BILL NUMBER: AB 2064	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cooley

                        FEBRUARY 20, 2014

   An act to amend Sections 10081, 10085, 10086, 10089.6, and
10089.26 of, to add Sections 10081.1 and 10089.42 to, and to repeal
and add Sections 10089.28 and 10089.41 of, the Insurance Code,
relating to earthquake insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2064, as introduced, Cooley. Earthquake insurance: mandatory
offer.
   Existing law prohibits a policy of residential property insurance
from being issued or delivered or initially renewed in this state
unless the named insured is offered coverage for loss or damage
caused by an earthquake, and, if the offer of earthquake coverage is
accepted, requires the insurer to provide certain disclosures based
on whether the policy was issued by the California Earthquake
Authority (CEA).
   Existing law created the CEA, to be administered under the
authority of the Insurance Commissioner, and authorized it to
transact insurance in this state as necessary to sell policies of
basic residential earthquake insurance in the manner provided. The
CEA has no authority to transact any other type of insurance
business. The CEA's operating expenses are capped at 3% of its
premium income.
   This bill would revise and recast these provisions by instead
requiring insurers who are members of the CEA to provide their
insureds with specified disclosures with regard to coverage of
losses, the CEA's liability limitations, and premiums concurrent with
the issuance or renewal by the CEA of a residential earthquake
insurance policy. The bill would also prohibit member insurers from
issuing, delivering, or renewing a policy of residential property
insurance in this state, unless the named insured is provided notice
of the availability of residential earthquake insurance from the CEA
within 60 days of issuance or renewal of the insured's residential
insurance policy, as provided. The CEA would be required to prepare
the forms of notice for use by member insurers and submit the forms
to the commissioner for approval. The insurers would be authorized to
provide the notice electronically or by mail. The bill would provide
that member insurers that fulfil the specified notice requirements
would be in compliance with the earthquake insurance provisions
applicable to the issuance, delivery, and renewal of a policy of
residential property insurance.
   This bill would increase the cap on the CEA's operating expenses
to not more than 5% of its premium income. The bill would also
require that a CEA residential earthquake insurance policy be
effective upon receipt by the member insurer of both the completed
CEA-approved application for the policy, signed by the applicant, and
either the annual premium or the first installment of the annual
premium.
   This bill would also make conforming changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 10081 of the Insurance Code is amended to read:

   10081.   No   Except as provided in Section
10081.1, a  policy of residential property insurance 
may   shall not  be issued or delivered or, with
respect to policies in effect on the effective date of this chapter,
initially renewed in this state by any insurer unless the named
insured is offered coverage for loss or damage caused by the peril of
earthquake as provided in this chapter. That coverage may be
provided in the policy of residential property insurance itself,
either by specific policy provision or endorsement, or in a separate
policy or certificate of insurance  which   that
 specifically provides coverage for loss or damage caused by
the peril of earthquake alone or in combination with other perils.
  SEC. 2.  Section 10081.1 is added to the Insurance Code, to read:
   10081.1.  Section 10081 does not apply to any insurer that
participates in the California Earthquake Authority pursuant to
Chapter 8.6 (commencing with Section 10089.5). Each insurer
participating in the authority shall provide notice to all of its
residential property insurance policyholders of the availability of
earthquake insurance coverage in the manner required by Section
10089.42.
  SEC. 3.  Section 10085 of the Insurance Code is amended to read:
   10085.  If the insurer establishes proof of mailing or delivery of
the  required  offer  that is required pursuant
to Section 10081  and the offer of earthquake coverage is not
accepted by the named insured within 30 days from the date of mailing
or delivery of the offer, there shall be a conclusive presumption
that the named insured elected not to accept the coverage. An
election, actual or presumed, by any named insured shall be binding
upon any other person insured or any other party having an insurable
interest in the insured property.
  SEC. 4.  Section 10086 of the Insurance Code, as amended by Section
14 of Chapter 369 of the Statutes of 2013, is amended to read:
   10086.  (a) If an offer of earthquake coverage  , made
pursuant to Section 10081,  is accepted, the coverage shall be
continued at the applicable rates and conditions for the policy term,
provided the policy of residential property insurance is not
terminated by the named insured or insurer.
   (1) At any renewal, an insurer may modify the terms and conditions
of an existing policy, rider, or endorsement providing coverage
against loss or damage caused by the peril of earthquake if the
modified terms and conditions provide the minimum coverages required
by Section 10089.
   (2) An insurer that modifies the terms and conditions of an
existing policy, rider, or endorsement shall provide the insured with
the renewal notice in a stand-alone disclosure document stating the
changes in the terms and conditions of the insured's existing policy,
rider, or endorsement. The offer of renewal may be made
electronically pursuant to Section 38.5. Proof of mailing of the
disclosure document by first-class mail to a named insured at the
mailing address shown on the policy or application, or proof
consistent with Section 38.5 that the offer of renewal of coverage
was sent to the named insured or applicant by electronic
transmission, creates a conclusive presumption that the disclosure
document was provided. The disclosure shall include the following
statement in 14-point boldface type:



