AB 499: Insurance: earthquake: mandatory offer.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-09-24
Existing law provides that a policy of residential property insurance may not be issued or delivered or, under certain circumstances, initially renewed by an insurer unless the named insured is offered coverage for loss or damage caused by an earthquake. The required offer of earthquake coverage is authorized to be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy and must contain certain disclosure language. Existing law provides that when the insurer, agent, or broker establishes delivery of the disclosure form by obtaining the signature of the applicant or insured, or when an insurer, agent, or broker provides the applicant with the disclosure form and the applicant does not return a signed acknowledgment of receipt within 60 days of the date it was provided, there is a conclusive presumption that the insurer, agent, or broker has complied with the disclosure requirements.
This bill would delete the above presumption.
Existing law requires that if an offer of earthquake coverage is accepted, the coverage continues at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer. At any renewal, an insurer is authorized to modify the terms and conditions of an existing earthquake insurance policy, rider, or endorsement as long as the modified terms and conditions provide the minimum insurance coverages required and the insurer provides the insured with a stand-alone document disclosing the changes, as specified.
This bill would, among other things, instead require an insurer modifying the terms and conditions of an existing earthquake insurance policy, rider, or endorsement at renewal to provide the insured with the stand-alone document disclosing the changes when the modification of the terms and conditions reduces or substantially differs from the coverage previously provided to the insured.
Existing law provides that proof of mailing of the offer by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application, or proof that the offer of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the offer was made.
This bill would, among other things, add that if an offer, disclosure, or document required to be delivered is not mailed, but hand delivered to the insured, the insureds signed receipt would create a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
This bill would also make technical and clarifying changes.
This bill would provide that specified provisions of the act would only become operative if AB 2591 is enacted and takes effect on or before January 1, 2017.
Existing law provides that a policy of residential property insurance may not be issued or delivered or, under certain circumstances, initially renewed by an insurer unless the named insured is offered coverage for loss or damage caused by an earthquake. The required offer of earthquake coverage is authorized to be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy and must contain certain disclosure language. Existing law provides that when the insurer, agent, or broker establishes delivery of the disclosure form by obtaining the signature of the applicant or insured, or when an insurer, agent, or broker provides the applicant with the disclosure form and the applicant does not return a signed acknowledgment of receipt within 60 days of the date it was provided, there is a conclusive presumption that the insurer, agent, or broker has complied with the disclosure requirements.
This bill would delete the above presumption.
Existing law requires that if an offer of earthquake coverage is accepted, the coverage continues at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer. At any renewal, an insurer is authorized to modify the terms and conditions of an existing earthquake insurance policy, rider, or endorsement as long as the modified terms and conditions provide the minimum insurance coverages required and the insurer provides the insured with a stand-alone document disclosing the changes, as specified.
This bill would, among other things, instead require an insurer modifying the terms and conditions of an existing earthquake insurance policy, rider, or endorsement at renewal to provide the insured with the stand-alone document disclosing the changes when the modification of the terms and conditions reduces or substantially differs from the coverage previously provided to the insured.
Existing law provides that proof of mailing of the offer by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application, or proof that the offer of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the offer was made.
This bill would, among other things, add that if an offer, disclosure, or document required to be delivered is not mailed, but hand delivered to the insured, the insureds signed receipt would create a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
This bill would also make technical and clarifying changes.
This bill would provide that specified provisions of the act would only become operative if AB 2591 is enacted and takes effect on or before January 1, 2017.
Existing law provides that a policy of residential property insurance may not be issued or delivered or, under certain circumstances, initially renewed by an insurer unless the named insured is offered coverage for loss or damage caused by an earthquake. The required offer of earthquake coverage is authorized to be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy and must contain certain disclosure language. Existing law provides that when the insurer, agent, or broker establishes delivery of the disclosure form by obtaining the signature of the applicant or insured, or when an insurer, agent, or broker provides the applicant with the disclosure form and the applicant does not return a signed acknowledgment of receipt within 60 days of the date it was provided, there is a conclusive presumption that the insurer, agent, or broker has complied with the disclosure requirements.
This bill would delete the above presumption.
Existing law requires that if an offer of earthquake coverage is accepted, the coverage continues at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer. At any renewal, an insurer is authorized to modify the terms and conditions of an existing earthquake insurance policy, rider, or endorsement as long as the modified terms and conditions provide the minimum insurance coverages required and the insurer provides the insured with a stand-alone document disclosing the changes, as specified.
This bill would, among other things, instead require an insurer modifying the terms and conditions of an existing earthquake insurance policy, rider, or endorsement at renewal to provide the insured with the stand-alone document disclosing the changes when the modification of the terms and conditions reduces or substantially differs from the coverage previously provided to the insured.
Existing law provides that proof of mailing of the offer by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application, or proof that the offer of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the offer was made.
This bill would, among other things, add that if an offer, disclosure, or document required to be delivered is not mailed, but hand delivered to the insured, the insureds signed receipt would create a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
This bill would also make technical and clarifying changes.
This bill would provide that specified provisions of the act would only become operative if AB 2591 is enacted and takes effect on or before January 1, 2017.
Existing law establishes an archery season for the taking of deer with bow and arrow. Existing law generally prohibits a person taking or attempting to take deer during that archery season from carrying, or having under his or her immediate control, a firearm of any kind, except for an active or honorably retired peace officer, as specified.
This bill would authorize a person with a valid license to carry a firearm capable of being concealed on the person, consistent with the terms of that license, while engaged in the taking of deer with bow and arrow as long as he or she does not take or attempt to take deer with the firearm.
Existing law establishes an archery season for the taking of deer with bow and arrow. Existing law generally prohibits a person taking or attempting to take deer during that archery season from carrying, or having under his or her immediate control, a firearm of any kind, except for an active or honorably retired peace officer, as specified.
This bill would authorize a person with a valid license to carry a firearm capable of being concealed on the person, consistent with the terms of that license, while engaged in the taking of deer with bow and arrow as long as he or she does not take or attempt to take deer with the firearm.
(a)The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy. If the offer of coverage is mailed to the named insured or applicant, it shall be mailed to the mailing address shown on the policy of residential property insurance or on the application. The offer may be made electronically pursuant to Section 38.5.
(1)If the offer is made by a nonparticipating insurer as defined in Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: ______________
(B)Deductible: ______________
(C)Contents Coverage Limit: ________________
(D)Additional Living Expenses Coverage Limit: _________________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(2)If the offer is made by a participating insurer as defined by Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
If you choose not to accept this offer within the 30-day period, you may apply for earthquake coverage at a later date.
Your insurance company contracts with the California Earthquake Authority (CEA) to offer earthquake insurance to its customers. For an additional premium, you can choose CEA coverage options such as higher limits for Contents or Additional Living Expenses, increased building code upgrade limits, or a lower deductible. You can also choose to buy certain CEA coverages separately.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)The offer may contain additional provisions not in conflict with or in derogation of this section.
(d)The commissioner may approve modifications to the language prescribed in subdivision (a) only if all of the following conditions are met:
(1)The modifications are not in conflict with or in derogation of any provision of this section or Section 10089.
(2)The modifications accurately describe the coverage provided by the policy being offered.
(3)The modifications are strictly limited to necessary changes so that the modified offer is otherwise identical to the offer prescribed in subdivision (a).
(e)Use of the language prescribed by this section, or modified language approved pursuant to subdivision (d), shall constitute compliance with the requirements of Section 10081 by an insurer subject to the requirements.
(f)(1)If an insurer issues or causes to be issued a policy with earthquake coverages other than the coverages specified in subdivisions (a) and (b) of Section 10089, pursuant to a rate application approved by the commissioner in accordance with subdivision (c) of Section 10089, no further or other offer of earthquake coverage as specified in subdivisions (a) and (b) of Section 10089 and no further or other notice of noncoverage is required by the insurer if both of the following apply:
(A)A renewal of that policy is offered.
(B)A written notice is provided with that renewal regarding additional earthquake coverage that is available.
(2)The form of the written notice in paragraph (1) shall be filed with the commissioner at least 30 days before its first use. The form shall not be used if the commissioner disapproves the form of the written notice within that period for being misleading or incomplete.
(g)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 2.Section 10083 of the Insurance Code, as amended by Section 2.5 of Chapter 427 of the Statutes of 2014, is amended to read:10083.(a)The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy. If the offer of coverage is mailed to the named insured or applicant, it shall be mailed to the mailing address shown on the policy of residential property insurance or on the application.
