Bill Text: CA AB1413 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Student financial aid.

Spectrum: Partisan Bill (Democrat 26-0)

Status: (Vetoed) 2010-09-30 - Vetoed by Governor. [AB1413 Detail]

Download: California-2009-AB1413-Amended.html

---

BILL NUMBER: AB 1413	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Coto
   (Coauthor: Assembly Member Nava)

                        FEBRUARY 27, 2009

   An act to amend Section 2071 of the Insurance Code, relating to
fire insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1413, as amended, Coto. Fire insurance: coverage.
   Existing law generally regulates the contents and coverages of
fire insurance policies. Existing law also generally regulates
homeowner's insurance policies, as specified.
   This bill would require that the California Standard Form Fire
Insurance Policy include an extended or guaranteed replacement cost
coverage clause specifying that the full scope of extended or
guaranteed replacement cost coverage, if purchased, is available
whether the homeowner rebuilds at the original or a new location.
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2071 of the Insurance Code is amended to read:
   2071.  (a) The following is adopted as the standard form of fire
insurance policy for this state:


      California Standard Form Fire Insurance Policy


   No.
   [Space for insertion of name of company or companies issuing the
policy and other matter permitted to be stated at the head of the
policy.]
   [Space for listing amounts of insurance, rates and premiums for
the basic coverages insured under the standard form of policy and for
additional coverages or perils insured under endorsements attached.]

   In consideration of the provisions and stipulations herein or
added hereto and of ____ dollars premium this company, for the term
of ________
from the ________ day of        )  At 12:01 a.m.,
_______, 20 _______
to the __________ day of        )  standard
________ , 20 ______               time,


at location of property involved, to an amount not exceeding ____
dollars, does insure ________ and legal representatives, to the
extent of the actual cash value of the property at the time of loss,
but not exceeding the amount which it would cost to repair or replace
the property with material of like kind and quality within a
reasonable time after the loss, without allowance for any increased
cost of repair or reconstruction by reason of any ordinance or law
regulating construction or repair, and without compensation for loss
resulting from interruption of business or manufacture, nor in any
event for more than the interest of the insured, against all LOSS BY
FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE PERILS
INSURED AGAINST IN THIS POLICY, EXCEPT AS HEREINAFTER PROVIDED, to
the property described hereinafter while located or contained as
described in this policy, or pro rata for five days at each proper
place to which any of the property shall necessarily be removed for
preservation from the perils insured against in this policy, but not
elsewhere.
   Assignment of this policy shall not be valid except with the
written consent of this company.
   This policy is made and accepted subject to the foregoing
provisions and stipulations and those hereinafter stated, which are
hereby made a part of this policy, together with any other
provisions, stipulations and agreements as may be added hereto, as
provided in this policy.
   IN WITNESS WHEREOF, this company has executed and attested these
presents; but this policy shall not be valid unless countersigned by
the duly authorized agent of this company at
               Secretary.                President.
  Countersigned this_____ day of_____________,
                          20______
                            _______________________
_Agent


      Concealment, fraud

   This entire policy shall be void if, whether before or after a
loss, the insured has willfully concealed or misrepresented any
material fact or circumstance concerning this insurance or the
subject thereof, or the interest of the insured therein, or in case
of any fraud or false swearing by the insured relating thereto.
      Uninsurable and excepted property

   This policy shall not cover accounts, bills, currency, deeds,
evidences of debt, money or securities; nor, unless specifically
named hereon in writing, bullion or manuscripts.
      Perils not included

   This company shall not be liable for loss by fire or other perils
insured against in this policy caused, directly or indirectly, by:
(a) enemy attack by armed forces, including action taken by military,
naval or air forces in resisting an actual or an immediately
impending enemy attack; (b) invasion; (c) insurrection; (d)
rebellion; (e) revolution; (f) civil war; (g) usurped power; (h)
order of any civil authority except acts of destruction at the time
of and for the purpose of preventing the spread of fire, provided
that the fire did not originate from any of the perils excluded by
this policy; (i) neglect of the insured to use all reasonable means
to save and preserve the property at and after a loss, or when the
property is endangered by fire in neighboring premises; (j) nor shall
this company be liable for loss by theft.
      Other insurance

   Other insurance may be prohibited or the amount of insurance may
be limited by endorsement attached hereto.
      Conditions suspending or restricting insurance

