Bill Text: CA SB1295 | 2023-2024 | Regular Session | Amended
Bill Title: Automobile insurance: notice of cancellation.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed) 2024-05-21 - In Assembly. Read first time. Held at Desk. [SB1295 Detail]
Download: California-2023-SB1295-Amended.html
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Amended
IN
Senate
April 09, 2024 |
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Amended
IN
Senate
March 20, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1295
| Introduced by Senators Rubio and Stern |
February 15, 2024 |
An act to amend Section 662 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 1295, as amended, Rubio.
Automobile insurance: notice of cancellation.
Under existing law, a notice of cancellation of an automobile insurance policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation, and at least 10 days’ notice of cancellation when the reason for cancellation is for nonpayment of premium. For purposes of this provision, nonpayment of premium means failure of the named insured to discharge when due any of their obligations in connection with the payment of premiums on a policy, or any installment of the premium, as specified. Existing case law requires the 10-day notice period for nonpayment to commence after default.
This bill would require that the 10-day notice period for nonpayment commence after default
nonpayment of premium due by the specified due date and make a cancellation for nonpayment effective, as specified, if the insured has not cured the default nonpayment of premium due identified in the notice by the end of the 10-day period.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 662 of the Insurance Code is amended to read:662.
(a) (1) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium, at least 10 days’ notice of cancellation after(2) A cancellation based on nonpayment of premium shall only be effective on the date specified in the notice if the insured has not cured the default nonpayment of premium due identified in the notice by the end of the 10-day period.
(b) This section shall not apply to nonrenewal.
(c) Notices made to lienholders
pursuant to this section may be done electronically with the consent of the lienholder.
