California Legislature Wants Wildfire Claims Change

The California Legislature is looking at legislation to revise and “modernize” the state’s insurance claims post-disaster regulations. It is Senate Bill 876 and is sponsored by Democrat Sen. Steve Padilla and California Insurance Commissioner Ricardo Lara. They say claims victims are complaining about slow claims payments and processing.

"The last 12 months have made clear the urgent need to update and modernize the claims process to better protect homeowners devastated by these wildfires," Padilla said.

Commissioner Lara agrees.

“Families are navigating loss, claims, and uncertainty. There is real fear, frustration, and misinformation right now with the pace of recovery,” Lara said. “We will measure success when people can recover without red tape and delays, get coverage on their own terms, and rebuild so they are out of harm’s way in the future. While our focus is on insurance, recovery is multifaceted, not one-dimensional. Federal, state, local, and private coordination is required for a successful recovery.”

Padilla wants higher limits for living expenses and wants them doubled upon a declaration of an emergency. Insurers will be required to make upfront payments and will face larger fines for violations for adjudicated claims complaints.

Senate Bill 876 — if passed — will require insurers to develop plans for disaster recovery that outlines exactly how they will handle claims and meet the timelines established by the plan. After a state of emergency is declared, insurers will have to report losses, the number of claims and total incurred losses within 15 days.

Insurance companies have until April of 2027 to submit the plans to the California Department of Insurance. They will also have to be updated every two years.

Source link: Insurance Business America — https://bit.ly/3Nl4RNA

Source link: Insurance Business America — https://bit.ly/45d8hbj