   Unless otherwise provided in writing added hereto this company
shall not be liable for loss occurring (a) while the hazard is
increased by any means within the control or knowledge of the
insured; or (b) while a described building, whether intended for
occupancy by owner or tenant, is vacant or unoccupied beyond a period
of 60 consecutive days; or (c) as a result of explosion or riot,
unless fire ensues, and in that event for loss by fire only.
      Other perils or subjects

   Any other peril to be insured against or subject of insurance to
be covered in this policy shall be by endorsement in writing hereon
or added hereto.
      Added provisions

   The extent of the application of insurance under this policy and
of the contribution to be made by this company in case of loss, and
any other provision or agreement not inconsistent with the provisions
of this policy, may be provided for in writing added hereto, but no
provision may be waived except such as by the terms of this policy or
by statute is subject to change.
      Waiver provisions

   No permission affecting this insurance shall exist, or waiver of
any provision be valid, unless granted herein or expressed in writing
added hereto. No provision, stipulation or forfeiture shall be held
to be waived by any requirement or proceeding on the part of this
company relating to appraisal or to any examination provided for
herein.
      Cancellation of policy

   This policy shall be canceled at any time at the request of the
insured, in which case this company shall, upon demand and surrender
of this policy, refund the excess of paid premium above the customary
short rates for the expired time. This policy may be canceled at any
time by this company by giving to the insured a 20 days' written
notice of cancellation with or without tender of the excess of paid
premium above the pro rata premium for the expired time, which
excess, if not tendered, shall be refunded on demand. Notice of
cancellation shall state that said excess premium (if not tendered)
will be refunded on demand. If the reason for cancellation is
nonpayment of premium, this policy may be canceled by this company by
giving to the insured a 10 days' written notice of cancellation.
      Mortgagee interests and obligations

   If loss hereunder is made payable, in whole or in part, to a
designated mortgagee not named herein as the insured, the interest in
this policy may be canceled by giving to the mortgagee a 10 days'
written notice of cancellation.
   If the insured fails to render proof of loss the mortgagee, upon
notice, shall render proof of loss in the form herein specified
within 60 days thereafter and shall be subject to the provisions
hereof relating to appraisal and time of payment and of bringing
suit. If this company shall claim that no liability existed as to the
mortgagor or owner, it shall, to the extent of payment of loss to
the mortgagee, be subrogated to all the mortgagee's rights of
recovery, but without impairing mortgagee's right to sue; or it may
pay off the mortgage debt and require an assignment thereof and of
the mortgage. Other provisions relating to the interests and
obligations of the mortgagee may be added hereto by agreement in
writing.
      Pro rata liability

   This company shall not be liable for a greater proportion of any
loss than the amount hereby insured shall bear to the whole insurance
covering the property against the peril involved, whether
collectible or not.
      Requirements in case loss occurs

   The insured shall give written notice to this company of any loss
without unnecessary delay, protect the property from further damage,
forthwith separate the damaged and undamaged personal property, put
it in the best possible order, furnish a complete inventory of the
destroyed, damaged and undamaged property, showing in detail
quantities, costs, actual cash value and amount of loss claimed; and
within 60 days after the loss, unless the time is extended in writing
by this company, the insured shall render to this company a proof of
loss, signed and sworn to by the insured, stating the knowledge and
belief of the insured as to the following: the time and origin of the
loss, the interest of the insured and of all others in the property,
the actual cash value of each item thereof and the amount of loss
thereto, all encumbrances thereon, all other contracts of insurance,
whether valid or not, covering any of said property, any changes in
the title, use, occupation, location, possession or exposures of said
property since the issuing of this policy, by whom and for what
purpose any building herein described and the several parts thereof
were occupied at the time of loss and whether or not it then stood on
leased ground, and shall furnish a copy of all the descriptions and
schedules in all policies and, if required and obtainable, verified
plans and specifications of any building, fixtures or machinery
destroyed or damaged.
   The insured, as often as may be reasonably required and subject to
the provisions of Section 2071.1, shall exhibit to any person
designated by this company all that remains of any property herein
described, and submit to examinations under oath by any person named
by this company, and subscribe the same; and, as often as may be
reasonably required, shall produce for examinations all books of
account, bills, invoices, and other vouchers, or certified copies
thereof if the originals be lost, at any reasonable time and place as
may be designated by this company or its representative, and shall
permit extracts and copies thereof to be made. The insurer shall
inform the insured that tax returns are privileged against disclosure
under applicable law but may be necessary to process or determine
the claim.
   The insurer shall notify every claimant that they may obtain, upon
request, copies of claim-related documents. For purposes of this
section, "claim-related documents" means all documents that relate to
the evaluation of damages, including, but not limited to, repair and
replacement estimates and bids, appraisals, scopes of loss,
drawings, plans, reports, third-party findings on the amount of loss,
covered damages, and cost of repairs, and all other valuation,
measurement, and loss adjustment calculations of the amount of loss,
covered damage, and cost of repairs. However, attorney work product
and attorney-client privileged documents, and documents that indicate
fraud by the insured or that contain medically privileged
information, are excluded from the documents an insurer is required
to provide pursuant to this section to a claimant. Within 15 calendar
days after receiving a request from an insured for claim-related
documents, the insurer shall provide the insured with copies of all
claim-related documents, except those excluded by this section.
Nothing in this section shall be construed to affect existing
litigation discovery rights.
   After a covered loss, the insurer shall provide, free of charge, a
complete, current copy of this policy within 30 calendar days of
receipt of a request from the insured. The time period for providing
this policy may be extended by the Insurance Commissioner.
   An insured who does not experience a covered loss shall, upon
request, be entitled to one free copy of this policy annually. The
policy provided to the insured shall include, where applicable, the
policy declarations page.
      Appraisal

