CaliforniaInsurance: distressed areas.
What it does
Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing regulations authorize insurers, in distressed areas and for properties insured by the FAIR Plan that are exposed to wildfire risk, to use catastrophe modeling, as specified.
More detail
Under existing regulations, a distressed area includes undermarketed ZIP Codes and distressed counties.
Existing law requires the State Fire Marshal to classify lands into fire hazard severity zones in accordance with state responsibility areas and local responsibility areas, as specified. Existing regulations establish and record wildland-urban interface (WUI) areas in accordance with these classifications.
This bill would require the department, on or before July 1, 2027, and yearly thereafter, to conduct a review and update distressed areas based on updates to the WUI designated areas. As part of the review, the bill would require the department, among other things, to hold at least one public meeting to allow interested persons to submit suggestions for additional factors to consider when evaluating FAIR Plan percentages in WUI areas. The bill would require the department, on or before January 1, 2028, to publish a list of ZIP Codes in WUI areas on its internet website and to provide this information to certain committees in the Legislature.
Existing law requires an admitted insurer with written California premiums totaling $10,000,000 or more to submit a report with specified fire risk information on its residential property policies to the commissioner on or before April 1, 2020, and every 2 years thereafter. Existing law subjects an admitted insurer that fails to submit a report to a civil penalty to be fixed by the commissioner, not to exceed $5,000, or $10,000 if the act was willful.
This bill would instead subject an admitted insurer that fails to submit a report to a civil penalty to be fixed by the commissioner, not to exceed $5,000 for each 30-day period that the insurer is not in compliance, or $10,000 for each 30-day period that the insurer is not in compliance, but not to exceed an aggregate amount of $100,000 if the act was willful. The bill would authorize the commissioner to consider an insurer's violation of these provisions as the basis for other enforcement action against an insurer.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State - Chapter 961, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 10Enrolled and presented to the Governor at 3 p.m.To Governor
- Aug 31
- Vote recorded AB 2724 Bauer-Kahan Concurrence in Senate Amendments. Result: pass.Lower
- Aug 30Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 64. Noes 2. Page 6926.).Major
- Vote recorded 3rd Reading AB2724 Bauer-Kahan By Grayson. Result: pass.Upper
- Aug 30In Assembly. Concurrence in Senate amendments pending.
- Aug 30Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0.).Passed Senate
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 20Read third time and amended. Ordered to second reading.Major
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 7. Noes 0.) (August 13).Minor
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 25From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
- Jun 24
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- May 27Referred to Com. on INS.Minor
- May 14In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2724 Bauer-Kahan Consent Calendar Second Day. Result: pass.Lower
- May 14Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 5057.)Passed Assembly
- May 7Read second time. Ordered to Consent Calendar.Minor
- May 6From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 6).Minor
- Vote recorded Do pass. To Consent Calendar. Result: pass.Lower
- Apr 22From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 16. Noes 0.) (April 22). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Apr 20Re-referred to Com. on INS.Minor
- Apr 16From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.Major
- Mar 16Referred to Com. on INS.Minor
- Feb 21From printer. May be heard in committee March 23.
- Feb 20Read first time. To print.Introduced