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Measure SB 547
Authors Pérez   Rubio  
Principle Coauthors: Cervantes   Cortese   Gonzalez   Reyes   Smallwood-Cuevas  
Subject Commercial property insurance cancellation and nonrenewal.
Relating To relating to insurance.
Title An act to add Section 675.55 to the Insurance Code, relating to insurance.
Last Action Dt 2025-10-10
State Chaptered
Status Chaptered
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-10-10     Chaptered by Secretary of State. Chapter 544, Statutes of 2025.
2025-10-10     Approved by the Governor.
2025-09-23     Enrolled and presented to the Governor at 2 p.m.
2025-09-13     Assembly amendments concurred in. (Ayes 36. Noes 0. Page 3052.) Ordered to engrossing and enrolling.
2025-09-13     In Senate. Concurrence in Assembly amendments pending.
2025-09-13     Read third time. Passed. (Ayes 79. Noes 1. Page 3442.) Ordered to the Senate.
2025-09-13     Joint Rule 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)
2025-08-21     Read second time. Ordered to third reading.
2025-08-20     From committee: Do pass. (Ayes 15. Noes 0.) (August 20).
2025-07-17     Read second time and amended. Re-referred to Com. on APPR.
2025-07-16     From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 17. Noes 0.) (July 16).
2025-07-10     From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.
2025-06-09     Referred to Com. on INS.
2025-06-04     In Assembly. Read first time. Held at Desk.
2025-06-03     Read third time. Passed. (Ayes 39. Noes 0. Page 1452.) Ordered to the Assembly.
2025-05-06     Read second time. Ordered to third reading.
2025-05-05     From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
2025-04-25     Set for hearing May 5.
2025-04-24     From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 869.) (April 23). Re-referred to Com. on APPR.
2025-04-04     Set for hearing April 23.
2025-03-05     Referred to Com. on INS.
2025-02-21     From printer. May be acted upon on or after March 23.
2025-02-20     Introduced. Read first time. To Com. on RLS. for assignment. To print.
Keywords
Tags
Versions
Chaptered     2025-10-10
Enrolled     2025-09-18
Amended Assembly     2025-07-17
Amended Assembly     2025-07-10
Introduced     2025-02-20
Last Version Text 
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senators Pérez and Rubio</ns0:AuthorText>
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		<ns0:Title> An act to add Section 675.55 to the Insurance Code, relating to insurance. </ns0:Title>
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			<ns0:Subject>Commercial property insurance cancellation and nonrenewal. </ns0:Subject>
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			<html:p>Existing law generally regulates classes of insurance, including commercial property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, except as specified.</html:p>
			<html:p>This bill would extend that prohibition against cancellation or nonrenewal and its exceptions to a policy of commercial property insurance, except as specified.</html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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				Section 675.55 is added to the 
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								(a)
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								(1)
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								An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.
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								(2)
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								For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation
						with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.
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								(b)
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								Subdivision (a) does not apply in any of the following circumstances:
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								(1)
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								If willful or grossly negligent acts or omissions by the named insured, or the named insured’s representatives, are discovered that materially increase any of the risks insured against.
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								(2)
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								If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the
						risk ineligible for renewal.
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								(3)
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								If there are physical or risk changes to the insured property
						beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.
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								(c)
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								(1)
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								For the purposes of this section, “policy of commercial property insurance” is a policy subject to Section 675.5.
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								(2)
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								For purposes of this section, a “policy of commercial property insurance” does not include either of the following:
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								(A)
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								Policies that are inland marine, transit, or transportation
						insurance, including commercial automobile insurance.
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								(B)
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								A policy of commercial property insurance with an annual premium of twenty-five thousand dollars ($25,000) or more and the insured employed at least 25 employees on average during the prior 12 months.
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								(d)
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								Notwithstanding subparagraph (B) of paragraph (2) of subdivision (c), this section shall apply to a policy of commercial property insurance that insures against loss of, or damage to, real property, used primarily for commercial residential or habitational purposes, including, but not limited to, policies insuring all of the following:
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								(1)
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								Homeowners associations.
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								(2)
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								Condominium associations.
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								(3)
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								Long-term rental hotels or motels.
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								(4)
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								Apartment complexes.
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								(5)
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								Condominium complexes.
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								(6)
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								Multifamily dwellings with greater than five units.
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								(7)
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								Student housing.
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								(8)
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								Senior living facilities.
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Last Version Text Digest Existing law generally regulates classes of insurance, including commercial property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, except as specified. This bill would extend that prohibition against cancellation or nonrenewal and its exceptions to a policy of commercial property insurance, except as specified.