Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require the Insurance Commissioner, in the case of a declaration of a disaster and at the request of a property owner, or the owners legal representative, that is unable to identify the insurer for property located in the disaster area, to electronically provide the owners name, any contact information provided to the commissioner, and property location information to insurers who issue homeowners fire insurance policies. The bill would deem that information to be provided with the voluntary written consent of the owner or his or her legal representative, as specified. The bill would require an insurer to respond, free of charge, to the property owner or owners legal representative within 90 days after receiving that transmission if the insurer issued a homeowners insurance policy on the property located in the disaster area and identified in the commissioners communication that was in force at the time that the disaster occurred. The bill would limit the liability of the commissioner or the commissioners authorized representative, any department employees, and the insurer or the insurers employees, for statements made or conduct performed in good faith while carrying out these provisions.

Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require the Insurance Commissioner, in the case of a declaration of a disaster and at the request of a property owner, or the owners legal representative, that is unable to identify the insurer for property located in the disaster area, to electronically provide the owners name, any contact information provided to the commissioner, and property location information to insurers who issue homeowners fire insurance policies. The bill would deem that information to be provided with the voluntary written consent of the owner or his or her legal representative, as specified. The bill would require an insurer to respond, free of charge, to the property owner or owners legal representative within 90 days after receiving that transmission if the insurer issued a homeowners insurance policy on the property located in the disaster area and identified in the commissioners communication that was in force at the time that the disaster occurred. The bill would limit the liability of the commissioner or the commissioners authorized representative, any department employees, and the insurer or the insurers employees, for statements made or conduct performed in good faith while carrying out these provisions.

Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require the Insurance Commissioner, in the case of a declaration of a disaster and at the request of a property owner, or the owners legal representative, that is unable to identify the insurer for property located in the disaster area, to electronically provide the owners name, any contact information provided to the commissioner, and property location information to insurers who issue homeowners fire insurance policies. The bill would deem that information to be provided with the voluntary written consent of the owner or his or her legal representative, as specified. The bill would require an insurer to respond, free of charge, to the property owner or owners legal representative within 90 days after receiving that transmission if the insurer issued a homeowners insurance policy on the property located in the disaster area and identified in the commissioners communication that was in force at the time that the disaster occurred. The bill would limit the liability of the commissioner or the commissioners authorized representative, any department employees, and the insurer or the insurers employees, for statements made or conduct performed in good faith while carrying out these provisions.

Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require the Insurance Commissioner, in the case of a declaration of a disaster and at the request of a property owner, or the owners legal representative, that is unable to identify the insurer for property located in the disaster area, to electronically provide the owners name name, any contact information provided to the commissioner, and property location information to insurers who issue homeowners fire insurance policies. The bill would deem that information to be provided with the voluntary written consent of the owner or his or her legal representative, as specified. The bill would require an insurer to respond, free of charge, to the property owner or owners legal representative within 90 days after receiving that transmission if the insurer issued a homeowners insurance policy on the property located in the disaster area and identified in the commissioners communication that was in force at the time that the disaster occurred. The bill would limit the liability of the commissioner or the commissioners authorized representative, any department employees, and the insurer or the insurers employees, for statements made or conduct performed in good faith while carrying out these provisions.

Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require the Insurance Commissioner, in the case of a declaration of a disaster and at the request of an insured, or the insureds a property owner, or the owners legal representative, that is unable to identify the insurer for property located in the disaster area, to electronically provide the insureds owners name and property location information to insurers who issue fire homeowners fire insurance policies. The bill would deem that information to be provided with the voluntary written consent of the insured owner or his or her legal representative, as specified. The bill would require an insurer to respond, free of charge, to the insured or the insureds property owner or owners legal representative within 90 days after receiving that transmission if the property is covered or was previously covered by a policy issued by the insurer. the insurer issued a homeowners insurance policy on the property located in the disaster area and identified in the commissioners communication that was in force at the time that the disaster occurred. The bill would limit the liability of the commissioner or the commissioners authorized representatives representative, any department employees, and the insurer or the insurers employees, for statements made or conduct performed in good faith while carrying out these provisions.

Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require the Insurance Commissioner, in the case of a declaration of a disaster and at the request of an insured, or the insureds legal representative, that is unable to identify the insurer for property located in the disaster area, to electronically provide the insureds name and property location information to insurers who issue fire insurance policies. The bill would deem that information to be provided with the voluntary written consent of the insured or his or her legal representative, as specified. The bill would require an insurer to respond and indicate whether the property is covered by a policy issued by the insurer within 30 days, and would require the commissioner to relay information related to the insureds property to the insured or the insureds legal representative within 14 days after receiving the response. respond, free of charge, to the insured or the insureds legal representative within 90 days after receiving that transmission if the property is covered or was previously covered by a policy issued by the insurer. The bill would limit the liability of the commissioner or the commissioners authorized representatives for statements made or conduct performed in good faith while carrying out these provisions.

Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require an insurer, within 90 calendar days of the declaration of a disaster by the President of the United States or the Governor, to send a letter containing specified policy and contact information to an insured who is insured under a policy that covers property located in the declared disaster area and who has not filed a claim within 30 calendar days of the date of the disaster declaration. the Insurance Commissioner, in the case of a declaration of a disaster and at the request of an insured, or the insureds legal representative, that is unable to identify the insurer for property located in the disaster area, to electronically provide the insureds name and property location information to insurers who issue fire insurance policies. The bill would require an insurer to respond and indicate whether the property is covered by a policy issued by the insurer within 30 days, and would require the commissioner to relay information related to the insureds property to the insured or the insureds legal representative within 14 days after receiving the response.

Existing law generally regulates fire insurance, which includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake, and establishes a standard form of fire insurance policy for the state. Existing law requires an insurer to provide an insured, free of charge, a complete, current copy of his or her fire insurance policy after a covered loss under the policy and within 30 calendar days of receipt of a request from the insured.

This bill would require an insurer, within 90 calendar days of the declaration of a disaster by the President of the United States or the Governor, to send a letter containing specified policy and contact information to an insured who is insured under a policy that covers property located in the declared disaster area and who has not filed a claim within 30 calendar days of the date of the disaster declaration.

 UNFINISHED BUSINESS  

Bill No: SB 569

Author:

:

Vote:

SENATE INSURANCE COMMITTEE: 9-0, 4/26/17

AYES: Mendoza, Gaines, Berryhill, Glazer, Hernandez, Mitchell, Newman, Portantino, Roth

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

SENATE FLOOR: 40-0, 5/31/17

AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk

ASSEMBLY FLOOR: 76-0, 9/5/17 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill provides a mechanism for the California Department of Insurance (CDI) to assist a property owner, or the property owner’s legal representative, to identify the insurer of a property located in a declared disaster area when the property owner is unable to identify the policy number or name of the issuing insurer.

Assembly Amendments

clarify that the party of interest is the property owner or property owner’s legal representative; require the CDI to provide the property owner or legal representative’s contact information to the insurers; specify that the CDI may conclusively presume that a request submitted pursuant to this bill is a bona fide request; grant insurers the same protections as the CDI in the handling of information in carrying out the requirements of the bill; specify that such communication does not constitute the filing of a claim or an admission of coverage; and require an insurer to respond only if it determines there was a policy in force at the time the disaster occurred.

ANALYSIS:

Existing law:

1. Regulates, generally, fire insurance, commonly referred to as homeowners’ insurance, which includes insurance against loss by fire, lightning, windstorm, and fire as a result of earthquake.
2. Requires an insurer to provide an insured, free of charge, a complete current copy of his or her homeowners’ insurance policy after a covered loss under the policy and within 30 calendar days of receipt of the a request from the insured.

This bill:

1. Requires the Insurance Commissioner (IC), in the case of a disaster declaration by the President or the Governor and at the request of a property owner or the property owner’s legal representative that is unable to identify the insurer for a property located in the disaster area, to electronically provide the property owner’s name, property location and contact information to insurers who issue homeowners’ insurance policies in the state.
2. Provides that a property owner or the property owner’s legal representative provides voluntary written consent for the transfer of information by the IC to insurers for this purpose.
3. Provides that the IC or an insurer may conclusively presume that a request submitted pursuant to this bill is a bona fide request from the property owner or owner’s legal representative.
4. Requires homeowners’ insurers to provide the IC an email address for the purpose of responding to inquiries for this purpose.
5. Specifies that communication between a property owner or owner’s legal representative and the IC, and between the IC and insurers, shall not constitute the filing of a claim.
6. Requires an insurer to respond, free of charge, to the property owner or the property owner’s legal representative within 90 days after receiving the information from the IC if the property was covered by a homeowners’ insurance policy issued by the insurer at the time the disaster occurred.
7. Specifies that neither the CDI nor an insurer is required to respond to a property owner or the property owner’s legal representative if the insurer determines it did not issue a policy for the property.

Background

In a catastrophic fire or other disaster, homes can be destroyed quickly, along with all their contents including important financial information and insurance documents. In some cases, the disaster can lead to the death of the home owner or resident. If a home owner dies, information about what insurance coverage may exist can prove extremely difficult to discern for surviving family members. In one particularly difficult case resulting from the Lake County fire in 2015, a homeowner died, had no mortgage, and his heirs and family faced tremendous obstacles in their efforts to determine if he had homeowners’ insurance coverage, and if so, with whom. There was also a delay in getting a certificate of death because of the severe damage caused by the fire. The CDI was unable to offer any help in determining if there was an insurance policy. Ultimately, the deceased’s sister sent claim letters to 106 insurers in the hope that one would respond. An insurer finally did respond but this process took more than a year.

