AB3040:v99#DOCUMENTBill Start
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 3040
Introduced by Assembly Member Boerner
|
February 16, 2024 |
An act to add Section 11558 to the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 3040, as introduced, Boerner.
Liability policies: lawsuits.
Existing law generally regulates classes of insurance, including liability insurance. Existing law generally regulates provisions in liability insurance policies and sets forth requirements for lawsuits filed as a result of injury covered by a liability insurance policy. Under existing caselaw, a “suit” or “lawsuit” as used in a liability insurance policy is construed against the insurer to protect the insured’s reasonable expectation of coverage, and therefore those terms include administrative adjudications.
This bill would codify that existing caselaw by specifying that, in addition to a lawsuit filed in a court of law, a “suit” or “lawsuit” as those terms are used in a liability insurance policy include an order, directive, mandate, requirement, or other regulatory enforcement action or agreement by any federal, state, or local agency with
jurisdiction to enforce environmental laws or regulations requiring an insured party to take action with respect to contamination within the state. The bill would ensure this definition does not apply if its application is contrary to the intent of the parties to the policy.
Digest Key
Vote:
MAJORITY
Appropriation:
NO
Fiscal Committee:
YES
Local Program:
NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 11558 is added to the Insurance Code, to read:11558.
(a) In addition to a lawsuit filed in a court of law, a “suit” or “lawsuit” as those terms are used in a liability insurance policy include an order, directive, mandate, requirement, or other regulatory enforcement action or agreement by any federal, state, or local agency with jurisdiction to enforce environmental laws or regulations requiring an insured party to take action with respect to contamination within the state, including, without limitation, the United States Environmental Protection Agency, California Environmental Protection Agency, State Water Resources Control Board, California Regional Water Quality Control Boards, Department of Toxic Substances Control, and county environmental health departments.(b) “Suit” or “lawsuit” as used
in this section includes formal judicial proceedings and administrative proceedings, including the issuance of an order, directive, mandate, requirement, or other regulatory enforcement action or agreement that is or could lead to an administrative adjudicative proceeding under state or federal law, including actions resolving liability pursuant to written voluntary agreements, consent decrees, and consent orders.
(c) The rules of construction set forth in this section do not apply if the application of the rule results in an interpretation contrary to the intent of the parties to the liability insurance policy.