Senator Pérez and fire survivors secure passage of 2 key insurance reforms
Senator Sasha Renée Pérez (D-Pasadena) joined together with fire survivors to announce the passage of legislation that would hold the industry accountable to fire survivors and policyholders across the state. The two bills would bring transparency to loss estimates (SB 877), and penalize insurers for unnecessary delays in paying claims (SB 878).
“Together, these bills will make a real difference for Californians who have faced incredible hardships from the devastating Eaton and Palisades fires,” said Senator Sasha Renée Pérez (D-Pasadena). “The insurance industry must uphold their commitment to policyholders and be better partners in the region’s recovery. I join with the community of Eaton and Palisades fires survivors in demanding these vital bills continue to move forward in the Legislative process so we can expedite the recovery and ensure fair treatment for homeowners.”
The legislation passed Wednesday in the Senate Insurance Committee includes:
SB 877, the Fair Claims Practices and Transparency Act, passed with bipartisan support, would require insurers to fully disclose all loss estimate documents and revisions to policyholders, provide a clear written explanation of any changes that reduce the estimated loss, and identify who made those changes.
SB 878, the Insurance Payment Accountability Act, would penalize unjustified payment delays with interest, require timely identification and explanation of disputed items, mandate payment of all undisputed claim amounts, and strengthen accountability to prevent prolonged and unresolved insurance claims.
“Every fire survivor deserves to be made whole and must not face unreasonable delays and unfair treatment. This community of strong survivors is not asking for a handout, but only for what they are entitled to receive for the harm they have endured. Too many fire survivors have had their recoveries blocked by insurance companies’ long delays and questionable actions,” said Senator Pérez.
This legislation is sponsored by Every Fire Survivor’s Network (formerly Eaton Fire Survivors Network) and Consumer Watchdog.
“At Every Fire Survivor’s Network, we brought more than 1,300 firsthand accounts of insurer misconduct to Senator Sasha Renée Pérez. She turned those stories into legislation that cracks down on delays and underpayments and makes insurance available again. Every Californian will be safer because of these bills,” said Joy Chen, Executive Director, Every Fire Survivor’s Network, and co-sponsor.
A third piece of legislation by Senator Pérez died after failing by one vote. SB 1076, the Insurance Coverage for Fire-Safe Homes Act, would have ensured homeowners who made their homes fire-safe could have accessed insurance coverage.
“SB 1076 would have created a first-of-its-kind pilot program to reduce insurance risk and guarantee insurance coverage for homeowners who made their properties fire-safe. I’m disappointed this bill died in committee. Fire survivors deserved better. This legislation mattered,” said Senator Pérez.
“Passage of these bills means real progress in getting families the insurance benefits that they paid for. We’re disappointed our bill to recognize homeowners fire-safety efforts did not move forward but appreciate the senators who voted for the bill and recognize the importance of keeping Californians insured by reducing risk for everyone,” said Carmen Balber, executive director of Consumer Watchdog, and co-sponsor.
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Senator Sasha Renée Pérez is Chair of the Senate Education Committee and Chair of the Senate Budget Subcommittee No. 1 on Education. She represents the 25th Senate District that includes the communities of Glendale, Pasadena, Alhambra, Altadena, Arcadia, Claremont, Glendora, La Cañada Flintridge, La Crescenta-Montrose, Monrovia, Monterey Park, Rosemead, San Gabriel, San Marino, Sierra Madre, South Pasadena, Temple City, Fontana, Rancho Cucamonga, Upland, and San Antonio Heights.