Amended IN Senate May 10, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 407Introduced by Assembly Members Bigelow, Patterson, and Cooley(Coauthors: Assembly Members Flora, Fong, Gallagher, Gray, and Mathis)(Coauthors: Senators Berryhill, Cannella, Gaines, Galgiani, Nielsen, and Vidak)February 09, 2017 An act to amend Section 9095 of of, and to repeal Section 9084.5 of, the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 407, as amended, Bigelow. Fraternal fire insurers: coverage.Existing law authorizes certain nontraditional insurers, including religious organizations meeting specified criteria, to insure against specified risks. Existing law authorizes these associations to insure against a specified list of losses, including, but not limited to, vandalism or malicious mischief, vehicles owned or operated by the insured or by any tenant of the described premises, falling trees, burglary and theft, and mysterious disappearance.This bill would remove insuring vehicles owned or operated by the insured or by any tenant of the described premises from the list of insurable losses and would add insuring against liability to the list of insurable losses.Existing law prohibits an association from writing insurance in excess of $10,000 on any one risk or in excess of $60,000 in any one city block within an incorporated city without immediately reinsuring all the excess amount. Existing law authorizes an association to write insurance for an amount not exceeding $60,000 on any one risk if the excess over $10,000 is reinsured, as provided. An association is not authorized to accept reinsurance but may reinsure risks if that reinsurance is by contracts and with reinsurers that meet the prescribed standards.This bill would delete the above-described provisions.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 Section 9084.5 of the Insurance Code is repealed.9084.5.Such association shall not write insurance in excess of ten thousand dollars ($10,000) on any one risk nor in excess of sixty thousand dollars ($60,000) in any one city block within an incorporated city without immediately reinsuring all the excess amount. An association may write insurance for an amount not exceeding sixty thousand dollars ($60,000) on any one risk, if the excess over ten thousand dollars ($10,000) is reinsured as provided in this section. Such associations may not accept reinsurance but may reinsure risks if such reinsurance is by contracts and with reinsurers which meet the standards therefor prescribed in Sections 922.1 to 922.8 of this code.SECTION 1.SEC. 2. Section 9095 of the Insurance Code is amended to read:9095. (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage caused by windstorm, cyclone, tornado and hail, explosion, riot, riot attending a strike, aircraft, vehicles and smoke, and to include waiver of the fallen building clause.(2) An association may also insure against any or all of the following:(A) Water damage from plumbing and heating systems.(B) Rupture or bursting of steam or hot water heating system.(C) Vandalism or malicious mischief.(D)Vehicles owned or operated by the insured or by any tenant of the described premises.(E)(D) Glass breakage.(F)(E) Ice, snow, and freezing.(G)(F) Fall of trees.(H)(G) Collapse.(I)(H) Burglary and theft.(J)(I) Mysterious disappearance.(K)(J) Liability.(b) As used in this section explosion does not include explosions (1) of any boiler, heater, or other fired pressure vessel, caused by pressure of contents, (2) of any unfired pressure vessel or of any piping caused by pressure of contents or vacuum, (3) of any engine, turbine, compressor, pump, or wheel, (4) of any electrical apparatus, or (5) of any other machine having moving or rotating parts. This restricted definition of explosion does not exclude loss or damage by fire only where fire ensues.(c) As used in this section, the terms boiler, heater, and pressure vessel, do not include hot water heaters used solely to provide hot water for delivery to faucets for domestic purposes and having a storage capacity of not more than 50 gallons.
Amended IN Senate May 10, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 407Introduced by Assembly Members Bigelow, Patterson, and Cooley(Coauthors: Assembly Members Flora, Fong, Gallagher, Gray, and Mathis)(Coauthors: Senators Berryhill, Cannella, Gaines, Galgiani, Nielsen, and Vidak)February 09, 2017 An act to amend Section 9095 of of, and to repeal Section 9084.5 of, the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 407, as amended, Bigelow. Fraternal fire insurers: coverage.Existing law authorizes certain nontraditional insurers, including religious organizations meeting specified criteria, to insure against specified risks. Existing law authorizes these associations to insure against a specified list of losses, including, but not limited to, vandalism or malicious mischief, vehicles owned or operated by the insured or by any tenant of the described premises, falling trees, burglary and theft, and mysterious disappearance.This bill would remove insuring vehicles owned or operated by the insured or by any tenant of the described premises from the list of insurable losses and would add insuring against liability to the list of insurable losses.Existing law prohibits an association from writing insurance in excess of $10,000 on any one risk or in excess of $60,000 in any one city block within an incorporated city without immediately reinsuring all the excess amount. Existing law authorizes an association to write insurance for an amount not exceeding $60,000 on any one risk if the excess over $10,000 is reinsured, as provided. An association is not authorized to accept reinsurance but may reinsure risks if that reinsurance is by contracts and with reinsurers that meet the prescribed standards.This bill would delete the above-described provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Senate May 10, 2017
Amended IN Senate May 10, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 407
Introduced by Assembly Members Bigelow, Patterson, and Cooley(Coauthors: Assembly Members Flora, Fong, Gallagher, Gray, and Mathis)(Coauthors: Senators Berryhill, Cannella, Gaines, Galgiani, Nielsen, and Vidak)February 09, 2017
Introduced by Assembly Members Bigelow, Patterson, and Cooley(Coauthors: Assembly Members Flora, Fong, Gallagher, Gray, and Mathis)(Coauthors: Senators Berryhill, Cannella, Gaines, Galgiani, Nielsen, and Vidak)
February 09, 2017
An act to amend Section 9095 of of, and to repeal Section 9084.5 of, the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 407, as amended, Bigelow. Fraternal fire insurers: coverage.
