2009 California Insurance Code - Section 2070-2084 :: Article 3. California Standard Form Fire Insurance Policy

2070.  All fire policies on subject matter in California shall be on
the standard form, and, except as provided by this article shall not
contain additions thereto. No part of the standard form shall be
omitted therefrom except that any policy providing coverage against
the peril of fire only, or in combination with coverage against other
perils, need not comply with the provisions of the standard form of
fire insurance policy or Section 2080; provided, that coverage with
respect to the peril of fire, when viewed in its entirety, is
substantially equivalent to or more favorable to the insured than
that contained in such standard form fire insurance policy.

2070.1.  (a) Any insurer whose insured has made a claim under his or
her residential fire or property insurance policy for loss due, in
whole or in part, to corrosive soils 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
insured's claim for damage. Failure of the insurer to provide the
written notice shall operate to toll the applicable statute of
limitation for a period of 30 days from the date 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.
   This section applies only to claims presented and not denied prior
to January 1, 1989, and to claims presented on or after January 1,
1989.

2071.  (a) The following is adopted as the standard form of fire
insurance policy for this state:

                  California Standard Form Fire Insurance Policy

   No.
   [Space for insertion of name of company or companies issuing the
policy and other matter permitted to be stated at the head of the
policy.]
   [Space for listing amounts of insurance, rates and premiums for
the basic coverages insured under the standard form of policy and for
additional coverages or perils insured under endorsements attached.]
   In consideration of the provisions and stipulations herein or
added hereto and of ____ dollars premium this company, for the term
of ________

  from the ________ day of       )  At 12:01 a.m.,
  _______, 20 _______
  to the __________ day of       )  standard time,
  ________ , 20 ______

   at location of property involved, to an amount not exceeding ____
dollars, does insure ________ and legal representatives, to the
extent of the actual cash value of the property at the time of loss,
but not exceeding the amount which it would cost to repair or replace
the property with material of like kind and quality within a
reasonable time after the loss, without allowance for any increased
cost of repair or reconstruction by reason of any ordinance or law
regulating construction or repair, and without compensation for loss
resulting from interruption of business or manufacture, nor in any
event for more than the interest of the insured, against all LOSS BY
FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE PERILS
INSURED AGAINST IN THIS POLICY, EXCEPT AS HEREINAFTER PROVIDED, to
the property described hereinafter while located or contained as
described in this policy, or pro rata for five days at each proper
place to which any of the property shall necessarily be removed for
preservation from the perils insured against in this policy, but not
elsewhere.
   Assignment of this policy shall not be valid except with the
written consent of this company.
   This policy is made and accepted subject to the foregoing
provisions and stipulations and those hereinafter stated, which are
hereby made a part of this policy, together with any other
provisions, stipulations and agreements as may be added hereto, as
provided in this policy.
   IN WITNESS WHEREOF, this company has executed and attested these
presents; but this policy shall not be valid unless countersigned by
the duly authorized agent of this company at

                Secretary.                President.
  Countersigned this______ day of_____________,
                           20______
                             _______________________
  _Agent

