California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 2.9 — Creditor Remedies: Disability Insurance, Section 1812.400
The Legislature finds and declares that it is unfair for a creditor who has directly participated in, arranged, or received a commission or other compensation for the sale of credit disability insurance to the debtor, or that creditor’s successor in interest, to invoke a creditor’s remedy because of a debtor’s nonpayment of any sum which has become due during a period of disability until a reasonable time has passed for the disability insurance claim to be filed, verified and processed.
Notes
Establishes legislative findings only, declaring it unfair for a creditor that participated in, arranged, or was compensated for selling credit disability insurance to invoke a creditor’s remedy for nonpayment during disability before allowing reasonable time to file, verify, and process the claim. Declares the provision’s policy concern rather than imposing a separate operative conduct rule.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1812.400 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-2-9/section-1812-400