§ 129185 Insurance Contract Termination

Health and Safety Code·California

AI SummaryVerified

Key Takeaways

•The government can cancel an insurance contract if both the borrower and lender agree.
•They might charge a fee to cancel it, but the fee has to be fair.
•After canceling, both the borrower and lender get the same rights as if the loan was fully paid off.

Example

You and your bank both want to cancel the insurance on your home loan.

The government can let you cancel it, but they might charge a small fee. After canceling, it’s like you paid off the loan in full, and you both get the same benefits as if you had.

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

Official Source

View on CA.gov

§ 129185 Insurance Contract Termination

The department is authorized to terminate any insurance contract upon joint request by the borrower and the lender and upon payment of a termination charge that the department determines to be equitable, taking into consideration the necessity of protecting the fund. Upon the termination, borrowers and lenders shall be entitled to the rights, if any, that they would be entitled to under this chapter if the insurance contract were terminated by payment in full of the insured loan. (Amended by Stats. 2021, Ch. 143, Sec. 266. (AB 133) Effective July 27, 2021.)

Last verified: January 23, 2026

Key Terms

termination insurance consideration contract the california department effective july necessity

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 129185.

§ 129185 Insurance Contract Termination

Health and Safety Code·California

AI SummaryVerified

§ 129185 Insurance Contract Termination

Key Takeaways

•The government can cancel an insurance contract if both the borrower and lender agree.
•They might charge a fee to cancel it, but the fee has to be fair.
•After canceling, both the borrower and lender get the same rights as if the loan was fully paid off.

Example

You and your bank both want to cancel the insurance on your home loan.

The government can let you cancel it, but they might charge a small fee. After canceling, it’s like you paid off the loan in full, and you both get the same benefits as if you had.

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

Official Source

View on CA.gov

§ 129185 Insurance Contract Termination

Last verified: January 23, 2026

Key Terms

termination insurance consideration contract the california department effective july necessity

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 129185.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References