BILL NUMBER: AB 1640 CHAPTERED
BILL TEXT
CHAPTER 433
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2005
APPROVED BY GOVERNOR SEPTEMBER 30, 2005
PASSED THE ASSEMBLY AUGUST 30, 2005
PASSED THE SENATE AUGUST 29, 2005
AMENDED IN SENATE AUGUST 22, 2005
AMENDED IN SENATE JULY 11, 2005
AMENDED IN ASSEMBLY MAY 2, 2005
INTRODUCED BY Assembly Member Saldana
FEBRUARY 22, 2005
An act to amend Section 10103.5 of, and to add Section 791.28 to,
the Insurance Code, relating to insurance claims information.
LEGISLATIVE COUNSEL'S DIGEST
AB 1640, Saldana Insurance claims information.
Existing law generally regulates how insurers maintain information
related to adverse underwriting decisions.
This bill, as of July 1, 2006, would require any insurer who
issues a policy of insurance covering residential property, if it
reports claims history or loss experience to an insurance-support
organization, to provide the insured, within a certain period, with a
specified disclosure regarding contacting the claims information
database, and to include the disclosure in the California Residential
Property Insurance Bill of Rights.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 791.28 is added to the Insurance Code, to read:
791.28. (a) An insurer under a personal lines residential
property insurance policy, if it reports the claims history or loss
experience of insureds under those policies to an insurance-support
organization, shall provide the insured with the following additional
disclosure at the time that it provides the disclosure required
pursuant to paragraph (1) of subdivision (b) of Section 790.034:
"This insurer reports claim information to one or more claims
information databases. The claim information is used to furnish loss
history reports to insurers. If you are interested in obtaining a
report from a claims information database, you may do so by
contacting:
(Insert the name, toll-free telephone number, and, if applicable,
Internet Web site address of each claims information database to
which the insurer reports the information covered by this section)"
(b) This section shall become operative on July 1, 2006.
SEC. 2. Section 10103.5 of the Insurance Code is amended to read:
10103.5. (a) Every California Residential Property Insurance
Disclosure shall be accompanied by a California Residential Property
Insurance Bill of Rights. If the insurer provides the insured with an
electronic copy of a policy, the bill of rights may also be
transmitted electronically.
(b) The California Residential Property Insurance Bill of Rights
shall be plainly printed in no less than 10-point type. The bill of
rights shall contain the following:
"California Residential Property Insurance Bill of Rights
The largest single investment most consumers make is their home
and related property. In order to best protect these assets, it is
wise for consumers to understand the homeowner's insurance market.
Consumers should consider the following: Read your policy
carefully and understand the coverage and limits provided. Homeowner'
s insurance policies contain sublimits for various coverages such as
personal property, debris removal, additional living expense,
detached fences, garages, etc. Keep accurate records of
renovations and improvements to the structure of your home, as it
could affect your need to increase your coverage. Maintaining a
list of all personal property, pictures, and video equipment may help
in the case of a loss. The list should be stored away from your
home. Comparison shop for insurance, as not all policies are the
same and coverage and prices vary. Take time to determine the cost
to rebuild or replace your property in today's market. You can seek
an independent evaluation of this cost. You may select a licensed
contractor or vendor to repair, replace, or rebuild damaged property
covered by the insurance policy. An agent or insurance company may
help you establish policy limits that are adequate to rebuild your
home. Once the policy is in force, contact your agent or insurance
company immediately if you believe your policy limits may be
inadequate. A consumer is entitled to receive information regarding
homeowner's insurance. The following is a limited overview of
information that your insurance company can provide: The
California Residential Property Insurance Disclosure. An
explanation of how your policy limits were established. The
insurance company's customer service telephone number for
underwriting, rating, and claims inquiries. An explanation for any
cancellation or nonrenewal of your policy. A copy of your policy.
The toll-free telephone number and Internet address for reporting
complaints and concerns about homeowner's insurance issues to the
department's consumer services unit. In the event of a claim, an
itemized, written scope of loss report prepared by the insurer or its
adjuster within a reasonable time period. In the event of a
claim, notification of a consumer's rights with respect to the
appraisal process for resolving claims disputes. In the event of a
claim, a copy of the Unfair Practices Act and a copy of the Fair
Claims Practices Regulations. The information provided herein is not
all inclusive and does not negate or preempt existing California
law. If you have any concerns or questions, the officers at our
Consumer Hotline are there to help you. Please call them at
1-800-927-HELP (4357) or contact us at www.insurance.ca.gov."
(c) (1) The bill of rights shall be distributed by all insurers
licensed to sell residential property insurance in this state.
(2) (A) If the insurer under a personal lines residential property
insurance policy reports claims history or loss experience of
insureds under those policies to an insurance-support organization,
the insurer shall include the following disclosure in the California
Residential Property Insurance Bill of Rights:
"This insurer reports claim information to one or more claims
information databases. The claim information is used to furnish loss
history reports to insurers. If you are interested in obtaining a
report from a claims information database, you may do so by
contacting:
(Insert the name, toll-free telephone number, and, if applicable,
Internet Web site address of each claims information database to
which the insurer reports the information covered by this section)"
(B) This paragraph shall become operative on July 1, 2006.