Existing law generally regulates residential property insurance. Existing law requires specified information to be included on the declarations page of a residential property insurance policy, including limits of liability for the structure and personal property. Existing law requires an insurer to deliver or mail to the named insured an offer of renewal or a notice of nonrenewal of an insurance policy at least 45 days before the policy expiration, or 75 days before the policy expiration for a notice of nonrenewal for a policy that expires on or after July 1, 2020. Existing law requires an offer of renewal to include specified information, including any reduction of limits or elimination of coverage.
This bill would require an insurer to obtain a signed acknowledgment from an applicant or insured if the insurer issues or renews a residential property insurance policy on or after January 1, 2021, that does not provide coverage for the peril of fire. The bill would require that acknowledgment and the declarations page of a residential property insurance policy issued or renewed on or after January 1, 2021, that does not provide coverage for the peril of fire to prominently disclose a statement that the policy does not cover the peril of fire and information on the California FAIR Plan and the California Home Insurance Finder.
This bill would require an offer of renewal stating a reduction of limits or elimination of coverage to include a specific description of the reduction or elimination. The bill would require an elimination of coverage for a previously covered peril to be considered a nonrenewal. The bill would require an insurer that offers a new policy or policy endorsement that does not provide coverage for the peril of fire or any other previously covered peril to issue the new policy or policy endorsement under a different policy number than that of the policy that is not being renewed, and would require the insurer to provide specified disclosures to the insured.

Statutes affected:
AB 2756: 2070.1 INS
02/20/20 - Introduced: 2070.1 INS
05/04/20 - Amended Assembly: 678 INS, 2070.1 INS
AB2756: 2070.1 INS