§ 7455 Loan Insurance Choice Protection

Financial Code·California

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Key Takeaways

•Banks or lenders can't force you to buy insurance from a specific company to get a loan.
•You can choose your own insurance company when getting a loan.
•This rule applies to anyone working at the bank or lending place.

Example

You want to take out a loan to buy a house.

The bank can't tell you that you must buy home insurance from a specific company they pick. You can shop around and choose the insurance company you like best.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 7455 Loan Insurance Choice Protection

No association or director, officer, or employee of an association shall require, as a condition to the granting of any loan or the extension of any other service by the association, that the borrower or any other person undertake a contract of insurance with any specific company, agency, or individual. (Added by Stats. 1984, Ch. 287, Sec. 27. Effective July 6, 1984.)

Last verified: January 23, 2026

Key Terms

association insurance contract employee director condition effective july

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 7455.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References