SECTIONS 380-395 - California Statutes

INSURANCE CODE

SECTION 380-395

380. The written instrument, in which a contract of insurance is
set forth, is the policy.

381. A policy shall specify:
(a) The parties between whom the contract is made.
(b) The property or life insured.
(c) The interest of the insured in property insured, if he is not
the absolute owner thereof.
(d) The risks insured against.
(e) The period during which the insurance is to continue.
(f) Either:
(1) A statement of the premium, or
(2) If the insurance is of a character where the exact premium is
only determinable upon the termination of the contract, a statement
of the basis and rates upon which the final premium is to be
determined and paid.

381.1. (a) The information described in subdivision (b) shall be
provided to the policyholder at the time of application for, or
issuance of, a policy of automobile insurance, as defined in Section
660, and in each renewal notice sent prior to the renewal of the
policy. However, information described in paragraphs (1) and (2) of
subdivision (b) may be provided to the policyholder separately upon
request. The information shall not be presented as an abbreviation or
code unless a key to the abbreviations or codes used is also
included.
(b) For each rated driver or vehicle, as applicable, the number of
incidents or other relevant data that apply to each of the following
categories:
(1) Traffic convictions.
(2) At-fault accidents (property damage or bodily injury).
(3) Estimated annual mileage driven.
(4) Years of driving experience.
(5) Vehicle use (e.g., pleasure, commute, business).
(6) ZIP Code of the location where the vehicle is garaged, if
different from the mailing address of the policyholder.
(7) Driver-related discounts applied.
(8) Vehicle-related discounts or surcharges applied.
(c) The disclosure of information required by this section may
contain additional provisions that are not in conflict with, or
derogation of, these provisions.
(d) Each insurer shall comply with this section no later than
March 1, 2004.

381.2. When a policy includes coverage for loss or damage to a
specific item of personal property of the insured, which item is
separately listed and described and on which item a separate amount
of insurance is placed, the insurer shall compute any total loss of
such item of personal property as being the amount of insurance
placed on it. In the adjustment of a partial loss or damage to such
item of covered property, the separately listed amount of insurance
applying to the specific item shall be used as the value of the item
prior to its partial loss or damage. If a different method is to be
used in the computation of loss, the policy, and any application
therefor, shall set forth, in type of prominent size, the actual
method of such loss computation used by the insurer.
The provisions of this subdivision shall not apply to any property
used for a business purpose or to any motor vehicle.
If there are two or more policies insuring the same property
against the loss, the loss shall be prorated among the policies.

381.5. (a) Every policy issued, amended, delivered, or renewed in
this state shall provide coverage for the registered domestic partner
of an insured or policyholder that is equal to, and subject to the
same terms and conditions as, the coverage provided to a spouse of an
insured or policyholder. A policy may not offer or provide coverage
for a registered domestic partner if it is not equal to the coverage
provided for the spouse of an insured or policyholder. This
subdivision applies to all forms of insurance regulated by this code.
(b) A policy subject to this section that is issued, amended,
delivered, or renewed in this state on or after January 1, 2005,
shall be deemed to provide coverage for registered domestic partners
that is equal to the coverage provided to a spouse of an insured or
policyholder.
(c) It is the intent of the Legislature that, for purposes of this
section, "terms," "conditions," and "coverage" do not include
instances of differential treatment of domestic partners and spouses
under federal law.

382. Covering notes may be issued to bind insurance temporarily
pending the issuance of the policy. Within 90 days after issue of a
covering note a policy shall be issued in lieu thereof, including
within its terms the identical insurance bound under the covering
note and premium therefor.
Covering notes may be extended or renewed beyond such 90 days with
the written approval of the commissioner if the commissioner
determines that such extension is not contrary to and is not for the
purpose of violating any provision of this code. The commissioner may
promulgate rules and regulations governing such extensions for the
purpose of preventing such violations and may by such rules and
regulations dispense with the requirement of written approval by him
in the case of extensions in compliance with such rules and
regulations.

