Today's Law As Amended

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AB-2611 Residential property insurance.(2017-2018)



SECTION 1.

 Section 676.11 is added to the Insurance Code, immediately following Sections 676.10, to read:

676.11.
 (a) (1) An insured or applicant for a policy of residential property insurance who disagrees with a determination made by an insurer using a wildfire risk model, including, but not limited to, a determination whether to insure residential property or the amount of a premium for a policy of residential property insurance, may appeal the determination directly with the insurer.
(2) The insurer shall respond to an appeal filed pursuant to paragraph (1) within 30 calendar days. An insurer shall not make an adverse underwriting decision, as defined in Section 791.02, against its insured during the pendency of the appeal, including, but not limited to, cancellation, nonrenewal, or charging a premium increase on the policy.
(3) (A) If the appeal results in an adverse underwriting decision, as defined in Section 791.02, the insurer shall provide notice to the insured or applicant giving the specific reasons for the decision, including, but not limited to, each factual and legal basis known at that time by the insurer for the adverse underwriting decision. The notice shall also advise the insured or applicant that he or she may seek review by the department of the adverse underwriting decision and the notice shall include the mailing address, Internet Web site address, and telephone number of the unit within the department that performs this review function.
(B) The commissioner shall issue a bulletin to insurers providing the contact information of the unit within the department that performs the review function, as described in subparagraph (A), and issue updated information, as necessary.
(b) For purposes of this section:
(1) “Policy of residential property insurance” shall have the same meaning as defined in Section 10087.
(2) “Wildfire risk model” means a computer-based, map-based, or other measurement or simulation tool used by an insurer to rate, underwrite, or otherwise assess or evaluate the risk of wildfire or consequence of wildfire to residential structures.