Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250SB__130199INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>1301</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Allen</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_ORIGINATING">(Principal coauthor: Senator Pérez)</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_OPPOSITE">(Principal coauthor: Assembly Member Harabedian)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthor: Senator Wiener)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Assembly Member Connolly)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Pérez</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Harabedian</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Wiener</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Connolly</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend, repeal, and add Section 678 of, and to add Sections 676.11, 676.12, 676.13, and 676.14 to, the Insurance Code, relating to insurance. </ns0:Title>
<ns0:RelatingClause>insurance</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Residential property insurance: nonrenewals.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates classes of insurance, including residential property insurance. Existing law requires an insurer to deliver to the named insured an offer of renewal, as specified, at least 45 days before the policy expiration and to deliver a notice of nonrenewal at least 75 days before the policy expiration. If the insurer fails to do so, existing law requires the existing policy, with no change in its terms and conditions, to remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed to the named insured. Existing law requires nonrenewal notices to contain specified information.</html:p>
<html:p>This bill would, beginning July 1, 2027, require an insurer to either deliver to the named policyholder an offer of renewal at least 90
days before the policy expiration or a notice of nonrenewal or a notice of renewal with a reduction of limits or an elimination of coverage under the policy at least 180 days before the policy expiration. The bill would require the notice to contain specified information, including all information related to the basis for the nonrenewal or the reduction of limits or elimination of coverage, as specified. If the insurer fails to deliver an offer or notice to the named policyholder, the bill would require the existing policy to remain in effect for either 90 days from the date the offer of renewal is delivered or for 180 days from the date the notice of nonrenewal or notice of renewal with a reduction of limits or an elimination of coverage is delivered.</html:p>
<html:p>This bill would, beginning July 1, 2027, require an insurer that refuses to renew a policy or imposes a reduction of limits or an elimination of coverage to provide the policyholder with specified information,
including a clear explanation of the grounds for the nonrenewal or reduction of limits or elimination of coverage. If an insurer issues a notice of nonrenewal or a notice of reduction of limits or elimination of coverage, the bill would require the insurer to provide the policyholder with a period of not less than 90 days to perform the necessary remediation or other change to the property or to provide additional information. The bill would require the insurer to provide an extension of up to 180 days, as specified, upon request of the policyholder. The bill would prohibit an insurer from refusing to issue or renew, or determine eligibility for, a residential property insurance policy on the basis of certain claims, on the basis of the policyholder’s previous inquiry, or on the basis of the age of the roof under certain circumstances.</html:p>
<html:p>On or before April 1, 2028, and annually thereafter by that date, this bill would require an insurer to submit to the commissioner a
report for the previous calendar year containing specified information, including the number of policies for which the insurer elected not to renew or imposed a reduction of limits or an elimination of coverage. On or before July 1, 2028, and annually thereafter by that date, the bill would require the commissioner to prepare and publish on the department’s internet website an aggregated report for the previous calendar year of the information reported by insurers.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_42F31F71-F39D-4F72-892C-66C81BA8C329">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'676.11'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 676.11 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_6C2686AE-1CAB-49E5-96B9-5201074313D1">
<ns0:Num>676.11.</ns0:Num>
<ns0:LawSectionVersion id="id_720B6223-AFEA-48EE-ABBA-FA5D5F90B920">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
This section applies only to residential property insurance policies specified in Section 675.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An insurer that refuses to renew a policy or imposes a reduction of limits or an elimination of coverage shall provide the policyholder with all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A clear explanation of the grounds for the nonrenewal or the reduction of limits or elimination of coverage, including a reference to the specific provision or provisions in the insurer’s underwriting guidelines upon which the nonrenewal or the reduction of limits or elimination of coverage is based.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
All information
relating to the decision of nonrenewal or reduction of limits or elimination of coverage, including, but not limited to, all imagery or other documentation relating to the decision and all sources of such information, imagery, and documentation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the nonrenewal is due in whole or in part to an assessment of the wildfire risk associated with the property, the insurer shall provide the policyholder with their wildfire risk score or other wildfire risk classification, including the following, as applicable:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A plain language description of each property-specific characteristic that led to the determination.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A plain language description of each surrounding area characteristic that led to the determination, including a map of those characteristics in any parcel larger than the property size used to assess the
