Today's Law As Amended


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AB-2367 Residential property insurance: wildfire resilience.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 2063 is added to the Insurance Code, to read:

2063.
 An admitted insurer that offers or sells residential property insurance in this state shall, at a minimum, offer or sell the existing residential property insurance coverage it most commonly offers or sells to an applicant or insured if all of the following requirements are met:
(a) The applicant or insured owns a residence with an estimated replacement cost that is consistent with the insurer’s underwriting guidelines.
(b) The residence meets the minimum standards for a fire-hardened home established pursuant to Section 13576.
(c) The residence is within a community that meets the minimum standards for a fire-hardened community established pursuant to Section 13576.
(d) The residence exists in a development that was established before the development of the standards established pursuant to Section 13576, including a residence rebuilt after being destroyed by wildfire.

SEC. 2.

 Article 9 (commencing with Section 13575) is added to Chapter 2 of Division 3 of the Insurance Code, to read:

Article  9. Wildfire Resilience Task Force
13575.
 (a) The Wildfire Resilience Task Force is hereby created.
(b) The task force membership shall include all of the following:
(1) The commissioner or the commissioner’s designee.
(2) The Director of the Office of Emergency Services or the director’s designee.
(3) The State Fire Marshal or the State Fire Marshal’s designee.
13576.
 The task force, in consultation with the Department of Forestry and Fire Protection and the Office of Planning and Research, shall establish both of the following:
(a) The minimum standards a dwelling shall meet to qualify as a fire-hardened home.
(b) The minimum standards a community shall meet to qualify as a fire-hardened community.
13577.
 (a) The commissioner may promulgate regulations to require insurers to incentivize wildfire mitigation actions by homeowners as part of insurance premiums.
(b) The commissioner may promulgate regulations to implement this article, including regulations to implement exceptions to the standards established pursuant to Section 13576 based on any of the following:
(1) If an insurer determines it has an overconcentration of risk in a particular region and provides the reasoning for the determination to the commissioner for consideration.
(2) If the commissioner determines, based on wildfire risk factors, that a residence is exposed to such an extreme wildfire risk that it severely undermines the impact of home hardening and community hardening efforts.
(3) If underwriting reasons, unrelated to the risk of wildfire loss, that an insurer applies generally to all properties to determine eligibility for coverage will be affected.