AB 499 — Insurance: earthquake: mandatory offer.

Summary

Existing law provides that a policy of residential property insurance may not be issued or delivered or, under certain circumstances, initially renewed by an insurer unless the named insured is offered coverage for loss or damage caused by an earthquake. The required offer of earthquake coverage is authorized to be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy and must contain certain disclosure language. Existing law provides that when the insurer, agent, or broker establishes delivery of the disclosure form by obtaining the signature of the applicant or insured, or when an insurer, agent, or broker provides the applicant with the disclosure form and the applicant does not return a signed acknowledgment of receipt within 60 days of the date it was provided, there is a conclusive presumption that the insurer, agent, or broker has complied with the disclosure requirements. This bill would delete the above presumption. Existing law requires that if an offer of earthquake coverage is accepted, the coverage continues at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer. At any renewal, an insurer is authorized to modify the terms and conditions of an existing earthquake insurance policy, rider, or endorsement as long as the modified terms and conditions provide the minimum insurance coverages required and the insurer provides the insured with a stand-alone document disclosing the changes, as specified. This bill would, among other things, instead require an insurer modifying the terms and conditions of an existing earthquake insurance policy, rider, or endorsement at renewal to provide the insured with the stand-alone document disclosing the changes when the modification of the terms and conditions reduces or substantially differs from the coverage previously provided to the insured. Existing law provides that proof of mailing of the offer by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application, or proof that the offer of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the offer was made. This bill would, among other things, add that if an offer, disclosure, or document required to be delivered is not mailed, but hand delivered to the insured, the insured's signed receipt would create a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required. This bill would also make technical and clarifying changes. This bill would provide that specified provisions of the act would only become operative if AB 2591 is enacted and takes effect on or before January 1, 2017.

Bill Text

• Chaptered 09/24/16 - Chaptered Current pdf September 24, 2016
• Enrolled 08/31/16 - Enrolled pdf August 31, 2016
• Amended 06/09/16 - Amended Senate pdf June 09, 2016
• Introduced 02/23/15 - Introduced pdf February 23, 2015
• AB499 View text html

Action History

1. September 24, 2016

   Chaptered by Secretary of State - Chapter 549, Statutes of 2016.

2. September 24, 2016

   Approved by the Governor.

3. September 08, 2016

   Enrolled and presented to the Governor at 4 p.m.

4. August 30, 2016

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 6446.).

5. August 25, 2016

   From committee: That the Senate amendments be concurred in. (Ayes 12. Noes 0.) (August 25).

6. August 01, 2016

   Re-referred to Com. on INS. pursuant to Assembly Rule 77.2.

7. June 30, 2016

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 29 pursuant to Assembly Rule 77.

8. June 30, 2016

   Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 4649.).

9. June 27, 2016

   Read second time. Ordered to Consent Calendar.

10. June 23, 2016

    From committee: Do pass. To Consent Calendar. (Ayes 8. Noes 0.) (June 22).

11. June 15, 2016

    Re-referred to Com. on INS.

12. June 13, 2016

    Re-referred to Com. on RLS.

13. June 13, 2016

    Withdrawn from committee.

14. June 09, 2016

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

15. June 19, 2015

    In committee: Set, second hearing. Hearing canceled at the request of author.

16. June 09, 2015

    In committee: Set, first hearing. Hearing canceled at the request of author.

17. May 14, 2015

    Referred to Com. on N.R. & W.

18. May 04, 2015

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

19. May 04, 2015

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1263.)

20. April 29, 2015

    Read second time. Ordered to Consent Calendar.

21. April 28, 2015

    From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (April 28).

22. March 05, 2015

    Referred to Com. on W., P., & W.

23. February 24, 2015

    From printer. May be heard in committee March 26.

24. February 23, 2015

    Read first time. To print.

Sponsors

• Cooley · Primary

Votes

Subjects