California Department of Insurance News and Updates
Commissioner Ricardo Lara
Commissioner Lara provides insurance information for those affected by Tropical Storm Hilary
News: 2023 Press Release
For Release: August 21, 2023
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara provides insurance information for those affected by Tropical Storm Hilary
LOS ANGELES — As Tropical Storm Hilary has moved out of California, and the state begins the recovery process, Insurance Commissioner Ricardo Lara is advising everyone to stay safe and take action necessary to prevent your property from further damage. It is crucial Californians understand whether their property insurance covers any damage from wind, rain and flooding caused by the tropical storm.
If a consumer’s or business’ property is damaged due to the storm, they should file a claim with their insurance company. If someone is unsure whether the damage is covered, contact your insurance company or agent or broker.
“This once in a lifetime storm brought rainfall and wind damage, so it is crucial consumers understand their insurance coverage and know they have options and support,” said Commissioner Lara. “I have alerted insurance companies to follow California law requiring they cover any mudslide, debris flow, or other damage that is caused by our recent wildfires so that people can recover quickly.”
Most homeowners’ and commercial insurance policies include wind and storm damage. Damage caused from fallen trees also is generally covered under all standard homeowner policies.
Many people may not be aware that homeowners’ and commercial insurance policies typically exclude flood, mudslide, debris flow, and other similar disasters — unless they are directly or indirectly caused by a recent wildfire or another peril covered by the applicable insurance policy. The Department of Insurance has posted a fact sheet for consumers to answer questions about what their policies cover. The Department of Insurance is here to help. Consumers should contact the Department at 800-927-4357 or online at insurance.ca.gov for assistance on what may or may not be covered by their policies.
Commissioner Lara issued a formal Notice to insurance companies earlier this year reminding them of their legal duty to cover damage from any future mudslide or similar disaster that is caused by recent wildfires that weakened hillsides.
A consumer’s auto insurance policy may cover their vehicle if it is damaged in a flood if they have purchased comprehensive coverage. While only liability coverage is required by law, they should consider comprehensive coverage to protect their vehicle in case of storm damage.
The California FAIR Plan, the state’s insurer of last resort, may have coverage for wind damage if the policyholder purchased extended coverage or if a consumer has purchased a supplemental “difference in conditions” (DIC) policy from another insurance company.
With any storm damage, you should call your insurance company to report it and take pictures and keep records of all clean up and repair costs.
Visit insurance.ca.gov to find more information or to get help in filing an insurance claim
Commissioner Lara alerts Californians about coverage for floods and mudslides caused by wildfires
News: 2023 Press Release
For Release: January 4, 2023
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara alerts Californians about coverage for floods and mudslides caused by wildfires
Issues Notice to insurance companies that damage is covered if caused by a wildfire
LOS ANGELES — With powerful winter storms increasing the threat of mudslides, especially for people in wildfire burn areas who are even more vulnerable, Insurance Commissioner Ricardo Lara issued a formal Notice to insurance companies reminding them of their legal duty to cover damage from any future mudslide or similar disaster that is caused by recent wildfires that weakened hillsides.
Many people may not be aware that homeowners’ and commercial insurance policies typically exclude flood, mudslide, debris flow, and other similar disasters — unless they are directly or indirectly caused by a recent wildfire or another peril covered by the applicable insurance policy. The Department of Insurance has posted a fact sheet for consumers to answer questions about what their policies cover.
“With continued winter storms threatening areas already damaged by wildfires, it’s critical to know how you are protected especially if you are living in a more vulnerable area,” said Commissioner Lara, who created the California Climate Insurance Working Group focused on long-term solutions to combat climate change, including reducing risks to vulnerable communities as a result of strong storms, atmospheric rivers, and flooding. “I am alerting insurance companies to follow California law requiring they cover any mudslide, debris flow, or other damage that is caused by our recent wildfires so that people can recover quickly.”
The Montecito mudslide in Santa Barbara County in January 2018 that followed the destructive Thomas Fire claimed 23 lives and caused more than $421 million in damage, according to Department of Insurance data. Following that disaster, then-Governor Edmund G. Brown Jr. enacted a new law to help prevent confusion about coverage following mudslides.
Due to the scale of previous wildfires across the state and the current and potential flooding, the Department of Insurance preemptively issued today’s Notice to all property and casualty insurance companies to ensure consumers are protected.
Commissioner Lara also urged consumers to take the following steps to prepare for the winter storm season:
Use their smart phone to perform a home inventory to create a record of their belongings and store scans of important documents that they can easily access.
Locate their insurance papers and put in a safe place or upload to an online location.
For renters, consider purchasing renters’ insurance to protect their personal belongings, which typically are not covered by their landlord’s homeowners’ policy.
Consider comprehensive auto insurance, which would protect their vehicle in the event of flood damage.
Visit the Governor’s Office of Emergency Services (CalOES) “winter wise” web page to read more tips to prepare for winter weather.
Consider flood insurance for future disasters in addition to their homeowners’ insurance policy. TheNational Flood Insurance Program currently provides the majority of flood coverage written in the state, but private flood insurance is also available. Flood insurance takes effect 30 days after it is purchased, except in the case of a home purchase where flood insurance is required by the lender.
The Department of Insurance can help consumers with insurance coverage or claim questions. Contact us at our consumer hotline at 800-927-4357 or through online chat or email at insurance.ca.gov.
Legislation co-sponsored by Insurance Commissioner Ricardo Lara ends unfair discrimination in California’s HIV statutes
News: 2022 Press Release
For Release: June 20, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Legislation co-sponsored by Insurance Commissioner Ricardo Lara ends unfair discrimination in California’s HIV statutes
LOS ANGELES –Today Insurance Commissioner Ricardo Lara issued a Notice strongly encouraging insurers to provide life and disability income insurance to individuals living with HIV in advance of upcoming mandatory changes to California’s HIV statutes that take effect on January 1, 2023.
“California’s outdated HIV statutes needed to be changed to protect individuals living with HIV,” said Commissioner Lara, who also thanked the bill’s author, State Senator Lena Gonzalez, and the bill’s co-sponsor Equality California. “HIV status will no longer be unfairly used as a barrier to obtaining life insurance or disability income insurance. Now individuals living with HIV will have the same opportunity as other individuals to protect themselves and their loved ones by purchasing the insurance they need.”
Commissioner Lara co-sponsored a bill in 2020 to outlaw unfair discrimination against applicants for life insurance and disability income insurance based on HIV status. The operative date of the statutes was delayed until January 1, 2023 to give insurers time to collect the information they need to underwrite individuals living with HIV.
