Bill Text: CA AB1989 | 2021-2022 | Regular Session | Enrolled

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

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Bill Title: Commercial property insurance: vehicle barrier discount.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-08-26 - Chaptered by Secretary of State - Chapter 180, Statutes of 2022. [AB1989 Detail]

Download: California-2021-AB1989-Enrolled.html

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Enrolled  August 09, 2022

Passed  IN  Senate  August 08, 2022

Passed  IN  Assembly  May 05, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1989

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Introduced by Assembly Member Quirk

February 10, 2022

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An act to amend Section 11895 of, and to amend the heading of Chapter 6 (commencing with Section 11895) of Part 3 of Division 2 of, the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 1989, Quirk. Commercial property insurance: vehicle barrier discount.

The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, prohibits specified insurance rates, including commercial property insurance rates, from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act.

Existing law authorizes an insurer to consider the installation of vehicle barriers as a safety measure and authorizes an insurer to provide or offer a discount on the property owner’s insurance covering damage or loss to the covered commercial property or liability arising out of the ownership, maintenance, or use of the commercial property relative to the reduced risk to the property resulting from the installation of the barriers, if the discount provided or offered is consistent with the requirements of Proposition 103. Existing law defines a vehicle barrier for purposes of this provision to mean a safety device that meets, at a minimum, the vehicle impact protection standards as provided by the State Fire Marshal and adopted by the California Building Standards Commission and that is installed to protect persons located within, in, or on the property of, buildings, or to protect pedestrians, from collisions into those buildings by motor vehicles.

This bill would include within that definition a vehicle barrier that meets those vehicle impact protection standards and that is installed to protect persons located in an adjacent outdoor area that is covered by the commercial property insurance policy and that is used for the purpose of outdoor dining, or to protect pedestrians, from collisions into those outdoor areas by motor vehicles.

Digest Key

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

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Bill Text

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

SECTION 1.

 The heading of Chapter 6 (commencing with Section 11895) of Part 3 of Division 2 of the Insurance Code is amended to read:

CHAPTER  6. Commercial Property: Vehicle Barrier Discount

SEC. 2.

 Section 11895 of the Insurance Code is amended to read:

11895.

 (a) An insurer may consider the installation of vehicle barriers as a safety measure and may provide or offer a discount on the property owner’s insurance covering damage or loss to the covered commercial property or liability arising out of the ownership, maintenance, or use of the commercial property relative to the reduced risk to the property as a result of installation of the barriers if the discount provided or offered is provided or offered consistent with Article 10 (commencing with Section 1861.01) of Chapter 9 of Part 2 of Division 1.

(b) For the purposes of this section, a vehicle barrier is a safety device that meets, at a minimum, the vehicle impact protection standards as provided by the State Fire Marshal and adopted by the California Building Standards Commission and that is installed to protect persons located within, in, or on the property of, buildings, persons located in an adjacent outdoor area that is covered by the commercial property insurance policy and that is used for the purpose of outdoor dining, or to protect pedestrians, from collisions into those buildings or outdoor areas by motor vehicles.

(c) Any discounts on insurance provided in accordance with this section shall be determined to be actuarially sound and approved by the commissioner prior to their use.