CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1797Introduced by Assembly Member Levine(Coauthor: Assembly Member Wood)(Coauthors: Senators Dodd and McGuire)January 09, 2018 An act to add Section 10103.4 to the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1797, as introduced, Levine. Residential property insurance.Existing law requires a named insured on a residential property insurance policy be provided with a copy of the California Residential Property Insurance Disclosure which sets forth a description of certain types of insurance coverage, such as actual cash value coverage and guaranteed replacement cost coverage, as specified. Existing law also requires every California Residential Property Insurance Disclosure be accompanied by a California Residential Property Insurance Bill of Rights.This bill would require an insurer to provide an estimate of replacement value, as specified, for the insured property for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, and would impose liability on an insured that fails to do so in the amount of the actual cost to replace the insured property, minus the amount of the policy coverage. The bill would prohibit an insurer that provided an estimate of replacement value from being liable to the insured if the policy limit is not sufficient to replace the insured property.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 10103.4 is added to the Insurance Code, to read:10103.4. (a) An insurer shall provide for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, an estimate of replacement value for the insured property, as the term replacement value is defined and described in Sections 2695.180 to 2695.183, inclusive, of Article 1.3 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, as those sections provided on January 1, 2018. An insurer that fails to provide an estimate of replacement value in accordance with this subdivision shall be liable to the insured for the actual cost to replace the insured property, minus the amount of the policy coverage.(b) An insurer that provided an estimate of replacement value in accordance with subdivision (a) shall not be liable to the insured if the policy limit is not sufficient to replace the insured property.(c) This section shall not be deemed to limit or preclude an insurer and insured from agreeing to provide coverage for a policy limit that is greater or lesser than the estimate of replacement value provided in accordance with subdivision (a).
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1797Introduced by Assembly Member Levine(Coauthor: Assembly Member Wood)(Coauthors: Senators Dodd and McGuire)January 09, 2018 An act to add Section 10103.4 to the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1797, as introduced, Levine. Residential property insurance.Existing law requires a named insured on a residential property insurance policy be provided with a copy of the California Residential Property Insurance Disclosure which sets forth a description of certain types of insurance coverage, such as actual cash value coverage and guaranteed replacement cost coverage, as specified. Existing law also requires every California Residential Property Insurance Disclosure be accompanied by a California Residential Property Insurance Bill of Rights.This bill would require an insurer to provide an estimate of replacement value, as specified, for the insured property for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, and would impose liability on an insured that fails to do so in the amount of the actual cost to replace the insured property, minus the amount of the policy coverage. The bill would prohibit an insurer that provided an estimate of replacement value from being liable to the insured if the policy limit is not sufficient to replace the insured property.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1797
Introduced by Assembly Member Levine(Coauthor: Assembly Member Wood)(Coauthors: Senators Dodd and McGuire)January 09, 2018
Introduced by Assembly Member Levine(Coauthor: Assembly Member Wood)(Coauthors: Senators Dodd and McGuire)
January 09, 2018
An act to add Section 10103.4 to the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1797, as introduced, Levine. Residential property insurance.
Existing law requires a named insured on a residential property insurance policy be provided with a copy of the California Residential Property Insurance Disclosure which sets forth a description of certain types of insurance coverage, such as actual cash value coverage and guaranteed replacement cost coverage, as specified. Existing law also requires every California Residential Property Insurance Disclosure be accompanied by a California Residential Property Insurance Bill of Rights.This bill would require an insurer to provide an estimate of replacement value, as specified, for the insured property for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, and would impose liability on an insured that fails to do so in the amount of the actual cost to replace the insured property, minus the amount of the policy coverage. The bill would prohibit an insurer that provided an estimate of replacement value from being liable to the insured if the policy limit is not sufficient to replace the insured property.
Existing law requires a named insured on a residential property insurance policy be provided with a copy of the California Residential Property Insurance Disclosure which sets forth a description of certain types of insurance coverage, such as actual cash value coverage and guaranteed replacement cost coverage, as specified. Existing law also requires every California Residential Property Insurance Disclosure be accompanied by a California Residential Property Insurance Bill of Rights.