   In case the insured and this company shall fail to agree as to the
actual cash value or the amount of loss, then, on the written
request of either, each shall select a competent and disinterested
appraiser and notify the other of the appraiser selected within 20
days of the request. Where the request is accepted, the appraisers
shall first select a competent and disinterested umpire; and failing
for 15 days to agree upon the umpire, then, on request of the insured
or this company, the umpire shall be selected by a judge of a court
of record in the state in which the property covered is located.
Appraisal proceedings are informal unless the insured and this
company mutually agree otherwise. For purposes of this section,
"informal" means that no formal discovery shall be conducted,
including depositions, interrogatories, requests for admission, or
other forms of formal civil discovery, no formal rules of evidence
shall be applied, and no court reporter shall be used for the
proceedings. The appraisers shall then appraise the loss, stating
separately actual cash value and loss to each item; and, failing to
agree, shall submit their differences, only, to the umpire. An award
in writing, so itemized, of any two when filed with this company
shall determine the amount of actual cash value and loss. Each
appraiser shall be paid by the party selecting him or her and the
expenses of appraisal and umpire shall be paid by the parties
equally. In the event of a government-declared disaster, as defined
in the Government Code, appraisal may be requested by either the
insured or this company but shall not be compelled.
      Adjusters

   If, within a six-month period, the company assigns a third or
subsequent adjuster to be primarily responsible for a claim, the
insurer, in a timely manner, shall provide the insured with a written
status report. For purposes of this section, a written status report
shall include a summary of any decisions or actions that are
substantially related to the disposition of a claim, including, but
not limited to, the amount of losses to structures or contents, the
retention or consultation of design or construction professionals,
the amount of coverage for losses to structures or contents and all
items of dispute.
      Company's options

   It shall be optional with this company to take all, or any part,
of the property at the agreed or appraised value, and also to repair,
rebuild or replace the property destroyed or damaged with other of
like kind and quality within a reasonable time, on giving notice of
its intention so to do within 30 days after the receipt of the proof
of loss herein required.
      Abandonment

   There can be no abandonment to this company of any property.
      When loss payable

   The amount of loss for which this company may be liable shall be
payable 60 days after proof of loss, as herein provided, is received
by this company and ascertainment of the loss is made either by
agreement between the insured and this company expressed in writing
or by the filing with this company of an award as herein provided.
      Extended or Guaranteed Replacement Cost Coverage

   In the case the insured purchased extended or guaranteed
replacement  cost  coverage, the full scope of extended or
guaranteed replacement cost coverage is available whether the
homeowner rebuilds at the original or a new location. If the
homeowner decides to build  or purchase  at a new location,
the maximum amount to which the homeowner is entitled is determined
by the amount it would cost to rebuild at the original location.
      Suit

   No suit or action on this policy for the recovery of any claim
shall be sustainable in any court of law or equity unless all the
requirements of this policy shall have been complied with, and unless
commenced within 12 months next after inception of the loss.
      Subrogation

   This company may require from the insured an assignment of all
right of recovery against any party for loss to the extent that
payment therefor is made by this company.

   (b) Any amendments to this section by the enactment of Senate Bill
658 of the 2001-02 Regular Session shall govern a policy utilizing
the form provided in subdivision (a) when that policy is originated
or renewed on and after January 1, 2002.
   (c) The amendments to this section made by the act adding this
subdivision shall govern a policy utilizing the form provided in
subdivision (a) when that policy is originated or renewed on and
after January 1, 2004.