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 |Add To My Favorites |Track Bill | Version: 04/21/25 - Amended Senate
 02/13/25 - Introduced

 SB-365 Fire insurance: reporting on cancellation and nonrenewal. (2025-2026)

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 Date Published: 04/21/2025 02:00 PM

SB365:v98#DOCUMENTBill Start

 Amended
 IN 
 Senate
 April 21, 2025

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Senate Bill

No. 365

Introduced by Senator Alvarado-Gil

February 13, 2025

 An act to amend Section 675.1 of the Insurance Code, relating to insurance. 

LEGISLATIVE COUNSEL'S DIGEST

SB 365, as amended, Alvarado-Gil.
 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.

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 675.1 of the Insurance Code is amended to read:

675.1.

 (a) In the case of a total loss to the primary insured structure under a policy of residential property insurance subject to Section 675, the following provisions apply:

(1) If reconstruction of the primary insured structure has not been completed by the time of policy renewal, the insurer, prior to or at the time of renewal, and after consultation by the insurer or its representative with the insured as to what limits and coverages might or might not be needed, shall adjust the limits and coverages, write an additional policy, or attach an endorsement to the policy that reflects the change, if any, in the insured’s exposure to loss. The insurer shall adjust the premium charged to reflect
 any change in coverage.

(2) The insurer shall not cancel coverage while the primary insured structure is being rebuilt, except for the reasons specified in subdivisions (a) to (e), inclusive, of Section 676. The insurer shall not use the fact that the primary insured structure is in damaged condition as a result of the total loss as the sole basis for a decision to cancel the policy pursuant to subdivision (e) of that section.

(3) Except for the reasons specified in subdivisions (a) to (e), inclusive, of Section 676, the insurer shall offer, for at least the next two annual renewal periods, but no less than 24 months of coverage from the date of the loss, to renew the policy in accordance with paragraph (1) if the total loss to the primary insured structure was caused by a
 disaster, as defined in subdivision (b) of Section 1689.14 of the Civil Code, the loss was not also due to the negligence of the insured, and losses have not occurred subsequent to the disaster-related total loss that relate to physical or risk changes to the insured property that result in the property becoming uninsurable.

(4) With respect to policies of residential earthquake insurance, the California Earthquake Authority, or any insurer, including a participating insurer, as defined in subdivision (i) of Section 10089.5, may defer its initial implementation of this section until no later than October 1, 2005.

(5) With respect to a residential earthquake insurance policy issued by the California Earthquake Authority, the following provisions apply:

(A) The participating insurer that issued the underlying policy of residential property insurance on the primary insured structure shall consult with the insured as to what limits and coverages