Assemblyman Obernolte Introduces AB 2611 Residential Property Insurance Bill

By Susan A. Neufeld

Sacramento, CA – A bill that would establish an appeal process for an insured, or applicant for insurance who disagree with a determination made by an insurer using a wildfire risk model, has been introduced in Sacramento by Assemblyman Jay Obernolte (R-Big Bear Lake/33).

Existing law generally regulates classes of insurance, including residential property insurance, and provides for the provides for the powers and duties of the Department of Insurance, headed by the Insurance Commissioner. Existing law limits the basis under which an insurer may cancel, or fail to renew, policies of insurance relating to loss of, or damage to, real property that is used predominantly for residential purposes.




Assembly Bill 2611 would require an insurer to provide notice to the insured or applicant giving the specific reasons for the decision, if an appeal results in an adverse underwriting decision, and would require the notice to include the contact information of the unit within the Department of Insurance that performs review of those decisions. The bill would require the Insurance Commissioner to issue a bulletin to insurers with that contact information, and issue updated information as necessary.


A “Wildlife risk model” means a computer-based, map-based, or other measurement or simulation tool, used by the insurer to rate, underwrite or otherwise assess or evaluate the risk of wildfire or consequence of wildfire to residential structures.