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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 425Introduced by Senator RubioFebruary 18, 2025 An act to amend Section 662 of the Insurance Code, relating to insurance.LEGISLATIVE COUNSEL'S DIGESTSB 425, as introduced, Rubio. Automobile insurance: notice of cancellation.Under existing law, a notice of cancellation of an automobile insurance policy is not effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation.This bill, instead, would require the notice of cancellation to be mailed or delivered by the insurer at least 30 days prior to the effective date of cancellation to be effective.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 662 of the Insurance Code is amended to read:662. (a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 30 days prior to the effective date of cancellation; provided, however, that where cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation.(2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period.(b) This section shall not apply to nonrenewal.(c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder. | |
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| 3 | - | ||
| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 425Introduced by Senator RubioFebruary 18, 2025 An act to amend Section 662 of the Insurance Code, relating to insurance.LEGISLATIVE COUNSEL'S DIGESTSB 425, as introduced, Rubio. Automobile insurance: notice of cancellation.Under existing law, a notice of cancellation of an automobile insurance policy is not effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation.This bill, instead, would require the notice of cancellation to be mailed or delivered by the insurer at least 30 days prior to the effective date of cancellation to be effective.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | Amended IN Senate March 26, 2025 | |
| 6 | 5 | ||
| 7 | - | Amended IN Senate March 26, 2025 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Senate Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 425 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator RubioFebruary 18, 2025 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Senator Rubio | |
| 18 | 18 | February 18, 2025 | |
| 19 | 19 | ||
| 20 | - | An act to amend Section 662 of the Insurance Code, relating to insurance. | |
| 20 | + | An act to amend Section 662 of the Insurance Code, relating to insurance. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | SB 425, as | |
| 26 | + | SB 425, as introduced, Rubio. Automobile insurance: notice of cancellation. | |
| 27 | 27 | ||
| 28 | - | Existing law, the Bond and Undertaking Law, prescribes procedures for a bond or undertaking that is executed, filed, posted, furnished, or otherwise given as a security pursuant to any statute, except as specified. Unless a statute providing for a bond indicates that the bond becomes effective at a different time, a bond is effective at the time it is given or, if the statute requires that the bond be approved, at the time it is approved.This bill would specify that if a statute provides for a bond to be given to or in favor of a beneficiary that is a public entity, as defined, in connection with the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible personal property, that bond is not effective unless the beneficiary agrees to (1) make all payments to the principal, or to the surety if the surety agrees to complete the work upon the principals default, and (2) perform all necessary obligations owed to the principal under the contract for the work.Under existing law, a notice of cancellation of an automobile insurance policy is not effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation.This bill, instead, would require the notice of cancellation to be mailed or delivered by the insurer at least 30 days prior to the effective date of cancellation to be effective. | |
| 29 | - | ||
| 30 | - | Existing law, the Bond and Undertaking Law, prescribes procedures for a bond or undertaking that is executed, filed, posted, furnished, or otherwise given as a security pursuant to any statute, except as specified. Unless a statute providing for a bond indicates that the bond becomes effective at a different time, a bond is effective at the time it is given or, if the statute requires that the bond be approved, at the time it is approved. | |
| 31 | - | ||
| 32 | - | This bill would specify that if a statute provides for a bond to be given to or in favor of a beneficiary that is a public entity, as defined, in connection with the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible personal property, that bond is not effective unless the beneficiary agrees to (1) make all payments to the principal, or to the surety if the surety agrees to complete the work upon the principals default, and (2) perform all necessary obligations owed to the principal under the contract for the work. | |
| 28 | + | Under existing law, a notice of cancellation of an automobile insurance policy is not effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation.This bill, instead, would require the notice of cancellation to be mailed or delivered by the insurer at least 30 days prior to the effective date of cancellation to be effective. | |
