This law states that home protection companies in California cannot pay commissions to anyone as an incentive for selling or buying a home protection contract. They also can't make buying such a contract a requirement for getting another type of insurance as part of a real estate deal. However, companies can still pay marketing fees or override commissions to employees or sales agents involved in selling home protection contracts, as long as those individuals are not real estate agents or affiliated with real estate firms that get a share of the commission from the sale of the property.

This law states that it is a violation to give away a home protection contract for free. Such a contract cannot provide coverage before the home's ownership is transferred unless it includes a genuine promise to pay the contract's fee when the home is sold. Additionally, home protection companies can conduct an onsite inspection before issuing a contract. They can also provide a report after the inspection, even if a contract isn't eventually issued for that property.

This law section explains that a home protection company, which was a franchisor by the end of 1988, can offer coverage during a 'listing period.' This 'listing period' is the time before a house is sold, where the property is up for sale with an exclusive selling agreement. The law also states that home protection contracts issued for this listing period don't need to follow certain regulations about prorated fees and reserve requirements found in other sections.

This section requires home protection contracts to clearly outline what appliances, systems, and components are covered, as well as any exclusions or limits on the coverage. It must state the contract duration, cost, and terms for renewal. Contracts should also detail what services will be provided, any fees for those services, and any limitations, like time or location restrictions for service requests. Customers should be able to request service by phone without filling out claim forms, and the company must start service within 48 hours. The commissioner can make regulations to clarify these requirements but can't dictate what must be included in the coverage unless it's necessary to prevent unfair exclusions or illusory coverage.

This law states that before any home protection contract can be issued or given out, a copy of the contract form must be filed with the insurance commissioner. The commissioner is allowed to charge a fee for this filing, and the fee amount is set through specific regulatory procedures.

This California statute specifies that a home protection contract can't be canceled during its initial term except for specific reasons. These reasons include not paying the contract fees, being dishonest or lying about important details when getting the contract, or if the home doesn't sell when coverage was intended to start before the sale. Once your initial home protection contract ends, this law doesn't guarantee you'll be able to renew it.