property’s wildfire risk and the property’s placement within it.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If an insurer issues a notice of nonrenewal or a notice of reduction of limits or elimination of coverage, the insurer shall provide the policyholder with both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A clear explanation of any remediation, additional information, or other change to the property that is consistent with the insurer’s underwriting guidelines and that would qualify the policyholder to obtain renewal of the policy or to maintain the existing limits or coverage of the policy.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A period of not less than 90 days to perform the necessary remediation or other change to the property or to provide additional information. Upon request of the policyholder, the insurer shall provide the policyholder an extension of time of up to 180
days beyond the date of the notice of nonrenewal or the notice of reduction of limits or elimination of coverage if the policyholder encounters a delay beyond their control. Circumstances upon which an extension shall be granted include, but are not limited to, any of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Unavoidable delays in obtaining a required permit.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Unavailability of required construction materials.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Unavailability of contractors to perform the work.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Disability, injury, or incapacity of the policyholder.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Following any efforts of remediation, the policyholder shall furnish the insurer evidence of remediation. If the insurer seeks additional verification, the insurer may perform an
onsite physical inspection of the property to verify remediation at the insurer’s expense.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Verified remediation, additional information, or other change to the property shall qualify the policyholder for renewal of the policy or to maintain existing limits or coverage.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The insurer shall acknowledge receipt of additional information or evidence of any remediation or other change to the property within 10 days and shall issue a written determination within 30 days of the acknowledgment of receipt. The 30-day period may be extended by 15 days if the policyholder furnishes the insurer with additional information or evidence of remediation or other change to the property during the 30-day period.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The insurer shall provide a policyholder a reasonable opportunity to dispute, or to
correct or amend any inaccurate or incomplete information relied upon by the insurer in connection with, a decision to not renew or to impose a reduction of limits or an elimination of coverage of a policy.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A policyholder may request that the insurer conduct an onsite physical inspection of the property to verify the information relied upon by the insurer in connection with a decision to not renew or to impose a reduction of limits or an elimination of coverage of a policy.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The insurer shall acknowledge receipt of any dispute, correction, or amendment within 10 days and shall issue a written determination within 30 days of the acknowledgment of receipt. The 30-day period may be extended by 15 days if the policyholder furnishes the insurer additional information regarding the dispute, correction, or amendment during the 30-day period.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A nonrenewal or a reduction of limits or elimination of coverage of a policy shall not take effect during a period of remediation under subdivision (c) or during a period of dispute, correction, or amendment under subdivision (d).
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section shall become operative on July 1, 2027.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_F3F32F5D-284C-43D4-8894-CDD7972103E3">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'676.12'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 676.12 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_156BF6E9-737F-4FBD-A589-4CAAA1505984">
<ns0:Num>676.12.</ns0:Num>
<ns0:LawSectionVersion id="id_359FC1B3-8F49-4249-859B-13C10C444810">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
This section applies only to residential property insurance policies specified in Section 675.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On or before April 1, 2028, and annually thereafter by that date, an insurer shall submit to the commissioner a report for the previous calendar year containing the following information for policies written in California:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The number of policies in each of the following categories:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
New policies.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Renewed policies.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Policies for which the policyholder elected not to renew.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Policies for which the insurer elected not to renew or imposed a reduction of limits or an elimination of coverage.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Canceled policies.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For each policy under subparagraph (D) of paragraph (1), the insurer shall additionally include the following information:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The reason or reasons for the nonrenewal or the reduction of limits or elimination of coverage.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Whether the policyholder performed any remediation or other change to the property or provided additional information in response to the notice of nonrenewal or the reduction of limits or elimination of coverage, pursuant to subdivision (c) of Section 676.11, whether the policyholder disputed, corrected, or amended any
inaccurate or incomplete information, pursuant to subdivision (d) of Section 676.11, and the outcome of those actions.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The policy information reported pursuant to subdivision (b) shall be listed by county and ZIP Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For the report that is due by April 1, 2028, the report shall only include the required information collected beginning July 1, 2027.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
On or before July 1, 2028, and annually thereafter by that date, the commissioner shall prepare and publish on the department’s internet website an aggregated report for the previous calendar year of all information reported by insurers pursuant to subdivision (b).