The Equal Insurance HIV Act means California is standing up against HIV-related stigma and ending once and for all the unjust practice of insurance companies unfairly discriminating against HIV-positive individuals,” said Senator Lena Gonzalez (D-Long Beach). “Thanks to the dedicated advocacy of community groups such as Equality California, and the leadership of Commissioner Lara, individuals living with HIV and their families will now have equal opportunities to obtain life and disability income insurance.”
In 1988, Insurance Code sections 799 through 799.09 were enacted, as an article titled “Underwriting of AIDS Risks.” The statutes include Insurance Code section 799.02, which allows insurers to decline an application for life or disability income insurance if the applicant tests positive for HIV. At that time, there was no effective treatment for HIV and the illness was believed to be a life-threatening condition.
Now medical advances in testing and treatment have made it possible for individuals living with HIV to have better life expectancies and quality of life. But until Commissioner Lara co-sponsored changes to the law, the old statutes remained in place, and insurers could simply reject applications from HIV-positive individuals who applied for life insurance or disability income insurance based solely on HIV status.
"For far too long, California's outdated laws have kept people living with HIV from getting the insurance coverage they need," said Equality California Executive Director Tony Hoang. "We know that people living with HIV can live a long, healthy life and we are glad to see California's law treat them with the respect they deserve. We owe a huge debt of gratitude to Senator Lena Gonzalez and Insurance Commissioner Ricardo Lara for their tireless advocacy and implementation of the Equal Insurance HIV Act and all Californians living with HIV."
In response to this injustice, Commissioner Lara worked to change California law governing applicants for life and disability income insurance, by co-sponsoring the “Equal Insurance HIV Act” which replaced the old “Underwriting of AIDS Risks” statutes. He also made sure that the California Department of Insurance worked with advocates for individuals living with HIV and the insurance industry to ensure that the new statutes would become law.
The Notice that the Commissioner is issuing today provides guidance to insurers on complying with the requirements of the Equal Insurance HIV Act. Insurers that fail to comply with the new laws are subject to the Commissioner’s enforcement powers, including his authority to review consumer complaints, investigate violations of the Insurance Code, and bring enforcement actions for violating statutes that protect individuals living with HIV.
Commissioner Lara bans insurance companies from limiting access to life-saving screenings and treatment
News: 2022 Press Release
For Release: June 1, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara bans insurance companies from limiting access to life-saving screenings and treatment
Commissioner’s action will help protect the health of Californians by setting clear standards of care
LOS ANGELES – Acting to protect the public health of California consumers, Insurance Commissioner Ricardo Lara today advised health insurers that arbitrarily refusing to cover necessary treatments and limiting coverage for periodic sexually transmitted infections screening to one per year is unlawful.
At a pivotal time when the U.S. Centers for Disease Control and Prevention (CDC) is reporting alarming increases in STIs nationwide and in California, the California Department of Insurance is finding that several insurers are shifting the costs of preventive screenings, diagnosis, and treatments onto consumers, which only creates further barriers to preventing the spread of HIV, syphilis, chlamydia, hepatitis, and other sexually transmitted infections (STIs), especially during the continued COVID-19 pandemic. The federal Affordable Care Act (ACA) and California law bar the practice of limiting periodic STI screenings of persons who are at increased risk of infection in ways that deprive consumers of equitable coverage of clinically recommended preventive care.
Additionally, California law provides that most health insurers must cover screening, diagnostic testing, and treatment for any health condition according to current, generally accepted standards of care. Consequently, insurers must cover clinically recommended periodic STI screening even when it is not required preventive care under the ACA.
“Personal health is public health. After we learned from consumers that they were being denied care, we moved to act,” said Commissioner Lara, who continues to be at the forefront of expanding health care access for all California residents. “My top priority is protecting consumers and holding insurance companies accountable.”
Commissioner Lara’s Bulletin explains that existing federal and state law requires insurance companies to:
Cover STI screening, diagnosis, and treatment in accordance with current, generally accepted standards of care.
Cover STI screenings that are within the scope of the ACA without patient cost sharing.
Cover clinically recommended STI screenings that are not defined as preventive care under the ACA.
Not impose coverage limits on STI screenings that conflict with evidence-based clinical recommendations on screening intervals.
In pharmacy benefits, cover prescription drugs that are medically necessary to treat STIs, including direct-acting antivirals for curing hepatitis C.
Cover home self-collection test kits and laboratory costs for detecting STIs.
Cover combination antigen/antibody HIV self-tests, including combination rapid fingerstick tests, without a deductible from or other cost sharing on patients.
The Commissioner’s Bulletin further states that insurance companies must understand that the law prohibits them from limiting benefits in a clinically inappropriate manner and that they must immediately eliminate any impermissible limits (like quantity limits) that they arbitrarily impose on coverage of clinically recommended STI screening, testing, or treatment.
“The Center welcomes this clear guidance from Commissioner Lara holding insurers accountable to comply with existing regulations,” said Dr. Ward Carpenter, Co-Director of Health Services for the Los Angeles LGBT Center. “As one of the largest providers of healthcare for LGBTQIA people, we see too many patients being inappropriately denied coverage for STI care they are entitled to receive. And we see the burden these denials cause, from delayed treatment to worsening health. We also know there are multiple additional transmissions when a person with an STI is unable to access timely and appropriate care. Ultimately we all pay the price for these denials in higher healthcare costs and more lives impacted. We must have free, easy access to the full scope of testing and treatment if we are to seriously combat the soaring STI rates in our community. The Center applauds Commissioner Lara for ensuring that the health of our community never takes a back seat to the profits of an insurance company.”
The growing STI crisis affects all communities across the state, with youth, people of color, and gay, bisexual, and transgender people disproportionately impacted. Statewide data indicate over half of all STIs in the state are experienced among California’s young people ages 15 to 24 years old. African Americans are 500% more likely to contract gonorrhea and chlamydia than their white counterparts. In addition, the continued COVID-19 pandemic has only further exacerbated the STI crisis, with populations disproportionately affected by STIs being particularly vulnerable to access to equitable and culturally competent health care, among other consequences.