(1)If the offer is made by a nonparticipating insurer as defined in Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(2)If the offer is made by a participating insurer as defined by Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
If you choose not to accept this offer within the 30-day period, you may apply for earthquake coverage at a later date.
Your insurance company contracts with the California Earthquake Authority (CEA) to offer earthquake insurance to its customers. For an additional premium, you can choose CEA coverage options such as higher limits for Contents or Additional Living Expenses, increased building code upgrade limits, or a lower deductible. You can also choose to buy certain CEA coverages separately.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)The offer may contain additional provisions not in conflict with or in derogation of this section.
(d)The commissioner may approve modifications to the language prescribed in subdivision (a) only if all of the following conditions are met:
(1)The modifications are not in conflict with or in derogation of any provision of this section or Section 10089.
(2)The modifications accurately describe the coverage provided by the policy being offered.
(3)The modifications are strictly limited to necessary changes so that the modified offer is otherwise identical to the offer prescribed in subdivision (a).
(e)Use of the language prescribed by this section, or modified language approved pursuant to subdivision (d), shall constitute compliance with the requirements of Section 10081 by an insurer subject thereto.
(f)(1)If an insurer issues or causes to be issued a policy with earthquake coverages other than the coverages specified in subdivisions (a) and (b) of Section 10089, pursuant to a rate application approved by the commissioner in accordance with subdivision (c) of Section 10089, no further or other offer of earthquake coverage as specified in subdivisions (a) and (b) of Section 10089 and no further or other notice of noncoverage is required by the insurer if both of the following apply:
(A)A renewal of that policy is offered.
(B)A written notice is provided with that renewal regarding additional earthquake coverage that is available.
(2)The form of the written notice in paragraph (1) shall be filed with the commissioner at least 30 days before its first use. The form shall not be used if the commissioner disapproves the form of the written notice within that period for being misleading or incomplete.
(g)This section shall become operative on January 1, 2019.
SEC. 3.Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The offer of renewal may be made electronically pursuant to Section 38.5. Proof of mailing of the offer of renewal by first-class mail to a named insured at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of renewal of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the offer of renewal was provided. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
(3)The commissioner shall approve the offer of renewal at the time he or she approves the policy. The offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
(4)The commissioner may approve a substantially similar form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder.
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(c)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 3.5.Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, is repealed.SEC. 4.Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
(3)The commissioner shall approve the form of the offer of renewal at the time he or she approves the policy. The offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
(4)The commissioner may approve a substantially similar form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder.
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(c)This section shall become operative on January 1, 2019.
SEC. 4.5.Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
(3)The commissioner shall approve the form of the offer of renewal at the time he or she approves the policy. The offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
(4)The commissioner may approve a substantially similar form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder.
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
SEC. 5.Section 10087 of the Insurance Code, as amended by Section 16 of Chapter 369 of the Statutes of 2013, is amended to read:10087.(a)As used in this chapter, policy of residential property insurance shall mean a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes or a tenants policy insuring personal contents of a residential unit located in this state. Policy of residential property insurance, as defined, shall not include insurance for real property or its contents used for any commercial, industrial, or business purpose, except a structure of not more than four dwelling units rented for individual residential purposes. A policy that does not include any of the perils insured against in a standard fire policy shall not be included in the definition of policy of residential property insurance.
(b)Proof of mailing of any offer, disclosure, or document required to be delivered by this chapter by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of coverage was sent to the named insured or applicant by electronic transmission, shall create a conclusive presumption that the offer was made or that the disclosure or document was delivered as required. If an offer, disclosure, or document required to be delivered by this chapter is not mailed, but is hand delivered to the insured, the insureds signed receipt creates a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
(c)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 6.Section 10087 of the Insurance Code, as added by Section 17 of Chapter 369 of the Statutes of 2013, is amended to read:10087.(a)As used in this chapter policy of residential property insurance shall mean a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes or a tenants policy insuring personal contents of a residential unit located in this state. Policy of residential property insurance, as defined, shall not include insurance for real property or its contents used for any commercial, industrial or business purpose, except a structure of not more than four dwelling units rented for individual residential purposes. A policy that does not include any of the perils insured against in a standard fire policy shall not be included in the definition of policy of residential property insurance.
(b)Proof of mailing of any offer, disclosure, or document required to be delivered by this chapter by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application shall create a conclusive presumption that the offer was made or that the disclosure or document was delivered as required. If an offer, disclosure, or document required to be delivered by this chapter is not mailed, but is hand delivered to the insured, the insureds signed receipt creates a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
(c)This section shall become operative on January 1, 2019.
SEC. 7.(a)Section 3.5 of this bill, which repeals Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, shall become operative only if Assembly Bill 2591 of the 201516 Regular Session is enacted and takes effect on or before January 1, 2017, in which case Section 3 of this bill shall not become operative.
(b)Section 4.5 of this bill, which amends Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, shall become operative only if Assembly Bill 2591 of the 201516 Regular Session is enacted and takes effect on or before January 1, 2017, in which case Section 4 of this bill shall not become operative.
(a)The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy. If the offer of coverage is mailed to the named insured or applicant, it shall be mailed to the mailing address shown on the policy of residential property insurance or on the application. The offer may be made electronically pursuant to Section 38.5.
(1)If the offer is made by a nonparticipating insurer as defined in Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: ______________
(B)Deductible: ______________
(C)Contents Coverage Limit: ________________
(D)Additional Living Expenses Coverage Limit: _________________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(2)If the offer is made by a participating insurer as defined by Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
If you choose not to accept this offer within the 30-day period, you may apply for earthquake coverage at a later date.
Your insurance company contracts with the California Earthquake Authority (CEA) to offer earthquake insurance to its customers. For an additional premium, you can choose CEA coverage options such as higher limits for Contents or Additional Living Expenses, increased building code upgrade limits, or a lower deductible. You can also choose to buy certain CEA coverages separately.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)The offer may contain additional provisions not in conflict with or in derogation of this section.
(d)The commissioner may approve modifications to the language prescribed in subdivision (a) only if all of the following conditions are met:
(1)The modifications are not in conflict with or in derogation of any provision of this section or Section 10089.
(2)The modifications accurately describe the coverage provided by the policy being offered.
(3)The modifications are strictly limited to necessary changes so that the modified offer is otherwise identical to the offer prescribed in subdivision (a).
(e)Use of the language prescribed by this section, or modified language approved pursuant to subdivision (d), shall constitute compliance with the requirements of Section 10081 by an insurer subject to the requirements.
(f)(1)If an insurer issues or causes to be issued a policy with earthquake coverages other than the coverages specified in subdivisions (a) and (b) of Section 10089, pursuant to a rate application approved by the commissioner in accordance with subdivision (c) of Section 10089, no further or other offer of earthquake coverage as specified in subdivisions (a) and (b) of Section 10089 and no further or other notice of noncoverage is required by the insurer if both of the following apply:
(A)A renewal of that policy is offered.
(B)A written notice is provided with that renewal regarding additional earthquake coverage that is available.
(2)The form of the written notice in paragraph (1) shall be filed with the commissioner at least 30 days before its first use. The form shall not be used if the commissioner disapproves the form of the written notice within that period for being misleading or incomplete.
(g)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 2.Section 10083 of the Insurance Code, as amended by Section 2.5 of Chapter 427 of the Statutes of 2014, is amended to read:10083.(a)The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy. If the offer of coverage is mailed to the named insured or applicant, it shall be mailed to the mailing address shown on the policy of residential property insurance or on the application.
(1)If the offer is made by a nonparticipating insurer as defined in Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(2)If the offer is made by a participating insurer as defined by Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
If you choose not to accept this offer within the 30-day period, you may apply for earthquake coverage at a later date.
Your insurance company contracts with the California Earthquake Authority (CEA) to offer earthquake insurance to its customers. For an additional premium, you can choose CEA coverage options such as higher limits for Contents or Additional Living Expenses, increased building code upgrade limits, or a lower deductible. You can also choose to buy certain CEA coverages separately.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)The offer may contain additional provisions not in conflict with or in derogation of this section.
(d)The commissioner may approve modifications to the language prescribed in subdivision (a) only if all of the following conditions are met:
(1)The modifications are not in conflict with or in derogation of any provision of this section or Section 10089.
(2)The modifications accurately describe the coverage provided by the policy being offered.
