Section 5604 Of Article 1. Procedure To Transfer From California Vehicle Code >> Division 3. >> Chapter 2. >> Article 1.
5604
. Every dealer who, upon transferring by sale, lease, or
otherwise, any new or used vehicle of a type subject to registration,
requires the transferee to insure the vehicle, and every lending
agency which, as the holder of any security interest in the vehicle,
requires its obligor to insure the vehicle, shall, if the required
insurance policy is obtained by the dealer or lending agency and the
policy does not insure the transferee or obligor against damages
resulting from ownership or operation of the vehicle arising by
reason of personal injury or death of any person, or from injury to
property, notify the transferee or obligor of that fact in writing on
a document other than the insurance policy. The document shall be in
duplicate and signed by the transferee or obligor.
If the required insurance policy is obtained by the dealer or
lending agency because of the failure or refusal of the transferee or
obligor to furnish or renew insurance in accordance with the terms
of the contract of sale or the security agreement, and the policy
does not insure the transferee or obligor against damages resulting
from ownership or operation of the vehicle arising by reason of
personal injury or death of any person, or from injury to property,
the dealer or lending agency shall notify the transferee or obligor
that the policy obtained does not insure the transferee or obligor
for liability from any claims. The notice shall be made in writing on
a document other than the insurance policy, or the declaration page
attached to the policy, and shall be mailed, with postage paid and
properly addressed, to the transferee or obligor within 30 days of
obtaining the policy.