SB 365: Fire insurance: reporting on cancellation and nonrenewal.

Existing law generally regulates classes of insurance, including residential property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to a fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred.

This bill would require the Department of Insurance, on or before January 1, 2027, and on or before each January 1 thereafter, to report specified information to the Legislature on the effect the above-described one-year prohibition against cancellation or nonrenewal has had on cancellations and nonrenewals of policies of residential property insurance in ZIP Codes adjacent to, but not included in, an area where the prohibition applies, as well as for ZIP Codes for which the prohibition has expired. subject to the prohibition.