On July 15, the Association of California Insurance Companies (ACIC) filed objections to the California Office of Administrative Law (OAL) regarding a proposed emergency regulation that would impose restrictions on insurance companies’ ability to consider past losses when underwriting homeowners policies.
ACIC’s statement to the OAL argued that “no emergency exists to justify the adoption of the regulation”, and that “the department lacks the statutory authority to impose these restrictions on homeowners insurance underwriting.” The OAL has until July 21 to rule on ACIC’s objections.
On April 24, the California Insurance Department issued an “advisory notice” that sought to restrict insurance companies from considering past losses when underwriting homeowners policies. The ACIC challenged the validity of the notice. On June 12, the Sacramento Superior Court issued an order that prevents the department from enforcing the “advisory notice.” On July 10, the insurance department asked the OAL for permission to adopt the substance of the “advisory notice” as an emergency regulation. On July 15, ACIC objected to the department’s request.
ACIC members write 35 percent of the California homeowners market.
Topics California Legislation Homeowners
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