PART 1. FIRE AND MARINE INSURANCE [1880. - 10108.1.]

Part 1 enacted by Stats. 1935, Ch. 145.

§§ 1880–10108.1 · 463 sections

1. CHAPTER 1. The Marine Contract §§ 1880–2010 · 66 sections

   1. ARTICLE 1. Insurable Interests Peculiar to Marine Insurance §§ 1880–1886 · 7 sections

      • § 1880 The owner of a ship has in all cases an insurable interest in it, even when it has been chartered by one who agrees to pay him its value in case of loss.
      • § 1881 The insurable interest of the owner of a ship hypothecated by bottomry is only the excess of its value over the amount secured by bottomry.
      • § 1882 Freightage, in marine insurance, signifies all the benefit derived by the owner, either from the chartering of the ship or its employment for the carriage of…
      • § 1883 The owner of a ship has an insurable interest in expected freightage which he would have certainly earned but for the intervention of a peril insured against.
      • § 1884 The interest mentioned in the last section exists, in the case of a charter party, when the ship has broken ground on the chartered voyage. If a price is to be…
      • § 1885 In marine insurance, a person who has an interest in the thing from which profits are expected to proceed, has an insurable interest in the profits.
      • § 1886 The charterer of a ship has an insurable interest in it, to the extent that he is liable to be damaged by its loss.
   2. ARTICLE 2. Concealment and Representations—Rules Peculiar to Marine Insurance §§ 1900–1905 · 6 sections

      • § 1900 In marine insurance each party is bound to communicate, in addition to what is required in the case of other insurance: (a) All the information which he…
      • § 1901 In marine insurance, information of the belief or expectation of a third person in reference to a material fact, is material.
      • § 1902 A person insured by a contract of marine insurance is presumed to have, at the time of insuring, knowledge of a prior loss, if the information might possibly…
      • § 1903 In marine insurance, concealment in respect to any of the following matters does not vitiate the entire contract, but merely exonerates the insurer from a loss…
      • § 1904 In marine insurance, if a representation by the insured is intentionally false in any respect, whether material or immaterial, the insurer may rescind the…
      • § 1905 The failure of subsequent circumstances to conform to a representation as to expectation does not, in the absence of fraud, avoid marine insurance.
   3. ARTICLE 3. Implied Warranties Peculiar to Marine Insurance §§ 1920–1927 · 8 sections

      • § 1920 In every marine insurance upon a ship or involving transportation by ship, a warranty is implied that the ship is seaworthy.
      • § 1921 A ship is seaworthy when reasonably fit to perform the services and encounter the ordinary perils of the voyage contemplated by the parties to the policy.
      • § 1922 An implied warranty of seaworthiness is complied with if the ship is seaworthy at the time of the commencement of the risk, except in the following cases: (a)…
      • § 1923 A warranty of seaworthiness extends not only to the condition of the structure of the ship itself, but also requires that it be properly laden and provided…
      • § 1924 Where any portion of the voyage contemplated by a policy differs from other portions in respect to the things requisite to make the ship seaworthy therefor, a…
      • § 1925 When a ship becomes unseaworthy during the voyage, an unreasonable delay in repairing the defect exonerates the insurer from liability on any loss arising from…
      • § 1926 A ship may be seaworthy for the purpose of insurance upon itself and, at the same time, unseaworthy for the purpose of insurance upon the cargo because of…
      • § 1927 Where the nationality or neutrality of a ship or cargo is expressly warranted, it is implied that: (a) The ship will carry the requisite documents to show such…
   4. ARTICLE 4. Effect of Course of Voyage §§ 1940–1945 · 6 sections

      • § 1940 When the voyage contemplated by marine insurance is described by the places of beginning and ending, the voyage insured is one which conforms to the course of…
      • § 1941 If the course of sailing is not fixed by mercantile usage, the voyage insured by marine insurance is that way between the places specified which, to a master…
      • § 1942 Deviation is: (a) A departure from the course of the voyage insured. (b) An unreasonable delay in pursuing the voyage. (c) The commencement of an entirely…
      • § 1943 A deviation is proper: (a) When caused by circumstances over which neither the master nor the owner of the ship has any control. (b) When necessary to comply…
      • § 1944 Every deviation not specified in the last section is improper.
      • § 1945 An insurer is not liable for any loss happening to the subject matter of marine insurance after an improper deviation.
   5. ARTICLE 5. Loss in Marine Insurance §§ 1960–1997 · 38 sections

      • § 1960 A loss is either total or partial.
      • § 1961 A total loss is either actual or constructive.
      • § 1962 An actual total loss is caused by: (a) A total destruction of the subject matter of insurance. (b) The loss of the subject matter by sinking, or by being…
      • § 1963 A constructive total loss is one which gives to a person insured a right to abandon, under section 1971.
      • § 1964 An actual loss may be presumed from the continued absence of a ship without being heard of. The length of time which is sufficient to raise this presumption…
      • § 1965 When a ship is prevented, at an intermediate port and by the perils insured against, from completing the voyage, the master shall make every exertion to…
      • § 1966 In addition to the liability mentioned in section 1965, a marine insurer is liable, up to the amount insured, for damages, expenses of discharging, storage,…
      • § 1967 Upon an actual total loss, the insured is entitled to payment without notice of abandonment.
      • § 1968 Where it has been agreed that an insurance upon a particular subject matter, or class of subject matter, is to be free from particular average, a marine…
      • § 1969 When insurance is confined in its terms to an actual total loss, it does not cover a constructive total loss, but it does cover any loss which necessarily…
      • § 1970 Abandonment, in marine insurance, is the act of the insured by which, after a constructive total loss, he declares the relinquishment to the insurer of the…
      • § 1971 In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof which is separately valued by the policy or…
      • § 1972 An abandonment can not be either partial or conditional.
      • § 1973 An abandonment can be made only at a time limited by all of the following: (a) Within a reasonable time after the information of the loss. (b) After the…
      • § 1974 Where the information upon which an abandonment has been made proves incorrect, or the subject matter of insurance is so far restored when the abandonment is…
      • § 1975 Abandonment is made by giving oral or written notice thereof to the insurer.
      • § 1976 A notice of abandonment shall be explicit, and shall specify the particular cause of the abandonment, but need state only enough to show that there is probable…
      • § 1977 An abandonment can be sustained only upon the cause specified in the notice thereof.
      • § 1978 An abandonment is equivalent to a transfer to the insurer of the insured’s interest, with all the chances of recovery and indemnity.
      • § 1979 Whenever a marine insurer pays for a loss as if it were an actual total loss, he is entitled to whatever remains of the subject matter insured, or its proceeds…
      • § 1980 Upon an abandonment, acts done subsequent to the loss and in good faith by persons who at the time were the insured’s agents in respect to the subject matter…
      • § 1981 An acceptance of an abandonment is not necessary to the rights of the insured, and is not to be presumed from the mere silence of the insurer at the time of…
      • § 1982 The acceptance of an abandonment, whether express or implied, is conclusive upon the parties and admits the loss and the sufficiency of the abandonment.
      • § 1983 An abandonment once made and accepted is irrevocable, unless the ground upon which it was made proves to be unfounded.
      • § 1984 On an accepted abandonment of a ship, freightage earned previous to the loss belongs to the insurer of the freightage; but freightage subsequently earned…
      • § 1985 If an insurer refuses to accept a valid abandonment, he is liable as upon an actual total loss, after deducting from the amount of the loss any proceeds of the…
      • § 1986 If an insured omits to abandon, he may nevertheless recover his actual loss.
      • § 1987 (a) A valuation fraudulent in fact entitles a marine insurer to rescind the contract. (b) When the subject matter has been hypothecated by bottomry or…
      • § 1988 In a case of partial loss, a marine insurer is liable only for such proportion of the amount insured by him as the loss bears to the value of the whole…
      • § 1989 Where profits are separately insured in marine insurance, in case of loss the insured is entitled to recover that proportion of such profits which the value of…
      • § 1990 In case of a valued policy of marine insurance on freightage or cargo, if only a part of the subject matter is exposed to risk, the valuation applies only in…
      • § 1991 When profits are valued and insured by marine insurance, a loss of them is conclusively presumed from a loss of the property out of which they were expected to…
      • § 1992 In estimating a loss under an open policy of marine insurance, the following rules are to be observed: (a) The value of a ship is its value at the beginning of…
      • § 1993 If cargo insured against partial loss arrives at the port of destination in a damaged condition, the loss of the insured is computed as follows: (a) Deduct the…
      • § 1994 A marine insurer is liable for all the expense attendant upon a loss which forces the ship into port to be repaired. Where it is agreed that the insured may…
      • § 1995 In marine insurance, when an insured is required to make a contribution in respect to the subject matter of insurance toward a general average loss, if the…
      • § 1996 In marine insurance, where an insured has a demand against others for contribution, he may claim the whole loss from the insurer, subrogating the insurer to…
      • § 1997 In the case of a partial loss of a ship or its equipments, the old materials are to be applied towards payment for the new. Whether the ship is new or old, a…
   6. ARTICLE 6. Exemptions § 2010 · 1 section

