BILL ANALYSIS Ó
AB 2161
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON INSURANCE
Tom Daly, Chair
AB 2161
(Quirk) - As Amended April 13, 2016
SUBJECT: Parking lots: design: insurance discount
SUMMARY: States that an insurer may provide a discount to a
property owner that installs specified parking lot safety
features. Specifically, this bill:
1)States that an insurer may consider the installation of
vehicle safety barriers in parking lots to be a safety measure
and may provide or offer a discount on a property owner's
commercial property or liability insurance policy due to the
reduced risk posed by the improved property.
2)Provides that any discount an insurer may make available be
approved through the regular Proposition 103 prior approval
rate regulation system.
3)Defines a vehicle barrier as a safety device that meets the
vehicle impact protection standards as provided by the State
Fire Marshall and adopted by the California Building Standards
Commission, if the safety device is installed to protect
people located within, in, or on the insured property from
collisions into the buildings by motor vehicles.
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EXISTING LAW:
1)Establishes, by initiative statute, a rate regulation system
for property and casualty insurance (which includes liability
insurance) that prohibits insurers from selling insurance
unless and until the form and rate for the insurance has been
approved by the Insurance Commissioner (commissioner).
2)Requires an insurer seeking an approval from the commissioner
to file a complete rate application that details the actuarial
justification for the requested rating structure.
3)Allows an insurer selling commercial property or liability
insurance to include virtually any rating factor it wishes in
its application for approval, provided that it can support the
requested rate with actuarial data or other supporting
justification.
4)Provides for a Fire Code in Title 24, Part 9 of the California
Code of Regulations.
5)Includes in that Code a provision for vehicle impact
protection barriers, and defines the standards for
constructing a barrier that complies with the requirements of
the Code.
FISCAL EFFECT: Undetermined.
COMMENTS:
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1)Purpose . The author argues that inadequate safety features in
parking lots poses a public safety risk, and that far too many
people are injured by vehicles crashing into buildings. The
author states that these crashes are frequently preventable by
the simple addition of parking lot safety barriers. The
intent of the bill is to make installation of these barriers
more affordable for property owners by encouraging insurers to
seek approval for discounts for those properties are have
upgraded safety barriers installed.
2)Fire Code regulations . Section 312, et seq, of Part 9 of
Title 24 of the California Code of Regulations defines what an
acceptable barrier is. By referencing this standard in
statute, the author hopes to help induce insurers to take
notice of what constitutes enhanced safety, and presumably
lower loss costs.
3)Other jurisdictions . The author notes that a number of
California cities and out of state jurisdictions have adopted
legislation addressing parking lot safety and the use of
safety barriers.
4)Prior legislation . Last year AB 764 (Quirk) addressed the
parking lot safety barrier issue. In addition to the
insurance provisions of AB 764, it also directed the State
Building Standards Commission to review existing parking lot
safety requirements. AB 764 was vetoed. The Governor's veto
message provides:
"This bill would require the Building Standards Commission to
consider standards for installation of vehicle barriers in the
design of any new building.
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Local governments have jurisdiction over local commercial
buildings and may impose additional building standards. I
believe it would be more prudent to leave the matter of
vehicle barrier installation to the building owners and local
authorities."
REGISTERED SUPPORT / OPPOSITION:
Support
None received
Opposition
None received
Analysis Prepared by:Mark Rakich / INS. / (916) 319-2086
AB 2161
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