BILL NUMBER: AB 2735 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 27, 2014
INTRODUCED BY Committee on Insurance (Assembly Members Perea
(Chair), Bradford, Ian Calderon, Cooley, Dababneh, Frazier, Gonzalez,
V. Manuel Pérez, and Wieckowski)
FEBRUARY 25, 2014
An act to amend Section 10086 Sections
10083 and 10086.1 of the Insurance Code, relating to earthquake
insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 2735, as amended, Committee on Insurance. Earthquake insurance.
Existing law prohibits a policy of residential property
insurance from being issued or delivered unless the named insured is
offered coverage for loss or damage caused by an earthquake, and
specifies the minimum coverage that is required to be offered
provides that a policy of residential property
insurance may not be issued or delivered or, under certain
circumstances, initially renewed by an insurer unless the named
insured is offered coverage for loss or damage caused by an
earthquake. The required offer of earthquake coverage is authorized
to be made prior to, concurrent with, or within 60 days following the
issuance or renewal of a residential property insurance policy
. If an offer of earthquake coverage is not accepted, insurers are
required to subsequently offer earthquake coverage to residential
policyholders on an every other year basis.
This bill would exempt those insurers whose insureds have accepted
earthquake coverage that does not meet the minimum coverage
requirement but has been approved by the Insurance Commissioner from
being required to offer earthquake coverage meeting the minimum
coverage requirements at any renewal if the insurer has offered a
renewal of that policy and has provided written notice with that
renewal regarding additional earthquake coverage available.
This bill would provide that if an insurer offers specified
insurance policies providing earthquake coverage that is greater than
the minimum requirements, and an offer of one of those policies has
been accepted, no further or other offer of earthquake coverage
meeting the minimum earthquake coverage requirements is required at a
renewal, if the insurer has offered a renewal of that policy and has
provided written notice with that renewal regarding additional
earthquake coverage that is available. The bill would require the
form of that written notice to be approved by the Insurance
Commissioner, as specified. The bill would also make additional
conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 10083 of the
Insurance Code , as amended by Section 12 of Chapter 369
of the Statutes of 2013, is amended to read:
10083. (a) The offer of coverage required by Section 10081 may be
made prior to, concurrent with, or within 60 days following the
issuance or renewal of a residential property insurance policy. If
the offer of coverage is mailed to the named insured or applicant, it
shall be mailed to the mailing address shown on the policy of
residential property insurance or on the application. The offer may
be made electronically pursuant to Section 38.5. The offer of
earthquake coverage shall contain the following language in at least
10-point boldface type:
YOUR POLICY DOES NOT PROVIDE COVERAGE AGAINST THE PERIL OF
EARTHQUAKE.
CALIFORNIA LAW REQUIRES THAT EARTHQUAKE COVERAGE BE OFFERED TO YOU
AT YOUR OPTION.
WARNING: THESE COVERAGES MAY DIFFER SUBSTANTIALLY FROM AND PROVIDE
LESS PROTECTION THAN THE COVERAGE PROVIDED BY YOUR HOMEOWNERS'
INSURANCE POLICY. THERE ARE EXCLUSIONS AND LIMITATIONS SUCH AS
OUTBUILDINGS, SWIMMING POOLS, MASONRY FENCES, AND MASONRY CHIMNEYS.
THIS DISCLOSURE FORM CONTAINS ONLY A GENERAL DESCRIPTION OF COVERAGES
AND IS NOT PART OF YOUR EARTHQUAKE INSURANCE POLICY. ONLY THE
SPECIFIC PROVISIONS OF YOUR POLICY WILL DETERMINE WHETHER A
PARTICULAR LOSS IS COVERED AND, IF SO, THE AMOUNT PAYABLE.
THE COVERAGE, SUBJECT TO POLICY PROVISIONS, MAY BE PURCHASED AT
ADDITIONAL COST ON THE FOLLOWING TERMS:
(A) AMOUNT OF DWELLING COVERAGE: ____
(B) APPLICABLE DEDUCTIBLE: ____ IF YOUR LOSS IS BELOW THIS AMOUNT,
YOU MAY NOT RECEIVE ANY PAYMENT FROM YOUR COVERAGE.
