California Insurance Code

§ 570

INS § 570 Effective Jan 1, 2010Div. 1 · Part 1 · Ch. 6 · Art. 5

Statute text

Except in the event that the insurer has previously obtained a release on a loss, each insurer which issues, amends, or renews, on or after January 1, 1975, a policy of insurance covering repair or reconstruction work on commercial, industrial, or residential real property and appurtenances thereon, shall, in the event of covered work being performed by a licensee under the Contractors License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), make payment by check or draft directly to the contractor performing the work, or, with the consent of the contractor, by an electronic funds transfer to the contractor performing the work, and not to the owner of the property, in every case in which all of the following conditions are present and the insurer has actual knowledge thereof:

(a)The property owner of record has, in a writing signed by him and transmitted to the insurer, stated all of the following:

(1)The work completed meets with his satisfaction.

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Legislative history

Amended by Stats. 2009, Ch. 433, Sec. 5. (AB 328) Effective January 1, 2010.