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- Written by: California Department of Insurance
Several other consumer protection laws will take effect later in the year.
“We won many victories for California consumers last year, and secured more protections for homeowners, motorists, seniors, and diverse businesses,” said Insurance Commissioner Ricardo Lara. “I am looking forward to a new year creating additional new protections for consumers, including those affected by catastrophic wildfires. We will continue working with our partners, the Legislature, and the Governor to make a better California for all in 2020.”
Auto insurance
Beginning Jan. 1, consumers now have the right to choose a cash payment in lieu of repairing a damaged vehicle under an automobile insurance policy thanks to Assembly Bill 1538 authored by Assemblymember Shirley Weber.
This new law helps protect low income drivers, allowing policyholders to collect an insurance claim even if they choose not to repair the vehicle.
The California Low Cost Automobile Insurance Program, which helps provide auto liability insurance to new drivers in underserved consumers, has been extended to January 1, 2025, as a result of Senate Bill 570 authored by Senator Susan Rubio.
Among other things, this new law also extended eligibility to students if they reside at the same address where they are claimed as a dependent.
Economic empowerment of diverse small businesses
Senate Bill 534 authored by Sen. Steven Bradford encourages the $310 billion insurance industry to use its buying power to benefit diverse small businesses.
SB 534 extends innovative programs that bring increased transparency and opportunities for partnership between the nation’s largest insurance market and woman-, minority-, LGBT- and veteran-owned businesses.
Investment in underserved communities
This year, the California Organized Investment Network, or COIN, will continue thanks to Assembly Bill 1099 authored by Assembly Member Ian Calderon.
The new law will allow this important program at the Department to continue its mission in investing into California’s underserved communities and helping the economic development of the state.
The COIN program encourages insurers to be supportive of investments that promote social, economic, and environmental benefits.
Pet insurance
Pet owners will also see greater protections with their pet insurance policies as Assembly Bill 1535 authored by Assemblymember Wendy Carrillo takes effect. This new law requires pet insurers to disclose the contact information for the underwriting insurer, the agent or broker, and the Department of Insurance to consumers that hold pet insurance policies.
The law will provide consumers with greater transparency and help streamline the line of communication between pet owners and their pet insurance carriers so that insurers cannot hide behind confusing brand names to avoid claims or complaints.
Health and long-term care
Senate Bill 784 authored by the Senate Committee on Health conforms state law to both recent federal statutory changes and adopted National Association of Insurance Commissioners Model Regulations made to the Medicare program and, specifically, Medicare Supplement policies issued on or after Jan. 1, 2020, in order to ensure compliance with the federal Medicare Access and Children's Health Insurance Program Reauthorization Act.
Two additional commissioner-sponsored consumer protection laws are set to take effect beginning July 1, 2020, including:
Senate Bill 740, authored by Senator Holly Mitchell, will require insurers to identify deceased individuals whose deaths may require insurers to pay benefits or proceeds to beneficiaries in accordance with the terms of life insurance policies, annuity contracts, or retained asset accounts.
Under this new landmark law, insurers are now required to attempt to locate beneficiaries of the deceased individuals and provide appropriate claims forms or instructions to the beneficiaries to make a claim.
This new law follows up on nearly a decade of market conduct exams and enforcement actions conducted by the Department against life insurers as part of a nationwide effort.
Senate Bill 508, authored by Senator Connie Leyva, will place residents of mobile homes, condominiums and rental housing on equal footing with homeowners when it comes to knowing about their rights under California law by requiring insurers to provide the Residential Property Insurance Disclosure statement and the California Residential Property Insurance Bill of Rights Disclosure.
In addition, Commissioner Lara supported Assembly Bill 1816, authored by Assemblymember Tom Daly, which will require insurers to provide at least a 75-day notice when they nonrenew a homeowners’ policy for a policy that expires on or after July 1, 2020. This additional time will give homeowners a chance to shop for a new policy and consider their options.
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- Written by: Elizabeth Larson
Hours are Friday, noon to 6 p.m.; Saturday, 10 a.m. to 6 p.m.; and Sunday, 10 a.m. to 5 p.m.
The event is open to the public. Admission of $7 is valid for the entire weekend.
Exhibitors from all over the world will be on site with the largest selection of fine jewelry, crystals, gemstones, beads, minerals, fossils and much more.