                                Concealment, fraud
   This entire policy shall be void if, whether before or after a
loss, the insured has willfully concealed or misrepresented any
material fact or circumstance concerning this insurance or the
subject thereof, or the interest of the insured therein, or in case
of any fraud or false swearing by the insured relating thereto.
                         Uninsurable and excepted property
   This policy shall not cover accounts, bills, currency, deeds,
evidences of debt, money or securities; nor, unless specifically
named hereon in writing, bullion or manuscripts.
                                Perils not included
   This company shall not be liable for loss by fire or other perils
insured against in this policy caused, directly or indirectly, by:
(a) enemy attack by armed forces, including action taken by military,
naval or air forces in resisting an actual or an immediately
impending enemy attack; (b) invasion; (c) insurrection; (d)
rebellion; (e) revolution; (f) civil war; (g) usurped power; (h)
order of any civil authority except acts of destruction at the time
of and for the purpose of preventing the spread of fire, provided
that the fire did not originate from any of the perils excluded by
this policy; (i) neglect of the insured to use all reasonable means
to save and preserve the property at and after a loss, or when the
property is endangered by fire in neighboring premises; (j) nor shall
this company be liable for loss by theft.
                                  Other insurance
   Other insurance may be prohibited or the amount of insurance may
be limited by endorsement attached hereto.
                  Conditions suspending or restricting insurance
   Unless otherwise provided in writing added hereto this company
shall not be liable for loss occurring (a) while the hazard is
increased by any means within the control or knowledge of the
insured; or (b) while a described building, whether intended for
occupancy by owner or tenant, is vacant or unoccupied beyond a period
of 60 consecutive days; or (c) as a result of explosion or riot,
unless fire ensues, and in that event for loss by fire only.
                             Other perils or subjects
   Any other peril to be insured against or subject of insurance to
be covered in this policy shall be by endorsement in writing hereon
or added hereto.
                                 Added provisions
   The extent of the application of insurance under this policy and
of the contribution to be made by this company in case of loss, and
any other provision or agreement not inconsistent with the provisions
of this policy, may be provided for in writing added hereto, but no
provision may be waived except such as by the terms of this policy or
by statute is subject to change.
                                 Waiver provisions
   No permission affecting this insurance shall exist, or waiver of
any provision be valid, unless granted herein or expressed in writing
added hereto. No provision, stipulation or forfeiture shall be held
to be waived by any requirement or proceeding on the part of this
company relating to appraisal or to any examination provided for
herein.
                              Cancellation of policy
   This policy shall be canceled at any time at the request of the
insured, in which case this company shall, upon demand and surrender
of this policy, refund the excess of paid premium above the customary
short rates for the expired time. This policy may be canceled at any
time by this company by giving to the insured a 20 days' written
notice of cancellation with or without tender of the excess of paid
premium above the pro rata premium for the expired time, which
excess, if not tendered, shall be refunded on demand. Notice of
cancellation shall state that said excess premium (if not tendered)
will be refunded on demand. If the reason for cancellation is
nonpayment of premium, this policy may be canceled by this company by
giving to the insured a 10 days' written notice of cancellation.
                        Mortgagee interests and obligations
   If loss hereunder is made payable, in whole or in part, to a
designated mortgagee not named herein as the insured, the interest in
this policy may be canceled by giving to the mortgagee a 10 days'
written notice of cancellation.
   If the insured fails to render proof of loss the mortgagee, upon
notice, shall render proof of loss in the form herein specified
within 60 days thereafter and shall be subject to the provisions
hereof relating to appraisal and time of payment and of bringing
suit. If this company shall claim that no liability existed as to the
mortgagor or owner, it shall, to the extent of payment of loss to
the mortgagee, be subrogated to all the mortgagee's rights of
recovery, but without impairing mortgagee's right to sue; or it may
pay off the mortgage debt and require an assignment thereof and of
the mortgage. Other provisions relating to the interests and
obligations of the mortgagee may be added hereto by agreement in
writing.
                                Pro rata liability
   This company shall not be liable for a greater proportion of any
loss than the amount hereby insured shall bear to the whole insurance
covering the property against the peril involved, whether
collectible or not.
                         Requirements in case loss occurs
   The insured shall give written notice to this company of any loss
without unnecessary delay, protect the property from further damage,
forthwith separate the damaged and undamaged personal property, put
it in the best possible order, furnish a complete inventory of the
destroyed, damaged and undamaged property, showing in detail
quantities, costs, actual cash value and amount of loss claimed; and
within 60 days after the loss, unless the time is extended in writing
by this company, the insured shall render to this company a proof of
loss, signed and sworn to by the insured, stating the knowledge and
belief of the insured as to the following: the time and origin of the
loss, the interest of the insured and of all others in the property,
the actual cash value of each item thereof and the amount of loss
thereto, all encumbrances thereon, all other contracts of insurance,
whether valid or not, covering any of said property, any changes in
the title, use, occupation, location, possession or exposures of said
property since the issuing of this policy, by whom and for what
purpose any building herein described and the several parts thereof
