California Governor signs insurance law while vetoing accountability measures

California Governor Gavin Newsom has signed SB 1301 into law, a measure designed to help homeowners maintain coverage amidst a state insurance crisis. The law, authored by Senator Ben Allen, provides consumers with the right to know which specific repairs or mitigation efforts qualify a home for insurance renewal. It also mandates increased notice before coverage is lost and requires insurers to disclose specific reasons for dropping a policyholder.

While SB 1301 was approved, Newsom vetoed two other related insurance accountability bills, SB 877 and SB 878. These vetoed measures would have required insurers to provide written explanations for claim decisions, share initial loss estimates to prevent payout shrinkage, and pay interest on delayed payments.

Wildfire survivors and advocacy groups, including Every Fire Survivor’s Network and Consumer Watchdog, expressed disappointment over the vetoed bills, arguing they provided essential protections for those rebuilding after disasters. Newsom defended his decision to veto SB 877 and SB 878 by stating that existing regulations from the California Insurance Commissioner made the new measures ‘unnecessary at this time.’