2009 California Insurance Code - Section 11580-11589.5 :: Article 2. Actions On Policies Containing Liability Provisions

11580.  A policy insuring against losses set forth in subdivision
(a) shall not be issued or delivered to any person in this state
unless it contains the provisions set forth in subdivision (b). Such
policy, whether or not actually containing such provisions, shall be
construed as if such provisions were embodied therein.
   (a) Unless it contains such provisions, the following policies of
insurance shall not be thus issued or delivered:
   (1) Against loss or damage resulting from liability for injury
suffered by another person other than (i) a policy of workers'
compensation insurance, or (ii) a policy issued by a nonadmitted
Mexican insurer solely for use in the Republic of Mexico.
   (2) Against loss of or damage to property caused by draught
animals or any vehicle, and for which the insured is liable, other
than a policy which provides insurance in the Republic of Mexico,
issued or delivered in this state by a nonadmitted Mexican insurer.
   (b) Such policy shall not be thus issued or delivered to any
person in this state unless it contains all the following provisions:
   (1) A provision that the insolvency or bankruptcy of the insured
will not release the insurer from the payment of damages for injury
sustained or loss occasioned during the life of such policy.
   (2) A provision that whenever judgment is secured against the
insured or the executor or administrator of a deceased insured in an
action based upon bodily injury, death, or property damage, then an
action may be brought against the insurer on the policy and subject
to its terms and limitations, by such judgment creditor to recover on
the judgment.

11580.01.  (a) A policy insuring against legal liability arising
from the rendering of professional services by an insured licensed
pursuant to the provisions of Division 2 (commencing with Section
500) of the Business and Professions Code, or Chapter 4 (commencing
with Section 6000) of Division 3 of the Business and Professions
Code, and which generally limits the coverage thereof to liability
for only those claims that are first made against the insured while
the policy is in force, shall not be issued or delivered to any
person in this state unless the application or proposal therefor
complies with subdivision (b) and the policy complies with
subdivision (c).
   (b) The form of application or proposal for any such policy
described in subdivision (a) shall recite prominently and
conspicuously at the heading thereof that it is an application or
proposal for a claims-made policy.
   (c) Each such policy described in subdivision (a) shall contain on
the face page thereof a prominent and conspicuous legend or
statement substantially to the following effect:

                                      NOTICE

   "Except to such extent as may otherwise be provided herein, the
coverage of this policy is limited generally to liability for only
those claims that are first made against the insured while the policy
is in force. Please review the policy carefully and discuss the
coverage thereunder with your insurance agent or broker."

11580.02.  A liability insurer may review bills submitted for the
defense of its insured, but shall not compensate a reviewer based on
any of the following:
   (a) A percentage of the amount by which a bill is reduced for
payment.
   (b) The number of claims or the cost of services for which the
reviewer has denied authorization or payment.
   (c) An agreement that no compensation will be due unless one or
more bills are reduced for payment.

11580.04.  Any additional insured endorsement issued by an admitted
or nonadmitted insurer for the benefit of a public agency in
connection with, collateral to, or affecting any construction
contract to which the provisions of subdivision (b) of Section 2782
of the Civil Code apply, shall not provide any duty of indemnity
coverage for the active negligence of the additional insured in any
case where an agreement to indemnify the additional insured would be
invalid under subdivision (b) of Section 2782 of the Civil Code. In
any case where a claim or loss encompasses the negligence of the
original insured and the active negligence of the additional insured
that is not covered because of this section, the insurer's obligation
shall be limited to obligations permitted by this section.
   Any contract requirement that requires a promisor to procure
insurance that is invalid under this section shall be invalid.

11580.05.  The Legislature declares that the public policy of this
state in regard to provisions authorized or required to be included
in policies affording automobile liability insurance or motor vehicle
liability insurance issued or delivered in this state shall be as
stated in this article, that this article expresses the total public
policy of this state respecting the content of such policies, and
that no provision of this article or of the Vehicle Code shall apply
to policies affording automobile liability insurance or motor vehicle
liability insurance in the Republic of Mexico issued or delivered in
this state by a nonadmitted Mexican insurer. The Legislature further
declares that it is the intent of the Legislature that the
requirements set forth in Article 2 (commencing with Section 16450)
of Chapter 3 of Division 7 of the Vehicle Code shall apply only to an
owner's policy or operator's policy of liability insurance certified
as provided in Section 16431 of the Vehicle Code as proof of ability
to respond in damages, and that the requirements set forth in
Article 4 (commencing with Section 11620) of Chapter 1 of Part 3 of
Division 2 of the Insurance Code shall apply only to automobile
liability insurance policies issued under the California Assigned
Risk Plan. Except as provided above, any other policy issued or
delivered in this state affording liability insurance with respect to
ownership, maintenance, or use of a motor vehicle shall comply with
the requirements set forth in Sections 11580, 11580.1, and 11580.2.

11580.06.  Except as may be otherwise provided in this article:
   (a) The term "motor vehicle" means any vehicle designed for use
principally upon streets and highways and subject to motor vehicle
registration under the laws of this state.
   (b) The term "insured" shall include the person or persons to whom
any policy subject to this article is issued as named insured and
any other person to whom coverage is afforded under the terms of any
such policy.
   (c) The term "bodily injury" shall include sickness or disease,
including death resulting therefrom.
   (d) The term "automobile" means any self-propelled motor vehicle,
with neither more than nor less than four wheels, designed for use
principally upon streets and highways and subject to motor vehicle
registration under the laws of this state.
   (e) The term "arrest" shall have the same meaning as set forth in
Section 834 of the Penal Code.
   (f) The term "operated by" or "when operating" shall be
conclusively presumed to describe the conduct of the person sitting
immediately behind the steering controls of the motor vehicle. The
person shall be conclusively presumed to be the sole operator of the
motor vehicle.
   (g) The term "use" when applied to a motor vehicle shall only mean
operating, maintaining, loading, or unloading a motor vehicle.
   (h) The word "terms" when used with reference to a policy or
endorsement includes the provision of coverage, exclusions,
restrictions, conditions, deductions, and limits.
   (i) Unless otherwise provided in this code, the term "leased motor
vehicle" means a motor vehicle leased or rented by a lessor licensed
to lease motor vehicles under a written contract for a period of six
months or longer.

11580.07.  Except when required by a conditional sales vendor, no
person or entity who is licensed pursuant to Chapter 5 (commencing
with Section 1621) of Part 2 of Division 1 and who holds an
appointment by, or transacts insurance with, an insurer which is
admitted to issue a policy of automobile liability insurance, as
described in Section 16054 of the Vehicle Code, or a motor vehicle
liability policy, as described in Section 16450 of the Vehicle Code,
or any policy or coverage described in Section 660, shall require any
insured to purchase or maintain automobile collision coverage, as
defined in Section 660, for the insured motor vehicle as a condition
to the issuance or maintenance of comprehensive coverage for such
motor vehicle, unless such policy requires the purchase of both such
coverages.
   This section shall apply only to those policies and coverages
issued or renewed on or after the effective date of this section.
   As used in this section, "comprehensive coverage" means coverage
for loss or damage to the insured motor vehicle resulting from a
cause other than collision or upset.

11580.08.  With respect to disclosure of the fact of an arrest for
any violation of the Vehicle Code or of a city or county ordinance or
resolution relating to vehicles or their operators or owner which
did not result in a conviction, the issuer, or his agency or
employee, of any policy of automobile liability insurance (as
described in Section 16056 of the Vehicle Code), any motor vehicle
liability policy (as described in Section 16450 of the Vehicle Code),
or any policy or coverage described in Section 660, shall not
inquire of an applicant whether he has been arrested under such
circumstances or to condition the issuance of any such policy on the
applicant's making such disclosure.

11580.09.  (a) Any policy of automobile liability insurance shall
contain a notice stating limits of future coverage. The notice shall
be prominently displayed on the first page of the policy or in
related documents which are provided to the policyholder.
   (b) For the purposes of this section:
   (1) "Automobile liability insurance policy" means a policy of
automobile liability insurance, and any other policy of automobile
insurance that contains as a component automobile liability
insurance, but limited to those policies that are defined in Section
660.
   (2) "Limits of future coverage" means specified reasons for which
the insurer may cancel or refuse to renew the policy or increase the
premium for the same coverage.
   (3) "Notice" means the specific information specified in paragraph
(2) or a clear and concise reference to the exact location of the
information in the policy or in related documents provided to the
policyholder.
   (c) For the purposes of notice of cancellation, the insurer shall
list those grounds for valid notice of cancellation as specified in
Section 661.
   (d) For the purposes of nonrenewal or premium increase, the
insurer shall state the reasons for this action which shall include,
if applicable, but not be limited to, the following:
   (1) Accident involvement by an insured, and whether the insured is
at fault in the accident.
   (2) A change in, or an addition of, an insured vehicle.
   (3) A change in, or addition of, an insured under the policy.
   (4) A change in the location of garaging of an insured vehicle.
   (5) A change in the use of the insured vehicle.
   (6) Convictions for violating any provision of the Vehicle Code or
the Penal Code relating to the operation of a motor vehicle.
   (7) The payment made by an insurer due to a claim filed by an
insured or a third party.
   (e) A statement shall be included in the nonrenewal section that
some nonrenewals and premium increases may result from reasons that
are not specified in subdivision (d) for an insurer that are both
lawful and not unfairly discriminatory.