Existing law authorizes certain nontraditional insurers, including religious organizations meeting specified criteria, to insure against specified risks. Existing law authorizes these associations to insure against a specified list of losses, including, but not limited to, vandalism or malicious mischief, vehicles owned or operated by the insured or by any tenant of the described premises, falling trees, burglary and theft, and mysterious disappearance.This bill would remove insuring vehicles owned or operated by the insured or by any tenant of the described premises from the list of insurable losses and would add insuring against liability to the list of insurable losses.Existing law prohibits an association from writing insurance in excess of $10,000 on any one risk or in excess of $60,000 in any one city block within an incorporated city without immediately reinsuring all the excess amount. Existing law authorizes an association to write insurance for an amount not exceeding $60,000 on any one risk if the excess over $10,000 is reinsured, as provided. An association is not authorized to accept reinsurance but may reinsure risks if that reinsurance is by contracts and with reinsurers that meet the prescribed standards.This bill would delete the above-described provisions.
Existing law authorizes certain nontraditional insurers, including religious organizations meeting specified criteria, to insure against specified risks. Existing law authorizes these associations to insure against a specified list of losses, including, but not limited to, vandalism or malicious mischief, vehicles owned or operated by the insured or by any tenant of the described premises, falling trees, burglary and theft, and mysterious disappearance.
This bill would remove insuring vehicles owned or operated by the insured or by any tenant of the described premises from the list of insurable losses and would add insuring against liability to the list of insurable losses.
Existing law prohibits an association from writing insurance in excess of $10,000 on any one risk or in excess of $60,000 in any one city block within an incorporated city without immediately reinsuring all the excess amount. Existing law authorizes an association to write insurance for an amount not exceeding $60,000 on any one risk if the excess over $10,000 is reinsured, as provided. An association is not authorized to accept reinsurance but may reinsure risks if that reinsurance is by contracts and with reinsurers that meet the prescribed standards.
This bill would delete the above-described provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 9084.5 of the Insurance Code is repealed.9084.5.Such association shall not write insurance in excess of ten thousand dollars ($10,000) on any one risk nor in excess of sixty thousand dollars ($60,000) in any one city block within an incorporated city without immediately reinsuring all the excess amount. An association may write insurance for an amount not exceeding sixty thousand dollars ($60,000) on any one risk, if the excess over ten thousand dollars ($10,000) is reinsured as provided in this section. Such associations may not accept reinsurance but may reinsure risks if such reinsurance is by contracts and with reinsurers which meet the standards therefor prescribed in Sections 922.1 to 922.8 of this code.SECTION 1.SEC. 2. Section 9095 of the Insurance Code is amended to read:9095. (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage caused by windstorm, cyclone, tornado and hail, explosion, riot, riot attending a strike, aircraft, vehicles and smoke, and to include waiver of the fallen building clause.(2) An association may also insure against any or all of the following:(A) Water damage from plumbing and heating systems.(B) Rupture or bursting of steam or hot water heating system.(C) Vandalism or malicious mischief.(D)Vehicles owned or operated by the insured or by any tenant of the described premises.(E)(D) Glass breakage.(F)(E) Ice, snow, and freezing.(G)(F) Fall of trees.(H)(G) Collapse.(I)(H) Burglary and theft.(J)(I) Mysterious disappearance.(K)(J) Liability.(b) As used in this section explosion does not include explosions (1) of any boiler, heater, or other fired pressure vessel, caused by pressure of contents, (2) of any unfired pressure vessel or of any piping caused by pressure of contents or vacuum, (3) of any engine, turbine, compressor, pump, or wheel, (4) of any electrical apparatus, or (5) of any other machine having moving or rotating parts. This restricted definition of explosion does not exclude loss or damage by fire only where fire ensues.(c) As used in this section, the terms boiler, heater, and pressure vessel, do not include hot water heaters used solely to provide hot water for delivery to faucets for domestic purposes and having a storage capacity of not more than 50 gallons.
