Bill Text: CA SB824 | 2017-2018 | Regular Session | Amended
Bill Title: Insurers: declared disaster: homeowners’ insurance policies.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2018-09-21 - Chaptered by Secretary of State. Chapter 616, Statutes of 2018. [SB824 Detail]
Download: California-2017-SB824-Amended.html
Amended
IN
Senate
April 16, 2018 |
Senate Bill | No. 824 |
Introduced by Senator Lara (Principal coauthor: Senator McGuire) (Coauthors: Senators Allen, Dodd, Hill, and Skinner) |
January 03, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would express the intent of the Legislature to clarify that the provision described above is applicable to all insured properties located within a county for
which a state of emergency has been declared, as specified.
(2)Existing law prohibits cancellation of a policy that has been in effect for 60 days unless, after the effective date of the policy, one or more specified acts have occurred, including nonpayment of the premium, conviction of the named insured of a crime having as one of its necessary elements an act increasing any hazard insured against, or the discovery of fraud or material misrepresentation, as specified.
This bill would also prohibit the nonrenewal of the policy under those circumstances.
(3)
(4)The bill would also express the intent of the Legislature to enact legislation that would require insurance companies to provide mitigation discounts and continued coverage to homeowners who employ wildlife mitigation techniques.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 675.1 of the Insurance Code is amended to read:675.1.
(a) In the case of a total loss to the primary insured structure under a(a)
(b)
(c)
(d)
(e)
(1)
(2)
(f)It is the intent of the Legislature to clarify that this section applies, but is not limited to, all insured properties located within a county for which a state of emergency has been declared by the President of the United States or the Governor, or for which a local emergency has been declared by the executive officer or governing body of a city, county, or city and county.
After a policy specified in Section 675 has been in effect for 60 days, or, if the policy is a renewal, effective immediately, no notice of cancellation or nonrenewal shall be effective unless it is based on the occurrence, after the effective date of the policy, of one or more of the following:
(a)Nonpayment of premium, including nonpayment of any additional premiums, calculated in accordance with the current rating manual of the insurer, justified by a physical change in the insured property or a change in its occupancy or use.
(b)Conviction of the named insured of a crime
having as one of its necessary elements an act increasing any hazard insured against.
(c)Discovery of fraud or material misrepresentation by either of the following:
(1)The insured or his or her representative in obtaining the insurance.
(2)The named insured or his or her representative in pursuing a claim under the policy.
(d)Discovery of grossly negligent acts or omissions by the insured or his or her representative substantially increasing any of the hazards insured against.
(e)Physical changes in the insured property which result in the property becoming uninsurable.
SEC. 3.SEC. 2.
Section 758.8 is added to the Insurance Code, to read:758.8.
(1)Describes
(2)Sets
(3)Describes
(4)Provides
(b)The commissioner shall have 30 days to approve or disapprove the plan submitted pursuant to subdivision (a). The commissioner shall approve the plan if the insurer demonstrates that the material reduction will be accomplished in a manner that minimizes market disruption in areas of material reduction. In reviewing each plan submitted, the commissioner shall assess the impact of the planned withdrawal from potentially impacted counties.
It is the intent of the Legislature to enact legislation that would require insurance companies to provide mitigation discounts and continued coverage to homeowners who employ wildlife mitigation techniques.