Frequently major insurers set up facilities in the disaster area to assist their insureds file claims. California has more than 100 homeowners’ insurers, however, and if the claimant, estate or heirs do not know who the insurer is, or even if there is insurance coverage, this can pose a significant and burdensome obstacle to filing a claim within the time limits. There is no central registry or database of homeowners’ insurance. There are also situations where insurance was forced-placed on the property by a lender, and the property owner does not know the issuing insurer’s name.

The CDI is in regular contact with insurers through electronic means, including for handling consumer complaints and electronic filing. This bill ensures that in the aftermath of a major fire or other disaster homeowners, or the heirs or legal representatives if the homeowner has died and all records have been destroyed, the CDI has a mechanism in place to assist in identifying the homeowners’ insurer of the property.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee, costs to CDI are expected to be minor, under $10,000 annually (Insurance Fund).

SUPPORT: (Verified 9/5/17)

Consumer Attorneys of California

United Policyholders

OPPOSITION: (Verified 9/5/17)

None received

ARGUMENTS IN SUPPORT: According to the author, it is unacceptable for victims of a major disaster such as a wildfire, particularly if the homeowner has died in that fire, to then also be told they have no recourse when they cannot identify the insurer of the property. This doesn’t happen often, but it does happen. This bill offers a simple process to help homeowners when the worst happens, without posing an undue burden on insurers or the CDI.

United Policyholders (UP) supports SB 569 because it helps to solve a problem that sometimes arises after disasters—the damaged or destroyed property is covered by an insurance policy but the policy holder (or their legal representative) has no record of the policy number or the name of the issuing insurer. Policyholders who find themselves in this position have sought help from UP numerous times over the nonprofit’s 25 years in operation but there has been little UP could do to help them. This bill provides a simple fix.

ASSEMBLY FLOOR: 76-0, 9/5/17

AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Eduardo Garcia, Ridley-Thomas, Steinorth

Prepared by:

9/5/17 18:50:50

**** END ****

SENATE THIRD READING

STR Bill Id:SB 569

Author:(Monning)

As Amended Ver:August 28, 2017

Majority vote

SENATE VOTE: 40-0

SUMMARY: Provides a formal statutory mechanism for the insurance commissioner (commissioner) to assist a homeowner, or the homeowner's legal representative, to identify the insurer of a property located in a declared disaster area when the homeowner insured is unable to identify the policy number or name of the issuing insurer. Specifically, this bill:

1. Provides that if a property owner, or the property owner's legal representative, is unable to identify the insurer for the property, he or she may request that the commissioner to assist in identifying the insurer, if any.
2. Specifies that this request is limited to circumstances where the property is located in an area that has been declared a disaster area by either the Governor or the President.
3. Directs the commissioner, upon receipt of a request for assistance, to electronically provide the property owner's name and property location to insurers that write homeowners' insurance.
4. States that information provided to the commissioner pursuant to bill shall constitute a voluntary written consent within the meaning of specified Civil Code provisions for the information to be used in accordance with the bill's provisions.
5. Declares that there is no expectation of privacy for the use of the information as required by the bill, and that neither the insurer, nor the commissioner or employees of the commissioner, shall have any liability for the good faith use of the information in carrying out the requirements of the bill.
6. Provides that the communications between the property owner or the property owner's legal representative and the commissioner, between the commissioner and the insurers, do not constitute the filing of a claim.
7. Requires insurers to provide the commissioner with an email address that can be used for the communications required by the bill.
8. Requires an insurer contacted by the commissioner with information specified in the bill to respond to the property owner or the property owner's legal representative within 90 days if it determines that it has an in force policy for the specified property.
9. Provides that an insurer's response to a property owner or a property owner's legal representative does not constitute an acknowledgement of a claim, and does not constitute an admission of coverage under any policy for any loss.
10. States that neither the commissioner nor an insurer is required to respond to a property owner or a property owner's legal representative if the insurer has determined that it did not issue a policy for the property.
11. States that an insurer's response to a property owner or a property owner's legal representative shall be free of charge.
12. Specifies that the Insurance Commissioner or insurer may conclusively presume that a request submitted pursuant to the bill's terms is a bona fide request from the property owner or the owner's legal representative.

EXISTING LAW:

1. Provides generally for the comprehensive regulation of insurers by the Department of Insurance (DOI), which is headed by the commissioner.
2. Authorizes the DOI and the commissioner to receive communications from the public, and to investigate complaints relating to insurance or the behavior of insurers.