(3)The modifications are strictly limited to necessary changes so that the modified offer is otherwise identical to the offer prescribed in subdivision (a).
(e)Use of the language prescribed by this section, or modified language approved pursuant to subdivision (d), shall constitute compliance with the requirements of Section 10081 by an insurer subject thereto.
(f)(1)If an insurer issues or causes to be issued a policy with earthquake coverages other than the coverages specified in subdivisions (a) and (b) of Section 10089, pursuant to a rate application approved by the commissioner in accordance with subdivision (c) of Section 10089, no further or other offer of earthquake coverage as specified in subdivisions (a) and (b) of Section 10089 and no further or other notice of noncoverage is required by the insurer if both of the following apply:
(A)A renewal of that policy is offered.
(B)A written notice is provided with that renewal regarding additional earthquake coverage that is available.
(2)The form of the written notice in paragraph (1) shall be filed with the commissioner at least 30 days before its first use. The form shall not be used if the commissioner disapproves the form of the written notice within that period for being misleading or incomplete.
(g)This section shall become operative on January 1, 2019.
SEC. 3.Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The offer of renewal may be made electronically pursuant to Section 38.5. Proof of mailing of the offer of renewal by first-class mail to a named insured at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of renewal of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the offer of renewal was provided. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
(3)The commissioner shall approve the offer of renewal at the time he or she approves the policy. The offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
(4)The commissioner may approve a substantially similar form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder.
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(c)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 3.5.Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, is repealed.SEC. 4.Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
(3)The commissioner shall approve the form of the offer of renewal at the time he or she approves the policy. The offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
(4)The commissioner may approve a substantially similar form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder.
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(c)This section shall become operative on January 1, 2019.
SEC. 4.5.Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
(3)The commissioner shall approve the form of the offer of renewal at the time he or she approves the policy. The offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
(4)The commissioner may approve a substantially similar form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder.
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
SEC. 5.Section 10087 of the Insurance Code, as amended by Section 16 of Chapter 369 of the Statutes of 2013, is amended to read:10087.(a)As used in this chapter, policy of residential property insurance shall mean a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes or a tenants policy insuring personal contents of a residential unit located in this state. Policy of residential property insurance, as defined, shall not include insurance for real property or its contents used for any commercial, industrial, or business purpose, except a structure of not more than four dwelling units rented for individual residential purposes. A policy that does not include any of the perils insured against in a standard fire policy shall not be included in the definition of policy of residential property insurance.
(b)Proof of mailing of any offer, disclosure, or document required to be delivered by this chapter by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of coverage was sent to the named insured or applicant by electronic transmission, shall create a conclusive presumption that the offer was made or that the disclosure or document was delivered as required. If an offer, disclosure, or document required to be delivered by this chapter is not mailed, but is hand delivered to the insured, the insureds signed receipt creates a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
(c)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 6.Section 10087 of the Insurance Code, as added by Section 17 of Chapter 369 of the Statutes of 2013, is amended to read:10087.(a)As used in this chapter policy of residential property insurance shall mean a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes or a tenants policy insuring personal contents of a residential unit located in this state. Policy of residential property insurance, as defined, shall not include insurance for real property or its contents used for any commercial, industrial or business purpose, except a structure of not more than four dwelling units rented for individual residential purposes. A policy that does not include any of the perils insured against in a standard fire policy shall not be included in the definition of policy of residential property insurance.
(b)Proof of mailing of any offer, disclosure, or document required to be delivered by this chapter by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application shall create a conclusive presumption that the offer was made or that the disclosure or document was delivered as required. If an offer, disclosure, or document required to be delivered by this chapter is not mailed, but is hand delivered to the insured, the insureds signed receipt creates a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
(c)This section shall become operative on January 1, 2019.
SEC. 7.(a)Section 3.5 of this bill, which repeals Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, shall become operative only if Assembly Bill 2591 of the 201516 Regular Session is enacted and takes effect on or before January 1, 2017, in which case Section 3 of this bill shall not become operative.
(b)Section 4.5 of this bill, which amends Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, shall become operative only if Assembly Bill 2591 of the 201516 Regular Session is enacted and takes effect on or before January 1, 2017, in which case Section 4 of this bill shall not become operative.
(a)The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy. If the offer of coverage is mailed to the named insured or applicant, it shall be mailed to the mailing address shown on the policy of residential property insurance or on the application. The offer may be made electronically pursuant to Section 38.5.
(1)If the offer is made by a nonparticipating insurer as defined in Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: ______________
(B)Deductible: ______________
(C)Contents Coverage Limit: ________________
(D)Additional Living Expenses Coverage Limit: _________________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(2)If the offer is made by a participating insurer as defined by Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
If you choose not to accept this offer within the 30-day period, you may apply for earthquake coverage at a later date.
Your insurance company contracts with the California Earthquake Authority (CEA) to offer earthquake insurance to its customers. For an additional premium, you can choose CEA coverage options such as higher limits for Contents or Additional Living Expenses, increased building code upgrade limits, or a lower deductible. You can also choose to buy certain CEA coverages separately.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(b)When the insurer, agent, or broker establishes delivery of the disclosure form by obtaining the signature of the applicant or insured, or when an insurer, agent, or broker provides the applicant with the disclosure form and the applicant does not return a signed acknowledgment of receipt within 60 days of the date it was provided, there shall be a conclusive presumption that the insurer, agent, or broker has complied with the disclosure requirements of this section.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)The offer may contain additional provisions not in conflict with or in derogation of this section.
(d)The commissioner may only approve modifications to the language prescribed in subdivision (a) only if all of the following conditions are met:
(1)The modifications are not in conflict with or in derogation of any provision of this section or Section 10089.
(2)The modifications are necessary to ensure that the disclosure statement accurately reflects the coverage actually accurately describe the coverage provided by the policy being offered.
(3)The modifications are strictly limited to necessary changes so that the modified disclosure statement offer is otherwise identical to the disclosure statement prescribed in this section. offer prescribed in subdivision (a).
(e)Use of the language prescribed by this section, or modified language approved pursuant to subdivision (d), shall constitute compliance with the requirements of Section 10081 by an insurer subject to the requirements.
(f)(1)If an insurer issues or causes to be issued a policy with earthquake coverages other than the coverages specified in subdivisions (a) and (b) of Section 10089, pursuant to a rate application approved by the commissioner in accordance with subdivision (c) of Section 10089, no further or other offer of earthquake coverage as specified in subdivisions (a) and (b) of Section 10089 and no further or other notice of noncoverage is required by the insurer if both of the following apply:
(A)A renewal of that policy is offered.
(B)A written notice is provided with that renewal regarding additional earthquake coverage that is available.
(2)The form of the written notice in paragraph (1) shall be filed with the commissioner at least 30 days before its first use. The form shall not be used if the commissioner disapproves the form of the written notice within that period for being misleading or incomplete.
(g)This section shall become operative on January 1, 2016.
(h)
(g)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 2.Section 10083 of the Insurance Code, as amended by Section 2.5 of Chapter 427 of the Statutes of 2014, is amended to read:10083.(a)The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy. If the offer of coverage is mailed to the named insured or applicant, it shall be mailed to the mailing address shown on the policy of residential property insurance or on the application.
(1)If the offer is made by a nonparticipating insurer as defined in Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(2)If the offer is made by a participating insurer as defined by Section 10089.5, the offer of earthquake coverage shall contain all of the following language in at least 10-point boldface type:
Your residential property insurance policy does not cover earthquake damage to your home or its contents.
To cover earthquake damage to your home and its contents you need to purchase a separate earthquake insurance policy. The coverage provided by an earthquake insurance policy is different from, and typically more limited than, the coverage provided by your residential property insurance policy.
California law requires insurance companies to offer earthquake insurance in conjunction with a residential property insurance policy. If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.
You may purchase earthquake insurance coverage on the following terms:
(A)Amount of Dwelling/Building Coverage Limit: _______________
(B)Deductible: ______________
(C)Contents Coverage Limit: _______________
(D)Additional Living Expenses Coverage Limit: _____________
(E)Estimated Annual Premium:_______________
The deductible represents the amount of damage your covered property must incur before the earthquake insurance coverage begins. If your covered loss is less than the applicable deductible, you may not receive any payment.
If you choose not to accept this offer within the 30-day period, you may apply for earthquake coverage at a later date.
