California Assembly Bill AB1799

California 2017-2018 Regular Session

• Introduced: 1/9/18
• Refer: 1/22/18
• Report Pass: 4/12/18
• Refer: 4/16/18
• Report Pass: 4/18/18
• Engrossed: 4/26/18
• Refer: 4/26/18
• Refer: 5/10/18
• Report Pass: 6/13/18
• Enrolled: 6/25/18
• Chaptered: 7/9/18
• Passed: 7/9/18

Caption

Insurance: policy documents.

Impact

The enactment of AB 1799 emphasizes the importance of quick access to critical policy information for consumers of fire insurance, particularly during state emergencies. By allowing insurers to provide an electronic version of the policy under specific conditions, the bill facilitates a more efficient communication model that adapts to the needs of policyholders during emergencies. This amendment addresses potential logistical challenges that might arise in accessing physical copies, ensuring that consumers remain informed and empowered to make essential decisions related to their insurance needs.

Summary

Assembly Bill 1799, introduced by Assemblymember Levine, amends Section 2084 of the California Insurance Code. The bill primarily impacts fire insurance policies by ensuring that insurers provide policyholders with a complete copy of their insurance policy, free of charge, within 30 calendar days following a covered loss claim. This bill mandates that the provided copy must include all endorsements and the policy declarations page, thereby enhancing transparency and ensuring policyholders have access to all pertinent information during stressful times, such as after a loss. Furthermore, it specifies that an annual request for a policy copy is allowed for policyholders who have not experienced a covered loss.

Sentiment

The general sentiment surrounding AB 1799 appears positive as it aims to protect consumers in the face of potential disasters and to streamline the insurance claim process. Supporters of the bill argue that it represents a necessary step towards transparency in the insurance industry. They believe that access to complete policy information is vital for policyholders when claims are made, particularly during emergencies when rapid decision-making is crucial. However, some concerns may arise about the implications of electronic communications for those who prefer traditional means of communication, necessitating a balance between modernization and consumer choice.

Contention

While most discussions about AB 1799 have been supportive, there are potential points of contention regarding the flexibility given to insurers to comply with electronic transmission requirements. Critics may worry about ensuring that all policyholders, regardless of their preferences for digital versus physical documents, have equal access to their policy information. The bill seeks to provide clarity and direction on the obligations of insurers but may also introduce complexities about how compliance is monitored, particularly in ensuring that no policyholder is left behind due to technological barriers.