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Recent Legislation

California Enacts SLA-Backed AB 1641

AB 1641, legislation offered and lobbied by the Surplus Line Association of California (SLA) that will give the Department of Insurance more flexibility in deciding which coverages to add to the Export List, was signed into law on Oct. 4, 2017, by Governor Jerry Brown after unanimously passing both chambers of the California legislature.

This new law will be crucial in ensuring coverage for commercial consumers and also for emerging new technologies in which California is at the cutting edge, including high-speed rail and autonomous vehicles, as well as other large commercial projects, and new risks such as legal, recreational cannabis and cybersecurity risks. AB 1641, which was introduced and sponsored by Assembly Insurance Chair Tom Daly (D-Anaheim), will promote innovation and bring the old insurance economy in closer in step with the new digital economy.

Click here to see the final legislation.

Governor Brown Signs Ridesharing Bill

Governor Jerry Brown (D) on Sept. 17, 2014 signed AB 2293, the ridesharing legislation that recently passed both houses of the legislature by wide margins. According to the Associated Press, the legislation will take effect in July 2015.

The bill provides that in phase 1 of the pickup sequence, after a ridesharing driver turns on the application but before a match has been made with a passenger, the transportation network company (TNC) must provide $50,000/$100,000/$30,000 coverage, with $200,000 in excess coverage. The level of coverage required during this phase had been the key point of contention between legislators and TNCs. 

In phases 2 and 3, after a match has been made and once a passenger has been picked up, $1 million in coverage is required. This remains unaltered from the original language.