382.5. A binder which is issued in accordance with this section
shall be deemed an insurance policy for the purpose of proving that
the insured has the insurance coverage specified in the binder.
(a) As used in this section, "binder" means a writing (1) which
includes the name and address of the insured and any additional named
insureds, mortgagees, or lienholders, a description of the property
insured, if applicable, a description of the nature and amount of
coverage and any special exclusions not contained in a standard
policy, the identity of the insurer and the agent executing the
binder, the effective date of coverage, the binder number or the
policy number where applicable to a policy extension, and (2) which
temporarily obligates the insurer to provide that insurance coverage
pending issuance of the insurance policy. For purposes of this
section, "binder" does not include, and this section does not apply
to, any writing that conditionally or unconditionally obligates an
insurer to provide (1) life or disability insurance or (2) insurance
in the amount of one million dollars ($1,000,000) or more.
(b) Except as superseded by the clear and express terms of the
binder, a binder shall be deemed to include all of the usual terms of
the policy as to which the binder was given, together with
applicable endorsements as are designated in the binder.
(c) Except as otherwise provided in this subdivision, a binder
shall be valid for the period specified therein not exceeding 90 days
from the date of execution of the binder or, if not specified, for
that period of 90 days. No binder shall remain valid on or after the
date the insurance policy is issued with respect to which the binder
was given. Expiration of coverage under a binder shall not be
considered a cancellation or nonrenewal of a policy of insurance
within the meaning of any statute limiting the right to cancel or
nonrenew a policy of insurance.
(d) If any party to a contract or other agreement refuses without
reasonable cause to accept a binder as proof of insurance when that
proof is required by the contract or agreement, that party shall be
deemed to have breached the contract and the other party thereto,
shall be entitled to appropriate injunctive relief and may recover
damages for the breach and reasonable attorney's fees and costs. As
used in this subdivision, "reasonable cause" includes, but shall not
be limited to, any of the following:
(1) Inadequate coverage or inappropriate terms of coverage with
respect to the interest of the vendor, lender, lessor, or other
person providing a service to the insured.
(2) Failure of the insurer to meet the financial standards
"lawfully" established by the lender for all insurers for the type of
loan for which the insurance is obtained.
(3) Inability of the lender to determine if the insurer is
licensed as an admitted insurer by the commissioner to transact the
line of insurance for which the binder is issued.
(4) Failure of the insurance agent to provide the lender with
written evidence of the agent's authority to bind insurance coverage
on behalf of the insurer under the binder.
(5) Failure of the binder to comply with this section.
(e) For purposes of all insurance policies providing collateral
insurance coverage, binders issued in accordance with this section
shall be deemed an insurance policy.
(f) The commissioner may suspend or revoke the license of any
agent issuing or purporting to issue any binder of a type for which
the agent lacks authority from the insurer named in the binder.

383. It is a misdemeanor:
(a) For any insurer, or any agent of any insurer, to issue a
policy in violation of the requirements of subdivision (f) of section
381.
(b) For any insurance agent or broker to assist in arranging for
the insurance where the policy violates such requirements.
(c) For any insurer to violate the provisions of section 382.

383.5. "Document," as used in this section, means a policy or a
certificate evidencing insurance under a master policy. The policy or
certificate shall conform to Section 381 and shall segregate the
premiums charged for each risk insured against. The certificate, in
lieu of specifying the risks insured against, may designate them by
name or by description. "Document" also includes the applicable
policy form and a subsequently issued declarations page conforming to
Section 381 or an endorsement.
"Owner," as used in this section, means any person who is named as
an insured in the contract of insurance or document, or in a loss
payable clause therein, and, whether or not he or she is named
therein, the vendee, pledgor, or chattel mortgagor of a motor vehicle
where insurance contracts subject to this section are procured with
respect to the motor vehicle by or on behalf of either party to the
purchase, pledge, or mortgage.
Every contract of insurance against hazards incident to ownership,
maintenance, operation, and use of motor vehicles shall be embodied
in a document.
The original or true copy of the document shall be delivered to
each owner. Where it is executed by an insurer, the insurer shall
deliver the original or a true copy to either of the following:
(a) The agent or broker who negotiated the insurance, for
delivery to each owner of the motor vehicle.
(b) Each owner of the motor vehicle.
Any owner whose interest in the insured vehicle is for security
purposes only may by written notice to the insurer waive delivery of
the policy and in lieu thereof there shall be delivered to the owner
a written certificate of insurance setting forth in brief form the
matters specified in Section 381.
The agent or broker receiving the original or copy shall deliver
one to each owner. Where coverage subject to this section is
evidenced by a document executed by an agent licensed under Chapter 5
(commencing with Section 1621) of Part 2, and not by an insurer, the
agent and not the insurer is responsible for delivery of the
original or a true copy to each owner.
The licenses of any agent or broker found by the commissioner
after hearing to have violated this section may be suspended or
revoked in accordance with the procedure provided in Article 13
(commencing with Section 1737) of Chapter 5 of Part 2, or the
certificate of authority of any insurer found by the commissioner
after hearing to have violated this section may be suspended or
revoked in accordance with the procedure provided in Section 704.
The purpose of this section is to prevent fraud or mistake in
connection with the transaction of insurance covering motor vehicles
and in furtherance of that purpose the commissioner may make
reasonable rules and regulations therefor. The rules and regulations
shall be adopted, amended, or repealed in accordance with the
procedure provided in Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.