This bill would require an insurer to provide an estimate of replacement value, as specified, for the insured property for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, and would impose liability on an insured that fails to do so in the amount of the actual cost to replace the insured property, minus the amount of the policy coverage. The bill would prohibit an insurer that provided an estimate of replacement value from being liable to the insured if the policy limit is not sufficient to replace the insured property.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 10103.4 is added to the Insurance Code, to read:10103.4. (a) An insurer shall provide for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, an estimate of replacement value for the insured property, as the term replacement value is defined and described in Sections 2695.180 to 2695.183, inclusive, of Article 1.3 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, as those sections provided on January 1, 2018. An insurer that fails to provide an estimate of replacement value in accordance with this subdivision shall be liable to the insured for the actual cost to replace the insured property, minus the amount of the policy coverage.(b) An insurer that provided an estimate of replacement value in accordance with subdivision (a) shall not be liable to the insured if the policy limit is not sufficient to replace the insured property.(c) This section shall not be deemed to limit or preclude an insurer and insured from agreeing to provide coverage for a policy limit that is greater or lesser than the estimate of replacement value provided in accordance with subdivision (a).
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 10103.4 is added to the Insurance Code, to read:10103.4. (a) An insurer shall provide for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, an estimate of replacement value for the insured property, as the term replacement value is defined and described in Sections 2695.180 to 2695.183, inclusive, of Article 1.3 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, as those sections provided on January 1, 2018. An insurer that fails to provide an estimate of replacement value in accordance with this subdivision shall be liable to the insured for the actual cost to replace the insured property, minus the amount of the policy coverage.(b) An insurer that provided an estimate of replacement value in accordance with subdivision (a) shall not be liable to the insured if the policy limit is not sufficient to replace the insured property.(c) This section shall not be deemed to limit or preclude an insurer and insured from agreeing to provide coverage for a policy limit that is greater or lesser than the estimate of replacement value provided in accordance with subdivision (a).
SECTION 1. Section 10103.4 is added to the Insurance Code, to read:
### SECTION 1.
10103.4. (a) An insurer shall provide for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, an estimate of replacement value for the insured property, as the term replacement value is defined and described in Sections 2695.180 to 2695.183, inclusive, of Article 1.3 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, as those sections provided on January 1, 2018. An insurer that fails to provide an estimate of replacement value in accordance with this subdivision shall be liable to the insured for the actual cost to replace the insured property, minus the amount of the policy coverage.(b) An insurer that provided an estimate of replacement value in accordance with subdivision (a) shall not be liable to the insured if the policy limit is not sufficient to replace the insured property.(c) This section shall not be deemed to limit or preclude an insurer and insured from agreeing to provide coverage for a policy limit that is greater or lesser than the estimate of replacement value provided in accordance with subdivision (a).
10103.4. (a) An insurer shall provide for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, an estimate of replacement value for the insured property, as the term replacement value is defined and described in Sections 2695.180 to 2695.183, inclusive, of Article 1.3 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, as those sections provided on January 1, 2018. An insurer that fails to provide an estimate of replacement value in accordance with this subdivision shall be liable to the insured for the actual cost to replace the insured property, minus the amount of the policy coverage.(b) An insurer that provided an estimate of replacement value in accordance with subdivision (a) shall not be liable to the insured if the policy limit is not sufficient to replace the insured property.(c) This section shall not be deemed to limit or preclude an insurer and insured from agreeing to provide coverage for a policy limit that is greater or lesser than the estimate of replacement value provided in accordance with subdivision (a).
10103.4. (a) An insurer shall provide for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, an estimate of replacement value for the insured property, as the term replacement value is defined and described in Sections 2695.180 to 2695.183, inclusive, of Article 1.3 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, as those sections provided on January 1, 2018. An insurer that fails to provide an estimate of replacement value in accordance with this subdivision shall be liable to the insured for the actual cost to replace the insured property, minus the amount of the policy coverage.(b) An insurer that provided an estimate of replacement value in accordance with subdivision (a) shall not be liable to the insured if the policy limit is not sufficient to replace the insured property.(c) This section shall not be deemed to limit or preclude an insurer and insured from agreeing to provide coverage for a policy limit that is greater or lesser than the estimate of replacement value provided in accordance with subdivision (a).
10103.4. (a) An insurer shall provide for every policy of residential property insurance that is newly issued or renewed in this state on and after January 1, 2019, an estimate of replacement value for the insured property, as the term replacement value is defined and described in Sections 2695.180 to 2695.183, inclusive, of Article 1.3 of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations, as those sections provided on January 1, 2018. An insurer that fails to provide an estimate of replacement value in accordance with this subdivision shall be liable to the insured for the actual cost to replace the insured property, minus the amount of the policy coverage.
(b) An insurer that provided an estimate of replacement value in accordance with subdivision (a) shall not be liable to the insured if the policy limit is not sufficient to replace the insured property.
(c) This section shall not be deemed to limit or preclude an insurer and insured from agreeing to provide coverage for a policy limit that is greater or lesser than the estimate of replacement value provided in accordance with subdivision (a).