Over the past decade, California has experienced an alarming increase in cases of syphilis and congenital syphilis. There were 28,846 reported cases of syphilis in 2019, a 349% increase since 2009. Cases of congenital syphilis, which occur when syphilis is transmitted from a pregnant person to their child during pregnancy, increased 631% over the same period. While gay and bisexual men account for most new syphilis cases, the largest increases have been among women. From 2009-2019, the total number of early syphilis cases increased 1,139% among women compared to 290% among men. Increases in the rate of congenital syphilis among women of reproductive age have paralleled steep increases in the rate of congenital syphilis. In 2019, there were 446 reported cases of congenital syphilis in California – the highest number of cases since 1993. Syphilis and congenital syphilis rates are roughly three times higher among Black Californians compared to their white counterparts.
“The latest data from the CDC reaffirm what we have known for quite some time – the U.S. is in the midst of an out-of-control STI epidemic that has only worsened over the course of the pandemic,” said APLA Health Chief Executive Officer Craig E. Thompson. “If we are to get a handle on this crisis, all Californians need access to regular, convenient, and free or low cost STI testing and treatment. Insurance companies are essential partners in this fight and they must be held accountable for providing unimpeded access to the full range of STI services. Today’s bulletin from Commissioner Lara is an important step toward ending the state’s growing STI epidemic and improving the sexual health of LGBTQ+, BIPOC, and other impacted communities."
California continues to take aggressive approaches to expand access to comprehensive health coverage, including with laws that Commissioner Lara sponsored last year that require insurers to cover basic benefits in large employer health insurance and to allow dependent parents to be added to their adult children’s health insurance policy or health care plan.
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Insurance Commissioner Lara announces statewide board appointments to advance consumer protection mission
News: 2022 Press Release
For Release: April 29, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Insurance Commissioner Lara announces statewide board appointments to advance consumer protection mission
SACRAMENTO, Calif. — Insurance Commissioner Ricardo Lara today announced several new appointments to multiple statewide boards to advance the Commissioner’s and the Department of Insurance’s mission to protect California policyholders.
These appointments include one new member to the California Insurance Guarantee Association (CIGA) Board of Governors as well as three new members and one reappointed member to the Insurance Diversity Task Force.
“The leaders and entrepreneurs joining these boards are lending their unique experiences and knowledge to protect consumers and I thank them for serving their fellow Californians,” said Commissioner Lara. “I have no doubt their contributions will help ensure consumers’ claims are honored, push for more diversity in the insurance industry’s boardrooms, and expand contracting opportunities for our state’s small businesses.”
The CIGA Board of Governors oversees the guarantee association’s general operations and management in order to protect policyholders in the event of an insurance company insolvency. Established in 1969 by the Governor and California State Legislature, CIGA comprises all insurance companies admitted to sell homeowners, workers’ compensation, automobile, and other specified property and casualty lines of insurance in California.
The Insurance Diversity Task Force oversees the Department’s nationally-recognized Insurance Diversity Initiative, which encourages insurers to increase procurement contracts with diverse business owners, such as a woman-owned, veteran-/disabled veteran-owned, historically disadvantaged community-owned, and LGBTQ+-owned businesses, as well as advance diversity of insurance company corporate boards. The Task Force makes recommendations to the Insurance Commissioner regarding innovative ways to increase diversity within the insurance industry.
The next CIGA Board of Governors meeting will be held on Tuesday, May 3, 2022 and the next meeting of the Insurance Diversity Task Force will be held on Thursday, June 9, 2022.
More details are available at: www.insurance.ca.gov/boards. These positions are uncompensated.
Newly appointed members include:
CIGA Board of Governors:
Patrick Wong is Senior Vice President, General Counsel, and Secretary for CSE Insurance Group. Wong has over 20 years of experience in insurance and is a member of CSE’s Executive Leadership Team leading the Corporate Department, which includes Legal, Governance, Compliance, Quality Assurance, and Internal Audit. He serves as the representative for CSE on the Pacific Association of Domestic Insurance Companies (PADIC) Board of Directors and is a previous member of the In-House Counsel Committee of the Asian American Bar Association of the Greater Bay Area. Wong joins the CIGA Board of Governors as the representative of CSE Insurance Group in a member insurer seat with a term ending on December 31, 2022.
Insurance Diversity Task Force:
Griselda Gonzalez is Chief Financial Officer of CG Moving Company, Inc., where she works with corporate clients, government agencies, and non-profit clients in offering office relocation and storage solutions in the San Francisco Bay Area. Her previous experience was in financial services, working for First National Bank of Northern California and then at Cal State 9 Credit Union. She currently serves on the California Moving and Storage Association Board of Directors and has won its “Chapter of the Year” award four times. She serves on the American Trucking Association-Moving and Storage Conference Board of Directors and represents independent movers. She is also a member of the Golden Gate Business Association. Gonzalez joins the Task Force as an advocate/representative for women business enterprises with a term ending on April 29, 2024.
Pradip Khemani is Vice President, Global Business Services and Healthcare Business Operations for Blue Shield of California. Khemani has over 26 years of international business experience with expertise in procurement and supplier governance as well as business operations, marketing, and sales and currently oversees procurement of $1 billion in contracting services. He is a board member of the National Sourcing and Purchasing Council which was created to provide a forum exclusively for Blue Cross Blue Shield to promote the exchange of best practices and information unique to procurement strategy and vendor/risk management. Khemani joins the Task Force as an insurance industry representative with expertise in supplier diversity with a term ending on April 29, 2024.
Jose Plascencia is Owner of Jose Plascencia Allstate Insurance. He is a former Market Development Director and Media Spokesperson for AAA of Northern California, where he led, facilitated, and championed several Diversity and Inclusion initiatives over his 15-year career. He is also Board Chair of the California Hispanic Chambers of Commerce Foundation where he oversees the effectiveness of the diverse supplier program, which helps Hispanic and Latino-owned businesses to connect to companies with contracting opportunities. He is the first Latino Board Chair for the Greater Reedley Chamber of Commerce and Board Chair for United Health Centers Foundation of the San Joaquin Valley. He is also the former Board Chair for both the Central California Hispanic Chamber of Commerce and Valley PBS. Plascencia joins the Task Force as an advocate/representative for minority business enterprises with a term ending on April 29, 2024.
