Among the rush of legislation signed into law by departing California Governor Gray Davis is Assembly Bill 1191, expanding the disclosures insurers must make in connection with homeowners policies.
Effective March 1, 2004, homeowners insurers will be required to provide a written explanation and statement of reasons in advance of any decision not to renew an existing policy. (Current law requires an explanation only if the insured requests one within 20 days.) Failure to provide notice, with reasons, at least 45 days before policy expiration will result in an automatic 45-day extension of the existing coverage.
Additionally, the statute adds a new requirement that homeowners insurers provide, within 15 business days of a request by the insured, a written statement of reasons for any change -- up or down -- in the annual premium to be charged on a homeowners policy.
These changes appear to be consistent with the goals of Insurance Commissioner Garamendi's attempts to reform homeowners insurance coverage; earlier posts on that subject can be found here
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