Legislative Updates: Insurance Summary
- Apr 26
- 1 min read
Next up in our series of legislative updates, here are all the bills proposed that impact insurance.
SB 876: This bill would require insurers to pay the actual cash value associated with a structure within 30 calendar days from the date of loss. It would require the insurer to also pay the cost of building code upgrades if the structure was rebuilt at its original location and would prohibit policies from being issued/renewed unless the insured offers extended replacement cost of 50% coverage above the policy limits for the dwelling and other structures. Additional insurance coverage requirements for properties damaged by fire are included in this bill.
SB 877: This bill would require insurers to provide the named insured with all versions of claims documents within 15 calendar days of creation of the document.
SB 878: This bill would require application of penalties and interest at 20% per year, together with attorney's fees to fire insurance claims that do not meet State-mandated deadlines. Insurers would be required to provide a prompt-payment compliance data report to the Department of Insurance under penalty of perjury as well.
AB 1559: This bill would require property insurers to notify owners that aerial images may be taken of the property unless related to a pending claim or for use in evaluating the claim. Insurers would be required to provide copies of the aerial photos upon request. Further, insurers would be prohibited from basing a decision to terminate insurance on the aerial images.
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