California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 14 — Lien, Chapter 2 — Mortgage, Article 1 — Mortgages in General, Section 2944.5
No lender, mortgagee, or any third party having an interest in real or personal property shall refuse to accept a policy issued by an admitted insurer solely because the policy is issued for a continuous period without a fixed expiration date even though the policy premium is due and payable every six months, provided the lender, mortgagee, or third party is entitled to receive (a) notice of renewal from the insurer within 15 days of receipt of payment on the policy by the insured or (b) notice of cancellation or nonrenewal under the terms and conditions set forth in Sections 678 and 2074.8 of the Insurance Code, whichever is applicable.
Notes
Prohibits a lender, mortgagee, or other interested third party from rejecting a policy issued by an admitted insurer solely because it continues without a fixed expiration date while premiums are payable every six months. The protection applies when the interested party is entitled to renewal notice within 15 days after payment receipt or the applicable cancellation or nonrenewal notice.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2944.5 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-14/chapter-2/article-1/section-2944-5