Bill Text: CA SB525 | 2025-2026 | Regular Session | Introduced
Bill Title: California FAIR Plan: manufactured homes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-21 - From printer. May be acted upon on or after March 23. [SB525 Detail]
Download: California-2025-SB525-Introduced.html
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Senate Bill
No. 525
| Introduced by Senator Jones |
February 20, 2025 |
An act to amend Section 10091 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 525, as introduced, Jones.
California FAIR Plan: manufactured homes.
Existing law creates the California FAIR Plan Association, a joint reinsurance association formed by insurers licensed to write and engaged in writing basic property insurance within this state, to assist persons in securing basic property insurance, and to formulate and administer a program for the equitable apportionment among insurers of basic property insurance. Existing law defines “basic property insurance” for these purposes.
This bill would define “basic property insurance” offered through the FAIR Plan to include manufactured homes insurance that is comparable to basic property insurance sold for residential dwellings.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 10091 of the Insurance Code is amended to read:10091.
Unless the provision or context otherwise requires, the following definitions govern the construction of this chapter:(a) “Association,” “industry placement facility,” or “facility,” means a joint reinsurance association, the California FAIR Plan Association, formed by insurers licensed to write and engaged in writing basic property insurance within this state to assist persons in securing basic property insurance and to formulate and administer a program for the equitable apportionment among insurers of basic property insurance.
(b) “Commissioner” means the Insurance Commissioner of this state.
(c) (1) “Basic property insurance” means
insurance against direct loss to real or tangible personal property at a fixed location in those geographic or urban areas, as designated by the commissioner, from perils insured under the standard fire policy and extended coverage endorsement, from vandalism and malicious mischief, and includes other insurance coverages as may be added with respect to that property by the industry placement facility with the approval of the commissioner or by the commissioner, but shall commissioner. “Basic property insurance” includes insurance for manufactured homes that is comparable to basic property insurance sold for residential dwellings. “Basic property insurance” does not include insurance on automobile risks, commercial agricultural commodities or livestock, or equipment used to cultivate or transport agricultural commodities
or livestock.
(2) For the purposes of earthquake coverage that is provided as a component of basic property insurance, the association shall sell only the policy described in Section 10089. In force policies of basic property insurance that include earthquake coverage shall be renewed with the coverage specified in Section 10089, and the association shall comply with the notice requirements of paragraph (2) of subdivision (a) of Section 10086.
(d) “Inspection bureau” means the organization or organizations designated by the association with the approval of the commissioner to make inspections to determine the condition of the properties for which basic property insurance is sought and to perform other duties as may be authorized by the association.
(e) “Premiums written” means gross direct premiums charged with
respect to property in this state on all policies of basic property insurance and the basic property insurance premium components of all multiperil policies, less return premiums, dividends paid or credited to policyholders, or the unused or unabsorbed portions of premium deposits.
(f) “Insurer” means a person who undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event, and shall include reciprocals and interinsurance exchanges.
