3rd Party Extended Warranty not in CA?

[carcassone]

I'm in the market for a good 3rd party extended warranty for my 2002 X5 with 35K miles. After doing a search, 1Source and WarrantyDirect are the winners. I started with 1Source web site and got this response:

Due to new state insurance regulations, effective July 1, 2004, 1SourceAutoWarranty.com is temporarily unable to offer vehicle service agreements to California residents.

I vaguely recall there is a lame law in CA where it is illegal to see extended warranties over the internet/phone. Is this right? Anyone in CA bought one over the internet/phone?

Thanks.