Section 807 Of Chapter 3. The California Military Families Financial Relief Act From California Military And Veterans Code >> Division 4. >> Chapter 3.
807
. (a) The holder of a loan or retail installment sales contract
with respect to which the debtor has purchased prepaid credit
disability insurance shall give notice to the debtor not less than 30
days before the expiration date of the insurance that the debtor
will not be protected during the period between that expiration date
and the deferred maturity date of the loan or contract unless the
insurance is extended. The debtor may, at his or her option, direct
the holder to add the amount of the additional premium to the unpaid
balance of the loan or contract.
(b) The holder of an open-ended loan or retail installment account
with respect to which the debtor has purchased credit disability
insurance with premiums payable monthly together with the installment
payments on the loan or the account shall give notice to the debtor
that the debtor will not be protected by the insurance during the
period specified in Section 800 unless the debtor elects to continue
payment of premiums during that period. The debtor may, at his or her
option, direct the holder to add the amount of those premiums to the
unpaid balance of the account.