BILL NUMBER: SB 596 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 7, 2011
AMENDED IN ASSEMBLY JUNE 28, 2011
AMENDED IN SENATE MAY 2, 2011
AMENDED IN SENATE APRIL 25, 2011
INTRODUCED BY Senator Price
FEBRUARY 17, 2011
An act to amend Sections 790.034 and 10089.2 of the Insurance
Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 596, as amended, Price. Insurance: disclosures.
Existing
(1) Existing law requires an
insurer, upon receiving notice of a claim, to immediately, but not
more than 15 calendar days after receipt, provide the insured with a
legible reproduction of the specified Insurance Code section, in at
least 12-point type, detailing acts prohibited as unfair trade
practices, and a written notice, as specified.
This bill would revise the written notice and require that it be
provided to the insured with a legible reproduction of only specified
portions of the Insurance Code in at least 10-point type.
(2) Existing law requires an insurer, whether requested orally or
in writing by an insured, to provide the insured with a copy of the
Fair Claims Settlement Practices Regulations, as specified, within 15
calendar days of the request.
This bill would additionally require the insurer to provide a
legible reproduction of specified provisions of the Insurance Code
when requested by the insured, as specified.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 790.034 of the Insurance Code is amended to
read:
790.034. (a) Regulations adopted by the commissioner pursuant to
this article that relate to the settlement of claims shall take into
consideration settlement practices by classes of insurers.
(b) (1) Upon receiving notice of a claim, every insurer shall
immediately, but no more than 15 calendar days after receipt of the
claim, provide the insured with a legible reproduction of
subdivisions (h) and (i) of Section 790.03 along with a written
notice containing the following language in at least 10-point type:
"In addition to subdivisions (h) and (i) of
Section 790.03 of the Insurance Code, Fair Claims Settlement
Practices Regulations govern how insurance claims must be processed
in this state. These regulations are available at the Department of
Insurance Internet Web site, www.insurance.ca.gov. You may also
obtain a copy of this law and these regulations free of charge from
this insurer."
(2) Every insurer shall provide a copy of subdivisions
(h) and (i) of Section 790.03 of the Insurance Code and, whether
requested orally or in writing by an insured, , when
requested orally or in writing by an insured, a legible reproduction
of Section 790.03 of the Insurance Code and copies of Sections
2695.5, 2695.7, 2695.8, and 2695.9 of Subchapter 7.5 of Chapter 5 of
Title 10 of the California Code of Regulations, unless the
regulations are inapplicable to that class of insurer. This law and
these regulations shall be provided to the insured within 15 calendar
days of request.
(3) The provisions of this subdivision shall apply to all insurers
except for those that are licensed pursuant to Chapter 1 (commencing
with Section 12340) of Part 6 of Division 2, with respect to
policies and endorsements described in Section 790.031.
SEC. 2. Section 10089.2 of the Insurance Code is amended to read:
10089.2. (a) (1) Subject to the approval of the commissioner,
every insurer subject to this chapter shall, at the time of offering
to issue or offer to renew coverage as part of the offer of coverage
required by Section 10081, disclose to the applicant, in writing as a
freestanding document or in the same document containing the offer
of coverage required by Section 10081, which brings attention to the
applicant, all discounts or surcharges, if any that are available
from the insurer for that insurance and for any related insurance
provided under that coverage as part of the offer of coverage
required by Section 10081.
(2) The insurer shall provide and disclose in writing any
discounts or surcharges, if any, for earthquake hazard reductions,
which shall include, but not be limited to, retrofitting of the
residential dwelling by tying the structure to the foundation or
bracing the structure to the foundation, reinforcement of the
fireplace chimney, or securing of the hot water heater, and any other
discounts that are available from the insurer.
(b) Each insurer that offers earthquake insurance through licensed
agents or brokers shall provide in writing the document required in
subdivision (a) and any documents required by subdivision (a) of
Section 10083 to the agents and brokers listing all of the discounts
or surcharges, if any, that are required to be disclosed to the
applicant under this section, and shall require its agents and
brokers to make the disclosures required by this section.
(c) An insurer is not subject to this section where an insured has
completed earthquake hazard reductions and the insurer has provided
discounts or surcharges for the specific policy in the form of
premium rate changes.