Bill > SB878

This bill, concerning insurance business practices, would establish new regulations for fire insurance claims filed on or after January 1, 2027, by codifying specific deadlines for insurers. Insurers will have 15 calendar days to acknowledge a claim and provide necessary forms, 40 calendar days to accept or deny a claim (with provisions for extensions if more time is needed), and 30 calendar days after accepting a claim to tender payment. Failure to meet these deadlines will make an insurer liable to the insured for 20% annual interest on the accepted claim amount as damages, plus attorney's fees. Furthermore, by January 2028 and quarterly thereafter, insurers must submit prompt-payment compliance data reports to the Department of Insurance, signed by a corporate officer under penalty of perjury, and the department will publish this data quarterly on its website starting July 1, 2028, to increase transparency and accountability in claim handling.

Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB878