plan, that are available for the insurance being purchased.  This disclosure may be in the form of a written document.  In the event the applicant or prospective insured elects to enter into an agreement for premium financing, the property broker-agent and casualty broker-agent shall comply with the requirements of Section 778.4.

(b) For purposes of this section and Section 778.4:

(1) “Periodic payment of premium” means the payment plan provided by the California Automobile Assigned Risk Plan, or a payment plan provided by the insurer that allows the total premium to be paid in more than one installment.

(2) “Arrange premium financing” means assisting an applicant or prospective insured to arrange for payment of the premium through a premium finance agreement as defined in Section 778.1.

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Cite this article: FindLaw.com - California Code, Insurance Code - INS § 1730.6 - last updated January 01, 2025 | https://codes.findlaw.com/ca/insurance-code/ins-sect-1730-6/

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