SECTIONS 7800 - California Statutes

FINANCIAL CODE

SECTION 7800

7800. Subject to the provisions of Section 2955.5 of the Civil
Code, the board of directors of every association and affiliate or
service corporation of an association shall establish standards for
the maintenance of hazard insurance which are considered necessary to
protect the institution's interest in real estate security for its
loans. The standards may include establishment of criteria based on
such factors as recognized financial ratings of insurers and coverage
forms, but those standards may not be based on the insurer's
corporate structure. Subject to compliance with these standards, an
association, an affiliate or service corporation of an association
shall permit a borrower to have reasonable freedom of choice in
selecting the insurer to provide hazard insurance coverage on the
real estate security.