Residential property insurance: loss estimate transparency.

Plain English Breakdown

The bill summary and digest do not provide specific details on enforcement mechanisms for non-compliance by insurance companies.

Making Insurance Claims Easier to Understand

This law requires insurance companies to provide homeowners with all versions of claim-related documents within 15 days and explain any changes.

What This Bill Does

• Requires insurers to give the named insured every version of a claim-related document when there is damage covered by their policy.
• Insurers must send these documents within 15 calendar days after the creation or generation of the document.
• Each version of the document must include the full name and title of everyone who made, ordered, reviewed, or approved changes to it, along with a detailed explanation for each change.

Who It Names or Affects

• Homeowners with residential property insurance
• Insurance companies that provide residential property insurance

Terms To Know

Claim-related documents

Papers or records about a claim, like estimates and reports.

Named insured

The person whose name is on the insurance policy.

Limits and Unknowns

• Does not specify what happens if an insurer does not follow these rules.
• It's unclear how this will affect insurance companies' operations or costs.

Official Summary Text

SB 877, as introduced, Pérez.
Residential property insurance: loss estimate transparency.
Existing law generally regulates classes of insurance, including residential property insurance. Existing law prohibits a policy of residential property insurance from being issued or renewed by an insurer unless the named insured is provided a copy of specified information, including the California Residential Insurance Disclosure. Under existing law, the California Standard Form Fire Insurance Policy requires an insured to notify every claimant that they can request copies of claim-related documents, as defined, that the insurer is required to provide within 15 calendar days of the request.
This bill would require an insurer, in the event of a covered loss under a policy of residential property insurance, to provide the named insured every version of a claim-related document, as defined, within 15 calendar days of the creation or generation of
the document. The bill would require the insurer to include the full name and title of every person who made, ordered, reviewed, or approved a change to the versions provided and a detailed explanation of why the change was made.

Current Bill Text

Download Bill PDF