Vikita Poindexter is the CEO/President of Poindexter Consulting Group, LLC, a minority woman-owned small business. She educates her fellow business owners on how to propel and grow their business in the U.S. with an emphasis in California on human resources, diversity in staffing, and recruitment. Poindexter is also an appointed executive council member of AARP-CA, board member of California’s statewide Micro Enterprise network (CAMEO), member of the California Small Business Association Workforce Skills and Education Issue Committee, and a member of Southern California Edison’s Small Business Advisory Panel. She is a former Board President of the California Chapter of the National Association of Women Business Owners. Poindexter has been reappointed to the Task Force as an advocate/representative for women business enterprises with a term ending on May 13, 2024.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
Commissioner Lara announces new regulations to improve wildfire safety and drive down cost of insurance
News: 2022 Press Release
For Release: February 25, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara announces new regulations to improve wildfire safety and drive down cost of insurance
New proposed regulations incorporate recently announced “Safer from Wildfires” framework to protect existing homes and communities
SACRAMENTO, Calif. — Today Insurance Commissioner Ricardo Lara announced new regulations intended to improve wildfire safety and drive down the cost of insurance for homeowners and businesses. Under the proposed regulations, which could be in effect by this summer, insurance companies would be required to factor consumers’ and businesses’ wildfire safety actions into their pricing of residential and commercial coverage. The new regulations also will provide consumers with transparency about their “wildfire risk score” that insurance companies assign to properties. These regulations address complaints Commissioner Lara heard from many consumers and businesses across the state that insurance companies are unwilling to account for steps taken to harden their properties and communities against wildfire, lowering their risk of loss and damage.
“With more Californians rolling up their sleeves and reaching into their own pockets to protect their homes and businesses, insurance pricing must reflect their efforts,” said Insurance Commissioner Ricardo Lara. “Holding insurance companies accountable for accurately rating wildfire risk in the premiums they charge Californians will help save lives and reduce losses. My new regulations will help encourage a competitive insurance market for all by putting safety first and driving down costs for consumers.”
The announced regulations incorporate the new “Safer from Wildfires” framework, a list of achievable, expert-endorsed actions that will help save lives and reduce risk for property owners. Commissioner Lara unveiled the Safer from Wildfires framework with state emergency leaders on February 14, marking the first time that state agencies have been brought together to identify a common insurance framework of mitigation actions for existing homes and businesses.
By requiring insurance companies to utilize the Safer from Wildfires framework in their pricing for insurance, Commissioner Lara is sending a strong signal to consumers about the need to better prepare for extreme wildfires – which will lead to a more competitive market for all California residents and businesses. Specifically, the regulations will require insurance companies to comply with Proposition 103, passed by voters in 1988 to give the Insurance Commissioner authority to approve rates set by insurance companies, by incorporating the new framework in “wildfire risk scores” that insurance companies commonly use to rate individual and commercial properties.
In community meetings and town halls that Commissioner Lara held across California before the pandemic and in his virtual investigatory wildfire hearing in October 2020, consumers described taking action to protect their homes – often at the cost of thousands of dollars out of pocket – while many insurance companies simply declined to recognize the value of these actions. Still other insurance companies assigned opaque wildfire risk scores to increase the price of insurance for a given property. Consumers rarely know their property’s wildfire risk scores let alone how to improve them, even though these scores are a critical factor in many insurance companies’ decisions about how much to charge for insurance.
These regulations will help Commissioner Lara increase consumer discounts that insurance companies offer for safer homes and businesses, which has been a major focus of his comprehensive strategy to reduce the growing threat of wildfires. Currently, 17 insurance companies representing 40 percent of the insurance marketplace have answered Commissioner Lara’s call to offer discounts, up from just 7 percent of the market when Commissioner Lara took office three years ago, demonstrating expanding options for consumers. View the list of insurance companies currently offering discounts at the Department of Insurance website.
These regulations also increases transparency by providing an opportunity for consumers and businesses to review their property’s risk score or other factors used in pricing for accuracy based on mitigation work they have undertaken. Consumers and businesses will be able to appeal scores or other factors insurance companies use to assess wildfire risk.
Fire chiefs and consumer advocates joined Commissioner Lara in calling for increased wildfire safety efforts.
"By rewarding homeowners and businesses for the wildfire safety actions they take, these regulations will be a huge assist to our efforts to prevent the severe loss of life and property from wildfires like we saw in the devastating Thomas Fire and debris flow that followed," said Montecito Fire Chief Kevin Taylor, who testified at the investigatory hearing the Department of Insurance held in October 2020. "I am glad to see the state supporting local communities like ours with wildfire safety programs like this."
“This is the most significant, concrete step forward on wildfire safety that brings all of the pieces together to help Californians maintain and obtain high quality insurance at a reasonable cost,” said Novato Fire District Chief Bill Tyler, who also testified at the investigatory hearing. “This helps people take back control over their risk by having insurance companies recognize their efforts.”
“Now that experts concur and the Safer from Wildfires framework has been established, we need regulations to ensure that consistent and clear rewards will be in place to incentivize and accomplish wildfire risk reduction at the parcel and community level,” said Amy Bach, United Policyholders’ Executive Director and architect of the Wildfire Risk Reduction and Asset Protection (WRAP) working group that contributed to the Safer from Wildfires framework. “United Policyholders commends Commissioner Lara for this important progress.”
"California's farmers, ranchers and agriculture communities are very appreciative of Commissioner Lara's work to create an insurance framework we can all use to make our businesses safer from wildfires," said Jamie Johansson, President of the California Farm Bureau Federation. "By pricing insurance to recognize farmers' wildfire safety efforts, these regulations will help drive insurance companies to better support our agriculture sector, which is not only critical to our state but to our entire country."
The Department of Insurance invites the public to testify on the new regulations at a hearing on April 13 or in writing.
Rubio bill targets illegal car extended warranty robo-calls and other unlicensed insurance scams
News: 2022 Press Release
For Release: February 15, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Rubio bill targets illegal car extended warranty robo-calls and other unlicensed insurance scams
SB 1040 would allow the Insurance Commissioner to order restitution to consumers for illegal actions by unlicensed sellers of insurance
LOS ANGELES — Senator Susan Rubio (D-Baldwin Park) today introduced legislation, sponsored by Insurance Commissioner Ricardo Lara, that would help consumers victimized by insurance scams, including the illegal “we are trying to reach you about your car’s extended warranty” robo-calls.
The legislation would help victims recover their losses from sellers of insurance not licensed by the California Department of Insurance to transact insurance. It addresses common scams such as illegally telemarketed sales of automobile extended warranties to consumers and illegally collected premiums for workers’ compensation insurance from businesses, among other unscrupulous acts on unsuspecting consumers.
SB 1040 would give the Insurance Commissioner the ability to order restitution to consumers from unlicensed sellers of insurance who are breaking California laws, leading to greater repayments to consumers. The Department of Insurance estimates that unlicensed activity costs Californians millions of dollars every year. For example, hardworking Californians have paid thousands of dollars for illegally sold extended warranties from unlicensed companies, only to have their claims improperly denied and then having to pay again for expensive repairs. Individual losses of several thousand dollars per victim can add up to massive fraud.
