Cal. Insurance Code § 10234.87
Cal. Insurance Code § 10234.87
California · California Insurance Code · Status: effective · Effective 1999-01-01
Cite this
- Citation
- Cal. Insurance Code § 10234.87, California, version 1 as recorded 2026-07-25, yourstate.us, https://yourstate.us/provision/879989
- Permanent ID
ys:prov:879989@1- SHA-256
9f12a40da40da96e910eaf15a37c6ef2092376615665542ae6cbf9c81b3ededc
The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.
Full text
(a) If an insurer replaces a policy or certificate that it has previously issued, the insurer shall recognize past insured status by granting premium credits toward the premiums for the replacement policy or certificate. The premium credits shall equal five percent of the annual premium of the prior policy or certificate for each full year the prior policy or certificate was in force. The premium credit shall be applied toward all future premium payments for the replacement policy or certificate, but the cumulative credit allowed need not exceed 50 percent. No credit need be provided if a claim has been filed under the original policy or certificate.
(b) The cumulative credits allowed need not reduce the premium for the replacement policy or certificate to less than the premium of the original policy or certificate.
(c) This section shall not apply to life insurance policies that accelerate benefits for long-term care.