YOUR INSURANCE COMPANY OR AGENT WILL PROVIDE WRITTEN NOTICE AS TO
HOW THE DEDUCTIBLE APPLIES TO THE MARKET VALUE OF YOUR COVERAGE, THE
INSURED VALUE OF YOUR COVERAGE, OR THE REPLACEMENT VALUE OF YOUR
COVERAGE.
(C) CONTENTS COVERAGE: ____
IF YOUR LOSS DOES NOT EXCEED THE DEDUCTIBLE FOR THE DWELLING, YOU
WILL NOT RECEIVE ANY PAYMENT FOR THIS COVERAGE.
YOUR INSURANCE COMPANY OR AGENT WILL PROVIDE WRITTEN NOTICE AS TO
HOW THE DEDUCTIBLE APPLIES TO THE AMOUNT YOU RECEIVE PURSUANT TO THIS
COVERAGE.
(D) ADDITIONAL LIVING EXPENSES: ____
(E) RATE OR PREMIUM: ____
YOU MUST ASK THE COMPANY TO ADD EARTHQUAKE COVERAGE WITHIN 30 DAYS
FROM THE DATE OF MAILING OF THIS NOTICE OR IT SHALL BE CONCLUSIVELY
PRESUMED THAT YOU HAVE NOT ACCEPTED THIS OFFER.
THIS COVERAGE SHALL BE EFFECTIVE ON THE DAY YOUR ACCEPTANCE OF
THIS OFFER IS RECEIVED BY US.
(b) When the insurer, agent, or broker establishes delivery of the
disclosure form by obtaining the signature of the applicant or
insured, or when an insurer, agent, or broker provides the applicant
with the disclosure form and the applicant does not return a signed
acknowledgment of receipt within 60 days of the date it was provided,
there shall be a conclusive presumption that the insurer, agent, or
broker has complied with the disclosure requirements of this section.
(c) The offer may contain additional provisions not in conflict
with or in derogation of this section.
(d) The commissioner may only approve modifications to the
language prescribed in subdivision (a) if all of the following
conditions are met:
(1) The modifications are not in conflict with or in derogation of
any provision of this section or Section 10089.
(2) The modifications are necessary to ensure that the disclosure
statement accurately reflects the coverage actually provided by the
policy being offered.
(3) The modifications are strictly limited to necessary changes so
that the modified disclosure statement is otherwise identical to the
disclosure statement prescribed in this section.
(e) Use of the language prescribed by this section, or modified
language approved pursuant to subdivision (d), shall constitute
compliance with the requirements of Section 10081 by an insurer
subject thereto.
(f) (1) If the insurer offers policies providing earthquake
coverage, other than the coverage specified in subdivisions (a) and
(b) of Section 10089, pursuant to a rate application approved by the
commissioner in accordance with subdivision (c) of Section 10089, and
an offer of one of those policies has been accepted, no further or
other offer of earthquake coverage meeting the minimum coverage
requirements is required at a renewal if the insurer has offered a
renewal of that policy and has provided written notice with that
renewal regarding additional earthquake coverage that is available.
(2) The form of the written notice in paragraph (1) shall be filed
with the commissioner at least 30 days before its first use. The
form shall not be used if the commissioner disapproves the form of
the written notice within that period for being misleading or
incomplete.
(f)
(g) 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. 2. Section 10083 of the Insurance
Code , as added by Section 13 of Chapter 369 of the
Statutes of 2013, is amended to read:
10083. (a) The offer of coverage required by Section 10081 may be
made prior to, concurrent with, or within 60 days following the
issuance or renewal of a residential property insurance policy. If
the offer of coverage is mailed to the named insured or applicant, it
shall be mailed to the mailing address shown on the policy of
residential property insurance or on the application. The offer of
earthquake coverage shall contain the following language in at least
10-point boldface type:
YOUR POLICY DOES NOT PROVIDE COVERAGE AGAINST THE PERIL OF
EARTHQUAKE.
