California Assembly panel passes insurance bill, but strips provision to aid October fire victims

The state Assembly Insurance Committee approved on Wednesday legislation to revamp insurance rules in the aftermath of natural disasters, but removed a provision that could have aided victims of last year’s North Bay fires.

The panel approved the bill (SB 894) by state Sen. Bill Dodd, D-Napa, which would provide more flexibility to policyholders who lost their homes in the aftermath of declared disaster area.

After strong lobbying by the insurance industry, the state Senate in May passed a version that dropped most of the retroactive benefits that could have helped local fire victims.

One retroactive provision that remained would have required insurance companies to renew policies for at least two years. Under current law, carriers could cancel the policy after one year.

The panel on Wednesday removed that retroactive provision from the Dodd bill, leaving it to cover only those who suffer losses going forward.

“Unfortunately, the insurance industry has chosen yet again to prioritize its insatiable appetite for profit over its own policyholders’ who have and continue to suffer after losing everything in the devastating wildfires,” state Insurance Commissioner Dave Jones said in a statement.

Under some limited circumstances, the Dodd bill will allow homeowners to combine their various policies for different coverage areas to pay for rebuilding their primary dwelling. It also extends living expenses for disaster victims - including rental apartments - from two years to three years as their home is being rebuilt.