California CodesBusiness and Professions Code - BPCDivision 8 — Special Business RegulationsChapter 1a — Automobile DealersSection 18450
It is a misdemeanor, in connection with the sale of a motor vehicle by a person engaged in the business of selling motor vehicles at retail, for such person to accept assignment of an insurance policy, or rights thereunder, pertaining to any motor vehicle traded in by the purchaser, unless all amounts realized on such policy or rights by such person be credited by the dealer to the buyer on the next monthly payment due or same shall be refunded to the buyer.
Notes
Prohibits a retail motor-vehicle seller, as a misdemeanor, from accepting assignment of an insurance policy or policy rights covering a vehicle traded in by the purchaser unless every amount the dealer realizes from the policy or rights is credited to the buyer on the next monthly payment due or refunded to the buyer.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 18450 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-8/chapter-1a/section-18450