Lawmakers must reject costly, risky insurance mandates that would raise insurance costs and threaten coverage
SB 876 (Padilla): Mandates excessive disaster claim payouts—beyond policy coverage or verified losses—and increases minimum coverage requirements. The bill would raise insurance costs and push more insurers to restrict or exit the market.
SB 877 (Perez): Requires insurers to provide excessive documents under unrealistic timelines. Slows the claims process without improving consumer outcomes.
SB 878 (Perez): Imposes rigid timelines and penalties for wildfire claims—even when delays are caused by outside factors. Would increase litigation, inflate claim costs and discourage insurers from writing in high-risk areas.
SB 1076 (Perez): Restricts insurers' ability to price wildfire and catastrophe risk through actuarially sound underwriting. Bars insurers from writing home and auto insurance for five years if they do not comply—extending California's insurance availability crisis to the auto market.
SB 1209 (Allen): Eliminates insurers' ability to challenge findings in regulatory reports, turning guidance into mandates, resulting in higher compliance costs, legal risk, and uncertainty—discouraging insurers from operating in California.
SB 1301 (Allen): Layers unnecessary documentation and extended notice requirements when insurers choose not to renew a policy—restricting insurers' ability to manage risk and increasing administrative costs that will be passed on to consumers.
AB 1642 (Harabedian): Imposes cumbersome, non-science-based remediation standards after wildfires that will significantly increase rebuilding costs and delay recovery. These mandates will slow families' ability to safely return home and drive higher costs for policyholders statewide.
AB 1795 (Gipson): Authorizes hundreds of state and local government agencies to create new—potentially conflicting—"smoke zones" after a fire, retroactively. Unsustainable coverage mandates would increase regulatory uncertainty and further drive insurers out of the market—risking higher premiums for all Californians.
AB 2038 (Harabedian): Requires insurers to cover high-risk properties—even when premiums do not support the risk—further distorting the market and forcing insurers to take on unpriced risk. These unsustainable mandates threaten to shrink availability and raise premiums for all policyholders—including those in lower-risk areas forced to subsidize the costs.