Under current law, the Insurance Commissioner can order unlicensed sellers of insurance to cease and desist and pay a fine of no more than $5,000 per day, but cannot order those unlicensed sellers to repay consumers for losses that they caused, such as direct premium they misappropriated and financial losses that the consumer suffered when they believed they were otherwise covered by insurance.
“We have all gotten robocalls trying to illegally sell us automobile extended warranties but until now my Department’s hands have been tied in trying to order repayment to victims of these illegal insurance scams,” said Insurance Commissioner Ricardo Lara. “SB 1040 will give my Department the ability to order restitution to seniors, consumers, and small businesses who fall prey to unlicensed sellers of insurance, especially during this pandemic.”
“We need to make it easier for victims of insurance scams to get back the money they lost,” said Senator Rubio. “My top priority as chair of the Senate Committee on Insurance is to protect consumers, and insurance fraud can be disastrous for individuals and small businesses. Meanwhile, these scams are constantly getting more sophisticated. I’m proud to work with Insurance Commissioner Lara on SB 1040 to give Californians more power to recover their losses.”
Investigations by the Department of Insurance have revealed numerous instances of insurance premium theft, embezzlement, and fraud by unlicensed sellers of insurance specifically targeting vulnerable communities, such as seniors, immigrants, and historically underrepresented communities. In many cases, small businesses were left without insurance coverage and business owners’ livelihoods were put at risk.
Some examples of illegal acts by unlicensed sellers of insurance leading to fraud include:
In 2021, a Department of Insurance investigation led to the arrest of an unlicensed insurance agent who provided falsified workers’ compensation certificates and pocketed the premiums, leaving businesses without coverage for worker injuries.
In 2020, the Department of Insurance issued a cease and desist against an unlicensed company that illegally sold automobile extended warranties (also known as “vehicle service contracts”) to more than 1,000 California drivers -- many of them seniors -- for over $2 million.
In 2020, the Department of Insurance issued a cease and desist against an unlicensed Southern California agent after a consumer who thought they had coverage suffered an uninsured $100,000 residential loss.
In 2019, a Department of Insurance investigation led to the arrest of an unlicensed insurance agent for allegedly stealing $174,000 in premiums from truck drivers and charter bus companies.
The Department of Insurance has obtained restitution in some cases, but only through legal settlements. Because, in most cases, consumers must pursue recovery on their own and the obstacles to doing so can be great, most money illegally stolen in unlicensed insurance fraud is never repaid to the aggrieved consumers.
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Commissioner Lara voices strong support for AB 1400 to give all Californians access to quality health care
News: 2022 Press Release
For Release: January 26, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara voices strong support for AB 1400 to give all Californians access to quality health care
SACRAMENTO, Calif. — State Insurance Commissioner Ricardo Lara issued a letter of strong support for AB 1400, a bill by Assembly members Ash Kalra (D-27), Alex Lee (D-San Jose), and Miguel Santiago (D-Los Angeles) that would set in motion a new health care coverage system in California, called CalCare, for all residents.
From the Commissioner’s letter to Assembly member Kalra:
“Despite the incredible progress we have made, the pandemic has laid bare the inequities in how Californians access health care coverage. We have paid a deadly price for the needless discrimination, complexity, and excessive costs of for-profit insurance. That is why we need to continue to fight for a single-payer plan that will protect all Californians and serve our collective public health.
“Insurance companies and health care plans are going to fight to keep their profits before all else and we need to keep fighting for people’s right to quality health care. I believe the only way to achieve ‘health care for all’ is to keep pushing for it.
“Personal health is public health. Because when the system doesn’t work, we all pay the price.
“Our current health care system is a complex, fragmented multi-payer system that still leaves wide gaps of coverage and poses significant issues of affordability. Despite health care spending in the United States far exceeding that of other high-income, industrialized countries that offer a publicly financed single-payer system, we consistently report worse health outcomes and disparities among vulnerable populations.
“I know first-hand the challenges that families face when they do not have access to quality health care. I personally know about health care being a trip to the school nurse. I know about taking home remedies because prescription drugs are too expensive. I have family members who have had to choose between paying rent or paying for a medically necessary procedure, friends who have had to choose between buying groceries or filling their prescriptions.
“Health care is a right, not a privilege only for those who can afford it.”
The Commissioner’s letter of support can be viewed here.
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Commissioner Lara approves new coverage options for farms and agricultural businesses under state’s FAIR Plan
News: 2022 Press Release
For Release: January 21, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara approves new coverage options for farms and agricultural businesses under state’s FAIR Plan
Insurance coverage will be available starting February 1st for farmowners, wineries, and other outdoor businesses previously ineligible for coverage due to outdated laws
SACRAMENTO, Calif. – Acting to address the growing needs for a competitive insurance market for farmowners, wineries, ranchers, and other outdoor agricultural businesses, Insurance Commissioner Ricardo Lara today approved the FAIR Plan to offer new commercial coverage for farm structure risks starting February 1, 2022. The FAIR Plan is an association made up of all admitted insurance companies to be the state’s property “insurer of last resort.”
“Agriculture is critical to our continued economic recovery. That’s why when leaders in this sector first shared their challenges in getting insurance coverage, we listened. We worked with Senator Rubio, Legislative leaders and the Governor to pass SB 11 to help address these issues,” said Commissioner Lara. “The Department of Insurance is changing how the FAIR Plan operates as part of a broader solution to help protect these businesses, especially those vulnerable to climate-intensified wildfires.”
Following Governor Gavin Newsom’s signing of Senate Bill 11 authored by Senator Susan Rubio, the State Legislature and the California Department of Insurance have urged the FAIR Plan to act as promptly as possible. Not wanting to add to the FAIR Plan’s delays, the Department, in its approval letter, noted some additional commercial coverage issues overall that the FAIR Plan must resolve at a later date as the Department reviews the FAIR Plan’s entire commercial property insurance program in the months ahead to ensure it truly “takes all comers.”
“Helping consumers hurt by devastating wildfires has been my top priority as Chair of the Senate Insurance Committee,” said Senator Susan Rubio, author of SB 11. “I am happy to see the Department of Insurance implement legislation I passed to protect California farmers and their workers.”
California’s farmers, ranchers, and vintners, among other agricultural businesses, live and work in more rural, outlying areas that may be especially vulnerable to wildfires. This makes having more and better options for insurance coverage critical to these businesses’ ability to operate and thrive in their communities. Department of Insurance data shows that some agricultural businesses have been left without coverage by insurance companies.
