What it does
CA 26 02 is the finance master version of ISO's Single Interest Automobile Physical Damage Insurance Policy. Instead of one policy per vehicle, a lender or finance company holds one master policy covering its interest in the autos it finances. It protects the institution's collateral interest, not the borrower. The current edition is 11 20; ISO also issued a table-of-contents form, CA R 262 03 22, for this edition.
ISO's 2026 multistate forms revision (CA-2026-OFR26) introduces a 09 27 edition of this form, approved for policies effective on or after September 1, 2027 in states where it has been adopted; the prior edition remains in use until then and in states that have not adopted the revision.
Who needs it
Auto lenders with a book of financed vehicles: banks, credit unions, captive and independent sales finance companies, and some lessors.
Key provisions and companions
- CA 26 05 Single Interest Deductibles sets deductibles.
- CA 26 04 adds a public or livery passenger conveyance and on-demand delivery services exclusion to single interest policies.
- ISO's terrorism exclusion endorsements list the single interest policy among the forms they modify.
Quoting notes
Underwriters want the loan count and outstanding balances, the mix of new and used autos, loss history, and the institution's procedures for verifying borrower insurance. Compare with the individual policy form CA 26 01 when the lender issues coverage loan by loan.