11580.010.  (a) Any automobile liability insurer that is responsible
for coverage for ordinary, reasonable, and necessary medical
transportation services provided to an insured, or on behalf of an
insured, to a valid claimant is liable for those charges to the
person performing those services. The insurer may discharge this
obligation by making payment to the person performing the medical
transportation services or to the insured or on behalf of the insured
to the claimant.
   (b) Any insured or claimant who has received payment, which
includes charges for medical transportation services, from an insurer
for a loss relating to a vehicle is liable for those charges to the
person performing those services.

11580.011.  (a) As used in this section, "child passenger restraint
system" means a system as described in Section 27360 of the Vehicle
Code.
   (b) Every policy of automobile liability insurance, as described
in Section 16054 of the Vehicle Code, shall provide liability
coverage for replacement of a child passenger restraint system that
was damaged or was in use by a child during an accident for which
liability coverage under the policy is applicable due to the
liability of an insured.
   (c) Every policy of automobile liability insurance that provides
uninsured motorist property damage coverage, as described in
paragraph (2) of subdivision (a) of Section 11580.26, shall provide
coverage for replacement of a child passenger restraint system that
was damaged or was in use by a child during an accident for which
uninsured motorist property damage coverage under the policy is
applicable due to the liability of an uninsured motorist.
   (d) Every policy that provides automobile collision coverage, as
described in Section 660, or every policy that provides automobile
physical damage coverage, as described in Section 660, shall include
a child passenger restraint system within the definition of covered
property, if the child passenger restraint system was in use by a
child during an accident or, if the child passenger restraint system
was in the vehicle and it sustained a loss covered by the policy.
   (e) Upon the filing of a claim pursuant to a policy described in
subdivision (b), (c), or (d), unless otherwise determined, an insurer
shall have an obligation to ask whether a child passenger restraint
system was in use by a child during an accident or was in the vehicle
at the time of a loss that is covered by the policy, and an
obligation to replace the child passenger restraint system or
reimburse the claimant for the cost of purchasing a new passenger
restraint system in accordance with this section if it was in use by
a child during the accident or if it sustained a covered loss while
in the vehicle.
   (f) An insured, upon acquiring a replacement child passenger
restraint system, may surrender the child passenger restraint system
that was replaced to the nearest office of the Department of the
California Highway Patrol.

11580.1.  (a) No policy of automobile liability insurance described
in Section 16054 of the Vehicle Code covering liability arising out
of the ownership, maintenance, or use of any motor vehicle shall be
issued or delivered in this state on or after the effective date of
this section unless it contains the provisions set forth in
subdivision (b). However, none of the requirements of subdivision (b)
shall apply to the insurance afforded under the policy (1) to the
extent that the insurance exceeds the limits specified in subdivision
(a) of Section 16056 of the Vehicle Code, or (2) if the policy
contains an underlying insurance requirement, or provides for a
retained limit of self-insurance, equal to or greater than the limits
specified in subdivision (a) of Section 16056 of the Vehicle Code.
   (b) Every policy of automobile liability insurance to which
subdivision (a) applies shall contain all of the following
provisions:
   (1) Coverage limits not less than the limits specified in
subdivision (a) of Section 16056 of the Vehicle Code.
   (2) Designation by explicit description of, or appropriate
reference to, the motor vehicles or class of motor vehicles to which
coverage is specifically granted.
   (3) Designation by explicit description of the purposes for which
coverage for those motor vehicles is specifically excluded.
   (4) Provision affording insurance to the named insured with
respect to any owned or leased motor vehicle covered by the policy,
and to the same extent that insurance is afforded to the named
insured, to any other person using the motor vehicle, provided the
use is by the named insured or with his or her permission, express or
implied, and within the scope of that permission, except that: (A)
with regard to insurance afforded for the loading or unloading of the
motor vehicle, the insurance may be limited to apply only to the
named insured, a relative of the named insured who is a resident of
the named insured's household, a lessee or bailee of the motor
vehicle, or an employee of any of those persons; and (B) the
insurance afforded to any person other than the named insured need
not apply to: (i) any employee with respect to bodily injury
sustained by a fellow employee injured in the scope and course of his
or her employment, or (ii) any person, or to any agent or employee
thereof, employed or otherwise engaged in the business of selling,
repairing, servicing, delivering, testing, road-testing, parking, or
storing automobiles with respect to any accident arising out of the
maintenance or use of a motor vehicle in connection therewith. As
used in this chapter, "owned motor vehicle" includes all motor
vehicles described and rated in the policy.
   (c) In addition to any exclusion provided in paragraph (3) of
subdivision (b), the insurance afforded by any policy of automobile
liability insurance to which subdivision (a) applies, including the
insurer's obligation to defend, may, by appropriate policy provision,
be made inapplicable to any or all of the following:
   (1) Liability assumed by the insured under contract.
   (2) Liability for bodily injury or property damage caused
intentionally by or at the direction of the insured.
   (3) Liability imposed upon or assumed by the insured under any
workers' compensation law.
   (4) Liability for bodily injury to any employee of the insured
arising out of and in the course of his or her employment.
   (5) Liability for bodily injury to an insured or liability for
bodily injury to an insured whenever the ultimate benefits of that
indemnification accrue directly or indirectly to an insured.
   (6) Liability for damage to property owned, rented to, transported
by, or in the charge of, an insured. A motor vehicle operated by an
insured shall be considered to be property in the charge of an
insured.
   (7) Liability for any bodily injury or property damage with
respect to which insurance is or can be afforded under a nuclear
energy liability policy.
   (8) Any motor vehicle or class of motor vehicles, as described or
designated in the policy, with respect to which coverage is
explicitly excluded, in whole or in part.
    "The insured" as used in paragraphs (1), (2), (3), and (4) shall
mean only that insured under the policy against whom the particular
claim is made or suit brought. "An insured" as used in paragraphs (5)
and (6) shall mean any insured under the policy including those
persons who would have otherwise been included within the policy's
definition of an insured but, by agreement, are subject to the
limitations of paragraph (1) of subdivision (d).
   (d) Notwithstanding paragraph (4) of subdivision (b), or Article 2
(commencing with Section 16450) of Chapter 3 of Division 7 of, or
Article 2 (commencing with Section 17150) of Chapter 1 of Division 9
of, the Vehicle Code, the insurer and any named insured may, by the
terms of any policy of automobile liability insurance to which
subdivision (a) applies, or by a separate writing relating thereto,
agree as to either or both of the following limitations, the
agreement to be binding upon every insured to whom the policy applies
and upon every third-party claimant:
   (1) That coverage and the insurer's obligation to defend under the
policy shall not apply nor accrue to the benefit of any insured or
any third-party claimant while any motor vehicle is being used or
operated by a natural person or persons designated by name. These
limitations shall apply to any use or operation of a motor vehicle,
including the negligent or alleged negligent entrustment of a motor
vehicle to that designated person or persons. This agreement applies
to all coverage provided by that policy and is sufficient to comply
with the requirements of paragraph (2) of subdivision (a) of Section
11580.2 to delete coverage when a motor vehicle is operated by a
natural person or persons designated by name. The insurer shall have
an obligation to defend the named insured when all of the following
apply to that designated natural person:
   (A) He or she is a resident of the same household as the named
insured.
   (B) As a result of operating the insured motor vehicle of the
named insured, he or she is jointly sued with the named insured.
   (C) He or she is an insured under a separate automobile liability
insurance policy issued to him or her as a named insured, which
policy does not provide a defense to the named insured.
   An agreement made by the insurer and any named insured more than
60 days following the inception of the policy excluding a designated
person by name shall be effective from the date of the agreement and
shall, with the signature of a named insured, be conclusive evidence
of the validity of the agreement.
   That agreement shall remain in force as long as the policy remains
in force, and shall apply to any continuation, renewal, or
replacement of the policy by the named insured, or reinstatement of
the policy within 30 days of any lapse thereof.
   (2) That with regard to a policy issued to a named insured engaged
in the business of leasing vehicles for those vehicles that are
leased for a term in excess of six months, or selling, repairing,
servicing, delivering, testing, road-testing, parking, or storing
automobiles, coverage shall not apply to any person other than the
named insured or his or her agent or employee, except to the extent
that the limits of liability of any other valid and collectible
insurance available to that person are not equal to the limits of
liability specified in subdivision (a) of Section 16056 of the
Vehicle Code. If the policy is issued to a named insured engaged in
the business of leasing vehicles, which business includes the lease
of vehicles for a term in excess of six months, and the lessor
includes in the lease automobile liability insurance, the terms and
limits of which are not otherwise specified in the lease, the named
insured shall incorporate a provision in each vehicle lease contract
advising the lessee of the provisions of this subdivision and the
fact that this limitation is applicable except as otherwise provided
for by statute or federal law.
   (e) Nothing in this section or in Section 16054 or 16450 of the
Vehicle Code shall be construed to constitute a homeowner's policy,
personal and residence liability policy, personal and farm liability
policy, general liability policy, comprehensive personal liability
policy, manufacturers' and contractors' policy, premises liability
policy, special multiperil policy, or any policy or endorsement where
automobile liability coverage is offered as incidental to some other
basic coverage as an "automobile liability policy" within the
meaning of Section 16054 of the Vehicle Code, or as a "motor vehicle
liability policy" within the meaning of Section 16450 of the Vehicle
Code, nor shall this section apply to a policy that provides
insurance covering liability arising out of the ownership,
maintenance, or use of any motor vehicle in the Republic of Mexico
issued or delivered in this state by a nonadmitted Mexican insurer,
notwithstanding that the policy may provide automobile or motor
vehicle liability coverage on insured premises or the ways
immediately adjoining.
   (f) (1) On and after January 1, 1976, no policy of automobile
liability insurance described in subdivision (a) shall be issued,
amended, or renewed in this state if it contains any provision that
expressly or impliedly excludes from coverage under the policy the
operation or use of an insured motor vehicle by the named insured in
the performance of volunteer services for a nonprofit charitable
organization or governmental agency by providing social service
transportation. This subdivision shall not apply in any case in which
the named insured receives any remuneration of any kind other than
reimbursement for actual mileage driven in the performance of those
services at a rate not to exceed the following:
   (A) For the 1980-81 fiscal year, the maximum rate authorized by
the California Victim Compensation and Government Claims Board, which
shall also be known as the "base rate."
   (B) For each fiscal year thereafter, the greater of either (A) the
maximum rate authorized by the California Victim Compensation and
Government Claims Board or (B) the base rate as adjusted by the
California Consumer Price Index.
   (2) No policy of insurance issued under this section may be
canceled by an insurer solely for the reason that the named insured
is performing volunteer services for a nonprofit charitable
organization or governmental agency consisting of providing social
service transportation.
   (3) For the purposes of this section, "social service
transportation" means transportation services provided by private
nonprofit organizations or individuals to either individuals who are
senior citizens or individuals or groups of individuals who have
special transportation needs because of physical or mental conditions
and supported in whole or in part by funding from private or public
agencies.
   (g) Notwithstanding paragraph (4) of subdivision (b), or Article 2
(commencing with Section 16450) of Chapter 3 of Division 7 of, or
Article 2 (commencing with Section 17150) of Chapter 1 of Division 9
of, the Vehicle Code, a Mexican nonadmitted insurer and any named
insured may, by the terms of any policy of automobile insurance for
use solely in the Republic of Mexico to which subdivision (a)
applies, or by a separate writing relating thereto, agree to the
limitation that coverage under that policy shall not apply to any
person riding in or occupying a vehicle owned by the insured or
driven by another person with the permission of the insured. The
agreement shall be binding upon every insured to whom the policy
applies and upon any third-party claimant.
   (h) No policy of automobile insurance that provides insurance
covering liability arising out of the ownership, maintenance, or use
of any motor vehicle solely in the Republic of Mexico issued by a
nonadmitted Mexican insurance company, shall be subject to, or
provide coverage for, those coverages provided in Section 11580.2.

