2004 Legislation

Last Update: May 2004

AB 2490 – (Maddox)

This bill, amending California Insurance Code section 1764.1, permits surplus line brokers placing personal lines insurance products, such as homeowners’ insurance and associated excess or umbrella coverages, immediately to bind coverage with an applicant in the same manner as non-admitted insurers and surplus line brokers currently authorized for commercial lines insurance products. This bill also makes specified changes to the D-1 and D-2 disclosure forms.

STATUS: Signed by the Governor. Chapter 95, 2004

AB 2557 – (Koretz)

This bill, amending California Insurance Code sections 1633 and 1749.1 and adding section 1729.2, increases penalties on unlicensed insurers, augments background information reporting requirements for insurance license applicants and licensees, and allows the Insurance Commissioner to penalize providers of continuing education that fail to meet CDI standards.

STATUS: Signed by the Governor. Chapter 279, 2004.

AB 2962 - (Pavley)

This bill, amending California Insurance Code section 2051 and adding section 675.1, would provide that, in the case of a total loss to the insured structure under a homeowners’ policy, if reconstruction of the primary insured structure has not been completed by the time of policy renewal, the insurer, prior to or at the time of renewal, and after consultation with the insured, shall adjust the limits and coverages, write an additional policy, or attach an endorsement to the policy that reflects the change, if any, in the insured’s exposure to loss. The bill would prohibit an insurer in these circumstances from canceling coverage while the destroyed structure is being rebuilt, except for specified reasons, and would require the insurer to offer to renew the policy at least once in certain circumstances.

STATUS: Signed by the Governor. Chapter 605, 2004.

SB 64 (Speier)

This bill extends until January 1, 2008 the operation of the program for mediation of disputes between insured complainants and insurers involving certain earthquake and auto insurance claims.

STATUS: Signed by the Governor. Chapter 357, 2004.

SB 1855 (Alpert)

This bill amends the California Residential Property Insurance Disclosure form to provide the additional cost for each of the different categories of coverage offered by the insurer that provide broader coverage than the insured’s current coverage. This bill would also require that the disclosure form be accompanied by a California Residential Property Insurance Bill of Rights.

STATUS: Signed by the Governor. Chapter 385, 2004.