SECTIONS 10320-10328 - California Statutes

INSURANCE CODE

SECTION 10320-10328

10320. No policy of accident and sickness insurance shall be
delivered or issued for delivery to any person in this State unless:
(a) The entire money and other considerations therefor are
expressed therein; and
(b) The time at which the insurance takes effect and terminates is
expressed therein; and
(c) It purports to insure only one person, except that a policy
may insure, originally or by subsequent amendment, upon the
application of the head of a family who shall be deemed the
policyholder, any two or more eligible members of that family,
including husband, wife, dependent children or any children under a
specified age which shall not exceed 19 years and any other person
dependent upon the policyholder; and
(d) The style, arrangement and over-all appearance of the policy
give no undue prominence to any portion of the text, and unless every
printed portion of the text of the policy and of any endorsements or
attached papers is plainly printed in light-faced type of a style in
general use, the size of which shall be uniform and not less than
10-point with a lower case unspaced alphabet length not less than
120-point (the "text" shall include all printed matter except the
name and address of the insurer, name or title of the policy, the
brief description, if any, and captions and subcaptions); and
(e) The exceptions and reductions of indemnity are set forth in
the policy and, except those which are set forth in Article 4a or 5a
of this chapter, are printed, at the insurer's option, either
included with the benefit provision to which they apply, or under an
appropriate caption such as "Exceptions," or "Exceptions and
Reductions"; provided, that if an exception or reduction specifically
applies only to a particular benefit of the policy, a statement of
such exception or reduction shall be included with the benefit
provision to which it applies; and
(f) Each such form, including riders and endorsements, shall be
identified by a form number in the lower left-hand corner of the
first page thereof; and
(g) It contains no provision purporting to make any portion of the
charter, rules, constitution, or by-laws of the insurer a part of
the policy unless such portion is set forth in full in the policy,
except in the case of the incorporation of, or reference to, a
statement of rates or classification of risks, or short-rate table
filed with the commissioner; and
(h) If the policy contains amendment, change, limitation,
alteration, or restriction of the printed text by endorsement, or by
any means other than rider upon a separate piece of paper made a part
of such policy; and
(i) If any portion of such policy purports to reduce benefits by
reason of age of the insured and such reduction, in accordance with
the age of the insured as stated in his application, would be
effective on the issue date of the policy.

10321. After issuance a disability policy shall not be amended,
changed, limited, altered, or restricted by any means other than
rider upon a separate piece of paper.

10322. If any disability policy is issued by an insurer domiciled
in this State for delivery to a person residing in another state, and
if the official having responsibility for the administration of the
insurance laws of such other state shall have advised the
commissioner that any such policy is not subject to approval or
disapproval by such official, the commissioner may by ruling require
that such policy meet the standards set forth in Section 10320 and in
Articles 4a and 5a of this chapter.

10323. If any provision set forth in Article 4a or 5a of this
chapter is in whole or in part inapplicable to or inconsistent with
the coverage provided by a particular form of policy the insurer,
with the approval of the commissioner, shall omit from such policy
any inapplicable provision or part of a provision, and shall modify
any inconsistent provision or part of the provision in such manner as
to make the provision as contained in the policy consistent with the
coverage provided by the policy.

10324. The provisions which are the subject of Article 4a or 5a of
this chapter or any corresponding provisions which are used in lieu
thereof in accordance with such articles, shall be printed in the
consecutive order of the provisions in such articles or, at the
option of the insurer, any such provision may appear as a unit in any
part of the policy, with other provisions with which it may be
logically related, providing the resulting policy shall not be in
whole or in part unintelligible, uncertain, ambiguous, abstruse, or
likely to mislead a person to whom the policy is offered, delivered
or issued.

10325. The word "insured," as used in this chapter, shall not be
construed as preventing a person other than the insured with a proper
insurable interest from making application for and owning a policy
covering the insured or from being entitled under such a policy to
any indemnities, benefits and rights provided therein.

10326. Any disability policy of a foreign or alien insurer, when
delivered or issued for delivery to any person in this State, may
contain any provision which is not less favorable to the insured or
the beneficiary than the provisions of this chapter and which is
prescribed or required by the law of the state under which the
insurer is organized.

10326.5. Any disability policy of a domestic insurer may, when
issued for delivery in any other state or country, contain any
provision permitted or required by the laws of such other state or
country.

10327. The commissioner may make such reasonable rules and
regulations concerning the procedure for the filing or submission of
policies subject to this chapter as are necessary, proper or
advisable to its administration. This provision shall not abridge any
other authority granted the commissioner by law.

10328. No policy provision which is not subject to Article 4a or 5a
of this chapter shall make a policy or any portion thereof less
favorable in any respect to the insured or the beneficiary than the
provisions thereof which are subject to such articles.