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 9084.5 of the Insurance Code is repealed.9084.5.Such association shall not write insurance in excess of ten thousand dollars ($10,000) on any one risk nor in excess of sixty thousand dollars ($60,000) in any one city block within an incorporated city without immediately reinsuring all the excess amount. An association may write insurance for an amount not exceeding sixty thousand dollars ($60,000) on any one risk, if the excess over ten thousand dollars ($10,000) is reinsured as provided in this section. Such associations may not accept reinsurance but may reinsure risks if such reinsurance is by contracts and with reinsurers which meet the standards therefor prescribed in Sections 922.1 to 922.8 of this code.
SECTION 1. Section 9084.5 of the Insurance Code is repealed.
### SECTION 1.
9084.5.Such association shall not write insurance in excess of ten thousand dollars ($10,000) on any one risk nor in excess of sixty thousand dollars ($60,000) in any one city block within an incorporated city without immediately reinsuring all the excess amount. An association may write insurance for an amount not exceeding sixty thousand dollars ($60,000) on any one risk, if the excess over ten thousand dollars ($10,000) is reinsured as provided in this section. Such associations may not accept reinsurance but may reinsure risks if such reinsurance is by contracts and with reinsurers which meet the standards therefor prescribed in Sections 922.1 to 922.8 of this code.
Such association shall not write insurance in excess of ten thousand dollars ($10,000) on any one risk nor in excess of sixty thousand dollars ($60,000) in any one city block within an incorporated city without immediately reinsuring all the excess amount. An association may write insurance for an amount not exceeding sixty thousand dollars ($60,000) on any one risk, if the excess over ten thousand dollars ($10,000) is reinsured as provided in this section. Such associations may not accept reinsurance but may reinsure risks if such reinsurance is by contracts and with reinsurers which meet the standards therefor prescribed in Sections 922.1 to 922.8 of this code.
SECTION 1.SEC. 2. Section 9095 of the Insurance Code is amended to read:9095. (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage caused by windstorm, cyclone, tornado and hail, explosion, riot, riot attending a strike, aircraft, vehicles and smoke, and to include waiver of the fallen building clause.(2) An association may also insure against any or all of the following:(A) Water damage from plumbing and heating systems.(B) Rupture or bursting of steam or hot water heating system.(C) Vandalism or malicious mischief.(D)Vehicles owned or operated by the insured or by any tenant of the described premises.(E)(D) Glass breakage.(F)(E) Ice, snow, and freezing.(G)(F) Fall of trees.(H)(G) Collapse.(I)(H) Burglary and theft.(J)(I) Mysterious disappearance.(K)(J) Liability.(b) As used in this section explosion does not include explosions (1) of any boiler, heater, or other fired pressure vessel, caused by pressure of contents, (2) of any unfired pressure vessel or of any piping caused by pressure of contents or vacuum, (3) of any engine, turbine, compressor, pump, or wheel, (4) of any electrical apparatus, or (5) of any other machine having moving or rotating parts. This restricted definition of explosion does not exclude loss or damage by fire only where fire ensues.(c) As used in this section, the terms boiler, heater, and pressure vessel, do not include hot water heaters used solely to provide hot water for delivery to faucets for domestic purposes and having a storage capacity of not more than 50 gallons.
SECTION 1.SEC. 2. Section 9095 of the Insurance Code is amended to read:
### SECTION 1.SEC. 2.
9095. (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage caused by windstorm, cyclone, tornado and hail, explosion, riot, riot attending a strike, aircraft, vehicles and smoke, and to include waiver of the fallen building clause.(2) An association may also insure against any or all of the following:(A) Water damage from plumbing and heating systems.(B) Rupture or bursting of steam or hot water heating system.(C) Vandalism or malicious mischief.(D)Vehicles owned or operated by the insured or by any tenant of the described premises.(E)(D) Glass breakage.(F)(E) Ice, snow, and freezing.(G)(F) Fall of trees.(H)(G) Collapse.(I)(H) Burglary and theft.(J)(I) Mysterious disappearance.(K)(J) Liability.(b) As used in this section explosion does not include explosions (1) of any boiler, heater, or other fired pressure vessel, caused by pressure of contents, (2) of any unfired pressure vessel or of any piping caused by pressure of contents or vacuum, (3) of any engine, turbine, compressor, pump, or wheel, (4) of any electrical apparatus, or (5) of any other machine having moving or rotating parts. This restricted definition of explosion does not exclude loss or damage by fire only where fire ensues.(c) As used in this section, the terms boiler, heater, and pressure vessel, do not include hot water heaters used solely to provide hot water for delivery to faucets for domestic purposes and having a storage capacity of not more than 50 gallons.