11580.15.  Subject to the approval of the Insurance Commissioner,
every admitted insurer issuing or renewing motor vehicle liability
policies as defined in Section 16054 or 16450 of the Vehicle Code
shall, at the time of offering to issue or offering to renew any such
policy, disclose to the applicant in writing as a freestanding
document, which brings attention to the applicant, all discounts, if
any, that are available from the insurer for that insurance and for
any related insurance provided under that policy. The insurer shall
disclose any discounts for good drivers, senior drivers, students,
multiple cars, and any other discounts that are available from that
insurer. The disclosure shall be required for personal lines of motor
vehicle insurance.
   Every insurer that sells insurance through licensed agents or
brokers shall disclose in writing to the agents and brokers all of
the discounts that are required to be disclosed to the applicant
under this section, and shall require its agents and brokers to make
the disclosures required by this section.

11580.17.  The department shall not prohibit an insurer from
electing to inspect physically a motor vehicle for purposes of
issuing a policy for collision or comprehensive coverage. The
inspection of the motor vehicle shall be at no cost to the insured.
The information ascertained from that inspection may only be used to
determine the extent of insurability for collision or comprehensive
coverage for the motor vehicle. If an insurer elects to conduct an
inspection prior to offering comprehensive and collision insurance
pursuant to this section, the insurer shall inspect every motor
vehicle for which coverage is requested if the vehicle was not
previously insured under a policy of comprehensive and collision
coverage. An insurer may exempt from this requirement new motor
vehicles if a copy of the sales contract is delivered to the insurer
within five business days of the purchase of the new motor vehicle.
The inspection shall be done by the insurer or its agent, and shall
be performed not more than 20 miles from the address where the
vehicle is insured, and during normal business hours.

