Bill Text: CA AB1933 | 2023-2024 | Regular Session | Introduced

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

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Bill Title: Wildfire risk models.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-24 - In committee: Set, first hearing. Referred to suspense file. [AB1933 Detail]

Download: California-2023-AB1933-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1933

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Introduced by Assembly Member Calderon

January 25, 2024

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An act to amend Section 1861.05 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 1933, as introduced, Calderon. Insurance rate approvals.

Existing law, as enacted in the Insurance Rate Reduction and Reform Act of 1988, approved by the voters as Proposition 103 at the November 8, 1988, statewide general election, prohibits specified insurance rates from being approved or remaining in effect if they are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act. The act requires an insurer that wishes to change a rate to file a complete rate application with the Insurance Commissioner and deems the application approved 60 days after the rate application is received by the commissioner, unless specified circumstances apply. Existing law authorizes the provisions of Proposition 103 to be amended by a statute that furthers the purposes of the act and is enacted by the Legislature with a ²/₃ vote.

This bill would make technical, nonsubstantive changes to these provisions.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1861.05 of the Insurance Code is amended to read:

1861.05.

 (a) Approval of Insurance Rates. (a) No rate shall be approved or remain in effect which that is excessive, inadequate, unfairly discriminatory discriminatory, or otherwise in violation of this chapter. In considering whether a rate is excessive, inadequate inadequate, or unfairly discriminatory, no consideration shall be given to the degree of competition competition, and the commissioner shall consider whether the rate mathematically reflects the insurance company’s investment income.

(b) Every insurer which that desires to change any rate shall file a complete rate application with the commissioner. A complete rate application shall include all data referred to in Sections 1857.7, 1857.9, 1857.15, and 1864 and such any other information as the commissioner may require. The applicant shall have the burden of proving that the requested rate change is justified and meets the requirements of this article.

(c) The commissioner shall notify the public of any application by an insurer for a rate change. The application shall be deemed approved sixty 60 days after public notice unless (1) a consumer or his or her their representative requests a hearing within forty-five 45 days of public notice and the commissioner grants the hearing, hearing or determines not to grant the hearing and issues written findings in support of that decision, or (2) the commissioner on his or her their own motion determines to hold a hearing, or (3) the proposed rate adjustment exceeds 7% 7 percent of the then applicable rate for personal lines or 15% 15 percent for commercial lines, in which case the commissioner must shall hold a hearing upon a timely request. In any event, a rate change application shall be deemed approved 180 days after the rate application is received by the commissioner (A) unless unless (A) that application has been disapproved by a final order of the commissioner subsequent to a hearing, hearing or (B) extraordinary circumstances exist. For purposes of this section, “received” means the date delivered to the department.

(d) For purposes of this section, extraordinary circumstances include the following:

(1) Rate change application hearings commenced during the 180-day period provided by subdivision (c). If a hearing is commenced during the 180-day period, the rate change application shall be deemed approved upon expiration of the 180-day period or 60 days after the close of the record of the hearing, whichever is later, unless disapproved prior to that date.

(2) Rate change applications that are not approved or disapproved within the 180-day period provided by subdivision (c) as a result of a judicial proceeding directly involving the application and initiated by the applicant or an intervenor. During the pendency of the judicial proceedings, the 180-day period is tolled, except that in no event shall the commissioner have less than 30 days after conclusion of the judicial proceedings to approve or disapprove the application. Notwithstanding any other provision of law, nothing shall preclude the commissioner from disapproving an application without a hearing if a stay is in effect barring the commissioner from holding a hearing within the 180-day period.

(3) The hearing has been continued pursuant to Section 11524 of the Government Code. The 180-day period provided by subdivision (c) shall be tolled during any period in which a hearing is continued pursuant to Section 11524 of the Government Code. A continuance pursuant to Section 11524 of the Government Code shall be decided on a case by case case-by-case basis. If the hearing is commenced or continued during the 180-day period, the rate change application shall be deemed approved upon the expiration of the 180-day period or 100 days after the case is submitted, whichever is later, unless disapproved prior to that date.