CALIFORNIA LAW REQUIRES THAT EARTHQUAKE COVERAGE BE OFFERED TO YOU
AT YOUR OPTION.
WARNING: THESE COVERAGES MAY DIFFER SUBSTANTIALLY FROM AND PROVIDE
LESS PROTECTION THAN THE COVERAGE PROVIDED BY YOUR HOMEOWNERS'
INSURANCE POLICY. THERE ARE EXCLUSIONS AND LIMITATIONS SUCH AS
OUTBUILDINGS, SWIMMING POOLS, MASONRY FENCES, AND MASONRY CHIMNEYS.
THIS DISCLOSURE FORM CONTAINS ONLY A GENERAL DESCRIPTION OF COVERAGES
AND IS NOT PART OF YOUR EARTHQUAKE INSURANCE POLICY. ONLY THE
SPECIFIC PROVISIONS OF YOUR POLICY WILL DETERMINE WHETHER A
PARTICULAR LOSS IS COVERED AND, IF SO, THE AMOUNT PAYABLE.
THE COVERAGE, SUBJECT TO POLICY PROVISIONS, MAY BE PURCHASED AT
ADDITIONAL COST ON THE FOLLOWING TERMS:
(A) AMOUNT OF DWELLING COVERAGE: ____
(B) APPLICABLE DEDUCTIBLE: ____ IF YOUR LOSS IS BELOW THIS AMOUNT,
YOU MAY NOT RECEIVE ANY PAYMENT FROM YOUR COVERAGE.
YOUR INSURANCE COMPANY OR AGENT WILL PROVIDE WRITTEN NOTICE AS TO
HOW THE DEDUCTIBLE APPLIES TO THE MARKET VALUE OF YOUR COVERAGE, THE
INSURED VALUE OF YOUR COVERAGE, OR THE REPLACEMENT VALUE OF YOUR
COVERAGE.
(C) CONTENTS COVERAGE: ____
IF YOUR LOSS DOES NOT EXCEED THE DEDUCTIBLE FOR THE DWELLING, YOU
WILL NOT RECEIVE ANY PAYMENT FOR THIS COVERAGE.
YOUR INSURANCE COMPANY OR AGENT WILL PROVIDE WRITTEN NOTICE AS TO
HOW THE DEDUCTIBLE APPLIES TO THE AMOUNT YOU RECEIVE PURSUANT TO THIS
COVERAGE.
(D) ADDITIONAL LIVING EXPENSES: ____
(E) RATE OR PREMIUM: ____
YOU MUST ASK THE COMPANY TO ADD EARTHQUAKE COVERAGE WITHIN 30 DAYS
FROM THE DATE OF MAILING OF THIS NOTICE OR IT SHALL BE CONCLUSIVELY
PRESUMED THAT YOU HAVE NOT ACCEPTED THIS OFFER.
THIS COVERAGE SHALL BE EFFECTIVE ON THE DAY YOUR ACCEPTANCE OF
THIS OFFER IS RECEIVED BY US.
(b) When the insurer, agent, or broker establishes delivery of the
disclosure form by obtaining the signature of the applicant or
insured, or when an insurer, agent, or broker provides the applicant
with the disclosure form and the applicant does not return a signed
acknowledgment of receipt within 60 days of the date it was provided,
there shall be a conclusive presumption that the insurer, agent, or
broker has complied with the disclosure requirements of this section.
(c) The offer may contain additional provisions not in conflict
with or in derogation of this section.
(d) The commissioner may only approve modifications to the
language prescribed in subdivision (a) if all of the following
conditions are met:
(1) The modifications are not in conflict with or in derogation of
any provision of this section or Section 10089.
(2) The modifications are necessary to ensure that the disclosure
statement accurately reflects the coverage actually provided by the
policy being offered.
