1. (a) A finance company shall not sell credit disability insurance, as prohibited by current regulations of the Insurance Commissioner, to a borrower who is a member of the Armed Forces of the United States.
2. (b) A finance company shall not sell credit disability insurance, as prohibited by current regulations of the Insurance Commissioner, to a borrower which would, in effect, provide a substantially illusory benefit. This would include the sale to a borrower who is not normally employed.

Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22150, 22314 and 22315, Financial Code.

History

1. Amendment filed 3-20-78; effective thirtieth day thereafter (Register 7, No. 12).

2. Amendment filed 12-29-83; effective thirtieth day thereafter (Register 83, No. 53).

3. Change without regulatory effect amending Note filed 6-14-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 24).