(a) An industrial loan company is not required to make credit disability insurance available. If offered, however, credit disability insurance must be offered on a voluntary basis, without conditions as to the acceptance of other benefits for which the borrower will be charged. The purchase of credit life insurance may not be a condition precedent to obtaining credit disability insurance, nor may the purchase of credit disability insurance be made a condition to obtaining credit life insurance. No sales techniques may be employed which are designed, or which may be reasonably expected, to restrict the ability of the borrower to select or reject either or both forms of insurance coverage.

(b) Section 18293 of the Financial Code requires that the borrower be given “an understandably written statement ... detailing the conditions when the borrower will be entitled to make a claim under the insurance policy and the procedure to be followed in making such claim.” The statement will be approved when the content will make a borrower generally aware of the coverage and understandable describes the steps to be followed by the borrower in filing a claim under the policy. The statement should not include a detailed description of the policy coverage, but shall set forth the basic conditions under which coverage becomes applicable (including, particularly, the extent of the elimination period). The statement may contain language indicating that it is not a full statement of the policy terms, and referring the borrower to the certificate of insurance for details.