2009 California Insurance Code - Section 777.1-777.3 :: Article 5.7. Free Insurance

777.1.  No insurer shall participate in any plan to offer or effect
any kind or kinds of insurance or annuities in this state as an
inducement to the purchase or rental by the public of any property,
real or personal or mixed, or services, without any separate charge
to the insured for such insurance, nor shall any agent, broker, or
solicitor arrange the sale of any such insurance. The provisions of
this article shall not be applicable to insurance written in
connection with subscriptions to newspapers of general circulation;
nor shall it apply to insurance issued to credit unions or to members
of credit unions in connection with the purchase of shares in such a
credit union; nor shall it apply to insurance offered as a guarantee
of the performance of goods, which insurance is designed to protect
the purchasers or users of such goods; nor shall it be applicable to
any title insurance or life or disability insurance written in
connection with an indebtedness, the purpose of which insurance is to
pay the balance of the indebtedness in the event of the death or
disability of the person insured; nor shall it be applicable to any
of the provisions of Part 5 (commencing at Section 12140), Division 2
of this code; nor shall it be applicable to insurance provided
incidentally to the sale of services if the cost of the insurance to
the seller of the services does not exceed the sum of one dollar ($1)
per annum for each purchaser of those services.

777.2.  If any insurer, agent, broker or solicitor wilfully violates
the provisions of this article, the Insurance Commissioner may
suspend or revoke his certificate or license or other authority to do
business or engage in his occupation for a period not exceeding one
year. The proceedings shall be conducted in accordance with Chapter 5
of Part 1 of Division 3 of Title 2 of the Government Code, and the
commissioner shall have all the powers granted therein.

777.3.  As used in this article "insurer" includes any person or
organization to which Article 4 (commencing with Section 730),
Chapter 1, Part 2, Division 1 is applicable.