383.6. The phrase "motor vehicle" or "motor vehicles" as used in
Section 383.5 includes, but is not limited to:
(a) Trailers, house trailers, mobilehomes, campers and all other
wheeled vehicles or nonwheeled structures so made as to be capable of
being moved as a compatible portion thereof, or trailed behind, any
motor vehicle as that term is defined in the Vehicle Code, whether in
immobile position or not.
(b) Motorcycles, motorbikes and motor scooters, except powered
bicycles not manufactured for inclusion of a motor.
All present or future rules or regulations promulgated by the
commissioner pursuant to Section 383.5 shall be applicable to motor
vehicles as defined in this section.

384. (a) A certificate of insurance or verification of insurance
provided as evidence of insurance in lieu of an actual copy of the
insurance policy shall contain the following statements or words to
the effect of:
This certificate or verification of insurance is not an insurance
policy and does not amend, extend or alter the coverage afforded by
the policies listed herein. Notwithstanding any requirement, term, or
condition of any contract or other document with respect to which
this certificate or verification of insurance may be issued or may
pertain, the insurance afforded by the policies described herein is
subject to all the terms, exclusions and conditions of the policies.
(b) This section is not applicable to a surplus line broker
certificate as defined in Section 48.

386. All policies issued by incorporated insurers shall be
subscribed by the president or vice president, or chairman, or chief
executive officer, or, in case of the death, absence, or disability
of those officers, by any two of the directors, and countersigned by
the secretary of the corporation. All such policies are as binding
and obligatory upon the corporation as if executed over the corporate
seal.

387. When the name of the person intended to be insured is
specified in a policy, it can be applied only to his own interest.

388. When an insurance contract is executed with an agent or
trustee as the insured, the fact that his principal or beneficiary is
the real party in interest may be indicated by describing the
insured as agent or trustee, or by other general words in the policy.

389. To render an insurance effected by one partner or part-owner
applicable to the interest of his copartners, or of other
part-owners, it is necessary that the terms of the policy should be
such as are applicable to the joint or common interest.

390. When the description of the insured in a policy is so general
that it may comprehend any person or any class of persons, only he
who can show that it was intended to include him can claim the
benefit of the policy.

391. A policy may be so framed that it will inure to the benefit of
whomsoever, during the continuance of the risk, becomes the owner of
the interest insured.

392. Any exception from the risk generally covered by a policy of
insurance which insures property for the period of time when such
property is under the dominion and control of a party other than the
insured for the purpose of storage or for the purpose of transferring
such property to another location shall be printed in at least
eight-point blackface type.

394. (a) The commissioner may approve insurance policies and
associated materials in languages other than English if the following
conditions are met:
(1) The policyholder is given a copy of the same material in
English.
(2) The English version is the official version.
(3) A policyholder document in a language other than English shall
contain a disclosure statement in both that language and in English
that states that the English version is the official version and the
foreign language version is for informational purposes only.
(b) An insurer that knowingly misrepresents information provided
in a language other than English shall be subject to Article 6.5
(commencing with Section 790) of Chapter 1 of Part 2.

395. After a covered loss, an insurer shall provide, free of
charge, a complete copy of the insured's current insurance policy or
certificate within 30 calendar days of receipt of a request from the
insured. The time period for providing the insurance policy or
certificate may be extended by the commissioner. An insured who does
not experience a covered loss shall, upon request, be entitled to one
free copy of his or her current insurance policy or certificate
annually. The insurance policy or certificate provided to the insured
shall include, where applicable, the policy declarations page. This
section shall not apply to commercial policies issued pursuant to
Sections 675.5 and 675.6, and policies of workers' compensation
insurance, as defined in Section 109.