11580.2.  (a) (1) No policy of bodily injury liability insurance
covering liability arising out of the ownership, maintenance, or use
of any motor vehicle, except for policies that provide insurance in
the Republic of Mexico issued or delivered in this state by
nonadmitted Mexican insurers, shall be issued or delivered in this
state to the owner or operator of a motor vehicle, or shall be issued
or delivered by any insurer licensed in this state upon any motor
vehicle then principally used or principally garaged in this state,
unless the policy contains, or has added to it by endorsement, a
provision with coverage limits at least equal to the limits specified
in subdivision (m) and in no case less than the financial
responsibility requirements specified in Section 16056 of the Vehicle
Code insuring the insured, the insured's heirs or legal
representative for all sums within the limits that he, she, or they,
as the case may be, shall be legally entitled to recover as damages
for bodily injury or wrongful death from the owner or operator of an
uninsured motor vehicle. The insurer and any named insured, prior to
or subsequent to the issuance or renewal of a policy, may, by
agreement in writing, in the form specified in paragraph (2) or
paragraph (3), (1) delete the provision covering damage caused by an
uninsured motor vehicle completely, or (2) delete the coverage when a
motor vehicle is operated by a natural person or persons designated
by name, or (3) agree to provide the coverage in an amount less than
that required by subdivision (m) but not less than the financial
responsibility requirements specified in Section 16056 of the Vehicle
Code. Any of these agreements by any named insured or agreement for
the amount of coverage shall be binding upon every insured to whom
the policy or endorsement provisions apply while the policy is in
force, and shall continue to be so binding with respect to any
continuation or renewal of the policy or with respect to any other
policy that extends, changes, supersedes, or replaces the policy
issued to the named insured by the same insurer, or with respect to
reinstatement of the policy within 30 days of any lapse thereof. A
policy shall be excluded from the application of this section if the
automobile liability coverage is provided only on an excess or
umbrella basis. Nothing in this section shall require that uninsured
motorist coverage be offered or provided in any homeowner policy,
personal and residents' liability policy, comprehensive personal
liability policy, manufacturers' and contractors' policy, premises
liability policy, special multiperil policy, or any other policy or
endorsement where automobile liability coverage is offered as
incidental to some other basic coverage, notwithstanding that the
policy may provide automobile or motor vehicle liability coverage on
insured premises or the ways immediately adjoining.
   (2) The agreement specified in paragraph (1) to delete the
provision covering damage caused by an uninsured motor vehicle
completely or delete the coverage when a motor vehicle is operated by
a natural person or persons designated by name shall be in the
following form:
   "The California Insurance Code requires an insurer to provide
uninsured motorists coverage in each bodily injury liability
insurance policy it issues covering liability arising out of the
ownership, maintenance, or use of a motor vehicle. Those provisions
also permit the insurer and the applicant to delete the coverage
completely or to delete the coverage when a motor vehicle is operated
by a natural person or persons designated by name. Uninsured
motorists coverage insures the insured, his or her heirs, or legal
representatives for all sums within the limits established by law,
that the person or persons are legally entitled to recover as damages
for bodily injury, including any resulting sickness, disease, or
death, to the insured from the owner or operator of an uninsured
motor vehicle not owned or operated by the insured or a resident of
the same household. An uninsured motor vehicle includes an
underinsured motor vehicle as defined in subdivision (p) of Section
11580.2 of the Insurance Code."
   The agreement may contain additional statements not in derogation
of or in conflict with the foregoing. The execution of the agreement
shall relieve the insurer of liability under this section while the
agreement remains in effect.
   (3) The agreement specified in paragraph (1) to provide coverage
in an amount less than that required by subdivision (m) shall be in
the following form:
   "The California Insurance Code requires an insurer to provide
uninsured motorists coverage in each bodily injury liability
insurance policy it issues covering liability arising out of the
ownership, maintenance, or use of a motor vehicle. Those provisions
also permit the insurer and the applicant to agree to provide the
coverage in an amount less than that required by subdivision (m) of
Section 11580.2 of the Insurance Code but not less than the financial
responsibility requirements. Uninsured motorists coverage insures
the insured, his or her heirs, or legal representatives for all sums
within the limits established by law, that the person or persons are
legally entitled to recover as damages for bodily injury, including
any resulting sickness, disease, or death, to the insured from the
owner or operator of an uninsured motor vehicle not owned or operated
by the insured or a resident of the same household. An uninsured
motor vehicle includes an underinsured motor vehicle as defined in
subdivision (p) of Section 11580.2 of the Insurance Code."
   The agreement may contain additional statements not in derogation
of or in conflict with this paragraph. However, it shall be presumed
that an application for a policy of bodily injury liability insurance
containing uninsured motorist coverage in an amount less than that
required by subdivision (m), signed by the named insured and approved
by the insurer, with a policy effective date after January 1, 1985,
shall be a valid agreement as to the amount of uninsured motorist
coverage to be provided.
   (b) As used in subdivision (a), "bodily injury" includes sickness
or disease, including death, resulting therefrom; "named insured"
means only the individual or organization named in the declarations
of the policy of motor vehicle bodily injury liability insurance
referred to in subdivision (a); as used in subdivision (a) if the
named insured is an individual "insured" means the named insured and
the spouse of the named insured and, while residents of the same
household, relatives of either while occupants of a motor vehicle or
otherwise, heirs and any other person while in or upon or entering
into or alighting from an insured motor vehicle and any person with
respect to damages he or she is entitled to recover for care or loss
of services because of bodily injury to which the policy provisions
or endorsement apply; as used in subdivision (a), if the named
insured is an entity other than an individual, "insured" means any
person while in or upon or entering into or alighting from an insured
motor vehicle and any person with respect to damages he or she is
entitled to recover for care or loss of services because of bodily
injury to which the policy provisions or endorsement apply. As used
in this subdivision, "individual" shall not include persons doing
business as corporations, partnerships, or associations. As used in
this subdivision, "insured motor vehicle" means the motor vehicle
described in the underlying insurance policy of which the uninsured
motorist endorsement or coverage is a part, a temporary substitute
automobile for which liability coverage is provided in the policy or
a newly acquired automobile for which liability coverage is provided
in the policy if the motor vehicle is used by the named insured or
with his or her permission or consent, express or implied, and any
other automobile not owned by or furnished for the regular use of the
named insured or any resident of the same household, or by a natural
person or persons for whom coverage has been deleted in accordance
with subdivision (a) while being operated by the named insured or his
or her spouse if a resident of the same household, but "insured
motor vehicle" shall not include any automobile while used as a
public or livery conveyance. As used in this section, "uninsured
motor vehicle" means a motor vehicle with respect to the ownership,
maintenance or use of which there is no bodily injury liability
insurance or bond applicable at the time of the accident, or there is
the applicable insurance or bond but the company writing the
insurance or bond denies coverage thereunder or refuses to admit
coverage thereunder except conditionally or with reservation, or an
"underinsured motor vehicle" as defined in subdivision (p), or a
motor vehicle used without the permission of the owner thereof if
there is no bodily injury liability insurance or bond applicable at
the time of the accident with respect to the owner or operator
thereof, or the owner or operator thereof be unknown, provided that,
with respect to an "uninsured motor vehicle" whose owner or operator
is unknown:
   (1) The bodily injury has arisen out of physical contact of the
automobile with the insured or with an automobile that the insured is
occupying.
   (2) The insured or someone on his or her behalf has reported the
accident within 24 hours to the police department of the city where
the accident occurred or, if the accident occurred in unincorporated
territory then either to the sheriff of the county where the accident
occurred or to the local headquarters of the California Highway
Patrol, and has filed with the insurer within 30 days thereafter a
statement under oath that the insured or his or her legal
representative has or the insured's heirs have a cause of action
arising out of the accident for damages against a person or persons
whose identity is unascertainable and set forth facts in support
thereof. As used in this section, "uninsured motor vehicle" shall not
include a motor vehicle owned or operated by the named insured or
any resident of the same household or self-insured within the meaning
of the Financial Responsibility Law of the state in which the motor
vehicle is registered or that is owned by the United States of
America, Canada, a state or political subdivision of any of those
governments or an agency of any of the foregoing, or a land motor
vehicle or trailer while located for use as a residence or premises
and not as a vehicle, or any equipment or vehicle designed or
modified for use primarily off public roads, except while actually
upon public roads.
   As used in this section, "uninsured motor vehicle" also means an
insured motor vehicle where the liability insurer thereof is unable
to make payment with respect to the legal liability of its insured
within the limits specified therein because of insolvency. An insurer'
s solvency protection shall be applicable only to accidents occurring
during a policy period in which its insured's motor vehicle coverage
is in effect where the liability insurer of the tortfeasor becomes
insolvent within one year of the accident. In the event of payment to
any person under the coverage required by this section and subject
to the terms and conditions of the coverage, the insurer making the
payment, shall to the extent thereof, be entitled to any proceeds
that may be recoverable from the assets of the insolvent insurer
through any settlement or judgment of the person against the
insolvent insurer.
   Nothing in this section is intended to exclude from the definition
of an uninsured motor vehicle any motorcycle or private
passenger-type four-wheel drive motor vehicle if that vehicle was
subject to and failed to comply with the Financial Responsibility Law
of this state.
   (c) The insurance coverage provided for in this section does not
apply either as primary or as excess coverage:
   (1) To property damage sustained by the insured.
   (2) To bodily injury of the insured while in or upon or while
entering into or alighting from a motor vehicle other than the
described motor vehicle if the owner thereof has insurance similar to
that provided in this section.
   (3) To bodily injury of the insured with respect to which the
insured or his or her representative shall, without the written
consent of the insurer, make any settlement with or prosecute to
judgment any action against any person who may be legally liable
therefor.
   (4) In any instance where it would inure directly or indirectly to
the benefit of any workers' compensation carrier or to any person
qualified as a self-insurer under any workers' compensation law, or
directly to the benefit of the United States, or any state or any
political subdivision thereof.
   (5) To establish proof of financial responsibility as provided in
Section 16054 of the Vehicle Code.
   (6) To bodily injury of the insured while occupying a motor
vehicle owned by an insured or leased to an insured under a written
contract for a period of six months or longer, unless the occupied
vehicle is an insured motor vehicle. "Motor vehicle" as used in this
paragraph means any self-propelled vehicle.
   (7) To bodily injury of the insured when struck by a vehicle owned
by an insured, except when the injured insured's vehicle is being
operated, or caused to be operated, by a person without the injured
insured's consent in connection with criminal activity that has been
documented in a police report and that the injured insured is not a
party to.
   (8) To bodily injury of the insured while occupying a motor
vehicle rented or leased to the insured for public or livery
purposes.
   (d) Subject to paragraph (2) of subdivision (c), the policy or
endorsement may provide that if the insured has insurance available
to the insured under more than one uninsured motorist coverage
provision, any damages shall not be deemed to exceed the higher of
the applicable limits of the respective coverages, and the damages
shall be prorated between the applicable coverages as the limits of
each coverage bear to the total of the limits.
   (e) The policy or endorsement added thereto may provide that if
the insured has valid and collectible automobile medical payment
insurance available to him or her, the damages that the insured shall
be entitled to recover from the owner or operator of an uninsured
motor vehicle shall be reduced for purposes of uninsured motorist
coverage by the amounts paid or due to be paid under the automobile
medical payment insurance.
   (f) The policy or an endorsement added thereto shall provide that
