All posts by PIFPAC

2020 Elections – September Update

PIFC staff has been able to stay nimble during the pandemic. Since the Governor issued his stay-at-home order, PIFPAC could no longer host traditional fundraisers for PIFC-endorsed candidates. However, while it is important to stay home, time marches on – we will still have an election in November. PIFPAC must continue to support candidates who understand insurance and are receptive to agents’ perspectives.

We have work ahead to build on our success in the primary, to get the most business-friendly candidates possible elected to the State Legislature. PIFPAC backed many great candidates we want to help succeed. There are also candidates we have serious concerns about in
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PIFPAC Webinars

PIFPAC hosted its quarterly webinar in August. Our PIFC lobbyists gave an in-depth update as to what is happening in the legislature and our PIFC Political Director let us know what to expect in November. From this webinar we saw 67 unique PIFPAC members tune in! Be sure to mark your calendars for our post-election webinar on November 19th!

Listen to Chris Ferraro Jr.’s important message at the webinar about what you can do to strengthen our industry.

Now is the time to upgrade your membership to the next level! Your contribution is your voice in these times. Reach out to Bobby John and say you
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Next Round

AB 2167

Many State Farm agents participated in calls to lawmakers to help explain AB 2167 and its companion bill, SB 292. Together they would have provided a comprehensive framework to increase the availability of admitted market insurance in high fire-threat areas and help reduce risk and loss through individual home hardening and community-wide wildfire mitigation.

Major provisions of these bills would have:

Established the Insurance Market Action Plan (IMAP) program and authorized an insurer to submit an IMAP filing, which would have been subject to approval by the Department of Insurance.

Required, as part of an IMAP filing, an insurer to commit to
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PIFC Victories – End of Session

AB 1552 – DEAD

This year, the California Legislature considered Assembly Bill 1552, which would have mandated that insurers provide retroactive coverage for business interruption (BI) policies that weren’t designed or funded to cover a society-wide pandemic.

Specifically, AB 1552 would have created a “rebuttable presumption” that COVID-19 was present on insured property and caused “physical damage” to that property which was the direct cause of the business interruption.

BI policies are priced to cover physical damage that is temporary, repairable and affects a small part of the population. Viruses, like COVID-19, are not insurable because they hit everyone at once. The rates customers pay for BI policies
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PIFC Victories

AB 2367 

Early this year, PIFC opposed AB 2367. AB 2367 (Gonzalez) died in the Assembly Insurance Committee in early May. 

AB 2367 would have established a task force to develop community and home hardening standards – and would have required an admitted insurer to write or renew a policy for an existing property that is certified by the Task Force. We know you don’t want to nonrenew your policyholders. But is forcing you to take on unreasonable risk – indefinitely – really the way to go? 

Insurance coverage mandates, such as the one proposed by this measure, threaten insurance availability for all Californians. History has demonstrated that when states try to force companies to sell insurance at an inadequate price, with uncontrollable
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Business Interruption Insurance Coverage

While Californians stay home to reduce the risk of transmission of COVID-19, businesses are starting to grapple with income loss. In commercial insurance, a policy with business interruption (BI) can cover lost profits, rent, utilities and clean-up costs. It less often provides transition expenses and payroll. About 30% of small businesses (less than 50 employees) have BI coverage. 

Understandably business owners are asking questions about business interruption insurance, particularly if they are covered during the stay at home order. However, typical BI coverage is only triggered by physical damage to a property and covers the period to repair the damage.   

BI covers physical damage because it is temporary and repairable. Viruses, such as COVID-19, are not insurable because they are enduring and incurable.
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PIFPAC Webinars

As PIFC staff transitioned to telework, we were able to host three webinars in April and May for PIFPAC members. We took advantage of the opportunity to connect with PIFPAC members and share what was happening here in Sacramento.  

Our PIFC lobbyists gave an in-depth update as to what is happening in the legislature and our PIFC Political Director let us know what happened in the March primary as well as what to expect in November. Tracey Rivera (former PIFPAC Board Member and current Membership Committee member), Kelly Lux (PIFPAC Board Member), and Matt Rinn (Membership Committee member) were each able to join a webinar and speak to the importance of being a contributor – especially now! Since State Farm was not
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Defensible (Policy) Space

PIFC also supported two bills by Assemblymember Laura Friedman: AB 3074 and AB 3164. AB 3074 enhances existing defensible space protections through the creation of an ember-resistant zone (0-5 feet from the structure) for homes in very high fire hazard areas. AB 3164 require CAL FIRE to develop a wildland-urban interface wildfire risk model to determine the risk for a community or parcel within certain areas of the state. The bill will also establish an advisory workgroup that includes, among others, representatives from insurers and insurance research organizations. 

PIFC is committed to supporting new policies that help reduce the risks associated with devastating wildfires that have become part of California’s “new normal”. 

AB 2167 + SB 292 – Insurance Market Action Plan

PIFC supported AB 2167 (Daly), which passed to the Senate, and SB 292 (Rubio), which is pending in Assembly Governmental Organization Committee. These bills must be enacted jointly to become operative. Together they provide a comprehensive framework to increase the availability of admitted market insurance in high fire-threat areas and help reduce risk and loss through individual home hardening and community-wide wildfire mitigation.  

Major provisions of these bills:  

Establish the Insurance Market Action Plan (IMAP) program and authorize an insurer to submit an IMAP filing, which would be subject to approval by the Department of Insurance.  
Require, as part of an IMAP filing, an insurer to commit to offer new and renewal residential property insurance
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COVID-19 and CA Department of Insurance – Public Notices

Essential Service Guidance

The United States Department of Homeland Security released guidance on essential critical infrastructure workers March 19th.  Insurance services are listed as essential within the section on financial services.  For more information, the guide is available here: https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19.  California Insurance Commissioner Ricardo Lara issued further guidance on March 20th, that insurance services are included as essential services.  We know many of you are taking important precautions like working remotely, or closing your insurance offices to the public, while still continuing to provide great service to your clients, Commissioner Lara’s bulletin is available here: http://www.insurance.ca.gov/0250-insurers/0300-insurers/0200-bulletins/bulletin-notices-commiss-opinion/upload/CDI-Essential-Services-Notice-Final.pdf.

Commissioner Lara did reiterate the importance of timely processing of payments as people shelter
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