Auto Insurance Claims: Lienholder Notification in CA, leinholder, auto policy

Question
Does California law require notification to the lienholder when an auto policy is cancelled?  What is the CA statute that addresses this?     Thanks.

Answer
Hi Janet,

I do not know the specific statute that addresses this however, all states require that an insurance company notify the leinholder when an insurance company cancells a policy or if the policy lapses or is cancelled by the vehicle owner. When a lein holder is listed on the policy they become an additional insured on the policy, as such they are entitled to be notified so that they know that the collateral (the vehicle) is not insured. That way the leinholder can take the appropriate action such as notifing you that you need to provide proof of insurance or so that they can purchase insurance to protect their interests in the vehicle.

I hope this helps
Richard Hixenbaugh