      • § 2010 The provisions of Sections 481, 800, 801, 802, 803, and 804 shall not apply to ocean marine insurance as defined in Section 481.
2. CHAPTER 2. The Fire Insurance Contract §§ 2030–2097 · 44 sections

   1. ARTICLE 1. Change of Risk §§ 2030–2033 · 4 sections

      • § 2030 An insurer is entitled to rescind a contract of fire insurance upon an alteration in the use or condition of the subject matter insured from that to which it…
      • § 2031 When a contract of fire insurance does not restrict use or condition of insured subject matter, such contract is not affected by an alteration in such use or…
      • § 2032 After the execution of a contract of fire insurance, an act of the insured does not affect the contract unless the act violates policy provisions, even though…
      • § 2033 (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following…
   2. ARTICLE 2. Measure of Indemnity §§ 2050–2062 · 13 sections

      • § 2050 The effect of a valuation in a fire policy is the same as in a marine policy.
      • § 2051 (a) Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at…
      • § 2051.5 (a) (1) Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity is the amount that it would cost the insured to…
      • § 2052 Whenever the insured desires to have a valuation named in his policy insuring any building or structure against fire, he may require such building or structure…
      • § 2053 A clause shall be inserted in such a valued policy, stating substantially that the value of the insured’s interest in the insured building or structure has…
      • § 2054 In the absence of any change increasing the risk without the consent of the insurer or of fraud on the part of the insured, and except as provided in Sections…
      • § 2055 Except as provided by section 2056, the insurer shall not be required to pay more than the amount stated in such a valued policy.
      • § 2056 Stipulations in a valued policy concerning the repairing, rebuilding or replacing of buildings or structures wholly or partially damaged or destroyed shall…
      • § 2057 Under a contract of fire insurance, payment to the insured shall be made within 30 days after the amount of the loss and the liability of the company have been…
      • § 2058 Notwithstanding any other provision of law, if a loss arising out of fire is rebuilt or replaced, an insured covered by a valued policy shall receive full…
      • § 2060 (a) In the event of a loss under a homeowners’ insurance policy for which the insured has made a claim for additional living expenses, the insurer shall…
      • § 2061 (a) In the event of a covered loss relating to a state of emergency, as defined in Section 8558 of the Government Code, the following special provisions shall…
      • § 2062 In the event of a state of emergency, as defined in Section 8558 of the Government Code, an insurer shall offer a 60-day grace period for payment of premiums…
   3. ARTICLE 3. California Standard Form Fire Insurance Policy §§ 2070–2085 · 24 sections

      • § 2070 All fire policies on subject matter in California shall be on the standard form, and, except as provided by this article shall not contain additions thereto.…
      • § 2070.1 (a) Any insurer whose insured has made a claim under his or her residential fire or property insurance policy for loss due, in whole or in part, to corrosive…
      • § 2071 (a) The following is adopted as the standard form of fire insurance policy for this state: California Standard Form Fire Insurance Policy No. [Space for…
      • § 2071.1 (a) This section applies to an examination of an insured under oath pursuant to Section 2071 labeled “Requirements in case loss occurs” and other relevant…
      • § 2072 The policy is not required to be used for reinsurance between insurers.
      • § 2073 The policy shall be plainly printed. The type shall not be smaller than eight-point and in a style not less legible than Century and subheads shall be in type…
      • § 2074 Either the blanks in the standard form or those in an endorsement attached thereto shall be appropriately filled. The first page of the policy or an…
      • § 2074.5 In lieu of showing the term of coverage in the form set forth in Section 2071, the standard form policy may show the term in any form which clearly states the…
      • § 2074.6 In lieu of showing the attestation clause and official signatures in the form as set forth in Section 2071, the standard form policy may show, immediately…
      • § 2074.7 Notwithstanding the provisions of Section 2071 granting the right to both insured and insurer to cancel a policy of insurance, or the provisions of any policy…
      • § 2074.8 Notwithstanding any of the other provisions of Sections 2071 and 6010, those paragraphs in Sections 2071 and 6010 captioned “Cancellation of policy” may, in…
      • § 2074.9 During such time as countersignatures are not required by law, the provisions of Section 2071 requiring policies to make provision for countersignatures shall…
      • § 2075 By special agreement indorsed on the policy or added thereto, the provisions regarding appraisement or apportionment of loss may be waived and the valuations…
      • § 2076 The insurer may add to the standard form any matter relating to its financial condition, directors, officers, shareholders and history, and the address of its…
      • § 2077 The insurer may add to the standard form, in red ink, any provisions required or permitted in its policies by the State or country of its organization,…
      • § 2078 There may be added to the standard form, clauses providing for and defining the rights, duties and obligations of mortgagees, assignees and other parties…
      • § 2079 Clauses may be added to the standard form: (a) Covering subject matter and risks not otherwise covered; provided that clauses covering loss or damage caused by…
      • § 2080 Except as otherwise provided in this article, clauses imposing specified duties and obligations upon the insured and limiting the liability of the insurer may…
      • § 2081 Whenever a clause is inserted, or rider attached, affecting the standard form liability of the insurer for loss or damage by fire occasioned either directly or…
      • § 2082 Any insurers, other than corporations, issuing policies on subject matter in California, shall use the standard form, changing only such words as refer to the…
      • § 2082.5 Where an insurer has no president or secretary in the United States, the facsimile signature on the standard form may be that of its principal executive…
      • § 2083 It is a misdemeanor for any insurer or any agent to countersign or issue a fire policy covering in whole or in part property in California and varying from the…
      • § 2084 (a) After a covered loss under a policy covered by Section 2071, an insurer shall provide to the insured, free of charge, a complete copy of the policy that…
      • § 2085 (a) (1) In the case of a declaration of a disaster by the President of the United States or the Governor, if a property owner or owner’s legal representative…
   4. ARTICLE 5. Reduced Wildfire Risk §§ 2095–2097 · 3 sections

      • § 2095 The Legislature finds and declares all of the following: (a) More than 2,000,000 California households, or approximately one in four residential structures in…
      • § 2096 For purposes of this article: (a) “Building Materials Listing” means the list of construction materials and equipment biennially prepared by the Office of the…
      • § 2097 (a) (1) On or before January 1, 2030, and every five years thereafter, the department shall consider whether to update the Safer from Wildfires regulations to…
3. CHAPTER 4. General Mutual Insurers §§ 4010–4097.20 · 63 sections

   1. ARTICLE 1. General Provisions §§ 4010–4019 · 12 sections

      • § 4010 A “mutual” insurer is an insurance corporation without capital stock owned by its policyholders collectively, who have the right to vote in the election of its…
      • § 4011 The provisions of Section 36 shall apply to domestic mutual insurers as well as foreign mutual insurers.
      • § 4012 Domestic mutual insurers, incorporating or qualifying to transact any or all of the classes of insurance designated in Sections 100 through 123 and 700. 01,…
      • § 4013 (a) Each policyholder of a domestic mutual insurer, other than the holder of a reinsurance contract, is a member of the insurer during the policy period, as…
      • § 4014 Any person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, estate, trustee or…
      • § 4015 With respect to the management, records, and affairs of a domestic mutual insurer qualified to transact any or all of the classes of insurance designated in…
      • § 4016 Each member of a domestic mutual insurer is entitled to one vote upon each matter coming to a vote at meetings of members.
      • § 4016.1 Notice of all meetings of members whether annual or special shall be given in writing to the members entitled to vote by the secretary, or an assistant…
      • § 4016.2 (a) The presence in person or by proxy of 5 percent of the members of a domestic mutual insurer entitled to vote at any meeting shall constitute a quorum for…
      • § 4017 A member shall have the right to vote in person or by his written proxy filed with the corporate secretary not less than five days prior to the meeting. No…
      • § 4018 No member’s vote upon any proposal to divest the insurer of its business or assets, or the major part thereof, shall be registered or taken except in person or…
      • § 4019 This chapter does not apply to a mutual insurer that has converted to a mutual legal reserve insurer pursuant to former Chapter 9 (commencing with Section…
   2. ARTICLE 2. Directors §§ 4020–4023 · 4 sections

