Statute · California Insurance Code
Cal. Ins. Code § 12850 — SERVICE CONTRACTS
Cal. Ins. Code § 12850
- Type
- Statute
- Source
- California Insurance Code
- Jurisdiction
- California
- Date
- 2004-01-01
- Current through
- Nov 2, 2026 (California Legislative Counsel)
(a) An obligor has the burden of proving that a claim is not covered by a service contract. An obligor has the burden of proving that a claim settlement amount is proper under the terms of the contract.
Citator
Cal. Ins. Code § 12850 — SERVICE CONTRACTS is in force in the current edition of the Code, and nothing recorded condemns it.
(a) An obligor has the burden of proving that a claim is not covered by a service contract. An obligor has the burden of proving that a claim settlement amount is proper under the terms of the contract.
(b) No seller of a service contract who participates in or influences, directly or indirectly, the processing, administration, or adjustment of claims, shall enter into any agreement or understanding the effect of which is to make the amount of the seller’s commission or compensation contingent upon savings effected in the adjustment, settlement, or payment of losses covered by the contract.