2007 California Insurance Code Article 5. Risks

CA Codes (ins:6040-6050)

6040.  Such insurer may issue policies on dwellings, schoolhouses,
churches, fraternal or lodge halls, community, creamery, or farm
buildings and property contained in or on such premises or owned by
the insured and stored in public or private warehouses.




6040.5.  Insurers authorized to eliminate their assessment liability
in accordance with the terms of this chapter (commencing with
Section 5050) shall not be restricted as to the type of risks they
may insure by the provisions of Section 6040.




6041.  Insurance permitted by this chapter upon personal property
owned by the insured, including automobiles and livestock, shall
continue in full force and effect during the use or transportation of
the property in the ordinary course of the insured's affairs if the
primary situs of the property is located at the time of loss within
this State.  Otherwise such insurance is governed by Section 6048.




6042.  Policies may be executed for any time not exceeding five
years and not extending beyond the time limited for the existence of
the insurer.


6043.  All members of such an insurer shall agree in writing to pay
their pro rata share to the insurer of the necessary expense and loss
sustained by any member thereof during the time for which their
respective policies are in force.  They shall also, at the time of
effecting the insurance, pay the insurer such percentage of the
estimated cost and such other charges as are required by law or the
insurer's rules and by-laws.



6044.  All such insurers shall classify the subject matter insured
by them at the time of issuing policies thereon.  Such classification
shall be under rates corresponding as nearly as practicable to the
greater or less risk from loss attached to the several kinds of
subject matter insured.



6045.  For the purpose of this chapter:
   (a) "A city or town block" is an area of not more than one hundred
sixty thousand square feet having at least one frontage in a closely
built up district fronting on a used public highway, surrounded on
all sides by a clear space at least equal in width to the clear space
of such public highway.
   (b) "Closely built up district" means territory abutting a public
highway where for not less than a quarter of a mile the buildings
average less than one hundred feet apart.
   (c) "One risk" means one hazard under one or more policies,
subject to one fire and relates to the amount named in the policy or
policies.
   (d) "Clear space" means space free from combustible material
likely to communicate fire.



6047.  Except as provided in this section, such insurer shall not
issue policies to an amount in excess of six thousand dollars
(,000) on any one risk, whether under one or more policies, without
immediately reinsuring the excess amount in some other insurer.  Any
such insurer having more than ten million dollars (,000,000)
direct insurance in force as shown by its books may, for each one
million dollars (,000,000) in excess of ten million dollars
(,000,000), write five hundred dollars (0) additional insurance
in excess of six thousand dollars (,000) on each such risk;
provided, however, that any such insurer 90 percent of whose business
in force is reinsurance assumed and which has more than ten million
dollars (,000,000) gross insurance in force may, for each one
million dollars (,000,000) in excess of ten million dollars
(,000,000), write five hundred dollars (0) additional insurance
in excess of six thousand dollars (,000) on each such risk.  Any
such insurer issuing nonassessable policies as provided in Section
7015 (c) (3) hereof, may issue policies in accordance with Section
3080 of this code.



6048.  Except as provided in Section 6041 such insurer shall insure
only property within the limits of the county wherein it is
organized, or in a county next adjoining the county of organization.
In the event that no such insurer may, under the provisions of the
preceding sentence, insure property in a county contiguous to the
said next adjoining county, then such insurer may also insure
property in the said contiguous county.



6049.  Such an insurer shall not assume any risks on property
situated within any one block of a closely built-up district or of
territory within the limit of any incorporated city, unless on a
single risk in such block it immediately reinsures all of the amount
at risk which is in excess of the limit provided in this article or
unless in the case of more than one risk in any such block it
immediately reinsures all of the amount at risk which is in excess of
one-quarter of 1 percent of its direct amount of insurance in force;
provided, however, that any such insurer 90 percent of whose
business in force is reinsurance assumed, and which has more than ten
million dollars (,000,000) gross insurance in force, in the case
of more than one risk in any such block, shall immediately reinsure
all of the amount at risk which is in excess of one-quarter of 1
percent of its net amount of insurance in force.



6050.  Where the amount of insurance in policies already written
equals the amount limited by the provisions of this article, no
additional insurance shall be written by such insurer on country
property within a radius of one hundred feet of an existing risk.
Such radius shall continue at not less than seventy-five feet during
the life of the policy, unless insurance within the radius is covered
by reinsurance.