were occupied at the time of loss and whether or not it then stood on
leased ground, and shall furnish a copy of all the descriptions and
schedules in all policies and, if required and obtainable, verified
plans and specifications of any building, fixtures or machinery
destroyed or damaged.
   The insured, as often as may be reasonably required and subject to
the provisions of Section 2071.1, shall exhibit to any person
designated by this company all that remains of any property herein
described, and submit to examinations under oath by any person named
by this company, and subscribe the same; and, as often as may be
reasonably required, shall produce for examinations all books of
account, bills, invoices, and other vouchers, or certified copies
thereof if the originals be lost, at any reasonable time and place as
may be designated by this company or its representative, and shall
permit extracts and copies thereof to be made. The insurer shall
inform the insured that tax returns are privileged against disclosure
under applicable law but may be necessary to process or determine
the claim.
   The insurer shall notify every claimant that they may obtain, upon
request, copies of claim-related documents. For purposes of this
section, "claim-related documents" means all documents that relate to
the evaluation of damages, including, but not limited to, repair and
replacement estimates and bids, appraisals, scopes of loss,
drawings, plans, reports, third-party findings on the amount of loss,
covered damages, and cost of repairs, and all other valuation,
measurement, and loss adjustment calculations of the amount of loss,
covered damage, and cost of repairs. However, attorney work product
and attorney-client privileged documents, and documents that indicate
fraud by the insured or that contain medically privileged
information, are excluded from the documents an insurer is required
to provide pursuant to this section to a claimant. Within 15 calendar
days after receiving a request from an insured for claim-related
documents, the insurer shall provide the insured with copies of all
claim-related documents, except those excluded by this section.
Nothing in this section shall be construed to affect existing
litigation discovery rights.
   After a covered loss, the insurer shall provide, free of charge, a
complete, current copy of this policy within 30 calendar days of
receipt of a request from the insured. The time period for providing
this policy may be extended by the Insurance Commissioner.
   An insured who does not experience a covered loss shall, upon
request, be entitled to one free copy of this policy annually. The
policy provided to the insured shall include, where applicable, the
policy declarations page.
                                     Appraisal
   In case the insured and this company shall fail to agree as to the
actual cash value or the amount of loss, then, on the written
request of either, each shall select a competent and disinterested
appraiser and notify the other of the appraiser selected within 20
days of the request. Where the request is accepted, the appraisers
shall first select a competent and disinterested umpire; and failing
for 15 days to agree upon the umpire, then, on request of the insured
or this company, the umpire shall be selected by a judge of a court
of record in the state in which the property covered is located.
Appraisal proceedings are informal unless the insured and this
company mutually agree otherwise. For purposes of this section,
"informal" means that no formal discovery shall be conducted,
including depositions, interrogatories, requests for admission, or
other forms of formal civil discovery, no formal rules of evidence
shall be applied, and no court reporter shall be used for the
proceedings. The appraisers shall then appraise the loss, stating
separately actual cash value and loss to each item; and, failing to
agree, shall submit their differences, only, to the umpire. An award
in writing, so itemized, of any two when filed with this company
shall determine the amount of actual cash value and loss. Each
appraiser shall be paid by the party selecting him or her and the
expenses of appraisal and umpire shall be paid by the parties
equally. In the event of a government-declared disaster, as defined
in the Government Code, appraisal may be requested by either the
insured or this company but shall not be compelled.
                                     Adjusters
   If, within a six-month period, the company assigns a third or
subsequent adjuster to be primarily responsible for a claim, the
insurer, in a timely manner, shall provide the insured with a written
status report. For purposes of this section, a written status report
shall include a summary of any decisions or actions that are
substantially related to the disposition of a claim, including, but
not limited to, the amount of losses to structures or contents, the
retention or consultation of design or construction professionals,
the amount of coverage for losses to structures or contents and all
items of dispute.
                                 Company's options
   It shall be optional with this company to take all, or any part,
of the property at the agreed or appraised value, and also to repair,
rebuild or replace the property destroyed or damaged with other of
like kind and quality within a reasonable time, on giving notice of
its intention so to do within 30 days after the receipt of the proof
of loss herein required.
                                    Abandonment
   There can be no abandonment to this company of any property.
                                 When loss payable
   The amount of loss for which this company may be liable shall be
payable 60 days after proof of loss, as herein provided, is received
by this company and ascertainment of the loss is made either by
agreement between the insured and this company expressed in writing
or by the filing with this company of an award as herein provided.
                                       Suit
   No suit or action on this policy for the recovery of any claim
shall be sustainable in any court of law or equity unless all the
requirements of this policy shall have been complied with, and unless
commenced within 12 months next after inception of the loss.
                                    Subrogation
   This company may require from the insured an assignment of all
right of recovery against any party for loss to the extent that
payment therefor is made by this company.

