Rebecca Bauer-Kahan

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing regulations authorize insurers, in distressed areas and for properties insured by the FAIR Plan that are exposed to wildfire risk, to use catastrophe modeling, as specified. Under existing regulations, a distressed area includes undermarketed ZIP Codes and distressed counties.

 This bill, on or before July 1, 2027, and yearly thereafter, would require the department to review and update distressed areas. As part of the review and update, the bill would require the department, among other things, to hold at least one public meeting to allow interested persons to submit suggestions for distressed areas, as specified. The bill, on or before January 1, 2028, and yearly thereafter, would require the department to publish a bulletin with a list of ZIP Codes in distressed areas on its internet website and to provide this information to certain committees in the Legislature.