9095. (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage caused by windstorm, cyclone, tornado and hail, explosion, riot, riot attending a strike, aircraft, vehicles and smoke, and to include waiver of the fallen building clause.(2) An association may also insure against any or all of the following:(A) Water damage from plumbing and heating systems.(B) Rupture or bursting of steam or hot water heating system.(C) Vandalism or malicious mischief.(D)Vehicles owned or operated by the insured or by any tenant of the described premises.(E)(D) Glass breakage.(F)(E) Ice, snow, and freezing.(G)(F) Fall of trees.(H)(G) Collapse.(I)(H) Burglary and theft.(J)(I) Mysterious disappearance.(K)(J) Liability.(b) As used in this section explosion does not include explosions (1) of any boiler, heater, or other fired pressure vessel, caused by pressure of contents, (2) of any unfired pressure vessel or of any piping caused by pressure of contents or vacuum, (3) of any engine, turbine, compressor, pump, or wheel, (4) of any electrical apparatus, or (5) of any other machine having moving or rotating parts. This restricted definition of explosion does not exclude loss or damage by fire only where fire ensues.(c) As used in this section, the terms boiler, heater, and pressure vessel, do not include hot water heaters used solely to provide hot water for delivery to faucets for domestic purposes and having a storage capacity of not more than 50 gallons.
9095. (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage caused by windstorm, cyclone, tornado and hail, explosion, riot, riot attending a strike, aircraft, vehicles and smoke, and to include waiver of the fallen building clause.(2) An association may also insure against any or all of the following:(A) Water damage from plumbing and heating systems.(B) Rupture or bursting of steam or hot water heating system.(C) Vandalism or malicious mischief.(D)Vehicles owned or operated by the insured or by any tenant of the described premises.(E)(D) Glass breakage.(F)(E) Ice, snow, and freezing.(G)(F) Fall of trees.(H)(G) Collapse.(I)(H) Burglary and theft.(J)(I) Mysterious disappearance.(K)(J) Liability.(b) As used in this section explosion does not include explosions (1) of any boiler, heater, or other fired pressure vessel, caused by pressure of contents, (2) of any unfired pressure vessel or of any piping caused by pressure of contents or vacuum, (3) of any engine, turbine, compressor, pump, or wheel, (4) of any electrical apparatus, or (5) of any other machine having moving or rotating parts. This restricted definition of explosion does not exclude loss or damage by fire only where fire ensues.(c) As used in this section, the terms boiler, heater, and pressure vessel, do not include hot water heaters used solely to provide hot water for delivery to faucets for domestic purposes and having a storage capacity of not more than 50 gallons.
9095. (a) (1) An association may, if it has issued an insurance policy against fire, endorse that policy to extend the coverage thereof to include loss or damage caused by windstorm, cyclone, tornado and hail, explosion, riot, riot attending a strike, aircraft, vehicles and smoke, and to include waiver of the fallen building clause.
(2) An association may also insure against any or all of the following:
(A) Water damage from plumbing and heating systems.
(B) Rupture or bursting of steam or hot water heating system.
(C) Vandalism or malicious mischief.
(D)Vehicles owned or operated by the insured or by any tenant of the described premises.
(E)
(D) Glass breakage.
(F)
(E) Ice, snow, and freezing.
(G)
(F) Fall of trees.
(H)
(G) Collapse.
(I)
(H) Burglary and theft.
(J)
(I) Mysterious disappearance.
(K)
(J) Liability.
(b) As used in this section explosion does not include explosions (1) of any boiler, heater, or other fired pressure vessel, caused by pressure of contents, (2) of any unfired pressure vessel or of any piping caused by pressure of contents or vacuum, (3) of any engine, turbine, compressor, pump, or wheel, (4) of any electrical apparatus, or (5) of any other machine having moving or rotating parts. This restricted definition of explosion does not exclude loss or damage by fire only where fire ensues.
(c) As used in this section, the terms boiler, heater, and pressure vessel, do not include hot water heaters used solely to provide hot water for delivery to faucets for domestic purposes and having a storage capacity of not more than 50 gallons.