| 33 | 29 | ||
| 34 | 30 | Under existing law, a notice of cancellation of an automobile insurance policy is not effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation. | |
| 35 | 31 | ||
| 36 | - | ||
| 37 | - | ||
| 38 | 32 | This bill, instead, would require the notice of cancellation to be mailed or delivered by the insurer at least 30 days prior to the effective date of cancellation to be effective. | |
| 39 | - | ||
| 40 | - | ||
| 41 | 33 | ||
| 42 | 34 | ## Digest Key | |
| 43 | 35 | ||
| 44 | 36 | ## Bill Text | |
| 45 | 37 | ||
| 46 | - | The people of the State of California do enact as follows:SECTION 1. Section | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 662 of the Insurance Code is amended to read:662. (a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 30 days prior to the effective date of cancellation; provided, however, that where cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation.(2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period.(b) This section shall not apply to nonrenewal.(c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder. | |
| 47 | 39 | ||
| 48 | 40 | The people of the State of California do enact as follows: | |
| 49 | 41 | ||
| 50 | 42 | ## The people of the State of California do enact as follows: | |
| 51 | 43 | ||
| 52 | - | SECTION 1. Section | |
| 44 | + | SECTION 1. Section 662 of the Insurance Code is amended to read:662. (a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 30 days prior to the effective date of cancellation; provided, however, that where cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation.(2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period.(b) This section shall not apply to nonrenewal.(c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder. | |
| 53 | 45 | ||
| 54 | - | SECTION 1. Section | |
| 46 | + | SECTION 1. Section 662 of the Insurance Code is amended to read: | |
| 55 | 47 | ||
| 56 | 48 | ### SECTION 1. | |
| 57 | 49 | ||
| 58 | - | ||
| 50 | + | 662. (a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 30 days prior to the effective date of cancellation; provided, however, that where cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation.(2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period.(b) This section shall not apply to nonrenewal.(c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder. | |
| 59 | 51 | ||
| 60 | - | ||
| 52 | + | 662. (a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 30 days prior to the effective date of cancellation; provided, however, that where cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation.(2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period.(b) This section shall not apply to nonrenewal.(c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder. | |
| 61 | 53 | ||
| 62 | - | ||
| 54 | + | 662. (a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 30 days prior to the effective date of cancellation; provided, however, that where cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation.(2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period.(b) This section shall not apply to nonrenewal.(c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder. | |
| 63 | 55 | ||
| 64 | 56 | ||
| 65 | 57 | ||
| 66 | - | 995.450. (a) Notwithstanding any other law, if a statute provides for a bond to be given to or in favor of a beneficiary that is a public entity, as defined in Section 1100 of the Public Contract Code, in connection with the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible personal property, that bond is not effective unless, before the surety or principal assumes any liability, the beneficiary agrees to do both of the following: | |
| 67 | - | ||
| 68 | - | (1) Make all payments to the principal, or to the surety if the surety agrees to complete the work upon the principals default, pursuant to the terms of the contract. | |
| 69 | - | ||
| 70 | - | (2) Perform all necessary obligations owed to the principal under the contract. | |
| 71 | - | ||
| 72 | - | (b) For purposes of this section, contract means a written or oral contract, as defined in Section 1549 of the Civil Code, that obligates a principal to purchase, construct, expand, improve, or rehabilitate real or other tangible personal property. | |
| 73 | - | ||
| 74 | - | ||
| 75 | - | ||
| 76 | - | ||
| 77 | - | ||
| 78 | - | (a)(1)A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 30 days prior to the effective date of cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation. | |
| 79 | - | ||
| 80 | - | ||
| 58 | + | 662. (a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 30 days prior to the effective date of cancellation; provided, however, that where cancellation. However, when cancellation is for nonpayment of premium, at least 10 days notice of cancellation after nonpayment of premium due by the specified due date accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation. | |
| 81 | 59 | ||
| 82 | 60 | (2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period. | |
| 83 | 61 | ||
| 84 | - | ||
| 85 | - | ||
| 86 | 62 | (b) This section shall not apply to nonrenewal. | |
| 87 | - | ||
| 88 | - | ||
| 89 | 63 | ||
| 90 | 64 | (c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder. |