   (b) Any amendments to this section by the enactment of Senate Bill
658 of the 2001-02 Regular Session shall govern a policy utilizing
the form provided in subdivision (a) when that policy is originated
or renewed on and after January 1, 2002.
   (c) The amendments to this section made by the act adding this
subdivision shall govern a policy utilizing the form provided in
subdivision (a) when that policy is originated or renewed on and
after January 1, 2004.

2071.1.  (a) This section applies to an examination of an insured
under oath pursuant to Section 2071 labeled "Requirements in case
loss occurs" and other relevant provisions of that section, and to
any policy that insures property and contains a provision for
examining an insured under oath, when the policy is originated or
renewed on and after January 1, 2002.
   The following are among the rights of each insured who is
requested to submit to an examination under oath:
   (1) An insurer that determines that it will conduct an examination
under oath of an insured shall notify the insured of that
determination and shall include a copy of this section in the
notification.
   (2) An insurer may conduct an examination under oath only to
obtain information that is relevant and reasonably necessary to
process or investigate the claim.
   (3) An examination under oath may only be conducted upon
reasonable notice, at a reasonably convenient place and for a
reasonable length of time.
   (4) The insured may be represented by counsel and may record the
examination proceedings in their entirety.
   (5) The insurer shall notify the insured that, upon request and
free of charge, it will provide the insured with a copy of the
transcript of the proceedings and an audio or video recording of the
proceedings, if one exists. Where an insured requests a copy of the
transcript, the recording, or both, of the examination under oath,
the insurer shall provide it within 10 business days of receipt by
the insurer or its counsel of the transcript, the recording, or both.
An insured may make sworn corrections to the transcript so it
accurately reflects the testimony under oath.
   (6) In an examination under oath, an insured may assert any
objection that can be made in a deposition under state or federal
law. However, if as a result of asserting an objection, an insured
fails to provide an answer to a material question, and that failure
prevents the insurer from being able to determine the extent of loss
and validity of the claim, the rights of the insured under the
contract may be affected.
   (7) An insured who submits a fraudulent claim may be subject to
all criminal and civil penalties applicable under law.
   (b) The department shall conduct a study quantifying the number of
examinations under oath performed by carriers regulated by the
department and the number of contacts made by consumers regarding
alleged concerns with the utilization of the examination under oath
process for the resolution of pending claims. The department shall
report both the number of examinations under oath performed by each
carrier and the number of justified and unjustified claims alleged by
insureds as defined in this code. To the best extent practicable,
the department shall also determine if any of these complaints also
resulted in suspected fraudulent claims with the department's fraud
division.
   (c) The department shall also survey licensed carriers as to the
number of suspected fraudulent claims under residential property
insurance policies that are submitted to the department's fraud
division as required by law, and that resulted, or eventually
resulted, in the utilization of the examination under oath process.
Policies of residential property insurance shall be as defined in
Section 10087.
   (d) The department shall submit the findings of this report to the
chairpersons of the Assembly and Senate Committees on Insurance no
later than March 1, 2003.

2072.  The policy is not required to be used for reinsurance between
insurers.

2073.  The policy shall be plainly printed. The type shall not be
smaller than eight-point and in a style not less legible than Century
and subheads shall be in type larger than eight-point and in a style
not less legible than Century. The lines of the policy following the
countersignature clause shall be numbered consecutively.

