NONRENEWAL RELIEF, STRONGER ENFORCEMENT ACTIONS HIGHLIGHT INSURANCE REFORM LED BY SENATOR ALLEN
The following information was released by California State Senator
SB 1301 and SB 1209 Sent to Governor to Improve Ratepayer Protections
"
Californians have faced the fourth highest rate of insurance nonrenewals in the nation, leading to a 250% increase to the FAIR Plan's total exposure since 2022. The notices often do not provide sufficient information detailing the reasons why a policyholder is being dropped, leaving them without guidance as to how they may reduce risk or improve insurability. Policyholders have also been dropped by insurers for faulty reasoning, such as claims of mold or algae on a roof that never actually existed.
SB 1301 requires nonrenewal notices to include the reasoning that led to a nonrenewal decision, and to provide policyholders with a path to remediate the identified risk in order to maintain their existing policy. It also requires insurers provide the notice 90 days prior to the policy's expiration, providing sufficient time for remediation or for the individual to shop for a new policy in the private market before getting stuck on the FAIR Plan.
In addition to providing guidance so policyholders can address the risk of loss, sufficient detailing requirements give the opportunity to contest the reasons identified for a nonrenewal to protect Californians from being wrongfully dropped from coverage.
To protect policyholders from harmful business practices, the
While most insurers voluntarily comply with these recommended actions, there is no clear tool to require insurers adopt the corrective actions. A 2025 examination of the FAIR Plan found that it had implemented less than half the recommendations provided in a 2022 report, leading to a failure of sufficiently serving policyholders in the aftermath of the 2025 LA Fires.
"Our laws are only as strong as they are enforced," added Allen. "When we identify operational deficiencies or noncompliance within business practices, corrective action should follow immediately to protect policyholders and the health of the broader industry."
SB 1209 expands the Department's authority to enforce corrective action by authorizing penalties of up to
"When insurance companies break the rules, policyholders pay the price. SB 1209 closes the enforcement loop by holding insurers to strict, non-negotiable timelines to fix systemic violations," said Commissioner Lara. "Partnering with Senator


NEW ASSET MANAGEMENT PLATFORM TO HELP COMMUNITIES BUILD SMARTER RECEIVES FEDERAL INVESTMENT
AUDITOR JAMES BROWN ISSUES WARNING TO MONTANA CONSUMERS ABOUT UTILIZING "SELF-FUNDED," LIMITED PARTNER HEALTH PLANS
Advisor News
- When new investment trends emerge, Gen Z is most likely generation to be first in
- Could ‘plain English’ become an advisor’s secret weapon?
- IRI urges Senate action on 403(b) parity legislation
- Three estate planning ideas to protect your clients and their wealth
- What advisors must know about accessible client documents
More Advisor NewsAnnuity News
- NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
- NAIC working group pressed to accelerate annuity illustration overhaul
- State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
- Wink: Annuity sales post strong Q2, led by MYGAs and structured products
- Legacy Marketing Group partners with Malibu Life USA for annuity launch
More Annuity NewsHealth/Employee Benefits News
Life Insurance News