Insurance.

Existing law requires an insurer, at least 45 days prior to the expiration of an insurance policy, except for specified insurance policies, to deliver or mail to the named insured, an offer of renewal or a notice of nonrenewal of the policy, as specified. If the insurer fails to do so, existing law requires the existing policy, with no change in its terms and conditions, to remain in effect for 45 days from the date that either the offer to renew or the notice of nonrenewal is delivered or mailed to the named insured. This bill, with respect to a notice of nonrenewal for a policy that expires on or after July 1, 2020, would require an insurer to deliver or mail the notice of nonrenewal to the named insured on or before 75 days prior to the policy expiration and, if the insurer fails to do so, would require the existing policy, with no change in its terms and conditions, to remain in effect for 75 days from the date that the notice of nonrenewal is delivered or mailed. The bill also would require, commencing on July 1, 2020, a notice of nonrenewal of a policy to contain specified contact information for the Department of Insurance. Existing law creates the California Insurance Guarantee Association (CIGA) and requires all insurers admitted to transact specified insurance lines in this state to become members. Under existing law, CIGA pays and discharges covered claims, which are the obligations of an insolvent insurer, including the obligation for unearned premiums, that meet specified requirements. Existing law excludes the portion of a claim in excess of $500,000 from the definition of "covered claims," except in a claim for workers' compensation benefits. This bill would require, with respect to a policy of residential property insurance, each claim for a loss under a different coverage category to be considered a separate covered claim. The bill would increase the limit for a covered claim for damage to, or loss of, a dwelling structure under a policy of residential property insurance to an amount that does not exceed $1,000,000 or the amount recoverable under the policy, whichever is less. Under existing law, the California FAIR Plan Association, also known as the facility, is a joint reinsurance association formed by state insurers licensed to write and engaged in writing basic property insurance within this state to assist persons in securing basic property insurance and to formulate and administer a program and FAIR Plan for the equitable apportionment among insurers of basic property insurance. Existing law requires the FAIR Plan and any amendment to the plan to be approved by the Insurance Commissioner. Existing law requires, under the plan, each insurer to participate in the writings, expenses, and profits and losses of the association in the proportion that its premiums written bear to the aggregate premiums written by all insurers in the program, as specified, but requires the plan, pursuant to regulations adopted by the commissioner, to provide for a method for insurers who voluntarily write basic property insurance on risks located in areas designated as brush hazard areas to be proportionately relieved of the liability to participate in the plan. This bill would add to the insurers that are proportionately relieved of the liability to participate in the FAIR Plan those insurers voluntarily writing basic property insurance on risks in high or very high fire hazard severity zones, as determined and mapped by the Department of Forestry and Fire Protection. The bill would, for purposes of providing that proportionate relief from liability for all of those risk areas, require those areas to be designated as either a brush hazard area or a high or very high fire hazard severity zone at the beginning of the policy period. The bill would require the facility to prepare and submit a report to the Governor, the commissioner, and the insurance committees of the Senate and the Assembly identifying the credit for voluntary writings submitted by licensees in the high and very high fire hazard severity zones, as specified. The bill would require the facility to prepare and submit the report 3 times, as specified, beginning on or before July 1, 2023. This bill would declare that it is to take effect immediately as an urgency statute.