FISCAL EFFECT: According to the Assembly Appropriations Committee, minor costs to the Department of Insurance, likely less than $10,000 per year.

COMMENTS:

1. Purpose. According to the author, the bill is designed to ensure that in the aftermath of a major fire or other disaster, homeowners, or the heirs or legal representatives if the homeowner has died and all records have been destroyed, are able to identify the insurer of the property and submit a claim for loss.
2. Background. In a catastrophic fire or other disaster, homes can be destroyed quickly, along with all their contents including important financial information and insurance documents. In some cases, the disaster can lead to the death of the home owner or resident. If a home owner dies, information about what insurance coverage may exist can prove extremely difficult to discern for surviving family members.

In one particularly difficult case resulting from the Lake County fire in 2015, a homeowner died, had no mortgage, and his heirs and family faced tremendous obstacles in their efforts to determine if he had insurance coverage, and if so, with which insurer. There was also a delay in getting a certificate of death because of the severe damage caused by the fire. The DOI was unable to offer any help in determining if there was an insurance policy. Ultimately, the property owner's sister sent claim letters to 106 insurers in the hope that one would respond. An insurer finally did respond, but this process took more than a year.

Frequently major insurers set up facilities in the disaster area to help their insureds file claims. California has more than 100 homeowners' insurers, however, and if the claimant, estate or heirs do not know who the insurer is, or even if there is insurance coverage, this can pose a significant and burdensome obstacle to filing a claim within the time limits. There is no central registry or database of homeowners' insurance. There are also situations where insurance was forced-placed on the property by a lender, and the property owner does not know the issuing insurer's name.

The DOI is in regular contact with insurers for a range of purposes through electronic means, including for handling consumer complaints, electronic filings, and other communications.

Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0001465

SENATE THIRD READING

STR Bill Id:SB 569

Author:(Monning)

As Amended Ver:July 18, 2017

Majority vote

SENATE VOTE: 40-0

SUMMARY: Provides a formal statutory mechanism for the insurance commissioner (commissioner) to assist a homeowner, or the homeowner's legal representative, to identify the insurer of a property located in a declared disaster area when the homeowner insured is unable to identify the policy number or name of the issuing insurer. Specifically, this bill:

1. Provides that if a property owner, or the property owner's legal representative, is unable to identify the insurer for the property, he or she may request that the commissioner to assist in identifying the insurer, if any.
2. Specifies that this request is limited to circumstances where the property is located in an area that has been declared a disaster area by either the Governor or the President.
3. Directs the commissioner, upon receipt of a request for assistance, to electronically provide the property owner's name and property location to insurers that write homeowners' insurance.
4. States that information provided to the commissioner pursuant to bill shall constitute a voluntary written consent within the meaning of specified Civil Code provisions for the information to be used in accordance with the bill's provisions.
5. Declares that there is no expectation of privacy for the use of the information as required by the bill, and that neither the insurer, nor the commissioner or employees of the commissioner, shall have any liability for the good faith use of the information in carrying out the requirements of the bill.
6. Provides that the communications between the property owner or the property owner's legal representative and the commissioner, between the commissioner and the insurers, do not constitute the filing of a claim.
7. Requires insurers to provide the commissioner with an email address that can be used for the communications required by the bill.
8. Requires an insurer contacted by the commissioner with information specified in the bill to respond to the property owner or the property owner's legal representative within 90 days if it determines that it has an in force policy for the specified property.
9. Provides that an insurer's response to a property owner or a property owner's legal representative does not constitute an acknowledgement of a claim, and does not constitute an admission of coverage under any policy for any loss.
10. States that neither the commissioner nor an insurer is required to respond to a property owner or a property owner's legal representative if the insurer has determined that it did not issue a policy for the property.
11. States that an insurer's response to a property owner or a property owner's legal representative shall be free of charge.

EXISTING LAW:

1. Provides generally for the comprehensive regulation of insurers by the Department of Insurance (DOI), which is headed by the commissioner.
2. Authorizes the DOI and the commissioner to receive communications from the public, and to investigate complaints relating to insurance or the behavior of insurers.

FISCAL EFFECT: Minor costs to the Department of Insurance, likely less than $10,000 per year.

COMMENTS:

1. Purpose. According to the author, the bill is designed to ensure that in the aftermath of a major fire or other disaster, homeowners, or the heirs or legal representatives if the homeowner has died and all records have been destroyed, are able to identify the insurer of the property and submit a claim for loss.
2. Background. In a catastrophic fire or other disaster, homes can be destroyed quickly, along with all their contents including important financial information and insurance documents. In some cases, the disaster can lead to the death of the home owner or resident. If a home owner dies, information about what insurance coverage may exist can prove extremely difficult to discern for surviving family members. In one particularly difficult case resulting from the Lake County fire in 2015, a homeowner died, had no mortgage, and his heirs and family faced tremendous obstacles in their efforts to determine if he had insurance coverage, and if so, with which insurer. There was also a delay in getting a certificate of death because of the severe damage caused by the fire. The DOI was unable to offer any help in determining if there was an insurance policy. Ultimately, the property owner's sister sent claim letters to 106 insurers in the hope that one would respond. An insurer finally did respond, but this process took more than a year.

