California legislators are considering whether to allow certain insurance policies and disclosures to be consolidated into one document, printed in smaller type.
Currently, the law requires an insurer, upon receiving notice of a claim, to immediately, but not more than 15 calendar days after receipt, provide the insured with a legible reproduction of the specified Insurance Code section, in at least 12-point type, detailing acts prohibited as unfair trade practices, and a written notice, as specified.
SB 596 would require that the contents of the written notice be changed and be in at least 10-point type. The bill also would require the insurer provide to the insured a copy of a specified portion of the Insurance Code section upon oral or written request of the insured.
The bill also would allow the California Residential Property Insurance Disclosure and the California Residential Property Insurance Bill of Rights to be placed in the same document. And the bill would consolidate the notice of the California Earthquake Authority Coverage with the notice of available discounts for earthquake coverage into a single mailing.
Existing law prohibits any policy of residential property insurance from being issued unless the named insured is provided a copy of the California Residential Property Insurance Disclosure. Existing law, effective July 1, 2011, prescribes the contents of the California Residential Property Insurance Bill of Rights.
“All of the mandatory notices consolidated by this bill will remain the same, they will just simply go into one envelope,” said Mark Sektnan, president of the Association of California Insurance Companies. “This bill will reduce the U.S. Postal Service’s workload, but more importantly it will reduce the amount of paper used. This is a green bill that will benefit all Californians.”
Sektnan predicted the bill will save millions of sheets of paper while preserving consumer protection notifications. “These days consumers and businesses are asking how can we be “green” and conduct business in a different way that meets goals while protecting resources and cutting waste or duplication. This bill is part of an ongoing effort by insurers to make the administration of insurance more efficient, less costly and more user friendly for our customers,” he said.
The bill was referred to the Senate Insurance Committee at press time.
Topics California Property
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