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section shall become operative on July 1, 2027.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_D8801034-8C94-4601-9EE3-514DC1749A9F">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'676.13'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 676.13 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_406FC489-C098-48ED-AAAE-F126F7AE36F9">
<ns0:Num>676.13.</ns0:Num>
<ns0:LawSectionVersion id="id_EF1AC269-F046-428A-8457-FE74BB0C7753">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An insurer shall not refuse to issue or renew, or determine eligibility for, a residential property insurance policy on the basis of any of the following claims by the applicant or policyholder or any previous owner or occupant of the property to be insured:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A claim that is filed but is not paid or payable.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A claim that is within the claimant’s deductible.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A claim that is not covered by the policy.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A claim that is paid in full by another insurance policy or a third party.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A claim concerning a property that is no longer owned by the applicant or policyholder.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A claim by the applicant or policyholder in which the loss was not the direct result of intentional conduct or gross negligence by the applicant or policyholder and for which the risk of loss has been mitigated through the removal of the hazard, the repair of the damage or defect, or other changes to the property or to the condition that caused the loss.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An insurer shall not refuse to issue or renew, or determine eligibility for, a residential property insurance policy based in whole or in part on whether a policyholder has previously inquired about the insurance policy, including, but not limited to, an inquiry concerning the scope or nature of coverage available under the policy.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For purposes of this
section, “residential property insurance” means the insurance described in subdivision (a) of Section 675.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall become operative on July 1, 2027.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_48AF6870-7C70-4AF1-AE52-512947DAE864">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'676.14'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 676.14 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_F2024744-3B60-49C1-A6DC-0173CB67EFE3">
<ns0:Num>676.14.</ns0:Num>
<ns0:LawSectionVersion id="id_7BA7715F-0795-4893-9B11-2FE93E16E972">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Beginning July 1, 2027, an insurer shall not refuse to issue or renew, or determine eligibility for, a residential property insurance policy solely on the basis of the age of the roof if the policyholder obtains an independent inspection of the roof that confirms at least five years of useful roof life remaining.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “residential property insurance” means the insurance described in subdivision (a) of Section 675.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall become operative on July 1, 2027.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_390545A5-55E8-483E-8F37-927086D24AB1">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'678.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 678 of the
<ns0:DocName>Insurance Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_1064223B-E01E-4215-8BC4-45C24F2096BB">
<ns0:Num>678.</ns0:Num>
<ns0:LawSectionVersion id="id_EC99E413-B41D-4470-B63E-2AE05B0A4CC5">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
At least 45 days before the policy expiration, an insurer shall deliver to the named insured or mail to the named insured at the address shown in the policy, either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
An offer of renewal of the policy contingent upon payment of premium as stated in the offer, stating each of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Any reduction of limits or elimination of coverage. That reduction of limits or elimination of coverage shall identify the specific limits being reduced or coverage being eliminated by the offer of renewal. The elimination of coverage for the previously covered peril of fire shall be subject to subdivision (b) of Section 10103.6.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the renewal offer.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A notice of nonrenewal of the policy. That notice shall contain all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The specific reason or reasons for the nonrenewal.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the notice of nonrenewal.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Until July 1, 2020, a brief statement indicating that if the consumer has contacted the insurer
to discuss the nonrenewal and remains unsatisfied, the consumer may have the matter reviewed by the department. The statement shall include the telephone number of the unit within the department that responds to consumer inquiries and complaints.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
On or after July 1, 2020, a statement that if the consumer has contacted the insurer to discuss the nonrenewal and remains unsatisfied, the consumer may have the matter reviewed by the department. The statement shall include the department’s internet website, www.insurance.ca.gov, the department’s telephone number, (800) 927-HELP (4357), and the mailing address of the department’s Consumer Services Division, 300 S. Spring Street, Los Angeles, CA 90013.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
On and after July 1, 2022, the time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if an offer or notice is
