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AB-1439 Property insurance discounts.(2021-2022)

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Date Published: 04/06/2021 09:00 PM
AB1439:v98#DOCUMENT

Amended  IN  Assembly  April 06, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1439


Introduced by Assembly Member Levine

February 19, 2021


An act to add Article 4 (commencing with Section 2090) to Chapter 2 of Part 1 of Division 2 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 1439, as amended, Levine. Residential property Property insurance discounts.
Existing law generally regulates classes of insurance, including residential and commercial property insurance. The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, prohibits specified insurance rates from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act. The act requires an insurer that wishes to change a rate to file a complete rate application with the Insurance Commissioner, for which there may be a hearing, as prescribed. Existing law authorizes the provisions of Proposition 103 to be amended by a statute that furthers the purposes of the act and is enacted by the Legislature with a 2/3 vote.
This bill would require a residential or commercial property insurance policy issued, amended, or renewed on or after January 1, 2022, to include a discount if a local government of the jurisdiction where the insured property is located funds a local wildfire protection or mitigation program. Because the bill would mandate discounts for specified residential property insurance policies, thus affecting the commissioner’s consideration of a rate, the bill would amend Proposition 103.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Article 4 (commencing with Section 2090) is added to Chapter 2 of Part 1 of Division 2 of the Insurance Code, to read:
Article  4. Wildfire Areas

2090.
 A residential or commercial property insurance policy issued, amended, or renewed on or after January 1, 2022, shall include a discount if a local government of the jurisdiction where the insured property is located funds a local wildfire protection or mitigation program, either by ordinance or by a measure approved by the voters.