   "THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL
HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES
PROVIDED BY YOUR HOMEOWNERS' POLICY. INSURANCE COMPANIES ARE ALLOWED
TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED
FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE
COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO
ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14
DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE
OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE.
A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE."



   The commissioner shall approve the form of the summary at the time
he or she approves the policy. The summary shall include the
information contained in subdivision (a) of Section 10083, and may be
included with the renewal notice in standard type.
   The commissioner may approve substantially similar disclosure
forms if necessary to accurately disclose relevant information to the
policyholder. The commissioner may also approve disclosure forms
substantially similar to the disclosure statement required by Section
10083 if necessary to accurately disclose relevant information to
the policyholder. 
   (3) If the earthquake coverage is provided by a policy issued by
the California Earthquake Authority, the following disclosure shall
be provided in 14-point boldface type:  
      CALIFORNIA EARTHQUAKE AUTHORITY POLICY DISCLOSURE
    
   THIS POLICY IS BEING PURCHASED FROM THE CALIFORNIA EARTHQUAKE
AUTHORITY ("CEA"). THE COVERAGE IN THIS CEA POLICY SUBSTANTIALLY
DIFFERS FROM THE COVERAGES PROVIDED IN YOUR HOMEOWNER'S POLICY. THE
CEA IS NOT PART OF OR ASSOCIATED WITH YOUR HOMEOWNER'S INSURANCE
COMPANY. IF LOSSES AS A RESULT OF AN EARTHQUAKE OR A SERIES OF
EARTHQUAKES EXCEED THE AVAILABLE RESOURCES OF THE CEA, THIS POLICY IS
NOT COVERED BY THE CALIFORNIA INSURANCE GUARANTY ASSOCIATION.
THEREFORE, THE CALIFORNIA INSURANCE GUARANTY ASSOCIATION WILL NOT PAY
YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE CEA BECOMES INSOLVENT AND
IS UNABLE TO MAKE PAYMENTS AS PROMISED. IN ADDITION, YOUR CEA POLICY
MAY BE SUBJECT TO FUTURE SURCHARGES OF THE POLICY PREMIUM IN CERTAIN
CASES WHERE AN EARTHQUAKE OR SERIES OF EARTHQUAKES HAS EXCEEDED
AVAILABLE RESOURCES TO PAY CLAIMS. IN THAT CASE, THIS MEANS THAT IN
ADDITION TO THE ANNUAL PREMIUM, YOU MAY BE CHARGED UP TO AN
ADDITIONAL 20% OF THE PREMIUM.

   (b) If the offer  of earthquake coverage made pursuant to
Section 10081  is not accepted, the insurer or any affiliated
insurer shall be required on an every other year basis to offer
earthquake coverage in connection with any continuation, renewal, or
reinstatement of the policy following any lapse thereof, or with
respect to any other policy that extends, changes, supersedes, or
replaces the policy of residential property insurance. The offer may
be made electronically pursuant to Section 38.5.
   (c) Nothing in this section shall preclude the named insured from
terminating the earthquake coverage at any time.
   (d) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
  SEC. 5.  Section 10086 of the Insurance Code, as added by Section
15 of Chapter 369 of the Statutes of 2013, is amended to read:
   10086.  (a) If an offer of earthquake coverage  , made
pursuant to Section 10081,  is accepted, the coverage shall be
continued at the applicable rates and conditions for the policy term,
provided the policy of residential property insurance is not
terminated by the named insured or insurer.
   (1) At any renewal, an insurer may modify the terms and conditions
of an existing policy, rider, or endorsement providing coverage
against loss or damage caused by the peril of earthquake if the
modified terms and conditions provide the minimum coverages required
by Section 10089.
   (2) An insurer that modifies the terms and conditions of an
existing policy, rider, or endorsement shall provide the insured with
the renewal notice in a stand-alone disclosure document stating the
changes in the terms and conditions of the insured's existing policy,
rider, or endorsement. Proof of mailing of the disclosure document
by first-class mail to a named insured at the mailing address shown
on the policy or application creates a conclusive presumption that
the disclosure document was provided. The disclosure shall include
the following statement in 14-point boldface type:


