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AB-2450 Insurance: reporting.(2021-2022)

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Date Published: 08/27/2022 04:00 AM
AB2450:v95#DOCUMENT

Enrolled  August 26, 2022
Passed  IN  Senate  August 23, 2022
Passed  IN  Assembly  August 24, 2022
Amended  IN  Senate  August 11, 2022
Amended  IN  Senate  June 09, 2022
Amended  IN  Assembly  April 18, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 2450

Introduced by Assembly Member Valladares

February 17, 2022

An act to add Section 12922.1 to the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 2450, Valladares. Insurance: reporting.
Existing law generally regulates classes of insurance, including homeowners’ insurance. Existing law creates the Department of Insurance, headed by the Insurance Commissioner.
This bill would require the commissioner to convene a working group, on or before July 1, 2023, to study the feasibility, potential implications, and advisability of allowing admitted insurers to offer homeowners’ and commercial property insurance policies that include a deductible for covered losses resulting from wildfires. The bill would require the commissioner to identify industries, including, but not limited to, farming, that have struggled to obtain affordable commercial property coverage due to increased wildfire risk and require the working group to study the utility and risks a commercial policy containing a deductible for wildfire losses could have for these industries.
This bill would require the working group to include, among other things, representatives from the insurance industry. The bill would require the commissioner to prepare a report, on or before July 1, 2024, summarizing the working group’s findings and recommendations, and to post that report on its internet website.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 12922.1 is added to the Insurance Code, to read:

12922.1.
 (a) On or before July 1, 2023, the commissioner shall convene a working group to study the feasibility, potential implications, and advisability of allowing admitted insurers to offer homeowners’ and commercial property insurance policies that include a deductible for covered losses resulting from wildfires.
(b) The commissioner shall identify industries, including, but not limited to, farming, that have struggled to obtain affordable commercial property coverage due to increased wildfire risk. The working group shall study the utility and risks that a commercial policy containing a deductible for wildfire losses could have for these industries, and identify additional financial strategies or risk transfer mechanisms that could be used by these industries to supplement the use of a policy containing a wildfire deductible.
(c) The working group shall include, at a minimum, all of the following: department staff, representatives from the insurance industry, consumer advocates, representatives from the FAIR Plan, representatives from the industries identified by the commissioner pursuant to subdivision (b), staff from both houses of the Legislature, and staff from the Governor’s Office.
(d) On or before July 1, 2024, the commissioner shall prepare a report summarizing the working group’s findings and recommendations and shall post that report on its internet website.