Frequently major insurers set up facilities in the disaster area to help their insureds file claims. California has more than 100 homeowners' insurers, however, and if the claimant, estate or heirs do not know who the insurer is, or even if there is insurance coverage, this can pose a significant and burdensome obstacle to filing a claim within the time limits. There is no central registry or database of homeowners' insurance. There are also situations where insurance was forced-placed on the property by a lender, and the property owner does not know the issuing insurer's name.

The DOI is in regular contact with insurers for a range of purposes through electronic means, including for handling consumer complaints, electronic filings, and other communications.

Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086 FN: 0001412

Date of Hearing: August 23, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 569

Author:(Monning) – As Amended Ver:July 18, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill provides a mechanism whereby the Insurance Commissioner will assist a homeowner, or the homeowner’s legal representative, to identify the insurer of a property located in a declared disaster area when the homeowner insured is unable to identify the policy number or name of the issuing insurer.

FISCAL EFFECT:

Costs to California Department of Insurance are expected to be minor, under $10,000 annually (Insurance Fund).

COMMENTS:

1. Purpose. According to the author, the bill is designed to provide a way for a homeowner or, in the case of a homeowner's death, a surviving family member, to identify the insurer of the property and submit a claim for loss. This bill is supported by United Policyholders and Consumer Attorneys of California, and has no opposition.
2. Background. In a catastrophic fire or other disaster, homes can be destroyed quickly, along with financial information and insurance documents. In some cases, the disaster can lead to the death of the home owner or resident. In such cases, a surviving family member may have difficulty accessing insurance coverage information. There is no central database in which homeowner or property information is linked with insurance policies. This bill requires the Insurance Commissioner to provide property information to insurers, and requires an insurer that has issued a homeowners’ insurance policy on the relevant property to respond within 90 days.

Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081

Date of Hearing: July 12, 2017

ASSEMBLY COMMITTEE ON INSURANCE

Tom Daly, Chair

SBPCA Bill Id:SB 569

Author:(Monning) – As Amended Ver:June 29, 2017

SENATE VOTE: 40-0

SUBJECT: Insurance: disasters: identification of insurer

SUMMARY: Provides a formal statutory mechanism for the insurance commissioner (commissioner) to assist a homeowner, or the homeowner’s legal representative, to identify the insurer of a property located in a declared disaster area when the homeowner insured is unable to identify the policy number or name of the issuing insurer. Specifically, this bill:

1. Provides that if a property owner, or the property owner’s legal representative, is unable to identify the insurer for the property, he or she may request that the commissioner to assist in identifying the insurer, if any.
2. Specifies that this request is limited to circumstances where the property is located in an area that has been declared a disaster area by either the Governor or the President.
3. Directs the commissioner, upon receipt of a request for assistance, to electronically provide the property owner’s name and property location to insurers that write homeowners’ insurance.
4. States that information provided to the commissioner pursuant to bill shall constitute a voluntary written consent within the meaning of specified Civil Code provisions for the information to be used in accordance with the bill’s provisions.
5. Declares that there is no expectation of privacy for the use of the information as required by the bill, and that neither the insurer, nor the commissioner or employees of the commissioner, shall have any liability for the good faith use of the information in carrying out the requirements of the bill.
6. Provides that the communications between the property owner or the property owner’s legal representative and the commissioner, between the commissioner and the insurers, do not constitute the filing of a claim.
7. Requires insurers to provide the commissioner with an email address that can be used for the communications required by the bill.
8. Requires an insurer contacted by the commissioner with information specified in the bill to respond to the property owner or the property owner’s legal representative within 90 days if it determines that it has an in force policy for the specified property.
9. Provides that an insurer’s response to a property owner or a property owner’s legal representative does not constitute an acknowledgement of a claim, and does not constitute an admission of coverage under any policy for any loss.
10. States that neither the commissioner nor an insurer is required to respond to a property owner or a property owner’s legal representative if the insurer has determined that it did not issue a policy for the property.
11. States that an insurer’s response to a property owner or a property owner’s legal representative shall be free of charge.
    

EXISTING LAW:

1. Provides generally for the comprehensive regulation of insurers by the Department of Insurance (DOI), which is headed by the commissioner.
2. Authorizes the DOI and the commissioner to receive communications from the public, and to investigate complaints relating to insurance or the behavior of insurers.