2074.  Either the blanks in the standard form or those in an
endorsement attached thereto shall be appropriately filled. The first
page of the policy or an endorsement attached thereto may be
arranged to show in schedule form the amounts of insurance, rates and
premiums for the basic coverages insured under the standard form of
policy and additional coverages or perils insured under endorsements
attached, and such other data as may be conveniently included for
duplication on daily reports for office records.
   If such a schedule clearly shows the amount at risk, the rate, and
the premium in respect of fire insurance, the words, "the above
specified" may be inserted in the blanks preceding the word "dollars"
in the two places in which "dollars" appears in that portion of the
standard form which precedes the countersignature clause, or in
identical blanks in an endorsement attached to the standard form and
containing the paragraph in the standard form in which the blanks
appear.

2074.5.  In lieu of showing the term of coverage in the form set
forth in Section 2071, the standard form policy may show the term in
any form which clearly states the period during which the insurance
is to continue. The period shall begin and end on specified dates at
12:01 a.m. standard time, at the location of the property involved.
An example of a permissible method of showing the term is:

  "______ for the
  term of
                               At 12:01 a.m.
  from                         (Standard Time) to
                               At 12:01 a.m.
                               (Standard Time)
  at location of property involved, ______"

2074.6.  In lieu of showing the attestation clause and official
signatures in the form as set forth in Section 2071, the standard
form policy may show, immediately following the policy provisions,
the following:

   "In witness whereof, this company has executed and attested these
presents; but this policy shall not be valid unless countersigned by
the duly authorized agent of this company at the agency hereinbefore
mentioned.

  Secretary                               President"

2074.7.  Notwithstanding the provisions of Section 2071 granting the
right to both insured and insurer to cancel a policy of insurance,
or the provisions of any policy conforming to that section, the right
of the insurer, but not that of the insured, to so cancel shall be
subject to modification by written general order or orders of the
commissioner, if: (1) the property insured is in the State of
California; (2) the insurance policy contains any "basic property
insurance" as that term is defined in Chapter 9 (commencing with
Section 10090) of Part 1, Division 2 of this code; and (3) the
property insured is, on the date of the order or orders of the
commissioner, within any geographic area to which any "Fair Plan"
approved by the commissioner pursuant to that chapter is applicable.
   The commissioner's order or orders may deny to insurers the right
to cancel those policies on less than 60 days' notice, or on a lesser
number of days of notice that the commissioner may designate, except
that the number of days of notice may not be less than 20. The
commissioner's order or orders shall apply uniformly to all insurers
having those policies outstanding in all or any designated portions
of such a geographic area.
   This section, and any order of the commissioner, shall not be
effective as to any policy unless the property insured therein is
then within a geographic area to which a "Fair Plan" is applicable.
   The orders of the commissioner may contain generally applicable
exceptions of certain types of properties, certain types of policies,
policies solicited in a particular manner, or policies obtained upon
particular representations of the insured. The orders shall except
policies upon which premiums or premium installments have not been
paid in accordance with the agreement of the insured, whether payable
directly to the insurer or its agent, or indirectly under any
premium finance plan or plans for the extension of credit.
   No order shall be adopted by the commissioner pursuant to this
section unless he or she has determined that the order is reasonably
necessary to carry out the provisions of a "Fair Plan".

2074.8.  Notwithstanding any of the other provisions of Sections
2071 and 6010, those paragraphs in Sections 2071 and 6010 captioned
"Cancellation of policy" may, in any policy subject to Chapter 11
(commencing with Section 675) of Part 1 of Division 1, have that
paragraph in the text of the policy stricken or changed by
endorsement and the following paragraph substituted therefor:
   "This policy shall be canceled at any time at the request of the
insured, in which case this company shall, upon demand and surrender
of the policy, refund the excess of paid premiums above the customary
short rate for the expired time. This policy may be canceled by this
company by written notice mailed or delivered to the named insured
at the address shown in the policy, with or without tender of the
excess of paid premiums above the pro rata premiums for the expired
time, stating when, not less than 20 days after that mailing or
delivery, cancellation shall be effective. Notice of cancellation
shall state that the excess premiums, if not tendered, will be
refunded on demand, and contain those matters that are required to
comply with Chapter 11 (commencing with Section 675) of Part 1 of
Division 1."