Your insurance company contracts with the California Earthquake Authority (CEA) to offer earthquake insurance to its customers. For an additional premium, you can choose CEA coverage options such as higher limits for Contents or Additional Living Expenses, increased building code upgrade limits, or a lower deductible. You can also choose to buy certain CEA coverages separately.
Contact your insurance agent or your insurance company to obtain details regarding this offer of earthquake insurance and other coverage options.
(b)When the insurer, agent, or broker establishes delivery of the disclosure form by obtaining the signature of the applicant or insured, or when an insurer, agent, or broker provides the applicant with the disclosure form and the applicant does not return a signed acknowledgment of receipt within 60 days of the date it was provided, there shall be a conclusive presumption that the insurer, agent, or broker has complied with the disclosure requirements of this section.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)The offer may contain additional provisions not in conflict with or in derogation of this section.
(d)The commissioner may only approve modifications to the language prescribed in subdivision (a) only if all of the following conditions are met:
(1)The modifications are not in conflict with or in derogation of any provision of this section or Section 10089.
(2)The modifications are necessary to ensure that the disclosure statement accurately reflects the coverage actually accurately describe the coverage provided by the policy being offered.
(3)The modifications are strictly limited to necessary changes so that the modified disclosure statement offer is otherwise identical to the disclosure statement prescribed in this section. offer prescribed in subdivision (a).
(e)Use of the language prescribed by this section, or modified language approved pursuant to subdivision (d), shall constitute compliance with the requirements of Section 10081 by an insurer subject thereto.
(f)(1)If an insurer issues or causes to be issued a policy with earthquake coverages other than the coverages specified in subdivisions (a) and (b) of Section 10089, pursuant to a rate application approved by the commissioner in accordance with subdivision (c) of Section 10089, no further or other offer of earthquake coverage as specified in subdivisions (a) and (b) of Section 10089 and no further or other notice of noncoverage is required by the insurer if both of the following apply:
(A)A renewal of that policy is offered.
(B)A written notice is provided with that renewal regarding additional earthquake coverage that is available.
(2)The form of the written notice in paragraph (1) shall be filed with the commissioner at least 30 days before its first use. The form shall not be used if the commissioner disapproves the form of the written notice within that period for being misleading or incomplete.
(g)This section shall become operative on January 1, 2019.
SEC. 3.Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)An insurer that modifies the terms and conditions of an existing policy, rider, or endorsement shall provide the insured with the renewal notice in a stand-alone disclosure document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The offer of renewal may be made electronically pursuant to Section 38.5. Proof of mailing of the disclosure document by first-class mail to a named insured at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of renewal of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the disclosure document was provided. The disclosure shall include the following statement in 14-point boldface type:
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The offer of renewal may be made electronically pursuant to Section 38.5. Proof of mailing of the offer of renewal by first-class mail to a named insured at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of renewal of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the offer of renewal was provided. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
The
(3)The commissioner shall approve the form of the summary offer of renewal at the time he or she approves the policy. The summary offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
The
(4)The commissioner may approve a substantially similar disclosure forms form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder. The commissioner may also approve disclosure forms substantially similar to the disclosure statement required by Section 10083 if necessary to accurately disclose relevant information to the policyholder.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance. The offer may be made electronically pursuant to Section 38.5.
(c)
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(d)This section shall become operative on January 1, 2016.
(e)
(c)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 3.5.Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, is repealed.10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)An insurer that modifies the terms and conditions of an existing policy, rider, or endorsement shall provide the insured with the renewal notice in a stand-alone disclosure document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The offer of renewal may be made electronically pursuant to Section 38.5. Proof of mailing of the disclosure document by first-class mail to a named insured at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of renewal of coverage was sent to the named insured or applicant by electronic transmission, creates a conclusive presumption that the disclosure document was provided. The disclosure shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
The commissioner shall approve the form of the summary at the time he or she approves the policy. The summary shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
The commissioner may approve substantially similar disclosure forms if necessary to accurately disclose relevant information to the policyholder. The commissioner may also approve disclosure forms substantially similar to the disclosure statement required by Section 10083 if necessary to accurately disclose relevant information to the policyholder.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance. The offer may be made electronically pursuant to Section 38.5.
(c)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(d)This section shall become operative on January 1, 2016.
(e)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 4.Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)An insurer that modifies the terms and conditions of an existing policy, rider, or endorsement shall provide the insured with the renewal notice in a stand-alone disclosure document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. Proof of mailing of the disclosure document by first-class mail to a named insured at the mailing address shown on the policy or application creates a conclusive presumption that the disclosure document was provided. The disclosure shall include the following statement in 14-point boldface type:
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
The
(3)The commissioner shall approve the form of the summary offer of renewal at the time he or she approves the policy. The summary offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
The
(4)The commissioner may approve a substantially similar disclosure forms form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder. The commissioner may also approve disclosure forms substantially similar to the disclosure statement required by Section 10083 if necessary to accurately disclose relevant information to the policyholder.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(d)
(c)This section shall become operative on January 1, 2019.
SEC. 4.5.Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, is amended to read:10086.(a)If an offer of earthquake coverage, made pursuant to Section 10081, is accepted, the coverage shall be continued at the applicable rates and conditions for the policy term, provided the policy of residential property insurance is not terminated by the named insured or insurer.
(1)At any renewal, an insurer may modify the terms and conditions of an existing policy, rider, or endorsement providing coverage against loss or damage caused by the peril of earthquake if the modified terms and conditions provide the minimum coverages required by Section 10089.
(2)An insurer that modifies the terms and conditions of an existing policy, rider, or endorsement shall provide the insured with the renewal notice in a stand-alone disclosure document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. Proof of mailing of the disclosure document by first-class mail to a named insured at the mailing address shown on the policy or application creates a conclusive presumption that the disclosure document was provided. The disclosure shall include the following statement in 14-point boldface type:
(2)If the modification referenced in paragraph (1) reduces or substantially differs from the coverage previously provided, an insurer shall provide the insured with the renewal offer required by Section 10083 and a stand-alone document stating the changes in the terms and conditions of the insureds existing policy, rider, or endorsement. The stand-alone document shall include the following statement in 14-point boldface type:
THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES PROVIDED BY YOUR HOMEOWNERS POLICY. INSURANCE COMPANIES ARE ALLOWED TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14 DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE. A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE.
The
(3)The commissioner shall approve the form of the summary offer of renewal at the time he or she approves the policy. The summary offer of renewal shall include the information contained in subdivision (a) of Section 10083, and may be included with the renewal notice in standard type.
The
(4)The commissioner may approve a substantially similar disclosure forms form of the offer of renewal if necessary to accurately disclose relevant information to the policyholder. The commissioner may also approve disclosure forms substantially similar to the disclosure statement required by Section 10083 if necessary to accurately disclose relevant information to the policyholder.
(b)If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.
(c)
(b)Nothing in this section shall preclude the named insured from terminating the earthquake coverage at any time.
(d)This section shall become operative on January 1, 2019.
SEC. 5.Section 10087 of the Insurance Code, as amended by Section 16 of Chapter 369 of the Statutes of 2013, is amended to read:10087.(a)As used in this chapter, policy of residential property insurance shall mean a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes or a tenants policy insuring personal contents of a residential unit located in this state. Policy of residential property insurance, as defined, shall not include insurance for real property or its contents used for any commercial, industrial, or business purpose, except a structure of not more than four dwelling units rented for individual residential purposes. A policy that does not include any of the perils insured against in a standard fire policy shall not be included in the definition of policy of residential property insurance.
(b)Proof of mailing of the offer any offer, disclosure, or document required to be delivered by this chapter by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application, or proof consistent with Section 38.5 that the offer of coverage was sent to the named insured or applicant by electronic transmission, shall create a conclusive presumption that the offer was made. made or that the disclosure or document was delivered as required. If an offer, disclosure, or document required to be delivered by this chapter is not mailed, but is hand delivered to the insured, the insureds signed receipt creates a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
(c)This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 6.Section 10087 of the Insurance Code, as added by Section 17 of Chapter 369 of the Statutes of 2013, is amended to read:10087.(a)As used in this chapter policy of residential property insurance shall mean a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes or a tenants policy insuring personal contents of a residential unit located in this state. Policy of residential property insurance, as defined, shall not include insurance for real property or its contents used for any commercial, industrial or business purpose, except a structure of not more than four dwelling units rented for individual residential purposes. A policy that does not include any of the perils insured against in a standard fire policy shall not be included in the definition of policy of residential property insurance.