FISCAL EFFECT: Undetermined

COMMENTS:

1. Purpose. According to the author, the bill is designed to ensure that in the aftermath of a major fire or other disaster, homeowners, or the heirs or legal representatives if the homeowner has died and all records have been destroyed, are able to identify the insurer of the property and submit a claim for loss.
2. Background. In a catastrophic fire or other disaster, homes can be destroyed quickly, along with all their contents including important financial information and insurance documents. In some cases, the disaster can lead to the death of the home owner or resident. If a home owner dies, information about what insurance coverage may exist can prove extremely difficult to discern for surviving family members.
   
   In one particularly difficult case resulting from the Lake County fire in 2015, a homeowner died, had no mortgage, and his heirs and family faced tremendous obstacles in their efforts to determine if he had insurance coverage, and if so, with which insurer. There was also a delay in getting a certificate of death because of the severe damage caused by the fire. The DOI was unable to offer any help in determining if there was an insurance policy. Ultimately, the property owner’s sister sent claim letters to 106 insurers in the hope that one would respond. An insurer finally did respond, but this process took more than a year.
   
   Frequently major insurers set up facilities in the disaster area to help their insureds file claims. California has more than 100 homeowners’ insurers, however, and if the claimant, estate or heirs do not know who the insurer is, or even if there is insurance coverage, this can pose a significant and burdensome obstacle to filing a claim within the time limits. There is no central registry or database of homeowners’ insurance. There are also situations where insurance was forced-placed on the property by a lender, and the property owner does not know the issuing insurer’s name.
   
   The DOI is in regular contact with insurers for a range of purposes through electronic means, including for handling consumer complaints, electronic filings, and other communications.
3. Technical amendment. In the case of a disaster situation, normal mail delivery or telephone communications in the affected area can be disabled or at least complicated. As a result, it may be difficult for an insurer, even if it identifies a policy for the property at issue, to ascertain a way to communicate with the property owner or the property. The bill should be amended to require the commissioner to provide any contact information provided by the property owner or the property owner’s legal representative to the insurer. Specifically, on page 2, line 10, after the word “name”, add: , any contact information provided to the commissioner,
   
   REGISTERED SUPPORT / OPPOSITION:

Support

United Policyholders

Consumer Attorneys of California

Opposition

None received

Analysis Prepared by: Mark Rakich / INS. / (916) 319-2086

 THIRD READING  

Bill No: SB 569

Author:

:

Vote:

SENATE INSURANCE COMMITTEE: 9-0, 4/26/17

AYES: Mendoza, Gaines, Berryhill, Glazer, Hernandez, Mitchell, Newman, Portantino, Roth

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielson, Wiener

SUBJECT:

SOURCE: Author

DIGEST:

This bill provides a mechanism for the California Department of Insurance (CDI) to assist a homeowner, or the homeowner’s legal representative, to identify the insurer of a property located in a declared disaster area when the homeowner insured is unable to identify the policy number or name of the issuing insurer.

ANALYSIS:

Existing law:

1. Regulates, generally, fire insurance, commonly referred to as homeowners’ insurance, which includes insurance against loss by fire, lightning, windstorm, and fire as a result of earthquake.
2. Requires an insurer to provide an insured, free of charge, a complete current copy of his or her homeowners’ insurance policy after a covered loss under the policy and within 30 calendar days of receipt of the a request from the insured.

This bill:

1. Requires the Insurance Commissioner (IC), in the case of a disaster declaration by the President or the Governor and at the request of an insured or the insured’s legal representative that is unable to identify the insurer for a property located in the disaster area, to electronically provide the insured’s name and property location information to insurers who issue homeowners’ insurance policies in the state.
2. Provides that an insured or the insured’s legal representative provides voluntary written consent for the transfer of information by the IC to insurers for this purpose.
3. Requires homeowners’ insurers to provide the IC an email address specifically for the purpose of responding to inquiries for this purpose.
4. Requires an insurer to respond, free of charge, to the insured or the insured’s legal representative within 90 days after receiving the information from the IC if the property is covered, or was previously covered by a homeowners’ insurance policy issued by the insurer.
5. Specifies that neither the CDI nor an insurer is required to respond to an insured or the insured’s legal representative if the insurer determines it did not issue a policy for the property.

Background

In a catastrophic fire or other disaster, homes can be destroyed quickly, along with all their contents including important financial information and insurance documents. In some cases, the disaster can lead to the death of the home owner or resident. If a home owner dies, information about what insurance coverage may exist can prove extremely difficult to discern for surviving family members. In one particularly difficult case resulting from the Lake County fire in 2015, a homeowner died, had no mortgage, and his heirs and family faced tremendous obstacles in their efforts to determine if he had homeowners’ insurance coverage, and if so, with whom. There was also a delay in getting a certificate of death because of the severe damage caused by the fire. The CDI was unable to offer any help in determining if there was an insurance policy. Ultimately, the deceased’s sister sent claim letters to 106 insurers in the hope that one would respond. An insurer finally did respond but this process took more than a year.