mailed.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If an insurer fails to give the named insured either an offer of renewal or notice of nonrenewal as required by this section, the existing policy, with no change in its terms and conditions, shall remain in effect for 45 days from the date that either the offer to renew or the notice of nonrenewal is delivered or mailed to the named insured. A notice to this effect shall be provided by the insurer to the named insured with the policy or the notice of renewal or nonrenewal.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Notwithstanding subdivisions (a) and (b), with respect to a notice of nonrenewal for a policy that expires on or after July 1, 2020, the following timelines apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
At least 75 days before the policy expiration, the insurer shall deliver the notice of nonrenewal to the named insured or mail the notice of nonrenewal to the named
insured at the address shown in the policy. The notice shall include the information contained in subparagraph (B) of paragraph (1) of subdivision (a). On and after July 1, 2022, the time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if a notice is mailed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If an insurer fails to give the named insured a notice of nonrenewal at least 75 days before the policy expiration, as required by paragraph (1), the existing policy, with no change in its terms and conditions, shall remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed to the named insured. A notice to this effect shall be provided by the insurer to the named insured with the notice of nonrenewal.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A policy written for a term of less than one year shall be considered as if written for a term of one year. A policy
written for a term longer than one year, or a policy with no fixed expiration date, shall be considered as if written for successive policy periods or terms of one year.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A notice of nonrenewal for a residential property insurance policy expiring on or after July 1, 2021, shall be accompanied by the following notice:
</html:p>
<html:br/>
<html:p>The California Department of Insurance has developed the California Home Insurance Finder, an online tool that can assist you in obtaining insurance for your home. The Finder contains names, addresses, telephone numbers, and internet website links of licensed insurance agents, brokers, and insurance companies that may be able to sell insurance to you. The Finder is organized by ZIP Code and the languages in which the agent, broker, or insurance company sells insurance.</html:p>
<html:p>The California FAIR Plan (FAIR
Plan) provides basic property insurance as the “insurer of last resort” if you cannot find insurance coverage for your property in the normal (voluntary) insurance market. The FAIR Plan provides basic property insurance coverage for residential structures, as well as personal property coverage for residential and business occupancies. However, FAIR Plan policies may not cover liability, theft, or water damage, among other things. There are also optional coverages available for both residential properties. Applications can be made directly with the FAIR Plan (cfpnet.com), although the FAIR Plan strongly encourages use of a licensed agent or broker for assistance in preparing and obtaining a quote. There is no additional cost for using an agent or broker for purchasing a FAIR Plan policy.</html:p>
<html:p>California law requires an agent or broker to assist a person seeking a FAIR Plan policy by (1) submitting a coverage application to the FAIR Plan on behalf of the consumer, (2)
providing the consumer the FAIR Plan’s internet website address and toll-free telephone number, or (3) obtaining a policy for the consumer through an admitted or nonadmitted insurer.</html:p>
<html:p>To supplement a FAIR Plan policy, a Difference in Conditions (DIC) policy should be considered. A DIC policy is sold by some private insurers, and provides coverage for things not covered by the basic property insurance policy provided by the FAIR Plan. A consumer who wants broader coverage than that provided by the FAIR Plan policy should contact an agent, broker, or insurance company that offers a DIC policy to obtain this additional coverage. The Department of Insurance maintains a list of insurance companies that sell DIC policies on its internet website (insurance.ca.gov). Additional assistance may be obtained by contacting an agent or broker listed with the department’s online agent locator.</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
An insurer may use a
notice substantially similar to the notice set forth in subdivision (e) to the extent that the notice provides additional or more detailed information.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
This section applies only to policies of insurance specified in Section 675.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
This section shall be repealed on July 1, 2027.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_DFAD3B52-726D-4AA9-9FA4-A38F722C8D79">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:INS:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'11.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'678.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 678 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_6F2E6DF7-2A3F-4083-9BCC-4C30554CF478">
<ns0:Num>678.</ns0:Num>
<ns0:LawSectionVersion id="id_54EAD9D5-BE93-42F4-A19F-F6C04678E1CB">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An insurer shall do either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
At least 90 days before the policy expiration, an insurer shall deliver to the named policyholder or mail to the named policyholder at the address shown in the policy an offer of renewal of the policy contingent upon payment of premium as stated in the offer. That notice shall state the telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the renewal offer.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
At least 180 days before the policy expiration, an insurer shall deliver to the named policyholder or mail to the named policyholder
at the address shown in the policy a notice of nonrenewal of the policy or a notice of renewal with a reduction of limits or an elimination of coverage under the policy. That notice shall contain all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