   "THE COVERAGE IN THE POLICY WE ARE OFFERING YOU WITH THIS RENEWAL
HAS BEEN REDUCED, AND SUBSTANTIALLY DIFFERS FROM THE COVERAGES
PROVIDED BY YOUR HOMEOWNERS' POLICY. INSURANCE COMPANIES ARE ALLOWED
TO RENEW EARTHQUAKE INSURANCE POLICIES WITH COVERAGE THAT IS REDUCED
FROM THE COVERAGE YOU PREVIOUSLY PURCHASED. YOU MAY REQUEST A SAMPLE
COPY OF THIS NEW POLICY TO REVIEW PRIOR TO MAKING A DECISION TO
ACCEPT THIS RENEWAL, AND WE WILL MAIL OR DELIVER IT TO YOU WITHIN 14
DAYS OF YOUR REQUEST. A REQUEST FOR THE SAMPLE COPY SHALL NOT CHANGE
OR EXTEND THE POLICY EXPIRATION DATE SPECIFIED IN THE RENEWAL NOTICE.
A SUMMARY OF THE CHANGES IS INCLUDED WITH THIS NOTICE."


   The commissioner shall approve the form of the summary at the time
he or she approves the policy. The summary shall include the
information contained in subdivision (a) of Section 10083, and may be
included with the renewal notice in standard type.
   The commissioner may approve substantially similar disclosure
forms if necessary to accurately disclose relevant information to the
policyholder. The commissioner may also approve disclosure forms
substantially similar to the disclosure statement required by Section
10083 if necessary to accurately disclose relevant information to
the policyholder. 
   (3) If the earthquake coverage is provided by a policy issued by
the California Earthquake Authority, the following disclosure shall
be provided in 14-point boldface type:  
   CALIFORNIA EARTHQUAKE AUTHORITY POLICY DISCLOSURE 

