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SB-1359 Insurance: wildfire risk.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
SB1359:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1359


Introduced by Senator Rubio

February 21, 2020


An act to add Section 929.4 to the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


SB 1359, as introduced, Rubio. Insurance: wildfire risk.
Existing law establishes the Department of Insurance, headed by the Insurance Commissioner, which regulates insurers and insurance practices. Existing law requires an admitted insurer with written California premiums above a specified threshold to submit a report with specified fire risk information on its residential property policies to the commissioner on or before April 1, 2020, and every 2 years thereafter.
This bill would require the commissioner, on or before March 1, 2021, to convene a stakeholder group to consider the actuarial soundness of residential property insurance rates, taking into consideration current wildfire risks to residential properties and communities. The bill would require the stakeholder group to recommend changes to state law governing residential property insurance rates in communities that are located in high-risk wildfire areas and would require the commissioner to post the recommendations on its internet website on or before December 31, 2021 .
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 929.4 is added to the Insurance Code, to read:

929.4.
 (a) On or before March 1, 2021, the commissioner shall convene a stakeholder group to consider the actuarial soundness of residential property insurance rates, taking into consideration current wildfire risks to residential properties and communities. The stakeholder group shall recommend changes to state law governing residential property insurance rates in communities that are located in high-risk wildfire areas. The recommendations shall also include incentives for homeowners and communities that are in full compliance with defensible space requirements as certified by a public fire agency or other authorized entity.
(b) The commissioner shall post the stakeholder recommendations on its internet website on or before December 31, 2021.