AB 2342, as introduced, Dababneh. Insurance: automobile insurance.
Under existing law, an insurer that issues an automobile collision policy or a policy for comprehensive coverage for an automobile is prohibited from refusing to issue the policy of insurance, or the policy in combination with other coverages, when the refusal is based solely on the age of the automobile to be insured, if the market value of that automobile exceeds $2,500.
This bill would increase that market value threshold to $5,000.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 671 of the Insurance Code is amended
2to read:
begin deleteNo end deletebegin insertAn end insertinsurer issuing an automobile collision policy, as
4defined in Section 660, or a policy for comprehensive coverage
5for an automobile, as defined in Section 11580.07, shallbegin insert notend insert refuse
6to issue the policy of insurance, or the policy in combination with
7other coverages, when the refusal is based solely on the age of the
8automobile to be insured, if the market value of the automobile
P2 1exceedsbegin delete two thousand five hundred dollars ($2,500)end deletebegin insert
five thousand
2dollars ($5,000)end insert.
3This section does not apply to any policy which includes
4coverage for losses resulting from wear and tear or from normal
5deterioration of an automobile or its component parts, nor to any
6policy which provides coverage for an antique or classic
7automobile.
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