      • § 4020 The affairs of every domestic mutual insurer shall be managed by a board of directors consisting of not less than 5 directors nor more than 15 directors.
      • § 4021 Directors shall be elected by the members of a domestic mutual insurer at the annual meeting of members. Directors may be elected for terms of not more than…
      • § 4022 A director of a mutual insurer shall be a policyholder thereof.
      • § 4023 As to an insurer operating as an authorized insurer only in the State of California, a majority of the members of the insurer’s board of directors shall be…
   3. ARTICLE 3. Management and Exclusive Agency Contracts §§ 4030–4034 · 5 sections

      • § 4030 A domestic mutual insurer shall not hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the…
      • § 4031 Any such contract shall provide that any such manager or producer of its business shall within 90 days after expiration of each calendar year furnish the…
      • § 4032 The commissioner shall disapprove any such contract if he finds that it: (a) Subjects the insurer to excessive charges; or (b) Is to extend for an unreasonable…
      • § 4033 The commissioner may, after a hearing held thereon, withdraw his approval of any such contract theretofore approved by him, if he finds that the bases of his…
      • § 4034 The holder of any such contract described in this Article shall be subject to examination by the commissioner pursuant to Article 4 (beginning with Section…
   4. ARTICLE 4. Loans §§ 4040–4044 · 3 sections

      • § 4040 A mutual insurer may borrow money to defray the expenses of its organization, provide it with surplus funds, or for any purpose of its business, upon a written…
      • § 4042 The issuance of any document evidencing any such loan shall require the commissioner’s securities permit under Article 8 of Chapter 1, Part 2, Division 1…
      • § 4044 This section shall not apply to loans obtained by the insurer in ordinary course of business from banks and other financial institutions, nor to loans secured…
   5. ARTICLE 5. Dividends to Policyholders §§ 4050–4052 · 3 sections

      • § 4050 The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out of that part of its surplus…
      • § 4051 A dividend otherwise proper may be payable out of such savings, earnings, and gains even though the insurer’s total surplus is then less than the aggregate of…
      • § 4052 The payment of any such dividends on a workers’ compensation policy shall be subject to the provisions of Section 11738 and for that purpose a mutual policy…
   6. ARTICLE 6. Nonassessable Policies §§ 4060–4064 · 5 sections

      • § 4060 A domestic mutual insurer while maintaining unimpaired surplus funds not less in amount than one and one-half times the minimum paid-in capital stock required…
      • § 4061 The commissioner shall not authorize a domestic insurer to extinguish the contingent liability of any of its members or in any of its policies to be issued,…
      • § 4062 A foreign or alien mutual insurer may issue nonassessable policies to its members in this State pursuant to its charter and the laws of its domicile.
      • § 4063 The commissioner shall revoke the certificate of a domestic mutual insurer to issue policies without contingent liability if (a) At any time the insurer’s…
      • § 4064 During the absence of such certificate the insurer shall not issue any policy without providing therein for the contingent liability of the policyholder, nor…
   7. ARTICLE 7. Insolvency § 4070 · 1 section

      • § 4070 Such an insurer is insolvent if its surplus becomes less than the amount of paid-in capital required of a capital stock company to qualify to transact the same…
   8. ARTICLE 8. Applicable Insurance Laws §§ 4080–4081 · 2 sections

      • § 4080 Such an insurer shall be subject to all the provisions of this code and all the applicable rules and regulations of the commissioner. Such code provisions and…
      • § 4081 Any county mutual fire insurer, or two or more such insurers, may merge into a general mutual insurer described in this chapter by following the procedure in…
   9. ARTICLE 9. Merger, Consolidation, Reinsurance, or Transfer of Assets and Liabilities §§ 4090–4096 · 7 sections

      • § 4090 By following the procedure specified in this article, any domestic mutual insurer described in this article may merge, consolidate, or otherwise unite with or…
      • § 4091 The plan and agreement by which any such transaction is to be effected shall be approved by a resolution of the majority of the board of directors of each…
      • § 4092 When any such plan and agreement shall have been approved by the commissioner, with any changes required by him, the same shall be approved in the case of each…
      • § 4093 If the vote is in the affirmative, a certified copy of all proceedings relating to the proposed transaction shall be filed with the commissioner. If one of the…
      • § 4094 Any plan of merger, consolidation, or other unification under this article shall provide that all rights and properties of the parties to the plan of merger,…
      • § 4095 In the event a mutual insurer is merged, consolidated, or part of a reorganization under the procedures specified in this article, and the surviving,…
      • § 4096 In the event a domestic mutual insurer is merged, consolidated, or a part of a reorganization under the procedures specified in this article, and the…
   10. ARTICLE 10. Conversion of an Incorporated Medical Malpractice Mutual Insurer into an Incorporated Stock Insurer §§ 4097–4097.20 · 21 sections

       • § 4097 (a) A domestic incorporated medical malpractice mutual insurer, issuing nonassessable policies on a reserve basis may be converted into an incorporated stock…
       • § 4097.01 The definitions in this section apply to the following terms when used in this article. (a) “Adoption date” means the date the board of directors adopts the…
       • § 4097.02 The plan of conversion shall include appropriate proceedings for amending the mutual company’s articles of incorporation to give effect to the conversion from…
       • § 4097.03 For the conversion of a medical malpractice mutual insurer, the plan of conversion shall provide for either a demutualization in compliance with Section…
       • § 4097.04 For the demutualization of a mutual insurer into a stock insurer or for the demutualization of a mutual holding company into a stock corporation, the plan for…
       • § 4097.05 A plan of conversion adopted by a medical malpractice mutual insurer to establish a mutual holding company shall provide that the medical malpractice mutual…
       • § 4097.06 (a) The commissioner shall examine the plan submitted pursuant to subdivision (b) of Section 4097.02. If the plan provides for the establishment of a mutual…
       • § 4097.07 The meeting of members prescribed by subdivision (c) of Section 4097.02 shall be called by the board of directors, the chairperson of the board, or the…
       • § 4097.08 Nothing in this article shall be deemed to prohibit the inclusion in the plan of conversion of provisions under which the insurer’s officers, directors,…
       • § 4097.09 No director, officer, agent, or employee of the mutual company shall receive any fee, commission, or other valuable consideration whatsoever, other than…
       • § 4097.10 At any time before that plan of conversion becomes effective as provided in Section 4097.11, the mutual company may, by resolution of at least two-thirds of…
       • § 4097.11 (a) Upon consent by the commissioner to the plan of conversion of a mutual insurer and filing of the plan of conversion in accordance with the provisions of…
       • § 4097.12 (a) Upon the effective date of a plan of conversion in accordance with Section 4097.05, the mutual insurer immediately becomes a stock corporation, the…
       • § 4097.13 (a) Prior to, and for a period of five years following, the effective date of the plan of conversion, no person or group of persons acting in concert shall…
       • § 4097.14 Unless otherwise provided in the plan of conversion, the directors and officers of the mutual company shall serve as directors and officers of the converted…
       • § 4097.15 (a) Notwithstanding any other provision of law and except as otherwise provided in subdivision (b), actions concerning any plan of conversion, proposed plan of…
       • § 4097.16 The offer or sale of securities, including any debt securities, issued pursuant to the plan of conversion developed and approved in accordance with the…
       • § 4097.17 The commissioner shall have the authority from time to time, to make, amend, and rescind any rules and regulations as may be necessary to carry out the…
       • § 4097.18 Upon completion of the act of conversion and issuance of the certificate of authority under Section 4097.11, the Secretary of State shall accept for filing a…
       • § 4097.19 (a) The amended articles of incorporation of a converted company that have been adopted pursuant to a plan of conversion and filed with the Secretary of State…
       • § 4097.20 If the name of a mutual insurer converting to a stock insurer pursuant to this article includes the word “mutual,” the new stock insurer may continue to use…
4. CHAPTER 5. County Mutual Fire Insurers §§ 5050–7060 · 81 sections

