Earthquake insurance: coverage offer.

Under existing law, a policy of residential property insurance may not be issued or delivered or, under certain circumstances, initially renewed by an insurer unless the named insured is offered coverage for loss or damage caused by an earthquake. The required offer of earthquake coverage is authorized to be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy. This bill would provide that in addition to affording administrative flexibility to insurers for the routine management of their business, the above provision shall be construed as authorizing an insurer, for a period not to exceed 60 days following the issuance or renewal of a residential property insurance policy, to focus on claims and its resources on services to existing policyholders in the event of an earthquake and to temporarily defer the mandatory offer and its associated workload, including any inspections or other underwriting activity. The bill would also provide that the requirement that insurers make all mandatory offers of earthquake coverage prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy would not change.