All information related to the basis for the nonrenewal or the reduction of limits or elimination of coverage, as required by subdivision (b) of Section 676.11.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A clear explanation of any remediation, additional information, or other change to the property that qualify the policyholder to obtain renewal of the policy or to maintain the existing limits or coverage of the policy and a full description of all of the policyholder’s rights, as provided in subdivision (c) of Section 676.11.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A clear explanation of the policyholder’s right to dispute, or to correct or amend any inaccurate or
incomplete information relied upon by the insurer in connection with, the decision to not renew the policy or to impose a reduction of limits or an elimination of coverage of a policy, as provided in subdivision (d) of Section 676.11.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The telephone number of the insurer’s representatives who handle consumer inquiries or complaints. The telephone number shall be displayed prominently in a font size consistent with the other text of the notice of nonrenewal.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A statement that if the consumer has contacted the insurer to discuss the nonrenewal and remains unsatisfied, the consumer may have the matter reviewed by the department. The statement shall include the department’s internet website, www.insurance.ca.gov, the department’s telephone number, (800) 927-HELP (4357), and the mailing address of the department’s Consumer Services Division, 300 S. Spring Street, Los Angeles, CA
90013.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On and after July 1, 2027, the time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if an offer or notice is mailed.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If an insurer fails to give the named policyholder an offer of renewal as required by this section, the existing policy, with no change in its terms and conditions, shall remain in effect for 90 days from the date that the offer to renew is delivered or mailed to the named policyholder. A notice to this effect shall be provided by the insurer to the named policyholder with the offer to renew.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If an insurer fails to give the named policyholder a notice of nonrenewal or a notice of renewal with a reduction of limits or an elimination of coverage, as required by this section, the existing policy, with no change in its terms
and conditions, shall remain in effect for 180 days from the date that the notice is delivered or mailed to the named policyholder. A notice to this effect shall be provided by the insurer to the named policyholder with the notice of nonrenewal or the notice of renewal with a reduction of limits or an elimination of coverage.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A policy written for a term of less than one year shall be considered as if written for a term of one year. A policy written for a term longer than one year, or a policy with no fixed expiration date, shall be considered as if written for successive policy periods or terms of one year.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A notice of nonrenewal for a residential property insurance policy shall be accompanied by the following notice:
</html:p>
<html:br/>
<html:p>The California Department of Insurance has developed the California Home Insurance Finder, an online tool
that can assist you in obtaining insurance for your home. The Finder contains names, addresses, telephone numbers, and internet website links of licensed insurance agents, brokers, and insurance companies that may be able to sell insurance to you. The Finder is organized by ZIP Code and the languages in which the agent, broker, or insurance company sells insurance.</html:p>
<html:p>The California FAIR Plan (FAIR Plan) provides basic property insurance as the “insurer of last resort” if you cannot find insurance coverage for your property in the normal (voluntary) insurance market. The FAIR Plan provides basic property insurance coverage for residential structures, as well as personal property coverage for residential and business occupancies. However, FAIR Plan policies may not cover liability, theft, or water damage, among other things. There are also optional coverages available for both residential properties. Applications can be made directly with the FAIR Plan (cfpnet.com),
although the FAIR Plan strongly encourages use of a licensed agent or broker for assistance in preparing and obtaining a quote. There is no additional cost for using an agent or broker for purchasing a FAIR Plan policy.</html:p>
<html:p>California law requires an agent or broker to assist a person seeking a FAIR Plan policy by (1) submitting a coverage application to the FAIR Plan on behalf of the consumer, (2) providing the consumer the FAIR Plan’s internet website address and toll-free telephone number, or (3) obtaining a policy for the consumer through an admitted or nonadmitted insurer.</html:p>
<html:p>To supplement a FAIR Plan policy, a Difference in Conditions (DIC) policy should be considered. A DIC policy is sold by some private insurers, and provides coverage for things not covered by the basic property insurance policy provided by the FAIR Plan. A consumer who wants broader coverage than that provided by the FAIR Plan policy should contact an
agent, broker, or insurance company that offers a DIC policy to obtain this additional coverage. The Department of Insurance maintains a list of insurance companies that sell DIC policies on its internet website (insurance.ca.gov). Additional assistance may be obtained by contacting an agent or broker listed with the department’s online agent locator.</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
An insurer may use a notice substantially similar to the notice set forth in subdivision (f) to the extent that the notice provides additional or more detailed information.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
This section applies only to policies of insurance specified in Section 675.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
This section shall become operative on July 1, 2027.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>