Frequently major insurers set up facilities in the disaster area to assist their insureds file claims. California has more than 100 homeowners’ insurers, however, and if the claimant, estate or heirs do not know who the insurer is, or even if there is insurance coverage, this can pose a significant and burdensome obstacle to filing a claim within the time limits. There is no central registry or database of homeowners’ insurance. There are also situations where insurance was forced-placed on the property by a lender, and the property owner does not know the issuing insurer’s name.

The CDI is in regular contact with insurers through electronic means, including for handling consumer complaints and electronic filing. This bill ensures that in the aftermath of a major fire or other disaster homeowners, or the heirs or legal representatives if the homeowner has died and all records have been destroyed, the CDI has a mechanism in place to assist in identifying the homeowners’ insurer of the property.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• Ongoing costs for administrative needs to maintain a program to respond to insureds’ requests. These costs can vary depending on the volume of requests each year, but are not likely to be significant. (Insurance Fund)

SUPPORT: (Verified 5/26/17)

Consumer Attorneys of California

United Policyholders

OPPOSITION: (Verified 5/26/17)

None received

ARGUMENTS IN SUPPORT: According to the author, it is unacceptable for victims of a major disaster such as a wildfire, particularly if the homeowner has died in that fire, to then also be told they have no recourse when they cannot identify the insurer of the property. This doesn’t happen often, but it does happen. This bill offers a simple process to help homeowners when the worst happens, without posing an undue burden on insurers or the CDI.

United Policyholders (UP) supports SB 569 because it helps to solve a problem that sometimes arises after disasters—the damaged or destroyed property is covered by an insurance policy but the policy holder (or their legal representative) has no record of the policy number or the name of the issuing insurer. Policyholders who find themselves in this position have sought help from UP numerous times over the nonprofit’s 25 years in operation but there has been little UP could do to help them. This bill provides a simple fix.

Prepared by:

5/27/17 15:23:14

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 569 (Monning) - Insurance: disasters: identification of insurer

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on May 25, 2017

Bill Summary:

SB 569 would require, in the case of a declaration of a disaster and at the request of an insured, the California Department of Insurance (CDI) to electronically provide an insurer with a homeowner’s information in order for the insurer to indicate whether the property is covered by a policy issued by the insurer.

Fiscal Impact:

Ongoing costs for administrative needs to maintain a program to respond to insureds’ requests. These costs can vary depending on the volume of requests each year, but are not likely to be significant. (Insurance Fund)

Author Amendments:

Require an insurer to respond directly to a policyholder or the policyholder’s legal representative, within 90 days of receiving a transmission request from CDI. Make technical and clarifying amendments.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 569 (Monning) - Insurance: disasters: identification of insurer

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 569 would require, in the case of a declaration of a disaster and at the request of an insured, the California Department of Insurance (CDI) to provide an insurer with a homeowner’s information in order for the insurer to indicate whether the property is covered by a policy issued by the insurer.

Fiscal Impact:

• Significant one-time costs, in the hundreds of thousands, to CDI for the development and implementation of an Information Technology project that will provide the mechanism to connect a homeowner or homeowner’s legal representative to their respective insurer. (Insurance Fund)
• Ongoing costs for administrative needs to maintain the program and respond to insureds’ requests. These costs can vary depending on the volume of requests each year, but are not likely to be significant. (Insurance Fund)

Background:

In the event of a catastrophic fire or other disaster, homes along with contents within the home can be destroyed. These contents can include important financial and insurance documents. Furthermore, if a homeowner dies as a result of the fire or disaster, retrieving information about what insurance coverage may exist can prove difficult for surviving family members.

California has over 100 homeowner’s insurers and if the claimant, estate, or heirs are unaware of who the insurer is, or whether coverage exists, this can pose significant obstacles to filing a claim within time limits. This bill aims to ensure that homeowners or their legal representatives are able to identify the homeowner’s insurer of the property and submit a claim for loss.

Proposed Law:

This bill would:

• Require the Insurance Commissioner (IC), in the case of a declaration of a disaster by the President of the United States or the Governor and at the request of the insured or the insured’s legal representative, electronically provide the insured’s name and property location information to insurers that issue policies if an insured or the insured’s legal representative is unable to identify the insurer of the insured’s property that is located in the declared disaster area;
• Require an insurer to provide the IC with an email address for accepting an electronic transmission from the IC;
• Require an insurer to respond to the IC within 30 days after receiving the transmission to indicate whether the property is covered by a homeowners’ insurance policy issued by the insurer;
• Require the IC, within 14 days after receipt of a response from an insurer, to provide to the homeowner or the homeowner’s legal representative any information received from the insurer that is related to the property covered by the policy.

