Assembly Bill 2490 (MADDOX) was signed recently by Governor Arnold Schwarzenegger and will become law Jan. 1, 2005.
The bill, sponsored by the California Insurance Wholesalers Association (CIWA), was introduced to allow immediate binding of personal lines coverage when it is not possible for the customers to sign the disclosure form as required in surplus lines placements.
With the passage of this law, personal lines placements in the nonadmitted market now enjoy the same five (5) days to secure the disclosure statement D-1 as has been allowed commercial placements.
It recognizes the situations where producers are faced with last minute placements for personal lines in the nonadmitted market when coverage cannot be obtained with admitted carriers and it is not possible to get a signed D-1 from the insured.
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