California Senate amends bill to boost insurance in wildfire-prone areas
The California Senate Appropriations Committee has adopted amendments to Assembly Bill (AB) 2167 that will see insurance commissioner Ricardo Lara investigate and develop solutions to ensure affordable, accessible insurance for homeowners in wildfire areas.
The bill asks the commissioner to study the models insurance companies use to set home and renters insurance rates, strategies to address problems in the insurance markets, and the price and pass-through of "reinsurance" expenses. The bill headed for a vote by the full Senate.
In its original form, the Assembly Bill 2167, which was backed by the insurance industry, would have raised homeowners' insurance premiums and repealed voter-approved consumer protections against excessive rate increases and discriminatory practices contained in Proposition 103. It was strongly opposed by California Insurance Commissioner Ricardo Lara, Consumer Watchdog, Consumer Federation of California, and United Policyholders. The Senate Appropriations Committee amendments eliminated those provisions.
Carmen Balber, executive director of Consumer Watchdog, said: "As amended, the bill respects the voters' decision to entrust the Insurance Commissioner with the responsibility to address problems in the insurance marketplace using the broad-ranging authority he has under Proposition 103.
"We appreciate the work done by the Appropriations Committee and Senator Anthony Portantino to protect homeowners from unjustified insurance rate hikes as wildfires cross the state."
