Today's Law As Amended


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AB-1602 Use of firearm insurance.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 1764 of the Insurance Code is amended to read:

1764.
 (a) A licensed surplus line broker may issue evidence of insurance for a home state insured, including binders, covernotes, and certificates evidencing the placement of insurance with an eligible nonadmitted insurer, and with prior written authority, may issue policies of the insurer.
(b) Certificates may be issued pursuant to subdivision (a) or (b) of Section 1764.2. The certificates shall be in the name of the surplus line broker and not in the name of the nonadmitted insurer, shall be signed by the surplus line broker, and shall contain all of the matters specified in Insurance Code  Section 381.
(c) Policies may only be issued pursuant to subdivision (a) of Section 1764.2. The policies shall contain all of the matters specified in Section 381 and shall be countersigned by the surplus line broker.
(d) A surplus line broker shall not issue evidence of insurance for a home state insured, or cause or purport to cause a risk to be insured by a nonadmitted insurer, if the risk is prohibited by Section 12130.

SEC. 2.

 Chapter 4 (commencing with Section 12130) is added to Part 4 of Division 2 of the Insurance Code, to read:

CHAPTER  4. Firearm Insurance
12130.
 (a) A policy of insurance issued or renewed on or after January 1, 2020, shall not cover a loss related to the use of a firearm, except for loss of, or damage to, property.
(b) (1) Subdivision (a) does not apply to any of the following:
(A) An automobile insurance policy that covers the risks described in Section 116, without an exclusion of loss resulting from accident or physical injury or death of a natural person as described in subdivision (a) of Section 116.
(B) A homeowners’ insurance policy or other insurance policy that covers the risks described in subdivision (a) of Section 675.
(C) A commercial insurance policy that covers the risks described in subdivision (b) of Section 675.5.
(D) An umbrella liability, excess liability, or excess property insurance policy described in subdivision (b) of Section 676.6.
(2)  Notwithstanding subdivision (a), an insurer may issue or renew a policy of commercial insurance for a licensed firearms dealer that insures against liability for loss of or damage to property and for injury to or death of a person as a result of the theft, sale, lease, or transfer or offering for sale, lease, or transfer of a firearm or ammunition, or any other operations of the business and business premises.
SEC. 3.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.