“This approval means California’s FAIR Plan can do its job and add much-needed protection for those farmers and ranchers that have found their insurance policies canceled or non-renewed. Given the current wildfire challenges facing California, our agricultural community is fearful of what may happen this year without this additional coverage,” said Jamie Johansson, President of the California Farm Bureau Federation. “We thank Commissioner Lara for supporting and expediting this new coverage and Senator Rubio for championing this legislation to protect California’s farmers and ranchers. We know that we have a leader in Commissioner Lara to get things done and look forward to continuing to partner with him on long-term coverage solutions for California’s agricultural community.”
New data shows insurance companies non-renewed fewer homeowners in 2020 while FAIR Plan ‘insurer of last resort’ policies increased
News: 2021 Press Release
For Release: December 20, 2021
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
New data shows insurance companies non-renewed fewer homeowners in 2020 while FAIR Plan ‘insurer of last resort’ policies increased
Commissioner Lara continues necessary actions for home safety mitigation measures and stronger FAIR Plan to protect homeowners
LOS ANGELES — According to a new report released by the California Department of Insurance, the number of homeowners non-renewed by insurance companies fell by 10 percent statewide in 2020 compared to the previous year. Mandatory moratoriums by Insurance Commissioner Ricardo Lara made up more than 80% of the statewide reduction in non-renewals. The report also shows that the number of policies written by the FAIR Plan increased for the second year to a new high, underscoring the need for continued actions that Commissioner Lara has taken to strengthen its coverage for consumers. The data represented approximately 98.8% of the homeowners’ insurance market in the state.
“More communities are rolling up their sleeves to protect their homes from wildfire. And more insurance companies are heeding my call to give incentives for home safety,” said Commissioner Lara. “While we still have a way to go until we have an insurance market that works for all Californians, I remain focused on increasing home safety measures to protect homes and promote market competition while strengthening the FAIR Plan, California’s insurance safety net, so it better addresses consumers’ and businesses’ coverage needs.”
The number of non-renewals by insurance companies fell from 235,597 in 2019 to 212,727 in 2020 – a decrease of 22,870 policies – while the number of new and renewed homeowners’ policies issued by the voluntary market statewide increased from 8.62 million to 8.7 million, or an increase of 82,635 policies. California is the largest insurance market in the nation, and non-renewals by insurance companies affect less than 3 percent of California policyholders, although data shows that areas with greatest risk of wildfires experienced higher rates of non-renewals.
The FAIR Plan, an association made up of insurance companies that serves as California’s “insurer of last resort,” provides insurance coverage to less than 3 percent of the state’s homeowners. However, the number of consumers forced to obtain a policy from the FAIR Plan because they could not find an insurance company willing to write them coverage increased by 49,049 policies in 2020, to 241,466 new and renewed policies. While the Department of Insurance data covers only 2020, the Sacramento Bee reported in October that the FAIR Plan expects continued growth of policies in 2021.
The data also suggests that Commissioner Lara’s actions have contributed to declines in non-renewals, especially in wildfire risk areas. Commissioner Lara implemented a series of temporary one-year moratoriums on non-renewals under a state law that he wrote when he was a member of the California State Senate, protecting more than 1 million policyholders in 2019 and 2.4 million in 2020 who lived in the perimeter or adjacent to a Governor-declared wildfire disaster. Areas in the state under moratoriums saw non-renewals fall by nearly 20 percent, compared to a less than 3 percent decrease in areas not under moratorium.
“Temporary non-renewal moratoriums are essential to California property owners and communities as stakeholders work to reduce wildfire risk and restore available and affordable insurance options,” said Amy Bach, Executive Director of United Policyholders. “The science behind incentivizing home safety is indisputable and supported by consumer groups and first responders. Commissioner Lara has undertaken reforms of the FAIR Plan that are long overdue and will help homeowners in the future even after we solve this non-renewal issue.”
Since taking office in 2019 after the deadliest fires in the state’s history, Commissioner Lara has held in-person and virtual meetings on wildfire issues in 36 counties attended by more than 10,000 local residents. Out of these meetings, he has grown his comprehensive strategy to support a competitive insurance market for all communities while strengthening consumer protections.
Among the consumer protection actions that Commissioner Lara has taken since assuming office in 2019 include:
At his urging, several major insurance companies including Allstate, CSAA, and Farmers, among others, have told the Department of Insurance that they will increase the number of new homeowners policies written in the state and cease or limit non-renewals.
Recent insurance company rate filings approved by the Department of Insurance have significantly expanded insurer-recognized mitigation efforts made by consumers and grown premium discount offerings, up to 20 percent for wildfire-hardened homes, to include 2 in 5 consumers – with five additional companies offering incentives since 2019. The full list of companies offering premium discounts is available on the Department of Insurance’s website.
Ordered the FAIR Plan to raise homeowners coverage limits to keep pace with increasing home values in California and to offer a comprehensive homeowners’ insurance coverage option in addition to its current limited coverage today. While the FAIR Plan has resisted the Commissioner’s Order, a judge ruled in July that the Commissioner has the existing authority to order the FAIR Plan to provide these enhanced coverage options that benefit consumers.
Initiated a partnership with Governor Newsom’s Administration, bringing together the state’s major emergency response and preparedness agencies to create resilient wildfire safety measures for homes and communities. That group is close to completing its work.
Introduced new regulations to resilient safety mitigation standards and provide more transparency to consumers on their wildfire risk scores. When formally adopted, these regulations will require insurance companies to recognize homeowners’ safety actions when they evaluate the wildfire risk to homes and communities as well as allow consumers to know their risk scores incentivize and be able to appeal them.
Sponsored a law that increases upfront and evacuation benefits for wildfire survivors. Senate Bill 872 authored by Senator Bill Dodd of Napa created new protections despite opposition to the measure from the insurance industry.
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Commissioner Lara orders FAIR Plan to offer increased commercial coverage to businesses
News: 2021 Press Release
For Release: November 19, 2021
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara orders FAIR Plan to offer increased commercial coverage to businesses
Commissioner’s action will help more businesses across all sectors get additional coverage they urgently need to operate and serve consumers
SACRAMENTO, Calif. — As part of his ongoing effort to help California businesses across all sectors continue to operate and thrive, Insurance Commissioner Ricardo Lara today took action by amending the Plan of Operations for the California FAIR Plan Association (FAIR Plan), an association made up of all admitted insurance companies to be the state’s property “insurer of last resort,” and ordering the FAIR Plan to implement his mandated increases to its decades-old commercial property coverage limits offered to businesses.
