Bill Text: CA AB487 | 2021-2022 | Regular Session | Introduced

California Assembly Bill 487 (Prior Session Legislation)

Introduced

Bill Title: Automobile insurance.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2022-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB487 Detail]

Download: California-2021-AB487-Introduced.html

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 487

Introduced by Assembly Member Chen

February 08, 2021

An act to amend Section 661 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 487, as introduced, Chen. Automobile insurance.

Existing law generally regulates classes of insurance, including automobile insurance. Under existing law, modification of automobile physical damage coverage by the inclusion of a deductible that does not exceed $100 is not a cancellation of the coverage or of the policy.

This bill would increase that amount to $200, thus providing that modification of automobile physical damage coverage by the inclusion of a deductible that does not exceed $200 is not a cancellation of the coverage or of the policy.

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

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

SECTION 1.

Section 661 of the Insurance Code is amended to read:

661.

(a) A notice of cancellation of a policy shall be effective only if it is based on one or more of the following reasons:

(1) Nonpayment of premium.

(2) The driver’s license or motor vehicle registration of the named insured or of any other operator who either resides in the same household or customarily operates an automobile insured under the policy has been under suspension or revocation during the policy period or, if the policy is a renewal, during its policy period or the 180 days immediately preceding its effective date.

(3) Discovery of fraud by the named insured in pursuing a claim under the policy provided the insurer does not rescind the policy.

(4) Discovery of material misrepresentation of any of the following information concerning the named insured or any resident of the same household who customarily operates an automobile insured under the policy:

(A) Safety record.

(B) Annual miles driven in prior years.

(D) Record of prior automobile insurance claims, if any.

(E) Any other factor found by the commissioner to have a substantial relationship to the risk of loss.

Any insured who negligently misrepresents information described in this paragraph may avoid cancellation by furnishing corrected information to the insurer within 20 days after receiving notice of cancellation and agreeing to pay any difference in premium for the policy period in which the information remained undisclosed.

(5) A substantial increase in the hazard insured against.

(b) Modification of automobile physical damage coverage by the inclusion of a deductible not exceeding ~~one~~ two hundred dollars ~~($100)~~ ($200) shall not be deemed a cancellation of the coverage or of the policy.