California 2019-2020 Regular Session Status: Passed Assembly

AB 2436 — Residential property insurance.

Last action — From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law generally regulates residential property insurance. Existing law prescribes the standard form of the California Residential Insurance Disclosure, which sets forth a description of certain types of insurance coverage, and explains that building code upgrade coverage covers additional costs to comply with building codes in effect at the time of loss or rebuilding. Existing law requires specified information, including whether or not the policy provides building code upgrade coverage for the increased costs of repairing or replacing damage because of building ordinances or laws, to be included on the declarations page of a residential property insurance policy. Under an open policy that requires payment of actual cash value, existing law requires the measure of the actual cash value recovery for either a total or partial loss to the structure or its contents to be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. Under existing law, a deduction for physical depreciation under actual cash value coverage applies only to components of a structure that are normally subject to repair and replacement during the useful life of that structure. This bill would require an open policy of residential property insurance, except as specified, that provides replacement cost coverage, issued or renewed on or after July 1, 2021, to provide additional building code upgrade coverage of no less than 10% of the dwelling coverage policy limits. The bill would require building code upgrade coverage to be based on the increased costs associated with building ordinances and laws at the time of loss or rebuilding. The bill would further require, also on or after July 1, 2021, a policy of residential property insurance that provides replacement cost coverage to include specific information relating to building code upgrade coverage on the declarations page of the policy. The bill would require a policy of residential property insurance that does not provide building code upgrade coverage to include a statement on the declarations page of the policy that the policy does not include building code upgrade coverage. The bill would also amend the description of actual cash value coverage in the California Residential Insurance Disclosure to conform to the existing statutory requirements of an open policy that requires payment of actual cash value.

Bill Text

Action History

  1. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.

  2. Referred to Com. on INS.

  3. In Senate. Read first time. To Com. on RLS. for assignment.

  4. Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 2. Page 4678.)

  5. Read second time. Ordered to third reading.

  6. Read second time and amended. Ordered returned to second reading.

  7. From committee: Amend, and do pass as amended. (Ayes 13. Noes 1.) (May 7).

  8. Referred to Com. on INS.

  9. From printer. May be heard in committee March 21.

  10. Read first time. To print.

Sponsors

  • Bloom · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Bloom

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 2436 Bloom Assembly Third Reading

Passed 74 Yea · 2 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 5001
Democratic 21001
Unaffiliated 48201
Total 74203
% of votes cast 94%3%0%4%
How each member voted (79)
Member Party Vote
Holden — Yea
Maienschein — Yea
Friedman — Yea
Cooper — Yea
Smith — Yea
Brough — Yea
Nazarian — Yea
Weber — Yea
Diep — Yea
Bigelow — Yea
Rendon — Yea
Rodriguez — Yea
McCarty — Yea
Low — Yea
Bloom — Yea
Burke — Yea
Daly — Yea
Cooley — Yea
Gloria — Yea
Mullin — Yea
Salas — Yea
Fong — Yea
Levine — Yea
Eggman — Yea
Medina — Yea
Waldron — Yea
Gonzalez — Yea
Wood — Yea
Kamlager — Yea
O'Donnell — Yea
Chiu — Yea
Chu — Yea
Cunningham — Yea
Jones-Sawyer — Yea
Ting — Yea
Gray — Yea
Chau — Yea
Mathis — Yea
Frazier — Yea
Obernolte — Yea
Mayes — Yea
Santiago — Yea
Voepel — Nay
Kiley — Nay
Quirk — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Not Voting
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Do pass as amended.

Passed 13 Yea · 1 Nay
Party YeaNayPresentNot Voting
Unaffiliated 8100
Democratic 4000
Republican 1000
Total 13100
% of votes cast 93%7%0%0%
How each member voted (14)
Member Party Vote
Cooley — Yea
Kamlager — Yea
Cooper — Yea
Frazier — Yea
Wood — Yea
Mayes — Yea
Daly — Yea
Bigelow — Yea
Voepel — Nay
Berman, Marc Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Rivas, Robert Democratic Yea
Chen, Phillip Republican Yea

Official roll call →

Subjects

finance housing
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Frequently asked questions

What does AB 2436 do?
Existing law generally regulates residential property insurance. Existing law prescribes the standard form of the California Residential Insurance Disclosure, which sets forth a description of certain types of insurance coverage, and explains that building code upgrade coverage covers additional costs to comply with building codes in effect at the time of loss or rebuilding. Existing law requires specified information, including whether or not the policy provides building code upgrade coverage for the increased costs of repairing or replacing damage because of building ordinances or laws, to be included on the declarations page of a residential property insurance policy. Under an open policy that requires payment of actual cash value, existing law requires the measure of the actual cash value recovery for either a total or partial loss to the structure or its contents to be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. Under existing law, a deduction for physical depreciation under actual cash value coverage applies only to components of a structure that are normally subject to repair and replacement during the useful life of that structure. This bill would require an open policy of residential property insurance, except as specified, that provides replacement cost coverage, issued or renewed on or after July 1, 2021, to provide additional building code upgrade coverage of no less than 10% of the dwelling coverage policy limits. The bill would require building code upgrade coverage to be based on the increased costs associated with building ordinances and laws at the time of loss or rebuilding. The bill would further require, also on or after July 1, 2021, a policy of residential property insurance that provides replacement cost coverage to include specific information relating to building code upgrade coverage on the declarations page of the policy. The bill would require a policy of residential property insurance that does not provide building code upgrade coverage to include a statement on the declarations page of the policy that the policy does not include building code upgrade coverage. The bill would also amend the description of actual cash value coverage in the California Residential Insurance Disclosure to conform to the existing statutory requirements of an open policy that requires payment of actual cash value.
Who sponsors AB 2436?
AB 2436 is sponsored by Bloom.
What is the current status of AB 2436?
This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 2436?
Track AB 2436 free on One Click Politics — get push/email alerts when it moves.

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