(b)Proof of mailing of the offer any offer, disclosure, or document required to be delivered by this chapter by first-class mail addressed to a named insured or applicant at the mailing address shown on the policy or application shall create a conclusive presumption that the offer was made. made or that the disclosure or document was delivered as required. If an offer, disclosure, or document required to be delivered by this chapter is not mailed, but is hand delivered to the insured, the insureds signed receipt creates a conclusive presumption that the offer was provided or that the disclosure or document was delivered as required.
(c)This section shall become operative on January 1, 2019.
SEC. 7.(a)Section 3.5 of this bill, which repeals Section 10086 of the Insurance Code, as added by Section 5 of Chapter 419 of the Statutes of 2014, shall become operative only if Assembly Bill 2591 of the 201516 Regular Session is enacted and takes effect on or before January 1, 2017, in which case Section 3 of this bill shall not become operative.
(b)Section 4.5 of this bill, which amends Section 10086 of the Insurance Code, as amended by Section 6 of Chapter 419 of the Statutes of 2014, shall become operative only if Assembly Bill 2591 of the 201516 Regular Session is enacted and takes effect on or before January 1, 2017, in which case Section 4 of this bill shall not become operative.
SECTION 1.Section 4370 of the Fish and Game Code is amended to read:4370.(a)In every area in which deer may lawfully be taken during the general open season there is an archery season for the taking of deer with bow and arrow. The season for each area shall be as the commission may prescribe, with a minimum interposing interval of three days immediately preceding the regular open season on deer in that area. Except as provided in subdivision (b), a person taking or attempting to take deer during such archery season shall neither carry, nor have under his or her immediate control, any firearm of any kind.
(b)A peace officer listed in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, whether active or honorably retired, or a person with a valid license to carry a concealed firearm pursuant to Chapter 4 (commencing with Section 26150) of Division 5 of Title 4 of Part 6 of the Penal Code, consistent with the terms of that license, may carry a firearm capable of being concealed on his or her person while engaged in the taking of deer with bow and arrow in accordance with subdivision (a), but shall not take or attempt to take deer with the firearm.
(a)In every area in which deer may lawfully be taken during the general open season there is an archery season for the taking of deer with bow and arrow. The season for each area shall be as the commission may prescribe, with a minimum interposing interval of three days immediately preceding the regular open season on deer in that area. Except as provided in subdivision (b), a person taking or attempting to take deer during such archery season shall neither carry, nor have under his or her immediate control, any firearm of any kind.
(b)A peace officer listed in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, whether active or honorably retired, or a person with a valid license to carry a concealed firearm pursuant to Chapter 4 (commencing with Section 26150) of Division 5 of Title 4 of Part 6 of the Penal Code, consistent with the terms of that license, may carry a firearm capable of being concealed on his or her person while engaged in the taking of deer with bow and arrow in accordance with subdivision (a), but shall not take or attempt to take deer with the firearm.
|
Date
|
Status
|
|---|---|
| Jun 13, 2016 | Withdrawn from committee. |
| Sep 8, 2016 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 30, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 6446.). |
| Aug 30, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 25, 2016 | From committee: That the Senate amendments be concurred in. (Ayes 12. Noes 0.) (August 25). |
| Aug 1, 2016 | Re-referred to Com. on INS. pursuant to Assembly Rule 77.2. |
| Jun 30, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 4649.). |
| Jun 30, 2016 | Read third time. Passed. Ordered to the Assembly. |
| Jun 30, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 30 pursuant to Assembly Rule 77. |
| Jun 30, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 29 pursuant to Assembly Rule 77. |
| Jun 27, 2016 | Read second time. Ordered to Consent Calendar. |
| Jun 23, 2016 | From committee: Do pass. To Consent Calendar. (Ayes 8. Noes 0.) (June 22). |
| Jun 15, 2016 | Re-referred to Com. on INS. |
| Feb 23, 2015 | Read first time. To print. |
| Jun 13, 2016 | Re-referred to Com. on RLS. |
| Jun 9, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on N.R. & W. |
| Jun 19, 2015 | In committee: Set, second hearing. Hearing canceled at the request of author. |
| Jun 9, 2015 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| May 14, 2015 | Referred to Com. on N.R. & W. |
| May 4, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1263.) |
| May 4, 2015 | Read third time. Passed. Ordered to the Senate. |
| May 4, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 29, 2015 | Read second time. Ordered to Consent Calendar. |
| Apr 28, 2015 | From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (April 28). |
| Mar 5, 2015 | Referred to Com. on W., P., & W. |
| Feb 24, 2015 | From printer. May be heard in committee March 26. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 30, 2016 | AB 499 COOLEY Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 25, 2016 | With recommendation: That Senate amendments be concurred in. | Assembly Standing Committee on Insurance |
Passed |
|
| Jun 30, 2016 | Consent Calendar 2nd AB499 Cooley | Senate Floor |
Passed |
|
| Jun 22, 2016 | Do pass and be ordered to the Consent Calendar | Senate Standing Committee on Insurance |
Passed |
|
| May 4, 2015 | AB 499 COOLEY Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 28, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Water, Parks, and Wildlife |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association Of California Insurance Companies | ** Support | Aug 30, 2016 |
| California Rifle And Pistol Association, Inc. | ** Support | Aug 30, 2016 |
| California Sportsman's Lobby, Inc. | ** Support | Aug 30, 2016 |
| California Waterfowl | ** Support | Aug 30, 2016 |
| CSAA Insurance Group | ** Support | Aug 30, 2016 |
| John McMahon, Sheriff-Coroner, San Bernardino County | ** Support | Aug 30, 2016 |
| National Association of Mutual Insurance Companies | ** Support | Aug 30, 2016 |
| National Rifle Association of America | ** Support | Aug 30, 2016 |
| Outdoor Sportsmen's Association of California | ** Support | Aug 30, 2016 |
| Outdoor Sportsmen'S Coalition Of California | ** Support | Aug 30, 2016 |
| Pacific Association Of Domestic Insurance Companies | ** Support | Aug 30, 2016 |
| Safari Club International | ** Support | Aug 30, 2016 |
| Safari Club International, California Chapters | ** Support | Aug 30, 2016 |
| Sheriff Coroner John McMahon, San Bernardino County | ** Support | Aug 30, 2016 |
| Stan Sniff, Sheriff, Riverside County | ** Support | Aug 30, 2016 |
| The California Sportsmen's Lobby, Inc. | ** Support | Aug 30, 2016 |
CONCURRENCE IN SENATE AMENDMENTS
CSA2 Bill Id:AB 499
Author:(Cooley)
As Amended Ver:June 9, 2016
Majority vote
ASSEMBLY: | 78-0 | (May 04, 2015) | SENATE: | 37-0 | (June 30, 2016) |
COMMITTEE VOTE: | 12-0 | (August 25, 2016) | RECOMMENDATION: | concur |
Ins.
Original Committee Reference: INS.
SUMMARY: Clarifies existing law governing mandatory notices regarding earthquake insurance.
The Senate amendments removed the prior contents of the bill and inserted the current provisions that clarify the requirements for providing notice to the policyholder when earthquake insurance coverage is reduced upon renewal and add amendments to resolve potential chaptering out conflicts with Assembly Bill 2591 (Dababneh) of the current legislative session.
EXISTING LAW:
- Requires insurers providing homeowners' insurance coverage to offer earthquake insurance to the homeowner when issuing a policy and at least every other year thereafter.
- Requires insurers to provide specified notices regarding earthquake insurance to homeowners when offering homeowners' insurance policies.
- Requires an insurer, upon renewal, reducing the coverage of an earthquake policy to provide notice of the reduced coverage to the policyholder.
- Establishes the California Earthquake Authority (CEA) to provide earthquake insurance to policyholders of its participating insurers.
FISCAL EFFECT: Unknown
COMMENTS:
- Purpose. This bill clarifies existing requirements regarding when specific notices regarding earthquake insurance are required to be provided.
- Prior Legislation. In 2014, Assembly Bill 2064 (Cooley), Chapter 419, substantially revised the law governing the mandatory offer of earthquake insurance to make the notice more consumer friendly and hopefully increase the number of homeowners with earthquake insurance.