   THIS POLICY IS BEING PURCHASED FROM THE CALIFORNIA EARTHQUAKE
AUTHORITY ("CEA"). THE COVERAGE IN THIS CEA POLICY SUBSTANTIALLY
DIFFERS FROM THE COVERAGES PROVIDED IN YOUR HOMEOWNER'S POLICY. THE
CEA IS NOT PART OF OR ASSOCIATED WITH YOUR HOMEOWNER'S INSURANCE
COMPANY. IF LOSSES AS A RESULT OF AN EARTHQUAKE OR A SERIES OF
EARTHQUAKES EXCEED THE AVAILABLE RESOURCES OF THE CEA, THIS POLICY IS
NOT COVERED BY THE CALIFORNIA INSURANCE GUARANTY ASSOCIATION.
THEREFORE, THE CALIFORNIA INSURANCE GUARANTY ASSOCIATION WILL NOT PAY
YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE CEA BECOMES INSOLVENT AND
IS UNABLE TO MAKE PAYMENTS AS PROMISED. IN ADDITION, YOUR CEA POLICY
MAY BE SUBJECT TO FUTURE SURCHARGES OF THE POLICY PREMIUM IN CERTAIN
CASES WHERE AN EARTHQUAKE OR SERIES OF EARTHQUAKES HAS EXCEEDED
AVAILABLE RESOURCES TO PAY CLAIMS. IN THAT CASE, THIS MEANS THAT IN
ADDITION TO THE ANNUAL PREMIUM, YOU MAY BE CHARGED UP TO AN
ADDITIONAL 20% OF THE PREMIUM. 
   (b) If the offer  of earthquake coverage made pursuant to
Section 10081  is not accepted, the insurer or any affiliated
insurer shall be required on an every other year basis to offer
earthquake coverage in connection with any continuation, renewal, or
reinstatement of the policy following any lapse thereof, or with
respect to any other policy that extends, changes, supersedes, or
replaces the policy of residential property insurance.
   (c) Nothing in this section shall preclude the named insured from
terminating the earthquake coverage at any time.
   (d) This section shall become operative on January 1, 2019.
  SEC. 6.  Section 10089.6 of the Insurance Code is amended to read:
   10089.6.  (a) There is hereby created the California Earthquake
Authority, which shall be administered under the authority of the
commissioner and have the powers conferred by this chapter. The
authority shall be authorized to transact insurance in this state as
necessary to sell policies of basic residential earthquake insurance
in the manner set forth in Sections 10089.26, 10089.27, and 10089.28.
The authority shall have no authority to transact any other type of
insurance business.
   (b) (1) The investments of the authority shall be limited to those
securities eligible under Section 16430 of the Government Code.
   (2) The rights, obligations, and duties owed by the authority to
its insureds, beneficiaries of insureds, and applicants for insurance
shall be the same as the rights, obligations, and duties owed by
insurers to its insureds, beneficiaries of insureds and applicants
for insurance under common law, regulations, and statutes. The
authority shall be liable to its insureds, beneficiaries of insureds,
and applicants for insurance as an insurer is liable to its
insureds, beneficiaries of insureds, and applicants for insurance
under common law, regulations, and statutes.
   (c) The operating expenses of the authority shall be capped at not
more than  3 percent   5 percent  of the
premium income received by the authority. The funds shall be
available to pay any advocacy fees awarded in a proceeding under
subdivision (c) of Section 10089.11.
  SEC. 7.  Section 10089.26 of the Insurance Code is amended to read:

   10089.26.  (a)  (1)    The authority shall issue
policies of basic residential earthquake insurance, including
earthquake loss assessment policies for individual condominium unit
properties, to any owner of a qualifying residential property, as
long as the owner has secured a policy of residential property
insurance from a participating insurer. 
   (2) A policy of residential earthquake insurance written by the
authority shall be effective upon receipt by the participating
insurer of both of the following:  
   (A) The completed authority-approved application for the policy,
signed by the applicant.  
   (B) Either the annual premium or the first installment of the
annual premium.  
   (1) 
    (b)  For purposes of this section, earthquake loss
assessment coverage shall be issued in a minimum amount of fifty
thousand dollars ($50,000) for individual condominium units valued at
more than one hundred thirty-five thousand dollars ($135,000).
Earthquake loss assessment coverage shall be issued in a minimum
amount of twenty-five thousand dollars ($25,000) for individual
condominium units of one hundred thirty-five thousand dollars
($135,000) in value or less. The value of the land shall be excluded
when determining the value of the condominium, as it relates to the
earthquake loss assessment coverage offered by the authority.

   (2) 
    (c)  The panel shall submit to the board, and the board
shall approve, rates for earthquake loss assessment coverage that
reasonably balance the earthquake loss assessment coverages offered
and the potential exposure to earthquake loss resulting from an
earthquake loss assessment policy as compared to the coverages
offered and the potential exposure to earthquake loss resulting from
residential property other than individual condominium policies.

    It 
    (d)     It  is the intent of the
Legislature, to the extent practicable, that rates charged by the
authority to condominium loss assessment policyholders and
residential property owner policyholders are treated equitably, and
that a proportionate share of premiums is paid for potential exposure
to loss, to the authority. 
   (b) 
    (e)  Nothing in this section shall prohibit a
participating or nonparticipating insurer from offering a condominium
earthquake loss assessment policy for different amounts of coverage
other than those offered by the authority.
  SEC. 8.  Section 10089.28 of the Insurance Code is repealed.