   1. ARTICLE 1. Formation and Organization §§ 5050–5063 · 16 sections

      • § 5050 Two hundred fifty (250) or more persons residing in one county of this State may incorporate for the purpose of forming a mutual fire insurer upon all such…
      • § 5050.1 If such persons have not performed all acts and secured all agreements necessary to complete the incorporation of such insurer within one year from the date of…
      • § 5050.5 Any county mutual fire insurer heretofore or hereafter incorporated and doing business under the provisions of this chapter may, if it has issued an insurance…
      • § 5051 Upon the payment in advance of seven thousand fifty-five dollars ($7,055) to the commissioner for all services to be rendered by him or her in the matter of…
      • § 5052 The commissioner shall examine the proposed articles of incorporation. If they conform to this chapter he shall deliver to such persons a certificate…
      • § 5053 The duly executed articles of incorporation and a copy of the certificate of the commissioner shall be filed with the Secretary of State in conformity with…
      • § 5054 The articles of incorporation and certificate obtained by any county mutual fire insurer operating under the provisions of this chapter are subject to control…
      • § 5055 The by-laws and all amendments thereto shall be filed with the commissioner within sixty days after their adoption.
      • § 5056 Such insurer shall have not less than seven, nor more than 11 directors, a majority of whom shall constitute a quorum to do business. The by-laws or the…
      • § 5057 The annual meeting of the members of the insurer shall be held on the second Monday of February of each year, unless its board of directors fixes the time for…
      • § 5058 In the election of the first board of directors each member shall be entitled to one vote. At every subsequent election each member shall be entitled to as…
      • § 5059 A member may cast his votes in person or by proxy, distributing them among the directors to be elected, or among a less number of the directors, or cumulating…
      • § 5060 The directors shall elect, from their own number, a president and a vice president. They shall also elect a treasurer and a secretary, who need not be members…
      • § 5061 The treasurer and secretary shall give bonds to the insurer for the faithful performance of their duties, in such amounts as are prescribed by the board of…
      • § 5062 No incorporators or persons acting in their behalf or other persons participating in the management of such insurer shall advance to or for the subscribers or…
      • § 5063 No such insurer may enter into any general agency or management contract whereby it authorizes or delegates to a person the right to assume virtual control of…
   2. ARTICLE 2. Powers §§ 5080–5081 · 2 sections

      • § 5080 Such insurer and its directors possess the usual powers, and are subject to the usual duties of corporations and directors.
      • § 5081 Such insurer may accumulate such surplus as its directors deem desirable for meeting contingencies, to cover the catastrophe hazard, and for general corporate…
   3. ARTICLE 3. Membership §§ 5090–5094 · 6 sections

      • § 5090 Any person having an insurable interest in property in the county in which any such insurer is formed or any person having such an interest in property in any…
      • § 5090.2 Not more than one person licensed as an insurance agent, broker or solicitor, or who is a member of an association or partnership or a stockholder or employee…
      • § 5091 Any member of such insurer may commence to withdraw therefrom by surrendering his policy for cancellation, and by giving notice in writing to the secretary at…
      • § 5092 The withdrawal may be completed by paying the member’s share, if any, under the terms of his policy, of all claims that exist against the insurer on the day of…
      • § 5093 The insurer may cancel any policy by giving the insured 20 days’ written notice of cancellation with or without tender of the excess of paid premium above the…
      • § 5094 In case of cancellation by the insurer it shall also notify in the same manner any holder of a mortgage whose name appears, either on the signed application…
   4. ARTICLE 4. The Policy §§ 6010–6021 · 16 sections

      • § 6010 (a) The following is adopted as the standard form of county mutual fire insurer’s policy for this state: California Standard Form of County Fire Insurance…
      • § 6010.5 The policy is not required to be used for reinsurance between insurers.
      • § 6011 Either the blanks in the standard form or those in an endorsement attached thereto shall be appropriately filled. The first page of the policy or an…
      • § 6011.5 In lieu of showing the term of coverage in the form set forth in Section 6010, the standard form policy may show the term in any form which clearly states the…
      • § 6011.6 In lieu of the attestation clause and official signatures in the form as set forth in Section 6010, the standard form policy may show, immediately following…
      • § 6012 By special agreement indorsed on the policy or added thereto, the provisions regarding appraisement or apportionment of loss may be waived and the valuations…
      • § 6013 The standard form of policy shall be plainly printed. The type shall not be smaller than eight-point and in a style not less legible than Century and subheads…
      • § 6014 All county mutual fire insurance policies on subject matter in this State shall be on the county mutual standard form and, except as provided by this article,…
      • § 6015 The insurer may add to the policy any matter relating to its financial condition, directors, officers, members and history, and the address of its home office…
      • § 6016 Clauses may be added to the policy providing for and defining the rights, duties and obligations of mortgagees, assignees, and other parties having an interest…
      • § 6017 Insurers authorized to limit or eliminate their assessment liability in accordance with the terms of this chapter may make such changes in the standard form as…
      • § 6017.5 Insurers authorized to eliminate their assessment liability in accordance with the terms of this chapter may use the California standard form insurance policy…
      • § 6018 No clause shall be inserted nor rider attached affecting the standard form liability of the insurer for loss or damage by fire occasioned either directly or…
      • § 6019 Clauses may be added to the policy: (a) Covering property and risks not otherwise covered; provided that clauses covering loss or damage caused by nuclear…
      • § 6020 Except as otherwise provided by this article, clauses may be attached, by separate riders in type larger than pica or in capital letters measuring not less…
      • § 6021 It is a misdemeanor for any insurer or its agent to countersign or issue a county mutual fire insurance policy covering in whole or part subject-matter in this…
   5. ARTICLE 5. Risks §§ 6040–6050 · 11 sections

      • § 6040 Such insurer may issue policies on dwellings, schoolhouses, churches, fraternal or lodge halls, community, creamery, or farm buildings and property contained…
      • § 6040.5 Insurers authorized to eliminate their assessment liability in accordance with the terms of this chapter (commencing with Section 5050) shall not be restricted…
      • § 6041 Insurance permitted by this chapter upon personal property owned by the insured, including automobiles and livestock, shall continue in full force and effect…
      • § 6042 Policies may be executed for any time not exceeding five years and not extending beyond the time limited for the existence of the insurer.
      • § 6043 All members of such an insurer shall agree in writing to pay their pro rata share to the insurer of the necessary expense and loss sustained by any member…
      • § 6044 All such insurers shall classify the subject matter insured by them at the time of issuing policies thereon. Such classification shall be under rates…
      • § 6045 For the purpose of this chapter: (a) “A city or town block” is an area of not more than one hundred sixty thousand square feet having at least one frontage in…
      • § 6047 Except as provided in this section, such insurer shall not issue policies to an amount in excess of six thousand dollars ($6,000) on any one risk, whether…
      • § 6048 Except as provided in Section 6041 such insurer shall insure only property within the limits of the county wherein it is organized, or in a county next…
      • § 6049 Such an insurer shall not assume any risks on property situated within any one block of a closely built-up district or of territory within the limit of any…
      • § 6050 Where the amount of insurance in policies already written equals the amount limited by the provisions of this article, no additional insurance shall be written…
   6. ARTICLE 6. Reinsurance §§ 6070–6072 · 3 sections

      • § 6070 Any such insurer may accept reinsurance under any agreement for reinsurance between two or more county mutual fire insurers or from any authorized insurer the…
      • § 6071 Any such insurer may cede reinsurance provided the amount retained by the originating insurer shall be not less than 10 percent nor less than five hundred…
      • § 6072 The restrictions imposed by this chapter upon any insurer as to original insurance shall apply to reinsurance written by it.
   7. ARTICLE 7. Loss §§ 6090–6091 · 2 sections

      • § 6090 Every member of such insurer who sustains loss by any hazard covered by his policy shall immediately notify the insurer in accordance with the terms of his…
      • § 6091 An action may be brought and maintained against any such insurer by its members to recover for losses insured against by the insurer, if payment is withheld…
   8. ARTICLE 8. Assessments §§ 7010–7018 · 10 sections