the determination as to whether the insured shall be legally entitled
to recover damages, and if so entitled, the amount thereof, shall be
made by agreement between the insured and the insurer or, in the
event of disagreement, by arbitration. The arbitration shall be
conducted by a single neutral arbitrator. An award or a judgment
confirming an award shall not be conclusive on any party in any
action or proceeding between (i) the insured, his or her insurer, his
or her legal representative, or his or her heirs and (ii) the
uninsured motorist to recover damages arising out of the accident
upon which the award is based. If the insured has or may have rights
to benefits, other than nonoccupational disability benefits, under
any workers' compensation law, the arbitrator shall not proceed with
the arbitration until the insured's physical condition is stationary
and ratable. In those cases in which the insured claims a permanent
disability, the claims shall, unless good cause be shown, be
adjudicated by award or settled by compromise and release before the
arbitration may proceed. Any demand or petition for arbitration shall
contain a declaration, under penalty of perjury, stating whether (i)
the insured has a workers' compensation claim; (ii) the claim has
proceeded to findings and award or settlement on all issues
reasonably contemplated to be determined in that claim; and (iii) if
not, what reasons amounting to good cause are grounds for the
arbitration to proceed immediately. The arbitration shall be deemed
to be a proceeding and the hearing before the arbitrator shall be
deemed to be the trial of an issue therein for purposes of issuance
of a subpoena by an attorney of a party to the arbitration under
Section 1985 of the Code of Civil Procedure. Title 4 (commencing with
Section 2016.010) of Part 4 of the Code of Civil Procedure shall be
applicable to these determinations, and all rights, remedies,
obligations, liabilities and procedures set forth in Title 4
(commencing with Section 2016.010) of Part 4 of the Code of Civil
Procedure shall be available to both the insured and the insurer at
any time after the accident, both before and after the commencement
of arbitration, if any, with the following limitations:
   (1) Whenever in Title 4 (commencing with Section 2016.010) of Part
4 of the Code of Civil Procedure, reference is made to the court in
which the action is pending, or provision is made for application to
the court or obtaining leave of court or approval by the court, the
court that shall have jurisdiction for the purposes of this section
shall be the superior court of the State of California, in and for
any county that is a proper county for the filing of a suit for
bodily injury arising out of the accident, against the uninsured
motorist, or any county specified in the policy or an endorsement
added thereto as a proper county for arbitration or action thereon.
   (2) Any proper court to which application is first made by either
the insured or the insurer under Title 4 (commencing with Section
2016.010) of Part 4 of the Code of Civil Procedure for any discovery
or other relief or remedy, shall thereafter be the only court to
which either of the parties shall make any applications under Title 4
(commencing with Section 2016.010) of Part 4 of the Code of Civil
Procedure with respect to the same accident, subject, however, to the
right of the court to grant a change of venue after a hearing upon
notice, upon any of the grounds upon which change of venue might be
granted in an action filed in the superior court.
   (3) A deposition pursuant to Chapter 9 (commencing with Section
2025.010) of Title 4 of Part 4 of the Code of Civil Procedure may be
taken without leave of court, except that leave of court, granted
with or without notice and for good cause shown, must be obtained if
the notice of the taking of the deposition is served by either party
within 20 days after the accident.
   (4) Subdivision (a) of Section 2025.280 of the Code of Civil
Procedure is not applicable to discovery under this section.
   (5) For the purposes of discovery under this section, the insured
and the insurer shall each be deemed to be "a party to the action,"
where that phrase is used in Section 2025.260 of the Code of Civil
Procedure.
   (6) Interrogatories under Chapter 13 (commencing with Section
2030.010) of Title 4 of Part 4 of the Code of Civil Procedure and
requests for admission under Chapter 16 (commencing with Section
2033.010) of Title 4 of Part 4 of the Code of Civil Procedure may be
served by either the insured or the insurer upon the other at any
time more than 20 days after the accident without leave of court.
   (7) Nothing in this section limits the rights of any party to
discovery in any action pending or that may hereafter be pending in
any court.
   (g) The insurer paying a claim under an uninsured motorist
endorsement or coverage shall be entitled to be subrogated to the
rights of the insured to whom the claim was paid against any person
legally liable for the injury or death to the extent that payment was
made. The action may be brought within three years from the date
that payment was made hereunder.
   (h) An insured entitled to recovery under the uninsured motorist
endorsement or coverage shall be reimbursed within the conditions
stated herein without being required to sign any release or waiver of
rights to which he or she may be entitled under any other insurance
coverage applicable; nor shall payment under this section to the
insured be delayed or made contingent upon the decisions as to
liability or distribution of loss costs under other bodily injury
liability insurance or any bond applicable to the accident. Any loss
payable under the terms of the uninsured motorist endorsement or
coverage to or for any person may be reduced:
   (1) By the amount paid and the present value of all amounts
payable to him or her, his or her executor, administrator, heirs, or
legal representative under any workers' compensation law, exclusive
of nonoccupational disability benefits.
   (2) By the amount the insured is entitled to recover from any
other person insured under the underlying liability insurance policy
of which the uninsured motorist endorsement or coverage is a part,
including any amounts tendered to the insured as advance payment on
behalf of the other person by the insurer providing the underlying
liability insurance.
   (i) (1) No cause of action shall accrue to the insured under any
policy or endorsement provision issued pursuant to this section
unless one of the following actions have been taken within two years
from the date of the accident:
   (A) Suit for bodily injury has been filed against the uninsured
motorist, in a court of competent jurisdiction.
   (B) Agreement as to the amount due under the policy has been
concluded.
   (C) The insured has formally instituted arbitration proceedings by
notifying the insurer in writing sent by certified mail, return
receipt requested. Notice shall be sent to the insurer or to the
agent for process designated by the insurer filed with the
department.
   (2) Any arbitration instituted pursuant to this section shall be
concluded either:
   (A) Within five years from the institution of the arbitration
proceeding.
   (B) If the insured has a workers' compensation claim arising from
the same accident, within three years of the date the claim is
concluded, or within the five-year period set forth in subparagraph
(A), whichever occurs later.
   (3) The doctrines of estoppel, waiver, impossibility,
impracticality, and futility apply to excuse a party's noncompliance
with the statutory timeframe, as determined by the court.
   (4) Parties to the insurance contract may stipulate in writing to
extending the time to conclude arbitration.
   (j) Notwithstanding subdivisions (b) and (i), in the event the
accident occurs in any other state or foreign jurisdiction to which
coverage is extended under the policy and the insurer of the
tortfeasor becomes insolvent, any action authorized pursuant to this
section may be maintained within three months of the insolvency of
the tortfeasor's insurer, but in no event later than the pertinent
period of limitation of the jurisdiction in which the accident
occurred.
   (k) Notwithstanding subdivision (i), any insurer whose insured has
made a claim under his or her uninsured motorist coverage, and the
claim is pending, shall, at least 30 days before the expiration of
the applicable statute of limitation, notify its insured in writing
of the statute of limitation applicable to the injury or death.
Failure of the insurer to provide the written notice shall operate to
toll any applicable statute of limitation or other time limitation
for a period of 30 days from the date the written notice is actually
given. The notice shall not be required if the insurer has received
notice that the insured is represented by an attorney.
   (l) As used in subdivision (b), "public or livery conveyance," or
terms of similar import, shall not include the operation or use of a
motor vehicle by the named insured in the performance of volunteer
services for a nonprofit charitable organization or governmental
agency by providing social service transportation as defined in
subdivision (f) of Section 11580.1. This subdivision shall apply only
to policies of insurance issued, amended, or renewed on or after
January 1, 1976.
   (m) Coverage provided under an uninsured motorist endorsement or
coverage shall be offered with coverage limits equal to the limits of
liability for bodily injury in the underlying policy of insurance,
but shall not be required to be offered with limits in excess of the
following amounts:
   (1) A limit of thirty thousand dollars ($30,000) because of bodily
injury to or death of one person in any one accident.
   (2) Subject to the limit for one person set forth in paragraph
(1), a limit of sixty thousand dollars ($60,000) because of bodily
injury to or death of two or more persons in any one accident.
   (n) Underinsured motorist coverage shall be offered with limits
equal to the limits of liability for the insured's uninsured motorist
limits in the underlying policy, and may be offered with limits in
excess of the uninsured motorist coverage. For the purposes of this
section, uninsured and underinsured motorist coverage shall be
offered as a single coverage. However, an insurer may offer coverage
for damages for bodily injury or wrongful death from the owner or
operator of an underinsured motor vehicle at greater limits than an
uninsured motor vehicle.
   (o) If an insured has failed to provide an insurer with wage loss
information or medical treatment record releases within 15 days of
the insurer's request or has failed to submit to a medical
examination arranged by the insurer within 20 days of the insurer's
request, the insurer may, at any time prior to 30 days before the
actual arbitration proceedings commence, request, and the insured
shall furnish, wage loss information or medical treatment record
releases, and the insurer may require the insured, except during
periods of hospitalization, to make himself or herself available for
a medical examination. The wage loss information or medical treatment
record releases shall be submitted by the insured within 10 days of
request and the medical examination shall be arranged by the insurer
no sooner than 10 days after request, unless the insured agrees to an
earlier examination date, and not later than 20 days after the
request. If the insured fails to comply with the requirements of this
subdivision, the actual arbitration proceedings shall be stayed for
at least 30 days following compliance by the insured. The proceedings
shall be scheduled as soon as practicable following expiration of
the 30-day period.
   (p) This subdivision applies only when bodily injury, as defined
in subdivision (b), is caused by an underinsured motor vehicle. If
the provisions of this subdivision conflict with subdivisions (a)
through (o), the provisions of this subdivision shall prevail.
   (1) As used in this subdivision, "an insured motor vehicle" is one
that is insured under a motor vehicle liability policy, or
automobile liability insurance policy, self-insured, or for which a
cash deposit or bond has been posted to satisfy a financial
responsibility law.
   (2) "Underinsured motor vehicle" means a motor vehicle that is an
insured motor vehicle but insured for an amount that is less than the
uninsured motorist limits carried on the motor vehicle of the
injured person.
   (3) This coverage does not apply to any bodily injury until the
limits of bodily injury liability policies applicable to all insured
motor vehicles causing the injury have been exhausted by payment of
judgments or settlements, and proof of the payment is submitted to
the insurer providing the underinsured motorist coverage.
   (4) When bodily injury is caused by one or more motor vehicles,
whether insured, underinsured, or uninsured, the maximum liability of
the insurer providing the underinsured motorist coverage shall not
exceed the insured's underinsured motorist coverage limits, less the
amount paid to the insured by or for any person or organization that
may be held legally liable for the injury.
   (5) The insurer paying a claim under this subdivision shall, to
the extent of the payment, be entitled to reimbursement or credit in
the amount received by the insured from the owner or operator of the
underinsured motor vehicle or the insurer of the owner or operator.
   (6) If the insured brings an action against the owner or operator
of an underinsured motor vehicle, he or she shall forthwith give to
the insurer providing the underinsured motorist coverage a copy of
the complaint by personal service or certified mail. All pleadings
and depositions shall be made available for copying or copies
furnished the insurer, at the insurer's expense, within a reasonable
time.
   (7) Underinsured motorist coverage shall be included in all
policies of bodily injury liability insurance providing uninsured
motorist coverage issued or renewed on or after July 1, 1985.
Notwithstanding this section, an agreement to delete uninsured
motorist coverage completely, or with respect to a person or persons
designated by name, executed prior to July 1, 1985, shall remain in
full force and effect.
   (q) Regardless of the number of vehicles involved whether insured
or not, persons covered, claims made, premiums paid or the number of
premiums shown on the policy, in no event shall the limit of
liability for two or more motor vehicles or two or more policies be
added together, combined, or stacked to determine the limit of
insurance coverage available to injured persons.