“My Order is part of an ongoing commitment to helping businesses in California thrive as our economy recovers from the COVID-19 pandemic. A top concern that many business owners large and small have voiced to me are their challenges in getting insurance coverage which, in turn, impacts their ability to serve their customers as best they can,” said Insurance Commissioner Ricardo Lara. “Our state’s economic recovery can’t wait. I will no longer tolerate delays from the insurance companies running the FAIR Plan when businesses and consumers need help today. I will continue to use every tool available to help businesses and protect consumers as we continue to seek long-term solutions to hold the FAIR Plan accountable and responsive to California consumers and businesses.”
Today’s action increases the combined coverage limits for the FAIR Plan, under its Division I Commercial Property Program, from $4.5 million to $8.4 million and, under its Division II Businessowners Program, from $3.6 million to $7.2 million. These coverage limits have not been raised since at least 1997 and 1994 respectively despite the Consumer Price Index showing costs have nearly doubled during that time in California.
Commissioner Lara’s Order directly revises the FAIR Plan’s Plan of Operations and gives the FAIR Plan no more than 60 days to file a rule change application for review and approval by the California Department of Insurance for these new increased commercial coverage limits. Upon approval, the insurance companies operating the FAIR Plan then have 90 days to implement these plan changes ordered by the Commissioner, which for many businesses represents additional coverage that is urgently needed to operate and stay in business, especially in high wildfire risk areas of the state.
The FAIR Plan was required under Insurance Code section 10095(f) to submit a revised Plan of Operations to the Department of Insurance within 30 days in response to the Commissioner’s previous Order from October 12 describing how it would increase its commercial property coverage limits. The Commissioner’s action today was taken because of the FAIR Plan’s failure to meet this reasonable and standard deadline.
The Commissioner is invoking his authority under Insurance Code section 10095 to write the revisions to the Plan of Operations for the FAIR Plan on his own as he deems necessary, and is ordering the FAIR Plan to now implement those revisions. While the FAIR Plan is intended as a temporary solution for many businesses that cannot otherwise find insurance coverage in the admitted and surplus lines markets, the FAIR Plan has not taken the initiative to increase its own coverage limits to keep pace with California’s economy and annual inflation.
The Commissioner’s action today is similar to 2019 when the FAIR Plan failed to meet his deadline for a response, and he subsequently revised its Plan of Operations to increase the combined homeowners dwelling coverage limit from $1.5 million to at least $3 million. The then-decades-old coverage limit was found to be insufficient in today’s real estate market. This increased limit is now provided to FAIR Plan homeowners insurance policyholders today.
Over the past two years, Commissioner Lara and Department of Insurance representatives have met with businesses and non-profit entities throughout the state on insurance availability challenges. Groups such as agricultural operators, wineries, residential care facilities, affordable housing entities, and summer camps have informed the Commissioner about the lack of availability of commercial property insurance coverage in the traditional insurance market. Many of these businesses noted that the FAIR Plan’s current commercial property coverage and business owners’ coverage limits are insufficient to meet their needs.
The Commissioner’s Order is an important step toward creating long-term solutions for businesses and consumers alike, especially for those forced to purchase FAIR Plan coverage when traditional coverage is not available.
“My Department continues to work on creating a competitive insurance market so that available insurance coverage options meet the needs of the individual business owner. By involving local businesses, state and local governments, consumer groups, fire safety officials, and insurance companies, we are creating necessary long-term solutions while being responsive to businesses’ immediate needs,” concluded Commissioner Lara.
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Commissioner Lara puts insurance companies “on notice” to protect insurance coverage for communities with wildfire emergency declarations
News: 2021 Press Release
For Release: September 1, 2021
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Commissioner Lara puts insurance companies “on notice” to protect insurance coverage for communities with wildfire emergency declarations
Commissioner’s Notices apply to residents living in or near Governor-declared wildfire emergencies in counties across Northern California
LOS ANGELES — Insurance Commissioner Ricardo Lara announced today that he has issued notices to insurance companies alerting them to cease non-renewals and cancellations of insurance coverage for communities with wildfire emergencies — or risk being in violation of California law. His notices cover homeowners' and renters' insurance policyholders living near major wildfires included in emergency declarations by Governor Newsom.
Last year, Commissioner Lara protected more than 2.4 million policyholders from non-renewal or cancellations for one year following the largest wildfires in the state's history. His actions covered those living within the perimeter of a declared wildfire disaster or adjoining ZIP codes under a law he authored in 2018.
These notices represent the preliminary step in protecting policyholders from non-renewal or cancellation following wildfire emergencies. Once each fire perimeter is identified, Commissioner Lara will issue a Bulletin identifying ZIP codes that will be subject to the one-year moratorium. Commissioner Lara has already issued a Bulletin that protects more than 25,000 policyholders in Lassen, Plumas, and Siskiyou counties covered under Governor Newsom’s July 16 emergency declaration for the Lava Fire and the Beckwourth Complex Fire.
“Governor Newsom's emergency actions during this wildfire season provide additional assistance for survivors along with triggering insurance protections under a law passed in 2018 to allow people to keep their insurance as they recover,” said Insurance Commissioner Lara, who authored SB 824 when he served in the State Senate. “I will continue to work with the Governor's Administration to give people much-needed breathing room as they get back on their feet.”
The Department of Insurance is collaborating with the California Department of Forestry and Fire Protection (CAL FIRE) and the Governor's Office of Emergency Services to identify additional wildfire perimeters for any fires where there is a declaration of a state of emergency, including Governor Newsom's July 23, August 5, August 10, August 17, and August 30 Declarations affecting parts of Alpine, Butte, El Dorado, Lassen, Nevada, Placer, Plumas, Shasta, Siskiyou, Tehama, and Trinity counties.
Consumers can go to the California Department of Insurance's website to see if their ZIP code is included in the current moratorium and to read his notices to insurance companies. The Department will update this web page as additional ZIP codes are protected in the future. Previous notifications on moratoriums can be found here.
The Commissioner's ability to issue moratoriums is a result of a California law he authored in 2018 while serving as state senator, after learning of insurance companies' practices from wildfire survivors across the state. The law is intended to provide temporary relief from non-renewals due to wildfire risk to residents living within or adjacent to a declared wildfire disaster, even if they suffered no property damage. Those who suffered a total loss have additional protection from non-renewal under existing state law.
The measure is part of a larger solution for homeowners and wildfire survivors that includes working to increase insurance protections and increasing market competition to help protect consumers.