      • § 7010 When any loss exceeds in amount the cash funds of the insurer and also exceeds one-eighth of one per cent of the total amount of the insurer’s insurance in…
      • § 7011 Upon being convened for the purpose, the directors shall make an assessment upon all of the property insured in the insurer. Such assessment shall be in…
      • § 7012 When the amount of such loss does not exceed one-eighth of one per cent of the total amount of insurance in force in the insurer, its directors may, by…
      • § 7013 The term of any such loan shall not be greater than twelve months nor shall the date of maturity be in excess of thirty days beyond the date of the next annual…
      • § 7014 The board of directors may at its annual meeting levy an assessment not to exceed twenty-five cents on the $100 of the first class of insurance and a pro rata…
      • § 7015 (a) No assessment or assessments may be levied upon any policy in excess of three times the amount of the premium named therein. The liability to assessment on…
      • § 7015.5 The commissioner shall charge and collect in advance a fee of one hundred seventy-seven dollars ($177) for issuing a certificate under this article, or for…
      • § 7016 The secretary, whenever such an assessment is made, shall immediately notify every policyholder in such insurer either personally, by agent, or by letter…
      • § 7017 The insurer may bring an action against any member who neglects or refuses to pay an assessment made upon him under the provisions of this chapter, or to pay…
      • § 7018 A director of any such insurer who wilfully refuses or neglects to perform the duties imposed upon him by law or by the insurer’s by-laws shall be liable in…
   9. ARTICLE 9. Reports and Statements §§ 7030–7031 · 2 sections

      • § 7030 The secretary shall prepare an annual statement, showing the condition of such insurer on December thirty-first preceding the annual meeting. He shall present…
      • § 7031 The president and secretary shall, on or before the first day of March of each year, prepare, under oath, and transmit to the commissioner a statement of the…
   10. ARTICLE 9.5. Merger §§ 7040–7044.5 · 6 sections

       • § 7040 Notwithstanding the provisions of Section 900 of the Corporations Code, any two or more of such insurers may merge. The plan and agreement by which any such…
       • § 7041 When any such plan and agreement shall have been approved by the commissioner, with changes, if any required by him, the same shall be approved by a vote of…
       • § 7042 If the vote is in the affirmative a certified copy of all proceedings relating to the proposed merger shall be filed with the commissioner. If the commissioner…
       • § 7043 After any merger made under the provisions of this article shall have been completed, the surviving corporation shall be deemed, for the purpose of the…
       • § 7044 Any plan of merger under this article shall provide that all rights and properties of the parties to the plan of merger shall accrue to and become the rights…
       • § 7044.5 Any one or more county mutual fire insurers, by following the procedure of this article, may merge into a general mutual insurer described in Chapter 4…
   11. ARTICLE 9.6. Transformation §§ 7045–7049 · 5 sections

       • § 7045 The board of directors of any county mutual fire insurer that desires to commence proceedings for transformation of that insurer to a general mutual insurer…
       • § 7046 After the commissioner has granted tentative approval of any such application, a county mutual fire insurer that shall meet the financial requirements…
       • § 7047 The meeting called for the purpose of transformation, shall be preceded by a written or printed notice of the meeting and its purpose addressed to each…
       • § 7048 Such corporation shall be a continuance of the original corporation by the same name or by any other name approved by the commissioner. Such transformation,…
       • § 7049 After the policyholders have elected such a transformation a county mutual insurer shall submit to the insurance commissioner for final approval of the…
   12. ARTICLE 10. Dissolution § 7050 · 1 section

       • § 7050 Any such insurer may be proceeded against and dissolved in the same manner and upon the same conditions as in the case of other domestic incorporated insurers.
   13. ARTICLE 11. Exemptions § 7060 · 1 section

       • § 7060 The provisions of subdivision (f) of Section 381 and the provisions of Sections 382, 383, 384, 750, 751, 752, 753, 754, 755, 756, 757, 758,
5. CHAPTER 6. County Mutual Fire Reinsurers §§ 7080–9060 · 46 sections

   1. ARTICLE 1. Formation and Organization §§ 7080–7093 · 14 sections

      • § 7080 Five or more insurers, operating under Chapter 5 of this part and having insurance liabilities exceeding a total of $150,000 which they wish to reinsure, may…
      • § 7081 Upon payment in advance of two hundred fifty dollars ($250) cash, lawful money of the United States, to the commissioner for all services to be rendered by him…
      • § 7082 The declaration shall be signed by the president and secretary of each of the incorporators. It shall be accompanied by a certified copy of a resolution passed…
      • § 7083 The articles shall be executed by each incorporator through its president or secretary, each signature being acknowledged as required by the general…
      • § 7084 The commissioner shall examine the proposed articles of incorporation, and if they conform to this chapter, he shall deliver to such incorporators a…
      • § 7085 Upon filing with the Secretary of State of the articles of incorporation and the certificate provided for in Section 7084, the incorporation of the reinsurer…
      • § 7086 Three delegates shall be elected by each member at its regular annual meeting to represent it at all meetings of the reinsurer.
      • § 7087 The delegates shall be elected by ballot and shall hold office for one year, or until their successors have been elected and qualified.
      • § 7088 The annual meeting of the members of the reinsurer shall be held on the third Monday in February of each year.
      • § 7089 At such meeting one director shall be elected from the delegates of each member so that the number of directors is equal to the number of members of the…
      • § 7090 In the election of the first board of directors each member insurer shall be entitled to one vote. At every subsequent election, each delegate from each member…
      • § 7091 The directors of the reinsurer shall elect from their own number a president, a vice president, and an executive committee of three. They shall also elect a…
      • § 7092 The directors and all of such officers shall hold office for one year from the date of their election, and until their successors are elected and qualified.
      • § 7093 The treasurer and secretary shall give bonds to the reinsurer in such amounts as are prescribed by the board of directors, conditioned upon the faithful…
   2. ARTICLE 2. Powers and Duties §§ 8010–8011 · 2 sections

      • § 8010 Upon organizing under its articles of incorporation, such reinsurer may carry on a fire reinsurance business as provided by this chapter.
      • § 8011 Such reinsurer and its directors shall possess such of the usual powers, and be subject to such of the usual duties of corporations and directors thereof as…
   3. ARTICLE 3. Additional Memberships §§ 8030–8031 · 2 sections

      • § 8030 Any county mutual fire insurer in this State may become a member of such a reinsurer and entitled to all the rights and privileges appertaining thereto.
      • § 8031 County mutual fire insurers, upon becoming members of such reinsurer, shall give it their written obligation binding themselves and their successors to pay…
   4. ARTICLE 4. Risks §§ 8050–8053 · 4 sections

      • § 8050 Restrictions on risks as to “distances,” “city or town block,” “closely built up district,” “one risk,” and “clear space,” in chapter 5 of this part are…
      • § 8051 All such reinsurers shall classify the reinsured subject matter at the time of issuing policies thereon, under rates corresponding as nearly as practicable to…
      • § 8052 Such reinsurer may write reinsurance on property which is located in this State and which is insured in any member insurer.
      • § 8053 Such reinsurer shall not at any time write reinsurance, subject to one risk, in excess of five per cent of the total amount of reinsurance on its books at the…
   5. ARTICLE 5. Loss §§ 8070–8078 · 9 sections

      • § 8070 A member of such reinsurer, upon sustaining loss covered by reinsurance, shall immediately notify the president or secretary, stating the amount of loss.
      • § 8071 The president and secretary shall proceed to ascertain the amount of such loss and make adjustment.
      • § 8072 If the claim is for more than five thousand dollars ($5,000), the secretary shall forthwith notify each member of the executive committee. At each regular…
      • § 8073 If in any case there is a failure of the parties to agree upon the amount of such loss they may submit the question of the amount to arbitration. In that event…
      • § 8074 If the two arbitrators thus appointed fail to agree upon the amount of such loss, they shall select a third disinterested person to act with them.
      • § 8075 Such arbitrators so appointed may examine witnesses and do all other things necessary to the proper determination of the amount of loss sustained by the…
      • § 8076 The arbitrators shall make their award in writing to the president of the reinsurer and to the member. Such award shall be final as to the amount of the loss…
      • § 8077 The pay of each arbitrator shall be five dollars per day for each day’s services rendered, and five cents for each mile necessarily traveled in the discharge…
      • § 8078 The president and secretary of the reinsurer may secure the services of an adjuster to represent it on any loss, subject to confirmation by its executive…
   6. ARTICLE 6. Assessments and Coverage of Loss §§ 8090–8097 · 8 sections

