BILL NUMBER: AB 1191	CHAPTERED  09/29/03

	CHAPTER  571
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2003
	PASSED THE SENATE  AUGUST 28, 2003
	AMENDED IN SENATE  JUNE 25, 2003
	AMENDED IN ASSEMBLY  JUNE 3, 2003
	AMENDED IN ASSEMBLY  APRIL 3, 2003

INTRODUCED BY   Assembly Member Wiggins

                        FEBRUARY 21, 2003

   An act to amend Section 678 of, and to add Chapter 11.5
(commencing with Section 679.9) to Part 1 of Division 1 of, the
Insurance Code, relating to property insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1191, Wiggins.  Property insurance:  rates:  disclosure.
   Existing law generally regulates the insurance industry.  Existing
law requires an insurer under certain property insurance policies to
deliver to an insured, within a specified period prior to policy
expiration, an offer of renewal or a notice of nonrenewal, as
specified.
   This bill would require an insurer under these property insurance
policies, in addition, to inform an insured in writing of (1) any
increase or decrease in an annual premium as compared to the previous
year, (2) the reasons for the change, and (3) specified telephone
numbers and information regarding consumer complaints.
   This bill would provide that its provisions would not become
operative until March 1, 2004.


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


  SECTION 1.  Section 678 of the Insurance Code is amended to read:
   678.  (a) At least 45 days prior to policy expiration, an insurer
shall deliver to the named insured or mail to the named insured at
the address shown in the policy, either of the following:
   (1) An offer of renewal of the policy contingent upon payment of
premium as stated in the offer, stating each of the following:
   (A) Any reduction of limits or elimination of coverage.
   (B) The telephone number of the insurer's representatives who
handle consumer inquiries or complaints.  The telephone number shall
be displayed prominently in a font size consistent with the other
text of the renewal offer.
   (2) A notice of nonrenewal of the policy.  That notice shall
contain each of the following:
   (A) The reason or reasons for the nonrenewal.
   (B) The telephone number of the insurer's representatives who
handle consumer inquiries or complaints. The telephone number shall
be displayed prominently in a font size consistent with the other
text of the notice of nonrenewal.
   (C) A brief statement indicating that if the consumer has
contacted the insurer to discuss the nonrenewal and remains
unsatisfied, he or she may have the matter reviewed by the
department.  The statement shall include the telephone number of the
unit within the department that responds to consumer inquiries and
complaints.
   (b) In the event an insurer fails to give the named insured either
an offer of renewal or notice of nonrenewal as required by this
section, the existing policy, with no change in its terms and
conditions, shall remain in effect for 45 days from the date that
either the offer to renew or the notice of nonrenewal is delivered or
mailed to the named insured.  A notice to this effect shall be
provided by the insurer to the named insured with the policy or the
notice of renewal or nonrenewal.
   (c) Any policy written for a term of less than one year shall be
considered as if written for a term of one year.  Any policy written
for a term longer than one year, or any policy with no fixed
expiration date, shall be considered as if written for successive
policy periods or terms of one year.
   (d) This section applies only to policies of insurance specified
in Section 675.
  SEC. 2.  Chapter 11.5 (commencing with Section 679.9) is added to
Part 1 of Division 1 of the Insurance Code, to read:

      CHAPTER 11.5.  DISCLOSURE REQUIREMENTS FOR CERTAIN PROPERTY
INSURANCE

   679.9.  If an insurer changes the annual premium under a policy
specified in Section 675, it shall, within 15 business days of a
request by the insured, inform the insured in writing of each of the
following:
   (a) The amount of the premium increase or decrease in comparison
to the premium charged in the previous year.
   (b) The reason or reasons for the change, including, but not
limited to, the deletion of a loss-free credit, the application of a
claim-related surcharge, or any other reason related to a claim or
policyholder inquiry.
   (c) A brief statement indicating each of the following:
   (1) That the consumer may contact their agent or the insurer with
any additional questions regarding the premium and providing the
telephone number for the insurer's representatives who are capable of
responding, and authorized to respond, to consumer inquiries and
complaints.
   (2) That if the insured has contacted the insurer to discuss a
premium increase and the insured remains unsatisfied, he or she may
contact the department with any inquiries or complaints.  The
statement shall include the telephone number of the unit within the
department that responds to consumer inquiries and complaints.
  SEC. 3.  The provisions of this bill shall not become operative
until March 1, 2004.