Bill > SB1089

This bill amends Section 2026 of the Insurance Code of 1956 to prohibit post-claim underwriting. Specifically, it adds new provisions that make it an unfair practice for an insurer to (1) fail to complete the underwriting process before issuing a policy or certificate, or to re-underwrite a policy at the time a claim is filed, and (2) deny claims based on material facts discovered during the claims investigation that the insurer would have found during the initial underwriting process if it had used reasonable diligence. The bill aims to address issues with insurers delaying or denying claims by failing to properly underwrite policies upfront.