This is the third consecutive year that Commissioner Lara has implemented the moratorium law.
Commissioner Lara protects more than 25,000 policyholders affected by Beckwourth Complex Fire and Lava Fire from policy non-renewal for one year
News: 2021 Press Release
For Release: August 19, 2021
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
LOS ANGELES — Insurance Commissioner Ricardo Lara today issued a mandatory one-year moratorium on insurance companies from non-renewing or cancelling residential property insurance policies – the first moratorium called by Commissioner Lara thus far this year. This action helps more than 25,000 policyholders who have been affected by the devastating Lava Fire and the Beckwourth Complex Fire in the counties of Siskiyou, Plumas, and Lassen. That includes more than 20,000 consumers who were already covered under last year’s moratorium, effectively extending their protection for several more months.
“No one should have to scramble to find fire insurance after suffering the effects of a wildfire. I created this new protection after learning from wildfire survivors how some insurance companies dropped their coverage even as they worked to recover,” said Commissioner Lara. “By forbidding insurance companies from issuing non-renewals and cancellations for one year, homeowners have more time to get back on their feet. This is one part of a larger solution for consumers that includes working to increase insurance protections and increasing market competition to help protect consumers.”
The Commissioner's ability to issue moratoriums is a result of a California law he authored in 2018 while serving as state senator in order to provide temporary relief from non-renewals to residents living within or adjacent to a declared wildfire disaster.
Today’s moratorium order follows Governor Gavin Newsom's emergency declaration this year on July 16 for the Lava Fire and the Beckwourth Complex Fire, and gives insurer-initiated non-renewal protections for one year for residential property insurance policies in ZIP codes within or adjacent to the fire perimeter. Consumers can go to the California Department of Insurance website to see if their ZIP Code is included in the moratorium.
This is the third consecutive year that Commissioner Lara has implemented the moratorium law. After the record setting wildfires of 2020, his order protected more than 2.4 million policyholders from non-renewal or cancellation.
“While we work toward longer-term solutions to prevent wildfires like greater mitigation and addressing the effects of climate change, wildfire survivors have immediate needs to help them recover after disaster strikes,” added Commissioner Lara on the moratorium issued today. “We will continue to work with the Governor's Office and first responders to identify areas where my additional moratoriums may be further issued to protect consumers.”
Following Governor Newsom's state of emergency declarations, the Department of Insurance partners with the California Department of Forestry and Fire Protection (CAL FIRE) and the Governor’s Office of Emergency Services (CalOES), pursuant to existing statute, to identify wildfire perimeters for mandatory moratorium areas. The Department of Insurance will continue to collaborate with CAL FIRE and CalOES to identify additional wildfire perimeters for any fires where there is a declaration of a state of emergency, including Governor Newsom’s July 23, August 5, August 10, and August 17 Declarations affecting parts of Alpine, Butte, El Dorado, Lassen, Nevada, Placer, Plumas, Shasta, Siskiyou, Tehama, and Trinity counties. The Department will address these areas and corresponding ZIP codes in forthcoming bulletins once fires are sufficiently contained and necessary data is obtained to determine the fire perimeters.
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Media notes:
The mandatory one-year moratorium announced today covers 25,879 residential policies in ZIP codes located within or adjacent to the Beckwourth Complex and Lava fires under Senate Bill 824 (Lara, Chapter 616, Statutes of 2018), also known as the Wildfire Safety and Recovery Act. While existing law prevents non-renewals and cancellations for those who suffer a total loss, the new law established protection for those living within or adjacent to a declared wildfire emergency who did not suffer a total loss—recognizing for the first time in law the disruption that non-renewals cause in communities following wildfire disasters.
Consumers can go to the Department of Insurance website to find the Commissioner's Bulletin to see if their ZIP Code is included in this moratorium.
Statement of Commissioner Lara on Governor signature on SB 11
News: 2021 Press Release
For Release: July 23, 2021
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Statement of Commissioner Lara on Governor signature on SB 11
LOS ANGELES, Calif. — Insurance Commissioner Ricardo Lara released the following statement after Governor Gavin Newsom signed Senate Bill 11, authored by Senator Susan Rubio, which will expand the California FAIR Plan to include farm buildings and other necessary agricultural structures:
“I thank Governor Newsom for acting quickly to protect our farmers, growers, and vintners who are facing tremendous hardships because insurance companies are deciding to non-renew them or refusing to write them commercial insurance,” said Commissioner Lara. “My Department staff will do our part to implement Senate Bill 11, helping to close the commercial insurance coverage gaps that are leaving many of our agribusinesses exposed to major losses. I applaud Senator Rubio for her leadership in authoring this important bill and the California Farm Bureau Federation for sponsoring this important measure to provide needed support to this vital sector of our state’s economy.”
SB 11 removes the existing statutory exclusion for “farm risks,” narrowing the exclusion to “commercial agricultural commodities or livestock, or equipment used to cultivate or transport agricultural commodities or livestock.” This clarification means that farmers, ranchers, and vintners will be able to purchase necessary basic property insurance from the FAIR Plan, including for the family home, the barns for the farm animals, the feed barn, the buildings that hold the farm equipment, and the crop storage units, among other such structures. These changes are necessary to fulfill one of the core purposes underlying the original establishment of the California FAIR Plan in 1968 — to ensure the availability of basic property insurance in the state to all Californians.
With increasing reports of commercial insurance non-renewals of farms, wineries, and other agricultural businesses, Commissioner Lara in April directed commercial insurance companies to report data on non-renewals and underwriting restrictions focused on the agriculture, farming, and outdoor industry — the first time such a commercial data call has been done in the history of the Department of Insurance. The results, available later this summer, will highlight major commercial insurance availability issues affecting agribusiness across the state and provide the Insurance Commissioner and policymakers with the concrete information needed to confront pending insurance availability challenges being faced by commercial businesses.
The Governor’s signature of SB 11 builds on Commissioner Lara’s efforts to give Californians more insurance coverage, particularly in high wildfire risk areas of the state. In 2019, Commissioner Lara ordered the FAIR Plan to begin offering more comprehensive coverage to homeowners including an expansion of coverage for liability, theft, contents, and other parts of a traditional homeowner’s policy. Earlier this month, a judge upheld the Commissioner’s authority to order the FAIR Plan to offer this new expansion of coverage, thus giving more than 100,000 Californians who currently rely on the FAIR Plan to protect their homes a comprehensive option beyond the bare-bones residential coverage that the FAIR Plan offers today.
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