      • § 8090 When the amount of any ascertained loss exceeds the cash funds of the reinsurer and also exceeds one-eighth of one per cent of the total amount of the…
      • § 8091 When the amount of such loss does not exceed one-eighth of one per cent of the total amount of insurance in force in the reinsurer, the directors may, by…
      • § 8092 The term of such loan shall not be longer than twelve months, and the date of maturity shall not be more than thirty days beyond the date of the next annual…
      • § 8093 The board of directors may at their annual meeting levy an assessment not exceeding twenty-five cents on the $100 of reinsurance. The sum so raised shall…
      • § 8094 Whenever an assessment is made, the secretary shall immediately notify every member by registered letter addressed to the secretary of the member at its usual…
      • § 8095 An action may be brought against any member of such reinsurer that neglects or refuses to pay the liabilities due such reinsurer.
      • § 8096 The directors of any such reinsurer who wilfully refuse or neglect to perform the duties imposed upon them by law or by the by-laws of the reinsurer are liable…
      • § 8097 An action may also be brought and maintained against any such reinsurer by members thereof to recover sums owing them for losses sustained when payment is…
   7. ARTICLE 7. Cancellation of Membership §§ 9010–9012 · 3 sections

      • § 9010 Any member of such reinsurer may cancel any policy of reinsurance at any time while the reinsurer continues its reinsurance business.
      • § 9011 The cancellation may be accomplished only by complying with all of the following requirements: (a) Surrender of policy for cancellation. (b) Giving ten days’…
      • § 9012 The reinsurer may cancel or terminate any policy by giving the member ten days’ written notice and returning to it any excess of premium paid during the term…
   8. ARTICLE 8. Reports and Statements §§ 9030–9031 · 2 sections

      • § 9030 The secretary shall prepare an annual statement, showing the condition of such reinsurer on December thirty-first and a supplemental report of the business of…
      • § 9031 The president and secretary shall, on or before the first day of March of each year, prepare under oath, and transmit to the commissioner, a statement of the…
   9. ARTICLE 9. Dissolution § 9050 · 1 section

      • § 9050 Any such reinsurer may be proceeded against and dissolved in the same manner and upon the same conditions as in the case of other domestic insurers.
   10. ARTICLE 10. Exemptions § 9060 · 1 section

       • § 9060 The provisions of Sections 980, 981, 982, 983, 984, 985, 986, 987, 988, 989, 990, 991, 992, and 993 shall not apply to county mutual fire reinsurers.
6. CHAPTER 7. Fraternal Fire Insurers §§ 9080–9103 · 27 sections

   • § 9080 Except as provided by this chapter, an association organized and operating on or before January 1, 1947, under this chapter is not governed by the provisions…
   • § 9080.1 On and after January 1, 1954, no association shall transact insurance under this chapter unless it has theretofore received and continues to hold a certificate…
   • § 9080.3 Any religious organization engaged in the business of writing fire insurance solely for its members and its churches on the effective date of this section, and…
   • § 9081 Secret fraternal societies, having lodges, councils or granges in this State, conducting their business and securing their membership on the lodge, council or…
   • § 9082 Such association shall be formed by filing a certificate in the office of the Secretary of State and a like certificate in the office of the clerk of each…
   • § 9083 The officers of the association shall be members of the association, having property insured therein.
   • § 9084 Such an association may insure the property of its members against loss or damage by fire for an amount not exceeding ten thousand dollars ($10,000) on any one…
   • § 9085 A risk shall not be written by such association except for members in good standing on the books of the society forming the association. A suspension or…
   • § 9086 All such associations shall classify the property insured by them at the time of issuing policies on such property. The classification shall be under different…
   • § 9087 No property within the corporate limits of any city or town shall be insured except dwellings and the contents thereof, grange halls and the contents thereof,…
   • § 9087.5 Section 9087 is not applicable to insurance covering an insurable interest of a member in property which was insured by the association prior to the inclusion…
   • § 9088 Such association shall provide in its by-laws for the ascertainment of loss or damage by fire, and for the payment thereof.
   • § 9089 Such association by and in its own name may: (a) Sue and be sued. (b) Loan such funds as it has on hand in such manner as its articles of association and its…
   • § 9090 Such association creates a mutual agreement of its members to participate in each other’s loss by fire.
   • § 9091 Every insured shall give to the association a written instrument binding him to pay his share, proportioned to his insurance in the association, of the expense…
   • § 9092 Persons insuring property with the association shall, at the time of effecting the insurance, pay such a percentage in cash, and such other charges, as are…
   • § 9093 Policies of the association may be canceled by either party thereto. In such case settlement or adjustment shall be made in accordance with the terms of the…
   • § 9094 The secretary of each such association shall prepare an annual statement showing the financial condition of the association, including a statement of all…
   • § 9095 (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage…
   • § 9096 An association certificated under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from all…
   • § 9097 An association or organization certified under this chapter may reinsure all of its policies with, and, upon the assumption of all of its liabilities, may…
   • § 9098 The plan and agreement by which any transaction permitted by Section 9097 is to be effected shall be approved by the board of directors or other governing body…
   • § 9099 The commissioner shall examine such plan and agreement and may require such provisions to be inserted in the agreement and such actions to be taken in…
   • § 9100 When any such plan and agreement shall have been approved by the commissioner with such changes, if any, required by him, the same shall be approved by a vote…
   • § 9101 The meeting of members at which the transaction is voted upon shall be preceded by a written or printed notice of the meeting and of the purpose to vote…
   • § 9102 If the members vote to approve the plan of reinsurance, transfer and assumption, a certified copy of all proceedings relating thereto shall be filed with the…
   • § 9103 The board of directors or other governing body of such organization or association shall file with the Secretary of State a duplicate original of the…
7. CHAPTER 8. Underwriters Fire Patrols §§ 10020–10080 · 18 sections

   1. ARTICLE 1. Scope of Chapter and Definitions §§ 10020–10022 · 3 sections

      • § 10020 As used in this chapter, an underwriters’ corps means a corps of men with proper officers and equipment, maintained to discover and prevent fires and save life…
      • § 10021 This chapter shall not impair or interfere with the powers or duties of the regular fire department of any municipality.
      • § 10022 Any act of an underwriters’ corps shall not justify any owner of any property in abandoning such property.
   2. ARTICLE 2. Formation and Organization § 10040 · 1 section

      • § 10040 Any domestic corporation of insurance underwriters, organized to discover and prevent fires and save life and property from fire and doing business within any…
   3. ARTICLE 3. Powers §§ 10050–10052 · 3 sections

      • § 10050 For the effective discharge of such duties, an underwriter’s corps may enter any burning building or any building in which property is burning, or any building…
      • § 10051 Such corporation, with its officers and corps, when going to a fire with its equipment, has the same right of way as the regular fire department of the…
      • § 10052 All ordinances passed by the municipal authorities of any city or town wherein such a corporation carries on business, and all laws of this State applicable to…
   4. ARTICLE 4. Meetings and Assessments §§ 10070–10080 · 11 sections

      • § 10070 In July of every year, there shall be held a meeting of every corporation created for the purpose specified in this chapter.
      • § 10071 Ten days’ notice of the meeting shall be inserted in at least one daily newspaper published in the municipality in which the corporation is established.
      • § 10072 At such meeting each insurer or insurance agent, doing a fire insurance business in the municipality, whether a member of the corporation or not, has a right…
      • § 10073 A majority of the whole number so represented may decide the question of sustaining the fire patrol organized by the corporation and may fix the maximum amount…
      • § 10074 The amount of expense so fixed shall not exceed two per cent of the aggregate premiums returned as received, as provided in section 10076. The whole of such…
      • § 10075 Such assessment is collectible by and in the name of the corporation, in any court of competent jurisdiction, in such manner and at such time or times as the…
      • § 10076 In order to pay persons employed by the corporation, and to maintain apparatus for saving life and property and suitable quarters the corporation may require a…
      • § 10077 Each statement shall be under oath and shall be handed to the secretary of the corporation within ten days after each first day of July and each first day of…
      • § 10078 The secretary of such corporation shall, within the prescribed ten days, by written demand signed by him, require the statement from every person assessable…
      • § 10079 The demand may be delivered personally at the office of every person required to furnish the statement. Every such person, or officer thereof, who, for fifteen…
      • § 10080 The corporation may bring action to recover such penalty, with costs, in any court of competent jurisdiction.
8. CHAPTER 8.5. Earthquake Insurance §§ 10081–10089.4 · 19 sections

