Crawford

An insurance purchase plan which provides one month of coverage for each month a premium is paid, without any further obligation to pay or purchase beyond that month, is not governed by the Unruh Act, the Truth in Lending Act or the Check Sellers and Cashers Law.

Plaintiff Maggie Crawford instituted a class action on behalf of policyholders who purchased insurance policies from defendant Mid-Century Insurance Company (Mid-Century) by means of a monthly payment plan through the parent company, Farmers Group, Inc. (Farmers), and its billing and collection subsidiary, Prematic Service Corporation (Prematic). The Prematic payment plan permitted payment by monthly installments, calculated on the basis of a six-month automobile insurance policy, together with a $2.50 monthly service charge. In her complaint, plaintiff alleged (1) violations of the finance charge limitations and disclosure requirements under the Unruh Act (Civ. Code, § 1801 et seq.); (2) violation of the disclosure provisions of the Federal Truth in Lending Act ( 15 U.S.C.A. § 1601 et seq.); (3) that the fees collected exceeded the permissible amount allowed by the Check Sellers and Cashers Law (Fin. Code, §…