- California Earthquake Authority. The CEA was formed through legislation in 1995 and 1996 to address an insurance-availability crisis that followed the 1994 Northridge earthquake. After that earthquake, many homeowners found it difficult or impossible to find basic homeowner's insurance. Many others were faced with the prospect of having their homeowners' insurance non-renewed as insurance companies tried to shed their exposure to earthquake risk. Because state law requires insurers to offer earthquake insurance to their applicants and holders of residential policies, the insurers' retreat from the California market resulted in an availability crisis for both homeowners and earthquake insurance. The California Department of Insurance reported in the summer of 1996, at the height of the crisis, that 95% of the homeowners' insurance market had either stopped, or severely restricted, sales of new homeowners' policies.
After the CEA began operations in December 1996, the California homeowners' insurance market recovered quickly. A Department of Insurance report noted that at the peak of the availability crisis, 82 insurers had restricted the sale of new homeowners' insurance policies. By October 1997, only three insurers were restricting the sale of new policies. Since that time, the requirement to offer earthquake insurance has not been a factor in restricting the availability of homeowners' insurance.
Analysis Prepared by: Paul Riches / INS. / (916) 319-2086 FN: 0004950
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 499
Author:(Cooley)
As Amended Ver:June 9, 2016
Majority vote
ASSEMBLY: | 78-0 | (May 04, 2015) | SENATE: | 37-0 | (June 30, 2016) |
Original Committee Reference: W., P., & W.
SUMMARY: Clarifies existing law governing mandatory notices regarding earthquake insurance.
The Senate amendments remove the prior contents of the bill and insert the current provisions that clarify the requirements for providing notice to the policyholder when earthquake insurance coverage is reduced upon renewal and add amendments to resolve potential chaptering out conflicts with Assembly Bill 2591 (Dababneh) of the current legislative session.
EXISTING LAW:
- Requires insurers providing homeowners' insurance coverage to offer earthquake insurance to the homeowner when issuing a policy and at least every other year thereafter.
- Requires insurers to provide specified notices regarding earthquake insurance to homeowners when offering homeowners' insurance policies.
- Requires an insurer, upon renewal, reducing the coverage of an earthquake policy to provide notice of the reduced coverage to the policyholder.
- Establishes the California Earthquake Authority (CEA) to provide earthquake insurance to policyholders of its participating insurers.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel.
COMMENTS:
- Purpose. This bill clarifies existing requirements regarding when specific notices regarding earthquake insurance are required to be provided.
- Prior Legislation. In 2014, AB 2064 (Cooley), Chapter 419, substantially revised the law governing the mandatory offer of earthquake insurance to make the notice more consumer friendly and hopefully increase the number of homeowners with earthquake insurance.
- California Earthquake Authority. The CEA was formed through legislation in 1995 and 1996 to address an insurance-availability crisis that followed the 1994 Northridge earthquake. After that earthquake, many homeowners found it difficult or impossible to find basic homeowner's insurance. Many others were faced with the prospect of having their homeowners' insurance non-renewed as insurance companies tried to shed their exposure to earthquake risk. Because state law requires insurers to offer earthquake insurance to their applicants and holders of residential policies, the insurers' retreat from the California market resulted in an availability crisis for both homeowners and earthquake insurance. The California Department of Insurance reported in the summer of 1996, at the height of the crisis, that 95% of the homeowners' insurance market had either stopped, or severely restricted, sales of new homeowners' policies.
After the CEA began operations in December 1996, the California homeowners' insurance market recovered quickly. A Department of Insurance report noted that at the peak of the availability crisis, 82 insurers had restricted the sale of new homeowners' insurance policies. By October 1997, only three insurers were restricting the sale of new policies. Since that time, the requirement to offer earthquake insurance has not been a factor in restricting the availability of homeowners' insurance.
Analysis Prepared by: Paul Riches / INS. / (916) 319-2086 FN: 0003664
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
CONSENT
Bill No: AB 499
:
SENATE INSURANCE COMMITTEE: 8-0, 6/22/16
AYES: Roth, Gaines, Berryhill, Glazer, Hall, Hernandez, Mitchell, Wieckowski
NO VOTE RECORDED: Liu
ASSEMBLY FLOOR: Not relevant
DIGEST: This bill eliminates the presumption of delivery of the mandatory offer of earthquake insurance disclosure form if the applicant for homeowners’ insurance does not return a signed acknowledgement of receipt within 60 days of the date it was provided; revises the requirement for a stand-alone notice of changes in the terms and conditions of an earthquake insurance policy at renewal to only require the stand-alone notice if the modifications reduce or substantially differ from the coverage previously provided; establishes a consistent proof of mailing or delivery presumption for any offer, disclosure, or document required to be delivered under statutes governing the mandatory offer or renewal of earthquake insurance; and makes other technical and clarifying changes.
Existing law:
- Provides that no homeowners’ insurance policy may be offered or sold in California unless the homeowner is offered earthquake coverage, either as part of the homeowners’ policy, or as a separate policy;
- Requires all earthquake insurance policies to meet specified minimum coverages, as defined;
- Requires the offer of earthquake insurance to be made prior to, concurrent with, or within 60 following the issuance or renewal of a homeowners’ insurance policy;
- Establishes a conclusive presumption that the insurer, agent or broker complied with the offer disclosure requirement if it delivers the offer and the homeowner does not return the signed acknowledgement of receipt within 60 days of the date it was provided;
- Establishes a conclusive presumption that the insured elected not to accept the coverage if the insurer establishes proof of mailing or delivery of the offer and the insured has not accepted coverage within 30 days from date of mailing or delivery;
- When a homeowner has not purchased earthquake coverage pursuant to the mandated offer, requires the insurer to notify the homeowner that the homeowners’ policy does not include earthquake coverage, offer such coverage and provide such a notice of non-coverage on at least an every other year basis prior to or concurrent with renewal of the homeowners’ insurance policy;
- Provides that if an offer of earthquake coverage is accepted, the coverage will be continued at the applicable rates and conditions for the policy term provided it is not terminated by the insured or insurer;
- Allows the insurer to modify the terms and conditions of an existing policy at renewal if the terms and conditions meet the minimum coverages required by law if the insurer provides the insured the changes in the terms and conditions of the policy in a stand-alone disclosure document;
- Provides that proof of mailing or delivery of the disclosure in #8 establishes a conclusive presumption that the disclosure document was provided.
This bill:
- Eliminates the presumption of delivery of the offer disclosure form if the applicant for homeowners’ insurance does not return a signed acknowledgement of receipt within 60 days of the date it was provided;
- Provides that if an offer of earthquake insurance is not accepted, the insurer must offer earthquake insurance on an every other year basis in connection with any continuation, renewal, or reinstatement of the homeowners’ insurance policy following any lapse, or with respect to any other policy that extends, changes, superseded, or replaces the residential property insurance policy;
- Revises the requirement for a stand-alone notice of changes in the terms and conditions of an earthquake insurance policy at renewal to only require the stand-alone notice if the modifications reduce or substantially differ from the coverage previously provided;
- Establishes a consistent proof of mailing or delivery presumption for any offer, disclosure, or document required to be delivered under statutes governing the mandatory offer of earthquake insurance;
- Provides that if an offer, disclosure, or document required to be delivered is mailed by first class mail or is pursuant to rules governing the electronic delivery of insurance documents, there is a conclusive presumption the offer was made or document was delivered as required;
- Provides that if a document is hand delivered to the insured, the insured’s signed receipt creates a conclusive presumption;
- Makes other technical and clarifying changes and adds contingent enactment language to address pending legislation that would change or renumber the provisions of Insurance Code §38.5 that allow for electronic transmission of insurance documents.
Background
California requires all insurers offering homeowners’ insurance in this state to also offer earthquake insurance. After the Northridge earthquake in 1994, the costliest natural disaster in the history of the state with more than $25 billion in property damage, many insurers simply stopped writing homeowners’ insurance rather than offer earthquake coverage. As a result, the Legislature created a "mini policy" that could be sold by any insurer to comply with the mandatory offer law: only earthquake loss due to structural damage need be covered, with a 15% deductible. Claims on personal property losses and "loss of use" are limited. It also created the California Earthquake Authority, which is regulated like a private insurance company by the California Department of Insurance (CDI), even though it is a quasi-state agency.
