Insurance: distressed areas.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill changes how California defines ‘distressed areas’ for insurance purposes, specifically related to wildfire risk. Currently, distressed areas include undermarketed ZIP Codes and distressed counties. This bill narrows the definition to only include undermarketed ZIP Codes, as determined by the Insurance Commissioner based on factors like FAIR Plan coverage and overlap with high fire hazard severity zones. The Department of Insurance will review and update this list annually, with public input, and publish a list of distressed ZIP Codes on its website.
Key provisions
- Defines ‘undermarketed ZIP Code’ as a ZIP Code with at least 10% of residential properties insured by the FAIR Plan.
- Restricts the definition of ‘distressed area’ to only include ‘undermarketed ZIP Codes’.
- Requires the Department of Insurance to review and update the list of distressed ZIP Codes annually.
- Mandates public meetings to gather suggestions for distressed areas.
- Requires the Department of Insurance to publish a list of distressed ZIP Codes on its website.
- Requires the Department of Insurance to provide the list of distressed ZIP Codes to the Assembly Committee on Insurance and the Senate Committee on Insurance.
- Directs the Department of Insurance to consult with the Department of Forestry and Fire Protection during the review process.
- Sets a deadline of July 1, 2027, for the initial review and update.
Who is affected
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