   10089.28.  (a) All policies of residential earthquake insurance
provided by the authority shall be written by the authority.
Authority policies shall be marketed and policyholders serviced by
the participating insurer that writes the underlying policy of
residential property insurance, and participating insurers shall be
reasonably compensated for the claims and policyholder services they
provide on behalf of the authority. Authority services may be
performed on behalf of the authority in any reasonable manner by the
participating insurer that is in compliance with statutory,
regulatory, and case laws regarding claims handling practices;
provided, however, where the authority has promulgated specific
procedures to govern its operations, the participating insurer shall
conform its practices to those procedures. The authority procedures
shall comply with statutory, regulatory, and case law governing
claims handling practices. Nothing in this provision shall be deemed
or construed to affect any duty or liability of the authority or
participating carrier as set forth in paragraphs (2) and (3) of
subdivision (e) of Section 10089.7.
   (b) The participating insurer shall notify each of its insureds
that the authority is the provider of earthquake coverage under the
policy. The form and method of notice shall meet standards
established by the commissioner by regulation. The authority shall
provide to participating insurers appropriate applications and forms
and shall maintain records of all policies written, moneys received,
and claims paid.
   (c) The duty of an agent or broker to investigate the financial
condition of the authority before placement of insurance shall be the
same as the duty of an agent or broker to investigate the financial
condition of an admitted insurer before placement of a policy of
insurance. 
  SEC. 9.  Section 10089.28 is added to the Insurance Code, to read:
   10089.28.  (a) All policies of residential earthquake insurance
provided by the authority shall be written by the authority.
Authority policies shall be marketed and policyholders serviced by
the participating insurer that writes the underlying policy of
residential property insurance, and participating insurers shall be
reasonably compensated for the claims and policyholder services they
provide on behalf of the authority. Authority services may be
performed on behalf of the authority in any reasonable manner by the
participating insurer that is in compliance with statutory,
regulatory, and case laws regarding claims handling practices;
provided, however, where the authority has promulgated specific
procedures to govern its operations, the participating insurer shall
conform its practices to those procedures. The authority procedures
shall comply with statutory, regulatory, and case law governing
claims handling practices. Nothing in this provision shall be deemed
or construed to affect any duty or liability of the authority or
participating carrier as set forth in paragraphs (2) and (3) of
subdivision (e) of Section 10089.7.
   (b) Concurrent with the issuance or renewal by the authority of a
residential earthquake insurance policy, the participating insurer
shall provide the following disclosure to the insured in 14-point
boldface type:


   "California Earthquake Authority Policy Disclosure
   You have purchased a California Earthquake Authority (CEA)
earthquake insurance policy, which can help you cover the cost of
repairing damage to your property and possessions caused by an
earthquake.
   The CEA is not part of your homeowners' insurance company.
   Please keep in mind these important things about your CEA
insurance policy:
   1. CEA policy coverages are different from the coverages provided
in your homeowners insurance policy. For example, this policy does
not cover earthquake damage to swimming pools, and it may provide
more limited coverage for chimneys, outbuildings, and masonry fences.
These are examples of possible differences between your CEA policy
and your homeowners' policy, and you should consult your CEA policy
to understand the types of losses that are limited or excluded and
those that are covered.
   2. If CEA's liability for earthquake losses exceeds the CEA's
available resources the CEA may reduce its payment to you or pay you
in installments. This policy is not covered by the California
Insurance Guarantee Association and therefore the California
Insurance Guarantee Association will not pay your claims if the CEA
becomes insolvent and is unable to make payments as promised.
   3. In certain cases, your CEA policy premium may be subject to
future surcharges if the CEA's obligations to pay earthquake losses
rise to a pre-defined level. In that case, in addition to your annual
premium you may be charged up to an additional 20% of that premium."



   (c) The authority shall provide to participating insurers
appropriate applications and forms and shall maintain records of all
policies written, moneys received, and claims paid.
   (d) The duty of an agent or broker to investigate the financial
condition of the authority before placement of insurance shall be the
same as the duty of an agent or broker to investigate the financial
condition of an admitted insurer before placement of a policy of
insurance.
  SEC. 10.  Section 10089.41 of the Insurance Code is repealed.

