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SB-755 Insurance: residential property insurance: requirements upon nonrenewal.(2019-2020)

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Date Published: 01/16/2020 09:00 PM
SB755:v97#DOCUMENT

Amended  IN  Senate  January 16, 2020
Amended  IN  Senate  January 06, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 755


Introduced by Senator Rubio

February 22, 2019


An act to amend Section 10095.5 of the Insurance Code, relating to residential property insurance.


LEGISLATIVE COUNSEL'S DIGEST


SB 755, as amended, Rubio. Insurance: residential property insurance: requirements upon nonrenewal.
Existing law generally regulates the issuance of fire insurance on property within the state. Existing law requires all fire policies to be written on a standard form, as specified. Existing law also requires all insurers providing a policy of residential property insurance to provide specified disclosures to the insured. Existing law prohibits an insurer from canceling or refusing to renew a policy of an insured that has suffered a loss, as specified, within certain time limits. Existing law also creates the Fair Access to Insurance Requirements or FAIR Plan Association to formulate and administer a program that equitably apportions among insurers, basic plans of insurance for property owners who, after diligent effort, are unable to procure such insurance through normal channels from an admitted insurer or a surplus line broker. Existing law requires a broker or agent to provide assistance, as specified, to a person seeking help in obtaining coverage.
This bill would require specified insurers who fail to renew or offer renewal of a policy of residential property insurance to make certain notifications to a policyholder in writing regarding other options the policyholder may have, including information about the FAIR plan.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 10095.5 of the Insurance Code is amended to read:

10095.5.
 (a) The association shall establish and maintain an internet website and a statewide toll-free telephone number through which a person may receive information and assistance in applying for insurance through the plan. The association shall cause the toll-free telephone number to be published in all general distribution telephone directories in the state and shall include the toll-free telephone number and internet website address on all communications with an applicant or insured.
(b) An insurance agent or broker transacting basic property insurance shall assist a person seeking help in obtaining basic property insurance coverage by any one of the following methods:
(1) Making an application for insurance through the plan by submitting an application at the person’s request.
(2) Providing the person with the California FAIR Plan’s internet website address and the toll-free telephone number.
(3) Making an application for insurance, at the person’s request, and placing that person with or through an insurer that offers, or a surplus line broker that procures, basic property insurance coverage.
(c) If an insurer that does not place insurance through an agent or broker fails to renew or offer to renew a policy of residential property insurance, the insurer shall notify the policyholder in writing as follows:
(1) Advising the policyholder that other insurers that place insurance through an agent or broker may be able to help find appropriate insurance coverage.
(2) Advising the policyholder that a surplus line broker may be able to help find appropriate insurance coverage through a nonadmitted insurer.
(3) Providing the policyholder with the California FAIR Plan’s internet website address and the toll-free telephone number and advising the policyholder that the FAIR Plan may be able to help find appropriate insurance coverage.
(4) Providing the policyholder with the department’s internet website address and advising the policyholder how the California Home Insurance Finder, established pursuant to Section 10095.7, can help the policyholder find a replacement insurance policy.