(3) The modifications are strictly limited to necessary changes so
that the modified disclosure statement is otherwise identical to the
disclosure statement prescribed in this section.
(e) Use of the language prescribed by this section, or modified
language approved pursuant to subdivision (d), shall constitute
compliance with the requirements of Section 10081 by an insurer
subject thereto.
(f) (1) If the insurer offers policies providing earthquake
coverage, other than the coverage specified in subdivisions (a) and
(b) of Section 10089, pursuant to a rate application approved by the
commissioner in accordance with subdivision (c) of Section 10089, and
an offer of one of those policies has been accepted, no further or
other offer of earthquake coverage meeting the minimum coverage
requirements is required at a renewal if the insurer has offered a
renewal of that policy and has provided written notice with that
renewal regarding additional earthquake coverage that is available.
(2) The form of the written notice in paragraph (1) shall be filed
with the commissioner at least 30 days before its first use. The
form shall not be used if the commissioner disapproves the form of
the written notice within that period for being misleading or
incomplete.
(f)
(g) This section shall become operative on January 1,
2019.
SEC. 3. Section 10086.1 of the
Insurance Code is amended to read:
10086.1. (a) Where the offer of earthquake
coverage has not been accepted, the insurer shall notify the named
insured that the policy does not provide that coverage. After the
offer on an every other year basis, the notice of noncoverage shall
be provided prior to or concurrent with the renewal of the policy of
residential property insurance. This section shall not affect any
other provisions of this chapter nor shall it affect coverage under
the policy of residential property insurance.
(b) (1) If the insurer offers policies providing earthquake
coverage, other than the coverage specified in subdivisions (a) and
(b) of Section 10089, pursuant to a rate application approved by the
commissioner in accordance with subdivision (c) of Section 10089, and
an offer of one of those policies has been accepted, no further or
other offer of earthquake coverage meeting the minimum coverage
requirements is required at a renewal if the insurer has offered a
renewal of that policy and has provided written notice with that
renewal regarding additional earthquake coverage that is available.
(2) The form of the written notice in paragraph (1) shall be filed
with the commissioner at least 30 days before its first use. The
form shall not be used if the commissioner disapproves the form of
the written notice within that period for being misleading or
incomplete.
SECTION 1. 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 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) (1) If the insurer offers policies providing earthquake
coverage, other than the coverage specified in subdivisions (a) and
(b) of Section 10089, pursuant to a rate application approved by the
commissioner in accordance with subdivision (c) of Section 10089, and
an offer of that policy has been accepted, no further or other offer
of earthquake coverage meeting the minimum coverage requirements is
required at any renewal if the insurer has done both of the
following:
(A) Offered a renewal of that policy.
(B) Has provided written notice with that renewal regarding
additional earthquake coverage available.
(2) The form of the written notice shall be filed with the
commissioner at least 30 days prior to its first use and shall not be
used if the commissioner disapproves the form of the written notice
as being misleading or incomplete within that period.
(c) If the offer 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.
(d) Nothing in this section shall preclude the named insured from
terminating the earthquake coverage at any time.
(e) 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. 2. 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 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) (1) If the insurer offers policies providing earthquake
coverage, other than the coverage specified in subdivisions (a) and
(b) of Section 10089, pursuant to a rate application approved by the
commissioner in accordance with subdivision (c) of Section 10089, and
an offer of that policy has been accepted, no further or other offer
of earthquake coverage meeting the minimum coverage requirements is
required at any renewal if the insurer has done both of the
following:
(A) Offered a renewal of that policy.
(B) Has provided written notice with that renewal regarding
additional earthquake coverage available.
(2) The form of the written notice shall be filed with the
commissioner at least 30 days prior to its first use and shall not be
used if the commissioner disapproves the form of the written notice
as being misleading or incomplete within that period.
(c) If the offer 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.
(d) Nothing in this section shall preclude the named insured from
terminating the earthquake coverage at any time.
(e) This section shall become operative on January 1, 2019.