   10089.41.  (a) The offer of an authority policy by a participating
insurer shall constitute a mode of insurer compliance with Chapter
8.5 (commencing with Section 10081) of Part 1 of Division 2, and as
set forth in Section 10084.
   (b) If the authority ceases operation for any reason, including,
but not limited to, repeal of this chapter or insolvency of the
authority, participating carriers shall no longer be able to satisfy
the requirement to offer residential earthquake insurance coverage by
placement within the authority. The commissioner shall adopt a
schedule in accordance with subdivision (a) of Section 10089.35 to
establish when participating carriers shall be required to offer
coverage by another mode authorized pursuant to Chapter 8.5
(commencing with Section 10081) of Part 1 of Division 2 to those
policyholders for whom they write the underlying policies of
residential property insurance.
   (c) If the authority ceases operation pursuant to a statute
enacted by the Legislature, that statute shall determine the duty of
participating insurers to provide earthquake insurance pursuant to
Chapter 8.5 (commencing with Section 10081). Chapter 8.5 (commencing
with Section 10081) shall remain in effect unless specifically
repealed by that statute. 
  SEC. 11.  Section 10089.41 is added to the Insurance Code, to read:

   10089.41.  (a) Compliance with the provisions of Section 10089.42
by a participating insurer shall also constitute compliance by that
participating insurer with Chapter 8.5 (commencing with Section
10081).
   (b) If the authority ceases operation for any reason, including,
but not limited to, the repeal of this chapter or insolvency of the
authority, participating carriers shall be required to offer
residential earthquake insurance coverage pursuant to Section 10081.
The commissioner shall adopt a schedule in accordance with
subdivision (a) of Section 10089.35 to establish when participating
carriers shall be required to offer coverage pursuant to Section
10081 to those policyholders for whom they write the underlying
policies of residential property insurance.
   (c) If the authority ceases operation pursuant to a statute
enacted by the Legislature, that statute shall determine the duty of
participating insurers to provide earthquake insurance pursuant to
Chapter 8.5 (commencing with Section 10081). Chapter 8.5 (commencing
with Section 10081) shall remain in effect unless specifically
repealed by that statute.
  SEC. 12.  Section 10089.42 is added to the Insurance Code, to read:

   10089.42.  (a) A policy of residential property insurance shall
not be issued, delivered, or renewed in this state, by any
participating insurer unless the named insured is provided notice of
the availability of residential earthquake insurance from the
authority within 60 days of issuance or renewal of the insured's
residential insurance policy. The notice required by this subdivision
shall do all of the following:
   (1) Notify the insured that the residential property insurance
policy does not provide coverage for loss or damage caused by the
peril of earthquake.
   (2) Disclose that the insured can apply at any time through the
participating insurer for insurance issued by the authority that
covers loss or damage caused by the peril of earthquake.
   (3) Notify the insured that a policy of residential earthquake
insurance from the authority provides different protection, and in
some cases less protection, than the residential property insurance
policy.
   (4) Inform the insured of the amounts of premium and deductible
applicable to base-limits authority earthquake insurance coverage.
   (5) Direct the insured to an Internet Web site maintained by the
participating insurer or by the authority, or jointly by both, where
the insured can obtain premium estimates and information on
additional earthquake insurance coverages, coverage limits,
deductibles, and other policy and coverage features for a residential
earthquake insurance policy from the authority.
   (6) Direct the insured to an Internet Web site or toll-free
telephone number, or both, where the insured can be referred to or
speak with a representative or broker-agent of the participating
insurer who can facilitate the preparation and receipt of an
application for residential earthquake insurance written by the
authority.
   (b) The participating insurer may, but shall not be required to,
provide notice under this section to any insured who has purchased
through that participating insurer, and has in force, a residential
earthquake insurance policy written by the authority.
   (c) The authority shall prepare forms of notice for use by
participating insurers and submit them to the commissioner for
approval. The commissioner shall approve a form of notice if it
accurately discloses the information required by subdivision (a).
Forms of notice are not required to be reproduced in identical form
to the disclosures and advice set forth in subdivision (a), and they
may contain provisions additional to those set forth in subdivision
(a) if the additional provisions do not conflict with this section.
   (d) (1) The notice required by this section may be made
electronically pursuant to Section 38.5.
   (2) Proof of mailing of any notice required by this section by
first-class mail to a named insured at the mailing address shown on
the policy or application, or proof consistent
                   with Section 38.5 that the notice was sent to the
named insured or applicant by electronic transmission, creates a
conclusive presumption that the notice required by this section was
provided.