AB-2367 A smoke and mirrors insurance Bill Limon co-authored to appear to protect homeowners from wildfires.


This bill would create a Wildfire Resilience Task Force to establish minimum standards for fire-hardened homes and communities but did not say when this would occur, however, in the interim, insurance companies are on the hook to say yes to all homeowner applications. This Bill could potentially reduce the number of insurance providers in the state. The harm to insurance companies was so great that her Democratic colleagues saw it for what it was which is why it never advanced to a vote and is another example of Ms. Limon’s refusal to collaborate with private enterprises.

Introduced by Assembly Members Gonzalez and Limón
(Principal coauthor: Senator Dodd)
(Coauthor: Assembly Member Bauer-Kahan)

February 18, 2020

An act to add Section 2063 to, and to add Article 9 (commencing with Section 13575) to Chapter 2 of Division 3 of, the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 2367, as amended, Gonzalez. Residential property insurance: wildfire resilience.Existing law generally regulates classes of insurance, including residential fire and property insurance. Existing law defines the measure of indemnity for a loss under a property insurance policy. Existing law requires a person who controls a building or structure in, upon, or adjoining a specified wildfire-prone area to, among other things, maintain 100 feet of defensible space around the structure.This bill would create the Wildfire Resilience Task Force, which would include the Insurance Commissioner, the Director of the Office of Emergency Services, and the State Fire Marshal, or their designees. The bill would require the task force to establish minimum standards for fire-hardened homes and communities, and would authorize the commissioner to promulgate regulations to implement specified exceptions to those standards. The bill would require an admitted insurer that offers or sells residential property insurance to, at a minimum, offer or sell the existing residential property insurance coverage it most commonly offers or sells to an applicant or insured who owns a residence that has an estimated replacement cost consistent with the insurer’s underwriting guidelines, meets the minimum standards established by the task force, and was built exists in a development that was established before those standards were established. established, including a residence rebuilt after being destroyed by wildfire.

DIGEST KEY

Vote: majority   Appropriation: no   Fiscal Committee: yes   Local Program: no  


BILL TEXT

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1.

 Section 2063 is added to the Insurance Code, to read:

2063.

 An admitted insurer that offers or sells residential property insurance in this state shall, at a minimum, offer or sell the existing residential property insurance coverage it most commonly offers or sells to an applicant or insured if all of the following requirements are met:(a) The applicant or insured owns a residence with an estimated replacement cost that is consistent with the insurer’s underwriting guidelines.(b) The residence meets the minimum standards for a fire-hardened home established pursuant to Section 13576.(c) The residence is within a community that meets the minimum standards for a fire-hardened community established pursuant to Section 13576.(d) The residence was built exists in a development that was established before the development of the standards established pursuant to Section 13576. 13576, including a residence rebuilt after being destroyed by wildfire.

SEC. 2.

 Article 9 (commencing with Section 13575) is added to Chapter 2 of Division 3 of the Insurance Code, to read:

Article  9. Wildfire Resilience Task Force
13575.

 (a) The Wildfire Resilience Task Force is hereby created.(b) The task force membership shall include all of the following:(1) The commissioner or the commissioner’s designee.(2) The Director of the Office of Emergency Services or the director’s designee.(3) The State Fire Marshal or the State Fire Marshal’s designee.

13576.

 The task force, in consultation with the Department of Forestry and Fire Protection and the Office of Planning and Research, shall establish both of the following:(a) The minimum standards a dwelling shall meet to qualify as a fire-hardened home.(b) The minimum standards a community shall meet to qualify as a fire-hardened community.

13577.

 (a) The commissioner may promulgate regulations to require insurers to incentivize wildfire mitigation actions by homeowners as part of insurance premiums.(b) The commissioner may promulgate regulations to implement this article, including regulations to implement exceptions to the standards established pursuant to Section 13576 based on any of the following:(1) If an insurer determines it has an overconcentration of risk in a particular region and provides the reasoning for the determination to the commissioner for consideration.(2) If the commissioner determines, based on wildfire risk factors, that a residence is exposed to such an extreme wildfire risk that it severely undermines the impact of home hardening and community hardening efforts.(3) If underwriting reasons, unrelated to the risk of wildfire loss, that an insurer applies generally to all properties to determine eligibility for coverage will be affected.