Staff Comments:

The purpose of this bill is to ensure that in the aftermath of a major fire or other disaster homeowners or their legal representatives are able to identify the homeowner’s insurer of the property in order to submit a claim for loss. The frequency in which a catastrophic fire or other disaster, declared a disaster by the President or Governor, which results in property loss or damage for a homeowner, who is unable to retrieve information on insurance coverage due to destruction of documents or death of the homeowner, is unknown but likely relatively infrequent. Costs associated with responding to requests, therefore, should be relatively low. The major cost for implementing this bill would be the development and implementation of a system to connect homeowners with their insurer.

-- END --

SENATE COMMITTEE ON

Senator Tony Mendoza, Chair

2017 - 2018 Regular

Bill No: Hearing Date: April 26, 2017

Subject:

SUMMARY

Provides a mechanism for the California Department of Insurance (CDI) to assist a homeowner, or the homeowner’s legal representative, to identify the insurer of a property located in a declared disaster area when the homeowner insured is unable to identify the policy number or name of the issuing insurer.

DIGEST

Existing law

1. Generally regulates fire insurance, commonly referred to as homeowners’ insurance, which includes insurance against loss by fire, lightning, windstorm, and fire as a result of earthquake;
2. Requires an insurer to provide an insured, free of charge, a complete current copy of his or her homeowners’ insurance policy after a covered loss under the policy and within 30 calendar days of receipt of the a request from the insured.

This bill

1. Requires the Insurance Commissioner (IC), in the case of a disaster declaration by the President or the Governor and at the request of an insured or the insured’s legal representative that is unable to identify the insurer for a property located in the disaster area, to electronically provide the insured’s name and property location information to insurers who issue homeowners’ insurance policies in the state;
2. Requires homeowners’ insurers to provide the IC an email address for the purposes of receiving a request for information for this purpose;
3. Requires an insurer to respond within 30 days after receiving the information from the IC and indicate whether the property is covered by a homeowners’ insurance policy issued by the insurer;
4. Requires the IC within 14 to provide any information received from an insurer that is related to the insured’s property to the insured or the insured’ legal representative who made the request.
   

COMMENTS

1. Purpose of the bill To ensure that in the aftermath of a major fire or other disaster homeowners, or the heirs or legal representatives if the homeowner has died and all records have been destroyed, are able to identify the homeowners’ insurer of the property and submit a claim for loss.
   
   
2. Background In a catastrophic fire or other disaster, homes can be destroyed quickly, along with all their contents including important financial information and insurance documents. In some cases, the disaster can lead to the death of the home owner or resident. If a home owner dies, information about what insurance coverage may exist can prove extremely difficult to discern for surviving family members. In one particularly difficult case resulting from the Lake County fire in 2015, a homeowner died, had no mortgage, and his heirs and family faced tremendous obstacles in their efforts to determine if he had insurance coverage, and if so, with whom. There was also a delay in getting a certificate of death because of the severe damage caused by the fire. The CDI was unable to offer any help in determining if there was an insurance policy. Ultimately, his sister sent claim letters to 106 insurers in the hope that one would respond. An insurer finally did respond but this process took more than a year.

Frequently major insurers set up facilities in the disaster area to assist their insureds file claims. California has more than 100 homeowners’ insurers, however, and if the claimant, estate or heirs do not know who the insurer is, or even if there is insurance coverage, this can pose a significant and burdensome obstacle to filing a claim within the time limits. There is no central registry or database of homeowners’ insurance. There are also situations where insurance was forced-placed on the property by a lender, and the property owner does not know the issuing insurer’s name.

The CDI is in regular contact with insurers through electronic means, including for handling consumer complaints and electronic filing.

1. Support According to the author, it is unacceptable for victims of a major disaster such as a wildfire, particularly if the homeowner has died in that fire, to then also be told they have no recourse when they cannot identify the insurer of the property. This doesn’t happen often, but it does happen. This bill offers a simple process to help homeowners when the worst happens, without posing an undue burden on insurers or the CDI.

United Policyholders (UP) supports SB 569 because it helps to solve a problem that sometimes arises after disasters—the damaged or destroyed property is covered by an insurance policy but the policy holder (or their legal representative) has no record of the policy number or the name of the issuing insurer. Policyholders who find themselves in this position have sought help from UP numerous times over the nonprofits 25 years in operation but there has been little UP could do to help them. This bill provides a simple fix.

1. Opposition None received
   

POSITIONS

Support

Consumer Attorneys of California

United Policyholders

Oppose

None received

-- END --