11580.23.  (a) If a suit for bodily injury has been filed against an
uninsured motorist in a court of competent jurisdiction, notice in
writing of the suit shall be provided the insurer of the insured
plaintiff within a reasonable time after the insured knew or should
have known of the uninsured status of the motorist, but in no event
shall that notice be required before two years from the date of the
accrual of the cause of action on which the claim is based. Failure
of the insured or his or her representative to give notice shall not
be a basis for denial of the uninsured motorist benefits in the
absence of proof of prejudice by the insurer.
   (b) The Legislature hereby finds that this section is declarative
of existing law. It is the intent of the Legislature to abrogate the
holdings in cases such as State Farm Mutual Auto. Ins. Co. v. Patton,
194 Cal. App. 3d 626, to the extent that they are inconsistent with
this section. Those decisions are abrogated and shall not apply to
any matters not final.

11580.25.  No motor vehicle insured pursuant to a policy of
insurance issued under Section 11580.1 or 11580.2 shall be classified
as a common carrier, livery, or for-hire vehicle solely for the
reason that the named insured is performing volunteer services for a
nonprofit charitable organization or governmental agency consisting
of providing social service transportation as defined in subdivision
(f) of Section 11580.1.

11580.26.  (a) Except where a named insured has agreed pursuant to
Section 11580.2 to delete the coverages provided by that section, no
policy of bodily injury liability insurance covering liability
arising out of the ownership, maintenance, or use of any motor
vehicle, except where the policy provides insurance in the Republic
of Mexico issued or delivered in this state by nonadmitted Mexican
insurers, and except a policy insuring a commercial vehicle as
defined in Section 260 of the Vehicle Code, shall be issued or
delivered in this state to the owner or operator of a motor vehicle,
or shall be issued or delivered by any insurer licensed in this state
upon any motor vehicle then principally used or principally garaged
in this state, unless a named insured has been offered the following
coverage:
   (1) Where the policy of motor vehicle liability insurance includes
collision coverage as defined in subdivision (d) of Section 660,
coverage which provides that the deductible amount, if any, to be
paid by the named insured under the collision coverage shall be
payable by the insurer in the event of collision involving a vehicle
owned by the named insured and insured under the policy, and an
uninsured motor vehicle.
   (2) Where the policy of motor vehicle liability insurance does not
include collision coverage as defined in subdivision (d) of Section
660, coverage for property damage to the insured motor vehicle, but
not including personal property contained therein, caused by the
owner or operator of an uninsured motor vehicle. As used in this
subdivision, "property damage" means payment for loss or damage to
the insured motor vehicle resulting from collision, not to exceed its
actual cash value or three thousand five hundred dollars ($3,500),
whichever is less, for which loss or damage the insured is legally
entitled to recover from the owner or operator of an uninsured motor
vehicle. Property damage does not include compensation for loss of
use of the motor vehicle. As used in this subdivision, the term
"insured motor vehicle" means the motor vehicle described in the
underlying insurance policy of which the uninsured motorist property
damage coverage or endorsement applies.
   (b) Every payment by an insurer under either coverage provided in
paragraphs (1) and (2) of subdivision (a) shall be payable under the
terms and conditions set forth in the policy, and shall be made only
where the collision involves actual, direct physical contact between
the insured and the uninsured motor vehicle and the owner or operator
of the uninsured motor vehicle is identified or the uninsured motor
vehicle is identified by its license number, provided that the
insured or someone on his or her behalf shall have reported the
accident within 10 business days to his or her insurer or their agent
and, provided further, that it is also determined by the insured and
insurer or, in the event of disagreement, by arbitration conducted
by a single neutral arbitrator, when the insured has formally
instituted arbitration proceedings within one year from the date of
the accident, that the insured is legally entitled to recover the
amount of the payments for property damage from the owner or operator
of the uninsured motor vehicle. No cause of action shall exist
against either an insured or insurer from exercising the right to
request arbitration of a claim under this section or Section 11580.2.
   (c) Any named insured, prior to or subsequent to the issuance or
renewal of a policy, may elect not to accept the type of coverage
provided by this section or the insurer and any named insured may
agree in writing to waive this coverage when a motor vehicle is used
or operated by a person or persons designated by name. That election
shall be binding upon every insured to whom the policy or endorsement
provisions apply while the policy is in force and shall continue to
be so binding, with respect to any continuation or renewal of the
policy, or with respect to any other policy which extends, changes,
supersedes, or replaces the policy issued to the named insured by the
same insurer or with respect to reinstatement of the policy within
30 days of any lapse thereof. A policy shall be excluded from the
application of this section if the only coverage, with respect to the
use of any motor vehicle, is limited to the contingent liability
arising out of the use of nonowned motor vehicles or if the
automobile liability coverage is provided only on an excess or
umbrella basis.
   (d) An insurer paying a claim under any coverage required by this
section shall be entitled to be subrogated to the rights of the
insured to whom the claim was paid against any person legally liable
for the damage to the insured motor vehicle to the extent that
payment was made. The action may be brought within three years from
the date that payment was made pursuant to this section.
   In the event of a covered loss to a vehicle that is insured for
the coverage described in paragraph (2) of subdivision (a) and also
insured for collision coverage, the collision coverage shall pay for
the covered loss and the insurance described in paragraph (2) of
subdivision (a) shall only pay any deductible not covered by the
collision coverage not to exceed three thousand five hundred dollars
($3,500).
   (e) As used in this section, "uninsured motor vehicle" means any
motor vehicle with respect to the ownership, maintenance, or use of
which there is no property damage liability insurance or bond
applicable at the time of the accident, or there is applicable
insurance or bond but the company writing the insurance or bond
denies coverage thereunder or refuses to admit coverage thereunder,
except conditionally or with reservation, or a motor vehicle used
without the permission of the owner thereof if there is no property
damage liability insurance or bond applicable at the time of the
accident with respect to the owner or operator thereof. A motor
vehicle which has at least the minimum property damage liability
limits required pursuant to Section 16056 of the Vehicle Code shall
not be held to be an uninsured motor vehicle even when the property
damage liability limits are not sufficient to compensate for all
property damage caused by the owner or operator of the vehicle. As
used in this section, "uninsured motor vehicle" shall not include a
motor vehicle owned or operated by any insured or any resident of the
named insured's household or self-insured within the meaning of the
financial responsibility provisions of the state in which the motor
vehicle is registered or which is owned by the United States of
America, Canada, a state or political subdivision of any government,
or an agency of any of the foregoing, or a land motor vehicle or
trailer operated on rails or crawler treads or while located for use
as a residence for premises and not as a vehicle, or a farm-type
tractor or equipment designed for use principally off public roads,
except while actually upon public roads. As used in this section,
"uninsured motor vehicle" also means an insured motor vehicle where
the liability insurer thereof is unable to make payment with respect
to the legal liability of its insured within the limits specified
therein because of insolvency. An insurer's solvency protection shall
be applicable only to accidents occurring during a policy period in
which its insured's motor vehicle coverage is in effect where the
liability insurer of the tortfeasor becomes insolvent within one year
of the accident. In the event of payment to any person under the
coverage required by this section and subject to the terms and
conditions of the coverage, the insurer making the payment shall, to
the extent thereof, be entitled to any proceeds which may be
recoverable from the assets of the insolvent insurer through any
settlement or judgment of the person against the insolvent insurer.
   (f) The offer of coverage required by this section shall be made
only for policies issued or renewed on or after July 1, 1984.
   (g) Any insurer whose insured has made a claim under either
coverage provided in paragraphs (1) and (2) of subdivision (a), and
that claim is pending, shall, at least 30 days before the expiration
of the applicable statute of limitation, notify its insured in
writing of the statute of limitation applicable to the property
damage. Failure of the insurer to provide the written notice shall
operate to toll any applicable statute of limitation until 30 days
after the date the written notice is actually given. The notice shall
not be required if the insurer has received notice that the insured
is represented by an attorney.