In order to comply with the mandatory offer law, there are specific notices and disclosures regarding earthquake insurance that must be provided at the time a homeowner applies for homeowners’ insurance, when they renew their insurance, or if an insurer changes the terms or conditions of an earthquake insurance policy at the time of renewal of that policy.
This bill was brought forward because after extensive review of these statutes by insurers and the CDI, it was determined that the use of the terms notice and disclosure was inconsistent, as were the provisions for establishing conclusive proof of delivery or receipt by the consumer as required by law. This bill is the result of that review and agreement between the CDI and insurers as reflecting a “clean-up” of the statute.
These sections of law were amended by SB 251 (Calderon, Chapter 369, Statutes of 2013) to allow for the electronic delivery of documents, as provided by law. The bill also included a sunset date of January 1, 2019 for the changes it made to the statute. This bill does not change the sunset date included in SB 251, but does provide alternate sections contingent on the enactment of AB 2591 (Dababneh, 2016) that would change the electronic transmission statute cited in these sections.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Association of California Insurance Companies
CSAA Insurance Group
National Association of Mutual Insurance Companies
Pacific Association of Domestic Insurance Companies
OPPOSITION: (Verified 6/27/16)
None received
ARGUMENTS IN SUPPORT: The National Association of Mutual Insurance Companies and the Pacific Association of Domestic Insurance Companies support AB 499 because it is a common-sense “clean-up” bill that will resolve some ambiguity and inconsistency in the conclusive presumptions regarding delivery of consumer disclosures required in the mandatory offer, offer upon renewal of the homeowners’ policy if the homeowner has not purchased earthquake insurance, and changes in terms of earthquake policies at time of renewal.
6/29/16 15:45:38
SENATE COMMITTEE ON
Senator Richard Roth, Chair
2015 - 2016 Regular
Bill No: Hearing Date: June 22, 2016
Author: | |||
Version: |
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Urgency: | Fiscal: | ||
Consultant: | |||
Subject:
SUMMARY
Eliminates the presumption of delivery of the mandatory offer of earthquake insurance disclosure form if the applicant for homeowners’ insurance does not return a signed acknowledgement of receipt within 60 days of the date it was provided; revises the requirement for a stand-alone notice of changes in the terms and conditions of an earthquake insurance policy at renewal to only require the stand-alone notice if the modifications reduce or substantially differ from the coverage previously provided; establishes a consistent proof of mailing or delivery presumption for any offer, disclosure, or document required to be delivered under statutes governing the mandatory offer or renewal of earthquake insurance; and makes other technical and clarifying changes.
DIGEST
Existing law
- Provides that no homeowners’ insurance policy may be offered or sold in California unless the homeowner is offered earthquake coverage, either as part of the homeowners’ policy, or as a separate policy;
- Requires all earthquake insurance policies to meet specified minimum coverages, as defined;
- Requires the offer of earthquake insurance to be made prior to, concurrent with, or within 60 following the issuance or renewal of a homeowners’ insurance policy;
- Establishes a conclusive presumption that the insurer, agent or broker complied with the offer disclosure requirement if it delivers the offer and the homeowner does not return the signed acknowledgement of receipt within 60 days of the date it was provided;
- Establishes a conclusive presumption that the insured elected not to accept the coverage if the insurer establishes proof of mailing or delivery of the offer and the insured has not accepted coverage within 30 days from date of mailing or delivery;
- When a homeowner has not purchased earthquake coverage pursuant to the mandated offer, requires the insurer to notify the homeowner that the homeowners’ policy does not include earthquake coverage, offer such coverage and provide such a notice of non-coverage on at least an every other year basis prior to or concurrent with renewal of the homeowners’ insurance policy;
- Provides that if an offer of earthquake coverage is accepted, the coverage will be continued at the applicable rates and conditions for the policy term provided it is not terminated by the insured or insurer;
- Allows the insurer to modify the terms and conditions of an existing policy at renewal if the terms and conditions meet the minimum coverages required by law if the insurer provides the insured the changes in the terms and conditions of the policy in a stand-alone disclosure document;
- Provides that proof of mailing or delivery of the disclosure in #8 establishes a conclusive presumption that the disclosure document was provided.
This bill
- Eliminates the presumption of delivery of the offer disclosure form if the applicant for homeowners’ insurance does not return a signed acknowledgement of receipt within 60 days of the date it was provided;
- Provides that if an offer of earthquake insurance is not accepted, the insurer must offer earthquake insurance on an every other year basis in connection with any continuation, renewal, or reinstatement of the homeowners’ insurance policy following any lapse, or with respect to any other policy that extends, changes, superseded, or replaces the residential property insurance policy;
- Revises the requirement for a stand-alone notice of changes in the terms and conditions of an earthquake insurance policy at renewal to only require the stand-alone notice if the modifications reduce or substantially differ from the coverage previously provided;
- Establishes a consistent proof of mailing or delivery presumption for any offer, disclosure, or document required to be delivered under statutes governing the mandatory offer of earthquake insurance;
- Provides that if an offer, disclosure, or document required to be delivered is mailed by first class mail or is pursuant to rules governing the electronic delivery of insurance documents, there is a conclusive presumption the offer was made or document was delivered as required;
- Provides that if a document is hand delivered to the insured, the insured’s signed receipt creates a conclusive presumption;
- Makes other technical and clarifying changes and adds contingent enactment language to address pending legislation that would change or renumber the provisions of Insurance Code §38.5 that allows for electronic transmission of insurance documents.
COMMENTS
- Purpose of the bill To clarify the sometimes conflicting presumptions regarding proof of delivery of various offers, notices and disclosures relating to the mandatory offer of earthquake insurance at the time of application for a homeowners’ insurance policy, renewal of the homeowners’ insurance policy or renewal of an earthquake insurance policy without changing the underlying mechanics or consumer protections.
- Background California requires all insurers offering homeowners’ insurance in this state to also offer earthquake insurance. After the Northridge earthquake in 1994, the costliest natural disaster in the history of the state with more than $25 billion in property damage, many insurers simply stopped writing homeowners’ insurance rather than offer earthquake coverage. As a result, the legislature created a "mini policy" that could be sold by any insurer to comply with the mandatory offer law: only earthquake loss due to structural damage need be covered, with a 15% deductible. Claims on personal property losses and "loss of use" are limited. It also created the California Earthquake Authority, which is regulated like a private insurance company by the California department of Insurance (CDI) even though it is a quasi-state agency.
In order to comply with the mandatory offer law, there are specific notices and disclosures regarding earthquake insurance that must be provided at the time a homeowner applies for homeowners’ insurance, when they renew their insurance, or if an insurer changes the terms or conditions of an earthquake insurance policy at the time of renewal of that policy.
This bill was brought forward because after extensive review of these statutes by insurers and the CDI, it was determined that the use of the terms notice and disclosure was inconsistent, as were the provisions for establishing conclusive proof of delivery or receipt by the consumer as required by law. This bill is the result of that review and agreement between the CDI and insurers as reflecting a “clean-up” of the statute.
These sections of law were amended by SB 251 (Calderon, Chap. 369, Statutes of 2013) to allow for the electronic delivery of documents, as provided by law. The bill also included a sunset date of January 1, 2019 for the changes it made to the statute. This bill does not change the sunset date included in SB 251, but does provide alternate sections contingent on the enactment of AB 2591 that would change the electronic transmission statute cited in these sections.
- Support The National Association of Mutual Insurance Companies and the Pacific Association of Domestic Insurance Companies support AB 499 because it is a common-sense “clean-up” bill that will resolve some ambiguity and inconsistency in the conclusive presumptions regarding delivery of consumer disclosures required in the mandatory offer, offer upon renewal of the homeowners’ policy if the homeowner has not purchased earthquake insurance, and changes in terms of earthquake policies at time of renewal.
- Opposition None received
- Prior and Related Legislation
AB 2591 (Dababneh) Consolidates and recasts the several standards applicable to electronic transactions applicable to insurance notices, in addition to those provided under the Uniform Electronic Transactions Act, and applies those standards and to additional insurance documents.
AB 2064 (Cooley, Chap. 419, Statutes of 2014) Revised and recast statutory notice requirements relating to the mandatory offer of earthquake insurance.
AB 2735 (Assembly Insurance Committee, Chap. 427, Statutes of 2014) Provided that if an insurer issues or causes to be issued a policy with earthquake coverages other than the specified coverages, but in accordance with an approved rate application, no further or other offer of earthquake coverage meeting the coverage and deductible requirements and no further or other notice of noncoverage is required by the insurer if a renewal of that policy is offered, and a written notice is provided with that renewal regarding additional earthquake coverage that is available.