   • § 10081 No policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of this chapter, initially…
   • § 10082 (a) The offer required by Section 10081 shall include coverage against risk of loss or damage from the peril of earthquake, in accordance with the minimum…
   • § 10082.3 Notwithstanding any other provision of law, the following provisions regarding loss requirements, appraisals, and adjusters shall apply to the following types…
   • § 10082.5 (a) If an insurer subject to this chapter charges an additional earthquake insurance premium or deductible because a dwelling fails to comply with paragraph…
   • § 10083 (a) The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential…
   • § 10084 An insurer which issues or delivers a policy of residential property insurance in this state may comply with the provisions of Section 10081 in any of the…
   • § 10085 If the insurer establishes proof of mailing or delivery of the required offer and the offer of earthquake coverage is not accepted by the named insured within…
   • § 10086 (a) If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for…
   • § 10086.1 (a) Where the offer of earthquake coverage has not been accepted, the insurer shall notify the named insured that the policy does not provide that coverage.…
   • § 10086.5 (a) The Legislature hereby finds and declares that the continued regulation of the business practices of insurers and their products is in the interest of the…
   • § 10087 (a) (1) As used in this chapter, “policy of residential property insurance” means a policy insuring individually owned residential structures of not more than…
   • § 10087.5 (a) Every policy of residential property insurance which provides coverage for loss or damage to a structure from the peril of earthquake, but that provides…
   • § 10088 Notwithstanding the provisions of Section 530, 532, or any other provision of law, and in the absence of an endorsement or an additional policy provision…
   • § 10088.5 Notwithstanding Section 2081, nothing in Section 10088 exempts an insurer from its obligation under a fire insurance policy to cover the losses of a fire which…
   • § 10089 (a) At a minimum, an offer of coverage of loss or damage caused by the peril of earthquake pursuant to Section 10081 shall include the following coverages: (1)…
   • § 10089.1 To the extent that the coverage is not already provided in the minimum offer of coverage, every insurer shall offer the following optional coverage as part of…
   • § 10089.2 (a) (1) Subject to the approval of the commissioner, every insurer subject to this chapter shall, at the time of offering to issue or offer to renew coverage…
   • § 10089.3 (a) The department shall adopt regulations setting forth standards governing the training of insurance adjusters in evaluating damage caused by earthquakes.…
   • § 10089.4 (a) No person may use a geographically based earthquake assessment system or program for the purpose of requiring earthquake insurance, or imposing a fee or…
9. CHAPTER 8.6. California Earthquake Authority §§ 10089.5–10089.55 · 52 sections

   • § 10089.5 As used in this chapter: (a) “Authority” means the California Earthquake Authority. (b) “Available capital” means the sum of all moneys and invested assets…
   • § 10089.6 (a) (1) There is hereby created the California Earthquake Authority, which shall be administered and governed by the governing board described in Section…
   • § 10089.7 (a) The authority shall be governed by a three-member governing board consisting of the Governor, the Treasurer, and the Insurance Commissioner, each of whom…
   • § 10089.8 (a) The authority shall operate pursuant to a written plan of operations. The panel shall submit a plan to the board for approval. If it approves the plan, the…
   • § 10089.9 (a) Upon commencement of participation in the authority, each participating insurer shall be required to execute a contract with the commissioner and the…
   • § 10089.10 To expand the capacity of the authority and achieve maximum capacity for writing earthquake coverage, the authority shall do both of the following acts, on…
   • § 10089.11 (a) The commissioner shall adopt regulations to implement the provisions of this chapter within 60 days of its effective date. The regulations shall be adopted…
   • § 10089.12 The commissioner shall have full power and authority to examine the books and records of the authority at any time, and in connection with the operations and…
   • § 10089.13 (a) One year following its commencement of operations, and annually thereafter by each August 1, the authority shall report to the Legislature and the…
   • § 10089.14 (a) The authority shall not issue any earthquake policy and no insurer shall transfer any earthquake risk to the authority until all of the following…
   • § 10089.15 (a) Initial operating capital shall be contributed by insurance companies admitted to write residential property insurance in the state. Each insurer that…
   • § 10089.16 (a) On application to the board, payment of any assessments and fees calculated by the board, and fulfillment of any additional requirements imposed by the…
   • § 10089.17 Notwithstanding subdivision (h) of Section 10089.7, the authority shall be subject to the provisions of the Political Reform Act of 1974 (Title 9 (commencing…
   • § 10089.19 (a) Participating insurers that want to withdraw from the authority may do so on 12 months’ written notice to the authority. Insurers that withdraw shall not…
   • § 10089.20 The authority shall renew any policy of basic residential earthquake insurance, provided the authority receives payment of the applicable renewal premium on or…
   • § 10089.21 The authority is a public instrumentality of the State of California and the exercise of its powers is an essential state governmental function. No provision…
   • § 10089.22 (a) The authority shall be continued in existence for so long as its bonds are outstanding. Unless and until the authority is terminated pursuant to Section…
   • § 10089.23 (a) (1) If at any time following the payment of earthquake claims and claim expenses the authority’s available capital is reduced to less than three hundred…
   • § 10089.24 (a) Notwithstanding any other provision of this chapter, the maximum permissible assessment pursuant to Section 10089.23 of a participating insurer that began…
   • § 10089.25 Beginning December 31, 1997, and annually thereafter on the 30th of April, the board shall notify each participating insurer of the maximum earthquake loss…
   • § 10089.26 (a) The authority shall issue policies of basic residential earthquake insurance, including an option for earthquake loss assessment policies for individual…
   • § 10089.27 (a) Every participating insurer that has in-force residential earthquake insurance policies in the state as of the date of commencement of authority operations…
   • § 10089.28 (a) All policies of residential earthquake insurance provided by the authority shall be written by the authority. Authority policies shall be marketed and…
   • § 10089.29 (a) (1) Notwithstanding the prior approval requirement of Section 10089.10, the authority shall issue and sell investment grade revenue bonds or secure other…
   • § 10089.30 If claims and claim expenses paid by the authority due to earthquake events exhaust the total of (a) the authority’s available capital, (b) the maximum amount…
   • § 10089.31 If claims and claim expenses paid by the authority due to earthquake events that commence on or after December 1, 2008, exhaust the total of all (a) the…
   • § 10089.32 The authority shall endeavor at all times to make specific authority earthquake policyholder assessments, and the Treasurer shall endeavor at all times to…
   • § 10089.33 (a) If the average daily balance of the authority’s available capital exceeds six billion dollars ($6,000,000,000) for the last 180 days of any calendar year,…
   • § 10089.34 (a) (1) The policies issued by the authority shall not be subject to assessment for, nor shall any authority policyholder be eligible for benefits from, the…
   • § 10089.35 (a) If at any time the board determines that all the authority’s available capital may be exhausted and no source of additional funds such as assessments,…
   • § 10089.36 In the event a natural disaster program is enacted by Congress, the panel shall convene and prepare a plan to dissolve the authority or conform this act with…
   • § 10089.37 The board shall set aside in each calendar year an amount equal to 5 percent of investment income accruing on the authority’s invested funds, or five million…
   • § 10089.38 Upon the development and implementation of an economical system satisfactory to the board and the commissioner to prevent misapplication of mitigation funds,…
   • § 10089.39 (a) The operational rules of the Earthquake Loss Mitigation Fund shall be part of the authority’s plan of operations. (b) On or before July 1, 2000, the…
   • § 10089.395 (a) The Legislature finds and declares that there exists the California Residential Mitigation Program, also known as the CRMP, a joint powers authority…
   • § 10089.396 (a) In administering the Earthquake Brace and Bolt program pursuant to Section 10089.395, the California Residential Mitigation Program (CRMP) shall do both of…
   • § 10089.397 (a) The Legislature finds and declares that there exists the California Residential Mitigation Program, also known as the CRMP, a joint powers authority…
   • § 10089.40 (a) Rates established by the authority shall be actuarially sound so as to not be excessive, inadequate, or unfairly discriminatory. Rates shall be established…
   • § 10089.41 (a) The offer of an authority policy by a participating insurer shall constitute a mode of insurer compliance with Chapter 8.5 (commencing with Section 10081)…
   • § 10089.42 (a) At least once each year a participating insurer shall provide each of its residential property insureds with marketing documents produced at the…
   • § 10089.43 Upon termination of the authority by the Legislature, its remaining funds shall be transferred to the General Fund unless otherwise directed by the Legislature.
   • § 10089.44 Notwithstanding any other provision of law, premiums collected by the authority shall be exempt from collection of the state’s insurance premium tax, and the…
   • § 10089.46 Bonds issued under this chapter shall not be a debt or liability of the state or of any political subdivision of the state, or a pledge of the full faith and…
   • § 10089.47 Bonds issued by the authority are legal investments for all trust funds, the funds of all insurance companies, banks, trust companies, executors,…
   • § 10089.48 Interest earned on any bonds issued by the authority shall at all times be free from state personal income tax and corporate income tax.
   • § 10089.49 The state hereby pledges to and agrees with the holders of bonds that the state will not limit, alter, or restrict the rights hereby vested in the authority to…
   • § 10089.50 The Treasurer may from time to time enter into one or more credit facilities permitting the authority to draw an amount up to one billion dollars…
   • § 10089.51 The authority shall have the power to pledge to the providers of credit facilities and to the owners of bonds the surcharges imposed or to be imposed pursuant…
   • § 10089.52 Nothing in Section 10089.50 or 10089.51 is intended to limit the applicability to the authority of any provision of Section 5450 or subdivision (c) of Section…
   • § 10089.53 (a) Any insurer that withdraws from the authority under Section 10089.19 while bonds or other debt is outstanding shall impose annually a premium surcharge on…
   • § 10089.54 (a) Unless authorized by a statute enacted subsequent to the effective date of this section, the authority shall cease writing new earthquake insurance…
   • § 10089.55 The board shall conduct the affairs of the authority with respect to transacting earthquake insurance, including administering the California Earthquake…
10. CHAPTER 8.9. Insurance Mediation §§ 10089.70–10089.83 · 14 sections