11580.3.  When an insured entitled to recovery under uninsured
motorists' coverage is a minor, an arbitration award upon the minor's
claim is deemed to be a compromise and is governed by Part 8
(commencing with Section 3300) of Division 4 of the Probate Code;
provided, however, that the court may disapprove the award only on
the grounds specified in Section 1286.2 of the Code of Civil
Procedure.

11580.4.  In any action or arbitration proceeding to determine
whether an insured shall be entitled to recovery of damages under
uninsured motorist coverage, the certificate of the Department of
Motor Vehicles that the owner or operator of the motor vehicle
alleged to have been an uninsured motor vehicle at the time of the
accident has not established financial responsibility, as provided in
Section 16020 of the Vehicle Code, shall be admissible in evidence
to create a rebuttable presumption that such vehicle was an uninsured
motor vehicle at the time of the accident.

11580.5.  No award made in an arbitration proceeding instituted
pursuant to Section 11580.2 shall be deemed to be res judicata or
collateral estoppel in any court action which may be pending or
brought by the insured against the owner or operator of an uninsured
motor vehicle.

11580.6.  Where a policy of liability insurance covering the
ownership, maintenance, or use of a motor vehicle or aircraft
contains a provision indicating that coverage is extended to
accidents, occurrences, and loss arising in Mexico, the policy shall
contain an additional provision, either on the face of the policy or
by an endorsement attached thereto stating as follows:

                                      WARNING

   Unless you have automobile or aircraft insurance written by a
Mexican insurance company, you may spend many hours or days in jail,
if you have an accident in Mexico. Insurance coverage should be
secured from a company licensed under the laws of Mexico to write
such insurance in order to avoid complications and some other
penalties possible under the laws of Mexico, including the possible
impoundment of your automobile or aircraft.

11580.8.  The Legislature declares it to be the public policy of
this state to avoid so far as possible conflicts and litigation, with
resulting court congestion, between and among injured parties,
insureds, and insurers concerning which, among various policies of
liability insurance and the various coverages therein, are
responsible as primary, excess, or sole coverage, and to what extent,
under the circumstances of any given event involving death or injury
to persons or property caused by the operation or use of a motor
vehicle.
   The Legislature further declares it to be the public policy of
this state that Section 11580.9 of the Insurance Code expresses the
total public policy of this state respecting the order in which two
or more of such liability insurance policies covering the same loss
shall apply, and such public policy is not to be changed or modified
by any provision of the Vehicle Code except in those express cases
where the requirements of Article 2 (commencing with Section 16450)
of Chapter 3 of Division 7 of the Vehicle Code apply with regard to a
policy of liability insurance certified as provided in Section 16431
of the Vehicle Code.

11580.9.  (a) Where two or more policies affording valid and
collectible automobile liability insurance apply to the same motor
vehicle in an occurrence out of which a liability loss shall arise,
and one policy affords coverage to a named insured engaged in the
business of selling, repairing, servicing, delivering, testing,
road-testing, parking, or storing motor vehicles, then both of the
following shall be conclusively presumed:
   (1) If, at the time of loss, the motor vehicle is being operated
by any person engaged in any of these businesses, or by his or her
employee or agent, the insurance afforded by the policy issued to the
person engaged in the business shall be primary, and the insurance
afforded by any other policy shall be excess.
   (2) If, at the time of loss, the motor vehicle is being operated
by any person other than as described in paragraph (1), the insurance
afforded by the policy issued to any person engaged in any of these
businesses shall be excess over all other insurance available to the
operator as a named insured or otherwise.
   (b) Where two or more policies apply to the same loss, and one
policy affords coverage to a named insured who in the course of his
or her business rents or leases motor vehicles without operators, it
shall be conclusively presumed that the insurance afforded by that
policy to a person other than the named insured or his or her agent
or employee, shall be excess over and not concurrent with, any other
valid and collectible insurance applicable to the same loss covering
the person as a named insured or as an additional insured under a
policy with limits at least equal to the financial responsibility
requirements specified in Section 16056 of the Vehicle Code. The
presumption provided by this subdivision shall apply only if, at the
time of the loss, the involved motor vehicle either:
   (1) Qualifies as a "commercial vehicle." For purposes of this
subdivision, "commercial vehicle" means a type of vehicle subject to
registration or identification under the laws of this state and is
one of the following:
   (A) Used or maintained for the transportation of persons for hire,
compensation, or profit.
   (B) Designed, used, or maintained primarily for the transportation
of property.
   (2) Has been leased for a term of six months or longer.
   (c) Where two or more policies are applicable to the same loss
arising out of the loading or unloading of a motor vehicle, and one
or more of the policies is issued to the owner, tenant, or lessee of
the premises on which the loading or unloading occurs, it shall be
conclusively presumed that the insurance afforded by the policy
covering the motor vehicle shall not be primary, notwithstanding
anything to the contrary in any endorsement required by law to be
placed on the policy, but shall be excess over all other valid and
collectible insurance applicable to the same loss with limits up to
the financial responsibility requirements specified in Section 16056
of the Vehicle Code. In that event, the two or more policies shall
not be construed as providing concurrent coverage, and only the
insurance afforded by the policy or policies covering the premises on
which the loading or unloading occurs shall be primary and the
policy or policies shall cover as an additional insured with respect
to the loading or unloading operations all employees of the owner,
tenant, or lessee while acting in the course and scope of their
employment.
   (d) Except as provided in subdivisions (a), (b), and (c), where
two or more policies affording valid and collectible liability
insurance apply to the same motor vehicle or vehicles in an
occurrence out of which a liability loss shall arise, it shall be
conclusively presumed that the insurance afforded by that policy in
which the motor vehicle is described or rated as an owned automobile
shall be primary and the insurance afforded by any other policy or
policies shall be excess.
   (e) Any insurance policy which, under the terms of subdivisions
(a) to (d), inclusive, applies as excess coverage may provide with
respect to any primary policy or to any loss to which primary
insurance is not valid and collectible in whole or in part, that the
excess policy shall apply only to the extent necessary to provide the
insured with the coverage limits specified in Section 16056 of the
Vehicle Code.
   (f) The presumptions stated in subdivisions (a) to (d), inclusive,
may be modified or amended only by written agreement signed by all
insurers who have issued a policy or policies applicable to a loss
described in these subdivisions and all named insureds under these
policies.
   (g) Where two or more personal policies affording valid and
collectible liability insurance apply to the same motor vehicle in an
occurrence out of which a loss shall arise, and one policy, as
defined in subdivision (a) of Section 660, is primary, either by its
terms or by operation of law, and one or more of the personal
policies providing liability insurance, as defined in Section 108,
are excess, either by their terms or by operation of law, then the
following shall apply:
   (1) Each insurer shall pay its share of the defense costs. Each
insurer's share of the defense costs shall be the percentage of the
total defense costs equal to the amount of damage paid by that
insurer as a percentage of total damages paid by all insurers whose
policies apply to that motor vehicle.
   (2) The term "defense costs" means, for purposes of this
subdivision, reasonable attorney's fees and expenses, investigation
expenses, expert witness fees, and costs allowable under Section
1033.5 of the Code of Civil Procedure.
   (h) Notwithstanding subdivision (b), when two or more policies
affording valid and collectible automobile liability insurance apply
to a power unit and an attached trailer or trailers in an occurrence
out of which a liability loss shall arise, and one policy affords
coverage to a named insured in the business of a trucker, defined as
any person or organization engaged in the business of transporting
property by auto for hire, then the following shall be conclusively
presumed: If at the time of loss, the power unit is being operated by
any person in the business of a trucker, the insurance afforded by
the policy to the person engaged in the business of a trucker shall
be primary for both power unit and trailer or trailers, and the
insurance afforded by the other policy shall be excess.
   (i) For purposes of this article, a certificate of self-insurance
issued pursuant to Section 16053 of the Vehicle Code or a deposit of
cash made pursuant to Section 16054.2 of the Vehicle Code or a bond
in effect pursuant to Section 16054 of the Vehicle Code or a report
of governmental ownership or lease filed pursuant to Section 16051 of
the Vehicle Code shall be considered a policy of automobile
liability insurance. However, this subdivision does not establish or
provide the basis for any other form of liability for or upon a
self-insurer or other person or entity holding, issuing, or
establishing any form of security as described herein.