Take advantage of buying direct from the importers and wholesalers. From loose gems, raw minerals and millions of bead strands, to finished jewelry, fashion accessories, supplies and tools, find them all under one roof.
Jewelry repair, cleaning and ring sizing service is available while you shop. Free door prize drawings are conducted every hour throughout the weekend.
For more information, visit www.gemfaire.com or contact Gem Faire Inc. at 503-252-8300 or
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- Written by: Elizabeth Larson
“Illegal sports betting is widespread, and it’s critical that we bring it out of the shadows to make it safer and generate funds for education,” Sen. Dodd said. “I look forward to hearing from all stakeholders at this key hearing as we analyze and develop the best approach. The Legislature’s job is to stand up for the public interest and ensure California adopts the best possible model.”
Sen. Dodd and Assemblymember Gray each introduced legislation in June to amend the California Constitution to authorize and regulate sports wagering. They chair their chambers’ respective governmental organization committees, which oversee gaming regulation, among other things.
The matching constitutional amendments would require any legalization effort in California to achieve two-thirds approval in the Legislature before being placed on the ballot for majority approval by voters.
The effort follows last year’s U.S. Supreme Court ruling overturning the federal ban on sports betting. The decision did not legalize sports wagering nationwide, but permitted the activity to be regulated on a state-by-state basis.
The Joint Informational Hearing on Sports Betting will begin at 1 p.m. in State Capitol Room 4202.
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- Written by: Elizabeth Larson
If adopted, this would be the first major change to the use of so-called “affinity group” discounts since California voters approved Proposition 103 in 1988, outlawing “redlining” and other forms of discrimination in insurance.
The department drafted the new regulations after Insurance Commissioner Ricardo Lara ordered the first-ever investigation of group discounts in the Department’s history.
A survey of insured vehicles found that one-quarter of Californians receive an affinity group premium reduction ranging from 1.5 percent to 25.9 percent depending on the insurer and group.
The data shows that participation in group discount programs decreases with income and education level, with those living in ZIP Codes with average income above $49,000 more than twice as likely to receive discounts as those in ZIP Codes with average income of $22,500 or below. In some areas of Los Angeles, San Diego, and the Bay Area, participation in group discount programs in high-income ZIP Codes was three to four times higher.
“The department’s historic investigation found that many insurance companies were effectively using group discounts to ‘cherry-pick’ members, giving some higher-income occupations a ‘fast pass’ while people of color and lower income motorists were left in the slow lane,” said Insurance Commissioner Ricardo Lara. “Thirty years ago, California voters banned ‘redlining’ practices that often meant the poorer you were, the more you paid for car insurance. We need a major course correction. These new rules of the road allow for group discounts as voters intended, but only if those groups are justified and non-discriminatory.”
Other key findings from the Department’s investigation:
– Motorists in affinity groups are more likely to reside in ZIP Codes with a predominantly non-Hispanic white population.
– Three-quarters of motorists residing in underserved communities were not in an affinity group, compared to 57 percent for the rest of the state.
– Motorists in affinity groups are more likely to reside in ZIP Codes with a higher average educational attainment. Only 28 percent of those living in areas with the lowest number of college degrees receive discounts, compared to 56 percent for those where half or more have college degrees.
Proposition 103 permits groups to exist, but the Department’s proposed regulations would ensure that groups are offered equally to persons regardless of sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, primary language, immigration status, occupation, educational attainment, or income level.
This proposed action would effectively ensure that all Californians have access to insurance group discounts as intended by Proposition 103.
The department will hold a prenotice workshop on the proposed regulations on Tuesday, January 28, 2020, at the Ronald Reagan State Building in Los Angeles.
The purpose of the prenotice workshop is to provide interested and affected stakeholders an opportunity to present comments regarding the proposed regulation changes and how rates and rating practices are used for group private passenger automobile insurance in California.
The Department of Insurance is responsible for the review and approval of automobile insurance premiums in the state to ensure they are fair and based on objective factors.
Proposition 103 established the mandatory factors to be a driver’s driving safety record, miles driven, and years of driving experience, followed by optional factors that the Commissioner may permit for use in automobile insurance rating. This would be only the third major reform to the optional factors in the last decade.
In January 2019, the Department of Insurance prohibited the use of gender in private passenger automobile rate-setting in order to remove factors that are beyond a driver’s control.