    • § 10089.70 (a) The department shall establish a program for the mediation of the disputes between insured complainants and insurers arising pursuant to any of the…
    • § 10089.71 Any insured having a dispute with an insurer under a policy that qualifies for this program may file a written complaint with the department. The complaint…
    • § 10089.72 (a) If, after the department’s intervention, the insurer and the insured do not reach agreement, the department may notify the insurer that in order to avoid…
    • § 10089.73 If the dispute is not resolved within the time period prescribed by Section 10089.72, the insurer shall notify the department of the failure, and may include…
    • § 10089.74 (a) If the insurer notifies the department of the failure to resolve the dispute, the department shall notify the insured of the insured’s ability to request…
    • § 10089.75 (a) Any insurer may inform an insured who has filed a complaint with the department concerning a dispute that qualifies for this program of the existence of…
    • § 10089.76 Upon referral of a complaint to mediation, the department shall immediately transfer all necessary information concerning the claim, including the name and…
    • § 10089.77 The department shall contract with a diverse pool of mediators for the provision of mediation services. The contractors shall be qualified mediators who meet…
    • § 10089.78 Upon receipt of a complaint, the mediation service, to the extent possible, shall issue a notice to the insured and the insurer setting a date and time within…
    • § 10089.79 (a) The costs of mediation shall be reasonable, and shall be borne by the insurer, except as provided in Section 10089.81. The commissioner may set a fee not…
    • § 10089.80 (a) The representatives of the insurer shall know the facts of the case and be familiar with the allegations of the complainant. The insurer or the insurer’s…
    • § 10089.81 All parties to the mediation proceeding shall negotiate in good faith and shall have the authority to immediately settle claims. An insurer that fails to…
    • § 10089.82 (a) An insured may not be required to use the department’s mediation process. An insurer may not be required to use the department’s mediation process, except…
    • § 10089.83 (a) On or before August 1 of each year in which this program is in effect, the commissioner shall report to the Governor, the Legislature, and to the…
11. CHAPTER 9. Basic Property Insurance Inspection and Placement Plan §§ 10090–10100.3 · 19 sections

    • § 10090 The purposes of this chapter are to do all of the following: (a) To assure stability in the property insurance market for property located in the State of…
    • § 10091 Unless the provision or context otherwise requires, the following definitions govern the construction of this chapter: (a) “Association,” “industry placement…
    • § 10092 This chapter shall not apply to county mutual fire insurers nor to fraternal fire insurers.
    • § 10093 (a) Any person having an insurable interest in real or tangible personal property who, after diligent effort, has been unable to obtain basic property…
    • § 10094 (a) Within 30 days after the effective date of this chapter, with the approval of the commissioner, all insurers licensed to write and engaged in writing in…
    • § 10094.2 (a) Notwithstanding subdivision (c) of Section 10095, the facility shall, pursuant to regulations adopted by the commissioner, provide for a method whereby…
    • § 10094.5 Within 90 days following the effective date of this section, the association shall file a new or amended rate application with the commissioner consistent with…
    • § 10095 (a) Within 30 days following the effective date of this chapter, the association shall submit to the commissioner, for the commissioner’s review, a proposed…
    • § 10095.5 (a) The association shall establish and maintain an Internet Web site and a statewide toll-free telephone number through which a person may receive information…
    • § 10095.7 (a) The commissioner shall establish the California Home Insurance Finder on the department’s Internet Web site. The purpose of the finder is to connect…
    • § 10095.8 (a) On or before April 1, 2026, the association shall create an automatic payment system and accept automatic payments for premiums from policyholders. (b) A…
    • § 10096 (1) Any applicant or affected insurer shall have the right of appeal from any act or decision of either the facility or the association to the governing…
    • § 10097 There shall be no liability on the part of, and no cause of action of any nature shall arise against the insurers, the inspection bureau, the facility, the…
    • § 10098 Acceptance of risks assigned under this chapter and performance of any act required by this chapter is a condition of the right to continue to hold a…
    • § 10099 In addition to any powers conferred upon him by this or any other law, the commissioner is authorized to do all things necessary to enable the State of…
    • § 10100 The commissioner may require such reports from insurers concerning risks insured under any program approved pursuant to this chapter as he shall deem necessary…
    • § 10100.1 The facility, subject to the approval of the Insurance Commissioner, may provide for the equitable distribution of risks provided for in this chapter by means…
    • § 10100.2 (a) (1) Rates for the FAIR Plan shall not be excessive, inadequate, or unfairly discriminatory, and shall be actuarially sound so that premiums are adequate to…
    • § 10100.3 (a) If granted prior approval from the commissioner, the association may do all of the following: (1) Request the California Infrastructure and Economic…
12. CHAPTER 10. California Residential Property Insurance Disclosure §§ 10101–10107 · 12 sections

    • § 10101 (a) A policy of residential property insurance shall not be issued or renewed in this state by an insurer unless the named insured is provided a copy of the…
    • § 10102 (a) The disclosure required by Section 10101 shall be in no less than 10-point type and shall be provided prior to or concurrent with, the application for a…
    • § 10103 (a) A policy of residential property insurance shall not be issued or renewed in this state unless it provides the following information on the declarations…
    • § 10103.2 (a) On and after July 1, 2020, upon an offer of a policy of residential property insurance, a disclosure shall be provided to the applicant that states…
    • § 10103.4 (a) An insurer that provides replacement cost coverage in accordance with Section 10102, except an insurer that satisfies the requirements of subdivision (b),…
    • § 10103.5 (a) Every California Residential Property Insurance Disclosure shall be accompanied by a California Residential Property Insurance Bill of Rights. If the…
    • § 10103.6 (a) If an insurer issues a new residential property insurance policy on or after July 1, 2021, that does not provide coverage for the peril of fire, the…
    • § 10103.7 (a) In the event of a covered loss relating to a state of emergency, as defined in Section 8558 of the Government Code, an insured under a residential property…
    • § 10104 (a) As used in this chapter, “policy of residential property insurance” shall have the same meaning as defined in Section 10087, except that it shall not…
    • § 10105 Nothing in this chapter is intended to expand, contract, modify, or otherwise affect the coverage provided under any policy of residential property insurance…
    • § 10106 The Insurance Commissioner may modify a disclosure statement as contained in Section 10102, 10103, or 10103.5 only upon request of an insurer. The modification…
    • § 10107 Except as provided in subdivisions (e) and (i) of Section 10102, this chapter shall apply to all policies newly issued on or after July 1, 1993, and to all…
13. CHAPTER 11. Small Business Guide to Commercial Insurance §§ 10108–10108.1 · 2 sections

    • § 10108 (a) The commissioner shall develop a pamphlet which provides information to small business owners and others on the key features of, and suggested ways of,…
    • § 10108.1 (a) As used in this chapter, “policy of commercial property insurance” has the same meaning as defined in Section 675.5. (b) As used in this chapter, “insurer”…