11580.10.  Any liability insurer issuing or renewing an automobile
liability policy or a motor vehicle liability policy within the
meaning of subdivision (a) of Section 16054 of the Vehicle Code shall
provide written notice to the named insured of the policy
identification number that may be used for verifying financial
responsibility for purposes of Section 16028 of the Vehicle Code.
This notice may be provided in a written binder, if any, or in the
policy documents provided upon issuance or renewal of the policy. The
insurer shall provide at least two copies of the notice to the
insured and shall, upon request and payment of the reasonable cost
thereof, provide additional copies.

11581.  Upon any proceeding supplementary to execution, such
judgment debtor may be required to exhibit any policy carried by him,
insuring him against the liability for the loss or damage for which
judgment was obtained.

11582.  No settlement made under a motor vehicle liability insurance
policy of a claim against any insured thereunder arising from any
accident or other event insured against for damage to or destruction
of property owned by another person shall be construed as an
admission of liability by the insured, or the insurer's recognition
of such liability, with respect to any other claim arising from the
same accident or event.

11583.  No advance payment or partial payment of damages made by any
person, or made by his insurer under liability insurance as defined
in subdivision (a) of Section 108, as an accommodation to an injured
person or on his behalf to others or to the heirs at law or
dependents of a deceased person because of an injury or death claim
or potential claim against any person or insured shall be construed
as an admission of liability by the person claimed against, or of
that person's or the insurer's recognition of such liability, with
respect to such injured or deceased person or with respect to any
other claim arising from the same accident or event. Any such
payments shall, however, constitute a credit and be deductible from
any final settlement made or judgment rendered with respect to such
injured or deceased person which does not expressly take into account
such advance payments. Any person, including any insurer, who makes
such an advance or partial payment, shall at the time of beginning
payment, notify the recipient thereof in writing of the statute of
limitations applicable to the cause of action which such recipient
may bring against such person as a result of such injury or death,
including any time limitations within which claims are required to be
made against the state or any local public entity when such payments
are made on behalf of such public entities. Failure to provide such
written notice shall operate to toll any such applicable statute of
limitations or time limitations from the time of such advance or
partial payment until such written notice is actually given. That
notification shall not be required if the recipient is represented by
an attorney.

11584.  No policy of insurance issued or delivered in this state
covering any loss, expense or liability arising out of the ownership,
maintenance, or use of an aircraft shall exclude or deny coverage
because the aircraft is operated in violation of federal or civil air
regulations, or any state law or local ordinance, nor shall any
policy exclude or deny coverage which the insured is obligated to
provide according to law.
   This section does not prohibit the use of specific exclusions or
conditions in any such policy which relates to any of the following:
   (1) Certification of an aircraft in a stated category by the
Federal Aviation Administration.
   (2) Certification of a pilot in a stated category by the Federal
Aviation Administration.
   (3) Establishing requirements for pilot experience.
   (4) Establishing limitations on the use of the aircraft.
   (5) Any person licensed under Division 6 (commencing with Section
11401) of the Agricultural Code with respect to his operation of an
aircraft for the purpose of applying pest control materials or
substances by dusting, spraying or any other manner whereby such
materials or substances are applied through the medium of aircraft.

11585.  (a) No policy of insurance for residential property located
within California shall be issued or delivered, and no existing
policy of insurance for residential property located within
California shall be renewed, unless the policy complies with the
requirements of subdivision (b).
   (b) If the policy includes any liability insurance, or if a
liability insurance policy is issued in connection with the policy,
the policy shall cover liability incurred by the insured in
connection with the use of the residential property for a polling
place for any state or local election, under the same terms and
conditions as for other liability covered by the policy.

11586.  (a) On and after the effective date of this section, each
insurer licensed to issue automobile liability insurance or common
carrier liability insurance, and selling or offering for sale
automobile liability insurance or common carrier liability insurance
to a transit district organized under Part 3 (commencing with Section
30000) of Division 10 of the Public Utilities Code, shall, as a
condition of obtaining or retaining a license to transact business in
this state, offer uninsured motorist coverage identical in all
respects to that set forth in Section 11580.2 with regard to private
passenger motor vehicles, except that the insurer and such transit
district, as the case may be, may not agree to waive such coverage.
   (b) No insurer subject to subdivision (a) shall refuse to issue
uninsured motorist coverage to any such transit district which
applies to it therefor.
   (c) Each insurer subject to this section may charge such premium
rate for providing uninsured motorist coverage to such transit
district as will be sufficient for it to meet the costs of providing
such coverage.

11588.  No insurer authorized to do business in this state and to
provide professional liability insurance to persons lawfully engaged
in the practice of medicine or osteopathic medicine, health plans,
and to partnerships or corporations lawfully engaged in the operation
of hospitals, sanitariums, clinics, or other health care facilities,
shall refuse to issue or renew insurance at rates which are not
excessive or unfairly discriminatory as defined in Section 1852 to
those persons, partnerships or corporations, solely on the grounds
that those persons, partnerships or corporations have entered, or
intend to enter, into valid written agreements with patients or
prospective patients for the arbitration of cases or controversies
arising out of the professional or business relationships between
those persons, partnerships or corporations and said patients.

11589.  No insurer who provides professional liability insurance for
physicians and surgeons or dentists shall increase the premium for
such insurance, impose a surcharge with respect to such insurance, or
otherwise require additional compensation for such insurance, or
institute or increase a deductible amount payable by the insured,
because a notice of intention to commence an action has been given
pursuant to Section 364 of the Code of Civil Procedure, unless a
complaint has been served on the physician and surgeon or dentist
with respect to such action.
   (b) For the purposes of this section, "professional liability
insurance" means insurance against liability for damages caused by
any act or omission of a physician and surgeon or dentist in
rendering professional services within this state issued by any
insurer, including, but not limited to, a joint underwriting
association, cooperative corporation or reciprocal or interinsurance
exchange.

11589.5.  No insurer who provides professional liability insurance
for persons licensed under the provisions of Part 1 (commencing with
Section 10000) of Division 4 of the Business and Professions Code
shall exclude from coverage under that policy liability arising from
the breach of the duty of the licensee arising under Article 2
(commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of
Division 3 of the Civil Code. Notwithstanding the foregoing, an
insurer may exclude coverage against liability arising out of a
dishonest, fraudulent, criminal, or malicious act, error, or omission
committed by, at the direction of, or with the knowledge of the
insured.
   For the purposes of this section, "professional liability
insurance" means insurance against liability for damages caused by
any act or omission of a real estate licensee in rendering
professional services in this state.