POSITIONS
Support
Association of California Insurance Companies
CSAA Insurance Group
National Association of Mutual Insurance Companies
Pacific Association of Domestic Insurance Companies
Oppose
None received
-- END --
AB 499 (Cooley) Page 4 of 4
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Fran Pavley, Chair
2015 - 2016 Regular
Bill No: AB 499 Hearing Date: June 9, 2015
Author: |
Cooley |
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Version: |
February 23, 2015 Introduced |
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Urgency: |
No |
Fiscal: |
No |
Consultant: |
Katharine Moore |
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Subject: Archery season: concealed firearms.
BACKGROUND AND EXISTING LAW
The Department of Fish and Wildlife (department) is authorized to regulate hunting in California. A valid license is required to take any mammal or bird, and hunters must meet hunter education requirements (Fish and Game Code (FGC) §§3031 – 3040). From 2010 – 2014, approximately 285,000 hunting licenses and 184,000 deer tags were sold annually on average. A deer hunter is required to have both a valid license and a deer tag specific to the particular hunt in his or her possession.
Following a successful kill, the hunter must immediately fix the tag to the deer. The tag must be validated by the department or other authorized personnel (FGC §4341) before taking the deer home.
Existing law provides for an archery-only season for the taking of deer with bow and arrow preceding the general open season for hunting of deer, as prescribed by the Fish and Game Commission (FGC), with a minimum interval of three days immediately preceding the regular open season on deer in the area. Although it varies by hunting zone, a typical archery-only season is roughly two weeks in duration.
Existing law prohibits a person taking or attempting to take deer during the archery-only season from carrying or having under his or her immediate control any firearm while hunting with bow and arrow. This provision stems from AB 1583 (Lindsay et al., c. 221, Statutes of 1955), an urgency measure that stated “in order for this act to be effective during the 1955 archery season to protect other hunters and to insure enforcement of the present law this act must take effect immediately.” Archers taking deer during the general season under the authority of a general tag, however, may possess a firearm. Firearms are the most popular method of taking deer while hunting in California.
Existing law provides an exception to the prohibition on carrying firearms while hunting deer with bow and arrow during archery-only season for an active or honorably retired peace officer, as long as the peace officer does not take or attempt to take deer with the firearm (SB 1367, Fuller, c.711, Statutes of 2012).
Existing law under the Penal Code, authorizes peace officers and honorably retired peace officers, to carry a concealed weapon at any time. It also authorizes the sheriff of a county, or the head of a municipal police department, upon proof that the applicant is of good moral character and has completed a course of training, that good cause exists for the issuance, and that certain other specified conditions are met, to issue the applicant a license to carry a concealed firearm. (There are legal challenges, described below, to the current practice of issuing concealed weapons permits.)
Numerous laws and regulations apply to firearms in California. There are multiple restrictions on the use of firearms while hunting. Hunters are allowed to possess firearms while engaged in lawful hunting or while going directly to or returning directly from the hunting expedition (Penal Code (PEN) §25300). However, for example, FGC §3003 bans on-line hunting and FGC §3004 bans the discharge of a firearm near buildings or over a public road in a reckless manner.
PROPOSED LAW
This bill would authorize a person with a concealed weapons permit to have a firearm in his or her possession while engaged in the taking of deer with a bow and arrow during archery-only season so long as they do not take or attempt to take deer with the firearm.
ARGUMENTS IN SUPPORT
According to the author, “[m]any individuals like to carry a concealed handgun while hunting to protect themselves from large predators, such as mountain lions and bears. In recent years, it has also become increasingly necessary for hunters to carry a handgun to safeguard themselves from those defending illegal marijuana growing operations and other illicit drug manufacturing.”
“Current law prohibits a person that is deer hunting during archery season from carrying a firearm of any kind.”
“For those who are otherwise allowed to carry a concealed handgun, this creates a problem where the individual is faced with leaving their handgun inside his or her vehicle which may be parked miles from where the person is archery hunting.”
“AB 499 aligns the Fish and Game code with similar sections of Fish and Game regulations that allow an individual with a concealed carry permit to carry a concealed firearm while deer hunting during archery season.”
ARGUMENTS IN OPPOSITION
None received
COMMENTS
A solution in search of a problem? The restriction on persons, other than peace officers and retired peace officers, carrying concealed firearms while hunting deer with bow and arrow applies only during the archery-only season. A hunter, concerned for his or her safety beyond the protection offered by a bow and arrow, may hunt deer with bow and arrow during the general season and carry a firearm, as authorized.
Impact on the enforcement of archery-only tags? Deer slain during a hunt are typically “field-dressed.” The carcass is disemboweled in order to facilitate transport (the gut pile is left in situ). While the wound from an arrow is different from that from a bullet, it is possible that field-dressing could obscure the method used to kill the deer. Allowing concealed firearms to be carried during an archery-only hunt could complicate enforcement by the department’s wardens.
According to the Assembly Water, Parks and Wildlife analysis, in the past, fish and game wardens and others have expressed concerns about persons other than peace officers with concealed weapons permits being allowed to carry a firearm while hunting during the archery-only season. The exemption for peace officers was deemed acceptable because peace officers have more extensive mandated training regarding firearms they carry on or off duty than is required for most other persons who apply at the county level for a concealed weapons permit, the requirements for which can vary considerably by county. Peace officers may also face situations where they may be called upon to make use of their concealed weapon for law enforcement purposes.
Is there a conflict with the Penal Code? While off-duty and retired peace officers, and concealed weapon permit holders are allowed to carry concealed weapons, they are not required to do so. Reasons often cited to justify the need to carry a concealed weapon – for example, due to work-related matters – are not necessarily applicable to carrying the firearm while deer hunting with an archery-only tag.
Attacks upon hunters. There are no documented and substantiated instances in the department’s recent records where a deer hunter was attacked by a mountain lion. There have been only 18 verified mountain lion attacks from 1890 to 2014. Previous discussions with department wardens indicate that a hunter was actually poaching when he killed a mountain lion with an arrow although he initially claimed to have been attacked. There have been 12 documented bear attacks since 1980. In one of those instances – an August 1991 attack in Siskiyou County – a black bear attacked an adult hunter who was out hunting with bow-and-arrow. It is important to note, however, that the victim apparently took photos of the bear instead of attempting to escape prior to the attack.
According to the SB 1367 (2012) Senate Natural Resources and Water Committee bill analysis, previous discussions with department wardens also indicated that there were approximately 6 instances in 2009 - 2011 where hunters reported being threatened by illegal marijuana growing operations. None were substantiated and no injuries were reported. (It is not clear if these reports were during archery-only or the general season for deer.)
Concealed weapons permit information and current litigation. According to data obtained from the Department of Justice, in December 2013 there were about 58,000 active concealed weapons permits in California with approximately 8,000 applications pending. Approximately one year later, the number of permits issued had increased to about 70,000 with about 16,000 pending applications. The number of permits issued tends to be higher in more rural counties compared to urban counties, although there are exceptions. For example, Los Angeles County, with a population of about 10 million had 560 active concealed weapons permits at the end of 2014, compared to Shasta County which had issued about 5906 permits for a population of about 179,000. The increase in issued permits between 2014 and 2013 is likely to stem, in part, according to news reports, from a relaxation in standards in some jurisdictions as a result of a recent court decision.
In February 2014, a three judge panel of the United States Court of Appeals for the 9th Circuit found that San Diego County’s restrictive policy requiring the showing of “good cause” prior to issuing a concealed weapons permit in combination with other factors was unconstitutional (Peruta v. San Diego). On March 26, 2015, the 9th Circuit announced that this case will be heard “en banc” along with a similar case (Richards v. Prieto) which challenged Yolo County’s policies. The order set aside the original rulings in the cases. Oral arguments will be in June 16, 2015.
SUPPORT
National Rifle Association of America (co-sponsor)
California Rifle and Pistol Association (co-sponsor)
California Sportsman’s Lobby
California Waterfowl
John McMahon, Sheriff-Coroner, San Bernardino County
Outdoor Sportsmen’s Association of California
Safari Club International, California Chapters
Stan Sniff, Sheriff, Riverside County
OPPOSITION
None received
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Bill Author
Bill Co-Author(s):