Bonds: public entities as beneficiaries.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Judiciary
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill changes the rules for how automobile insurance cancellation notices are sent. It requires insurers to send cancellation notices to policyholders, lienholders, and other interested parties at least 30 days before the cancellation takes effect, instead of the current 20-day requirement. Additionally, the bill introduces a new provision regarding public entity bonds, specifying that a bond securing public projects must be agreed upon by the beneficiary (the public entity) to make payments and fulfill obligations under the contract before it becomes effective.
Key provisions
- Increases the required notice period for automobile insurance cancellations to 30 days.
- Requires cancellation notices to be sent to the named insured, lienholder, and other interested parties.
- Adds Section 995.450 to the Code of Civil Procedure, addressing the requirements for bonds provided to public entities.
- Specifies that public entity bonds securing real or tangible property projects must receive agreement from the beneficiary regarding payments and obligations.
- Amends Section 662 of the Insurance Code to reflect the new 30-day notice requirement.
- Allows for electronic delivery of cancellation notices with lienholder consent.
- Excludes nonrenewal notices from the new 30-day notice requirement.
Who is affected
- Automobile insurance policyholders
- Insurance companies
- Lienholders
- Public entities (governments)
Bill text
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Sponsors
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1 on record
Primary sponsor
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