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AB-1315 Small business guide to commercial insurance.(2023-2024)



Current Version: 03/09/23 - Amended Assembly

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AB1315:v98#DOCUMENT

Amended  IN  Assembly  March 09, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1315

Introduced by Assembly Member Calderon

February 16, 2023

An act to amend Section 1971 10108 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 1315, as amended, Calderon. Marine 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, 2024, and at least every 5 years thereafter, this bill would require the commissioner to complete a revision of that pamphlet. The bill would also make technical, nonsubstantive changes to those provisions.

Existing law generally regulates classes of insurance, including marine insurance. Under existing law, an insured may recover for a constructive total loss under a marine insurance policy in specified circumstances, including if the subject matter of the policy is injured to such an extent as to reduce its value more than half.

This bill would make technical, nonsubstantive changes to that provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   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 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, 2024, and at least every five years thereafter, the commissioner shall complete a revision of the pamphlet required under this section.

SECTION 1.Section 1971 of the Insurance Code is amended to read:
1971.

In marine insurance, after abandonment of the subject matter of insurance or of any particular portion thereof that is separately valued by the policy or otherwise separately insured, if the cause of the loss is a peril insured against the insured may recover for a total loss, as described in Section 1963, if any of the following circumstances is true:

(a)More than half in value of the subject matter is actually lost by the peril, or would have to be expended to recover it from the peril.

(b)The subject matter is injured to such an extent as to reduce its value more than half.

(c)The subject matter is a ship, and either the contemplated voyage can not be lawfully performed without incurring either an expense to the insured of more than half the value of the ship abandoned or a risk that a prudent person would not take under the circumstances.

(d)The subject matter is cargo or freightage and the voyage can not be performed, nor another ship procured by the master to forward the cargo, within a reasonable time, with reasonable diligence, and without incurring an expense to the insured of more than half the value of the subject matter or a risk that a prudent person would not take under the circumstances. However, freightage cannot be abandoned unless the ship also is abandoned.