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AB-1564 Small business guide to commercial insurance.(2021-2022)

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Date Published: 03/01/2021 09:00 PM
AB1564:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1564


Introduced by Committee on Insurance

March 01, 2021


An act to amend Section 10108 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 1564, as introduced, Committee on Insurance. Small business guide to commercial insurance.
Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law requires the Insurance Commissioner to develop a pamphlet to provide specified information to small business owners and others on the key features of, and suggested ways of, purchasing commercial property insurance. Existing law requires the pamphlet, to the extent feasible, to be made available to persons operating small businesses, business groups, chambers of commerce, and other persons and groups.
Commencing on July 1, 2023, and at least every five years thereafter, this bill would require the Insurance Commissioner to complete a revision of that pamphlet. The bill would also make technical, nonsubstantive changes to those provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 10108 of the Insurance Code is amended to read:

10108.
 (a) The commissioner shall develop a pamphlet which that provides information to small business owners and others on the key features of, and suggested ways of, purchasing commercial property insurance. The commissioner may develop this pamphlet with the assistance of an advisory panel consisting of persons representing small business owners, insurers, and consumer organizations, and other persons deemed necessary by the commissioner.
(b) The pamphlet shall be completed by July 1, 1995, and to To the extent feasible, copies of the pamphlet shall be made available to persons operating small businesses, business groups, chambers of commerce, and other persons and groups.
(c) The pamphlet shall provide information on the key features of commercial property insurance and recommend steps for purchasing this insurance. The pamphlet shall include, but not be limited to, providing information on the following:
(1) Various types of commercial insurance.
(2) Limits of liability in policies, including that limits for the following:
(A) Structures.
(B) Personal property.
(C) Inventory.
(D) Business interruption.
(3) Deductibles.
(d) Commencing on July 1, 2023, and at least every five years thereafter, the commissioner shall complete a revision of the pamphlet required under this section.