Bill Text: CA SB11 | 2021-2022 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: The California FAIR Plan Association: basic property insurance: exclusions.

Spectrum: Bipartisan Bill

Status: (Passed) 2021-07-23 - Chaptered by Secretary of State. Chapter 128, Statutes of 2021. [SB11 Detail]

Download: California-2021-SB11-Introduced.html

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CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 11

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Introduced by Senator Rubio

December 07, 2020

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An act to add and repeal Chapter 12 (commencing with Section 10109) of Part 1 of Division 2 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

SB 11, as introduced, Rubio. Residential property insurance: ratemaking strategies.

The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, prohibits specified insurance rates from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act. The act requires an insurer that wishes to change a rate to file a complete rate application with the Insurance Commissioner, as specified.

This bill would require the commissioner to convene a stakeholder group of expert parties to identify ways to measure and incorporate various fire damage mitigation strategies into the homeowners’ insurance ratemaking process and to report the group’s findings to the Legislature no later than December 31, 2023.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Chapter 12 (commencing with Section 10109) is added to Part 1 of Division 2 of the Insurance Code, to read:

CHAPTER  12. Ratemaking Strategies

10109.

 (a) The commissioner shall convene a stakeholder group of expert parties to identify strategies for measuring and incorporating various community mitigation, vegetation management, and fire resiliency strategies into the homeowners’ insurance ratemaking process.

(b) The commissioner shall report the stakeholder group’s findings to the Legislature no later than December 31, 2023. The report shall be submitted in compliance with Section 9795 of the Government Code.

10109.1.

 This chapter shall remain in effect only until January 1, 2026, and as of that date is repealed.