BILL ANALYSIS
AB 1214
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Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON INSURANCE
Joe Coto, Chair
AB 1214 (Nava) - As Amended: April 15, 2009
SUBJECT : Fire insurance: private fire protection services and
insurance adjusters
SUMMARY : Requires personnel retained by an insurance company
to protect structures threatened by fire to check in with, and
follow the instructions of, the incident commander in charge of
fighting the fire. Specifically, this bill :
1)Requires anyone hired by an insurer for the purpose of
protecting structures endangered by fire, or to perform
firefighting duties to report to the incident commander or the
incident commander's designee, and comply with the incident
commander's orders, including evacuation orders.
2)Provides that a specially trained and certified insurance
adjuster shall, upon reporting to the incident commander or
his or her designee at the site of a fire, be allowed into an
evacuated area as soon as operationally practical.
EXISTING LAW :
1)Requires the Office of Emergency Services to establish a
standardized emergency management system that includes, among
a number of important features, an Incident Command System to
ensure that there is a central command point in charge of any
disaster situation.
2)Provides generally for the regulation of insurance companies
by the Insurance Commissioner, but does not contain any
specific provisions relating to insurers contracting with
private fire mitigation or suppression services.
FISCAL EFFECT : Undetermined.
COMMENTS :
1)Purpose . According to the author, and the sponsoring
firefighter organizations, there is an increasing trend of
insurance companies hiring private fire mitigation services.
AB 1214
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These private companies enter fire zones in an effort to
mitigate the risk of fire damage to insured homes. This can
involve application of fire retardant chemicals, or other
measures designed to protect the insured home that is in an
area at risk from a current nearby fire. There are several
concerns expressed by the author and sponsors about this
activity.
First, there are concerns that the private fire services may
clog roadways, or compete for limited crucial resources such
as water, thereby preventing public firefighters from most
effectively carrying out their duties. Second, there are
concerns that the public is confused by private vehicles that
appear to be local firefighters, but do not stop to assist
homeowners other than their clients' insureds. Third, there
are concerns that the private services may feel compelled by
contract to carry out duties in an area that is subject to an
evacuation order.
2)Recent amendments resolve insurer concerns. The bill as it is
currently in print represents an understanding between the
proponents and the insurance industry, which provided a
coalition letter to the Committee expressing neutrality on the
bill. The coalition letter was signed by representatives of
each of the three property-casualty insurer associations.
REGISTERED SUPPORT / OPPOSITION :
Support
California Department of Forestry Firefighters
California Professional Firefighters
California State Firefighters Association
Opposition
None reported.
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086