Facing insurance claim delays, revolving doors of claims adjusters and payouts that don’t cover the cost of repairs, survivors of last year’s devastating Southern California wildfires still struggle not only with the aftermath of the disaster but also with their insurance companies.
In response to their hardships, some California lawmakers are drafting new bills this session, or reintroducing previously stalled proposals, that aim to regulate insurance companies and make their practices more transparent or timely, writes CalMatters’ Levi Sumagaysay.
Some key measures include:
- Senate Bill 876 would make various amendments to the state’s insurance code, such as requiring companies to share their disaster-recovery plans with the state’s insurance department; enable customers to know within five days when they’re assigned a new adjuster; and increase penalties for companies that violate fair claims practices during emergencies. The bill by state Sen. Steve Padilla, a Chula Vista Democrat and chairperson of the Senate Insurance Committee, is expected to face opposition from the insurance industry.
- Senate Bill 878, proposed by two Southern California Democrats, would hold insurers accountable if they miss deadlines for claims payments by requiring them to pay 20% interest annually. Companies would also have to submit a report to the insurance department that proves they are in compliance with timely payments requirements.
- Assembly Bill 1559 is Assemblymember Lisa Calderon’s second attempt at regulating insurers’ use of drone images. The bill would require companies to let customers know when they plan to take drone images of their properties. It would also prohibit companies from ending coverage based on images taken more than 180 days before companies sent notice of the coverage termination. Policyholders would also be allowed to see the images if they want to dispute the insurers’ claims, or take other actions before their policies are terminated. A previous proposal from the City of Industry Democrat stalled in the Senate last year.
For the record: In the California Voices section of Wednesday’s newsletter, the diversion program bill mentioned is a two-year bill that remains pending in the Legislature.
CalMatters events: Mi Escuelita, a San Diego preschool, is transforming how young children recover from trauma. Join our event on Feb. 5, in person in Chula Vista or virtually, to hear from California leaders in trauma-informed care about what works, what it takes to sustain it and how policymakers can expand these programs. Register today.
What should justice look like in California today? Join us in Los Angeles on Feb. 25th for a conversation with L.A. County District Attorney Nathan Hochman, former CDCR Director Dave Lewis and Heidi Rummel of the Post-Conviction Justice Project, on prosecution, incarceration and whether reform or tougher policies will define the state’s future. Register here.
Other Stories You Should Know
Is your wine American enough for you?
Under current federal standards, only 75% of a wine’s grapes need to be sourced in America to be labeled “American wine” — a percentage that’s too low for two California legislators.
Assemblymembers Rhodesia Ransom of Stockton and Damon Connolly of San Rafael recently introduced a bill that would require wine that is produced, bottled or sold in California be 100% sourced from grapes grown in America if it is to be labeled American. Both Democrats represent districts that are vital for California’s wine industry.
The bill does not limit wine imports, change state blending rules or regulate sourcing decisions. It is only intended, said Ransom, to reassure consumers that the American wine they see in California stores is entirely American. The state’s Department of Alcoholic Beverage Control would be responsible for enforcing the rule and determining penalties if passed, according to Connolly’s office.
- Ransom: “California produces 80% of the nation’s wine, and we know that California has a high standard of the origins of our grapes. We don’t know the standards of areas outside California. … We want to make sure that when (consumers) purchase something, they know where it came from.”
Ransom said the bill was partly inspired from conversations with California wine growers and by a 2025 law she penned that incentivises businesses to buy California glass bottles. California glass container makers must compete with foreign glass manufacturers, which do not have to comply with California’s various environmental laws and standards.
The wine bill is expected to be heard in committee next month.
And lastly: CA governor annoyed by revoked media appearance halfway around the world
Gov. Gavin Newsom on Wednesday accused the White House of barring the governor from a media appearance at the World Economic Forum in Davos, Switzerland — a day after Newsom slammed European leaders for not standing firmer against President Donald Trump. Read more from CalMatters’ Jeanne Kuang.
California Voices
CalMatters columnist Dan Walters: Are California’s persistent “Big 6” problems the reason why so many potentially viable candidates decided not to run for governor?
CalMatters contributor Jim Newton: The principles that guided the LAPD away from ignominy since the Rodney King beating has been lost on ICE, which is poorly staffed and badly led.
The Trump administration’s plan to revoke Sáttítla Highlands’s national monument designation would put wildlife at risk, devastate areas of Indigenous cultural importance and threaten millions of people’s water supply, writes Heather Bourbeau, writer who has worked with various United Nations agencies.
Other things worth your time:
Trump administration concedes DOGE team may have misused Social Security data // Politico
Supreme Court appears likely to strike down CA law banning guns in stores and restaurants // Los Angeles Times
Rep. Swalwell’s eligibility for CA governor questioned in lawsuit // The Mercury News
CA Assemblymember Gabriel says state ‘must do better’ on housing after Newsom budget plan // The Sacramento Bee
Why CA universities are still ‘on edge’ after Newsom proposed large budget increases // EdSource
CA exceeds clean car goal despite declining federal support // Los Angeles Times
Covered California policyholders are downgrading their plans as new enrollees plummet // San Francisco Chronicle
San Clemente approves controversial Border Patrol agreement to deploy coastal surveillance cameras // LAist