2005
Insurance Reference Manual
Personal Insurance Federation of California Insurance Reference Book
INSURANCE LEGISLATION PASSED IN 2004 TO HELP FIRE SURVIVORS
SB 64 (Speier): Mediation Program for Fire Survivors. Authorizes the California Department of Insurance to sponsor a mediation program to expedite the resolution of conflicts between victims of the 2003 Southern California wildfires and their insurance carriers relating to such issues as coverage, scope of loss, and claims settlement and payment practices. This measure went into effect on August 30, 2004, as an urgency statute.
SB 1855 (Alpert): Coverage Disclosures. Consumers are provided various disclosures when they purchase homeowners policies. One disclosure, known as the "Petris Disclosure," is given to consumers when policies are issued, initially renewed and every two years thereafter. The disclosure describes each of the categories of coverage available in the marketplace. The coverage described as "Replacement Cost," will now be called "Limited Replacement Cost." The "Declarations" page for the policy will include a new consumer disclosure about limitations on coverage. In addition, a new "California Residential Property Insurance Bill of Rights" will accompany the Petris Disclosure. This measure will become effective on January 1, 2005.
AB 2199 (Kehoe): Extends the time for rebuilding destroyed homes. This bill establishes a minimum 12-month period (24 months in a declared State of Emergency ) for homeowners to repair, rebuild, or replace their home after a loss. This measure went into effect on August 25, 2004, as an urgency statute.
AB 2962 (Pavley): Guaranteed Renewability/Premium Adjustments. Insurers are prohibited from canceling coverage during the course of rebuilding the destroyed structure and must renew a policy at least once if a total loss was caused by a disaster. If a policy is up for renewal during the rebuilding process, an insurer must consult with the policyholder about modifying coverage and must adjust the premium to reflect coverage changes. This measure will become effective on January 1, 2005.
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