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.
Cal. Civ. Code § 1812.400
CREDITOR REMEDIES: DISABILITY INSURANCE
Applied in 1 court decision — leading case 61 Cal. App. 4th 547 - McManis v. San Diego Postal Credit Union (1998)
Most recently applied in 61 Cal. App. 4th 547 - McManis v. San Diego Postal Credit Union (February 1998)
Added by Stats. 1983, Ch. 973, Sec. 1.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.