2074.9.  During such time as countersignatures are not required by
law, the provisions of Section 2071 requiring policies to make
provision for countersignatures shall not be in effect and an insurer
may omit such provisions from its policies.

2075.  By special agreement indorsed on the policy or added thereto,
the provisions regarding appraisement or apportionment of loss may
be waived and the valuations of all or any of the insured subject
matter in case of total loss may be agreed upon in advance of loss.

2076.  The insurer may add to the standard form any matter relating
to its financial condition, directors, officers, shareholders and
history, and the address of its home office and principal office in
the United States.

2077.  The insurer may add to the standard form, in red ink, any
provisions required or permitted in its policies by the State or
country of its organization, respecting limitation of liability of
the insurer, its shareholders or members.

2078.  There may be added to the standard form, clauses providing
for and defining the rights, duties and obligations of mortgagees,
assignees and other parties having or acquiring an interest in, right
to, or lien upon the insured subject matter.

2079.  Clauses may be added to the standard form:
   (a) Covering subject matter and risks not otherwise covered;
provided that clauses covering loss or damage caused by nuclear
reaction, nuclear radiation or radioactive contamination, all whether
directly or indirectly resulting from an insured peril under the
standard policy issued pursuant to Section 2071 may be insured under
said policy only by a written endorsement providing such insurance,
with such endorsement affixed to said standard policy.
   (b) Assuming greater liability than is otherwise imposed on the
insurer.
   (c) Granting insured permits and privileges not otherwise
provided.
   (d) Waiving any of the matters which may be waived and which avoid
the policy or suspend the insurance.
   (e) Waiving any of the requirements imposed on the insured after
loss.
   (f) As provided in Section 3047.

2080.  Except as otherwise provided in this article, clauses
imposing specified duties and obligations upon the insured and
limiting the liability of the insurer may be attached to the standard
form. Such clauses shall be in the rider or riders attached to the
standard form of policy and shall be in type as provided in Section
2073.

2081.  Whenever a clause is inserted, or rider attached, affecting
the standard form liability of the insurer for loss or damage by fire
occasioned either directly or indirectly by hurricane, volcanic
action or other disturbance of nature, the clause or rider shall be
printed in red ink in type larger than small pica and at the head of
the policy there shall be printed in red ink and in large boldfaced
type the words, "This policy contains limitations of liability not
permitted in the California standard form."
   Nothing in this section exempts an insurer from, or permits an
insurer to limit, its liability or obligation under a fire insurance
policy to cover the losses from a fire that is caused by, or follows,
an earthquake.

2082.  Any insurers, other than corporations, issuing policies on
subject matter in California, shall use the standard form, changing
only such words as refer to the corporation or company, to officers
or agents of the corporation or company, or to its organization. Such
other insurers may substitute, in place of the words having peculiar
reference to corporations, appropriate words having similar
reference to themselves.

2082.5.  Where an insurer has no president or secretary in the
United States, the facsimile signature on the standard form may be
that of its principal executive officer or manager residing within
the United States.

2083.  It is a misdemeanor for any insurer or any agent to
countersign or issue a fire policy covering in whole or in part
property in California and varying from the California standard form
of policy otherwise than as provided by this article. Any policy so
issued shall, notwithstanding, be binding upon the issuing insurer.

2084.  (a) After a covered loss under a policy covered by Section
2071, an insurer shall provide to the insured, free of charge, a
complete, current copy of his or her policy within 30 calendar days
of receipt of a request from the insured. The time period for
providing the policy may be extended by the Insurance Commissioner.
   (b) An insured under a policy covered by Section 2071 who does not
experience a covered loss shall, upon request, be entitled to one
free copy of his or her policy annually. The policy provided to the
insured shall include, where applicable, the policy declarations
page.