California 2025-2026 Regular Session

California Senate Bill SB547 Compare Versions

Only one version of the bill is available at this time.

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1	1	CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 547Introduced by Senators Prez and Rubio(Principal coauthors: Senators Cervantes, Cortese, Gonzalez, Reyes, and Smallwood-Cuevas)February 20, 2025 An act to add Section 675.55 to the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTSB 547, as introduced, Prez. Commercial property insurance cancellation and nonrenewal. Existing law generally regulates classes of insurance, including commercial property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, except as specified.This bill would extend that prohibition against cancellation or nonrenewal and its exceptions to a policy of commercial property insurance.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 675.55 is added to the Insurance Code, to read:675.55. (a) (1) An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.(2) For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.(b) Subdivision (a) does not apply in any of the following circumstances:(1) If willful or grossly negligent acts or omissions by the named insured, or the named insureds representatives, are discovered that materially increase any of the risks insured against.(2) If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal.(3) If there are physical or risk changes to the insured property beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.(c) For the purposes of this section, policy of commercial property insurance is a policy subject to Section 675.5.
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3	3	CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 547Introduced by Senators Prez and Rubio(Principal coauthors: Senators Cervantes, Cortese, Gonzalez, Reyes, and Smallwood-Cuevas)February 20, 2025 An act to add Section 675.55 to the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTSB 547, as introduced, Prez. Commercial property insurance cancellation and nonrenewal. Existing law generally regulates classes of insurance, including commercial property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, except as specified.This bill would extend that prohibition against cancellation or nonrenewal and its exceptions to a policy of commercial property insurance.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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9	9	CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
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11	11	Senate Bill
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13	13	No. 547
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15	15	Introduced by Senators Prez and Rubio(Principal coauthors: Senators Cervantes, Cortese, Gonzalez, Reyes, and Smallwood-Cuevas)February 20, 2025
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17	17	Introduced by Senators Prez and Rubio(Principal coauthors: Senators Cervantes, Cortese, Gonzalez, Reyes, and Smallwood-Cuevas)
18	18	February 20, 2025
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20	20	An act to add Section 675.55 to the Insurance Code, relating to insurance.
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22	22	LEGISLATIVE COUNSEL'S DIGEST
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24	24	## LEGISLATIVE COUNSEL'S DIGEST
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26	26	SB 547, as introduced, Prez. Commercial property insurance cancellation and nonrenewal.
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28	28	Existing law generally regulates classes of insurance, including commercial property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, except as specified.This bill would extend that prohibition against cancellation or nonrenewal and its exceptions to a policy of commercial property insurance.
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30	30	Existing law generally regulates classes of insurance, including commercial property insurance. Existing law prohibits an insurer from canceling or refusing to renew a policy of residential property insurance for a property located in a ZIP Code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency, if the cancellation or nonrenewal is based solely on the fact that the insured structure is located in an area in which a wildfire has occurred, except as specified.
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32	32	This bill would extend that prohibition against cancellation or nonrenewal and its exceptions to a policy of commercial property insurance.
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34	34	## Digest Key
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36	36	## Bill Text
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38	38	The people of the State of California do enact as follows:SECTION 1. Section 675.55 is added to the Insurance Code, to read:675.55. (a) (1) An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.(2) For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.(b) Subdivision (a) does not apply in any of the following circumstances:(1) If willful or grossly negligent acts or omissions by the named insured, or the named insureds representatives, are discovered that materially increase any of the risks insured against.(2) If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal.(3) If there are physical or risk changes to the insured property beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.(c) For the purposes of this section, policy of commercial property insurance is a policy subject to Section 675.5.
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40	40	The people of the State of California do enact as follows:
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42	42	## The people of the State of California do enact as follows:
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44	44	SECTION 1. Section 675.55 is added to the Insurance Code, to read:675.55. (a) (1) An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.(2) For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.(b) Subdivision (a) does not apply in any of the following circumstances:(1) If willful or grossly negligent acts or omissions by the named insured, or the named insureds representatives, are discovered that materially increase any of the risks insured against.(2) If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal.(3) If there are physical or risk changes to the insured property beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.(c) For the purposes of this section, policy of commercial property insurance is a policy subject to Section 675.5.
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46	46	SECTION 1. Section 675.55 is added to the Insurance Code, to read:
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48	48	### SECTION 1.
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50	50	675.55. (a) (1) An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.(2) For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.(b) Subdivision (a) does not apply in any of the following circumstances:(1) If willful or grossly negligent acts or omissions by the named insured, or the named insureds representatives, are discovered that materially increase any of the risks insured against.(2) If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal.(3) If there are physical or risk changes to the insured property beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.(c) For the purposes of this section, policy of commercial property insurance is a policy subject to Section 675.5.
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52	52	675.55. (a) (1) An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.(2) For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.(b) Subdivision (a) does not apply in any of the following circumstances:(1) If willful or grossly negligent acts or omissions by the named insured, or the named insureds representatives, are discovered that materially increase any of the risks insured against.(2) If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal.(3) If there are physical or risk changes to the insured property beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.(c) For the purposes of this section, policy of commercial property insurance is a policy subject to Section 675.5.
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54	54	675.55. (a) (1) An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.(2) For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.(b) Subdivision (a) does not apply in any of the following circumstances:(1) If willful or grossly negligent acts or omissions by the named insured, or the named insureds representatives, are discovered that materially increase any of the risks insured against.(2) If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal.(3) If there are physical or risk changes to the insured property beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.(c) For the purposes of this section, policy of commercial property insurance is a policy subject to Section 675.5.
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58	58	675.55. (a) (1) An insurer shall not cancel or refuse to renew a policy of commercial property insurance for a property located in any ZIP Code within or adjacent to the fire perimeter, for one year after the declaration of a state of emergency, as defined in Section 8558 of the Government Code, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. This prohibition applies to all policies of commercial property insurance in effect at the time of the declared emergency.
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60	60	(2) For the purposes of this section, the fire perimeter shall be determined by the Department of Forestry and Fire Protection in consultation with the Office of Emergency Services. The department shall provide the commissioner with data describing the fire perimeter sufficient for the commissioner to determine which ZIP Codes are within or adjacent to the fire perimeter. The commissioner shall then issue a bulletin to inform insurers which ZIP Codes are subject to this subdivision.
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62	62	(b) Subdivision (a) does not apply in any of the following circumstances:
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64	64	(1) If willful or grossly negligent acts or omissions by the named insured, or the named insureds representatives, are discovered that materially increase any of the risks insured against.
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66	66	(2) If losses unrelated to the postdisaster loss condition of the property have occurred that would collectively render the risk ineligible for renewal.
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68	68	(3) If there are physical or risk changes to the insured property beyond the catastrophe-damaged condition of the structures and surface landscape that result in the property becoming uninsurable.
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70	70	(c) For the purposes of this section, policy of commercial property insurance is a policy subject to Section 675.5.