A number one client group is proposing a policyholder rights initiative that may require insurers to supply protection to California owners who fireproof their houses — or lose the best to promote dwelling or auto insurance coverage within the state for 5 years.
The Insurance coverage Policyholder Invoice of Rights was filed with state Atty. Gen. Rob Bonta’s workplace final week by Client Watchdog, the Los Angeles advocacy group whose founder Harvey Rosenfield authored Proposition 103, the 1988 initiative that governs California dwelling and auto insurance coverage legislation.
The initiative for the November 2026 poll additionally would give policyholders not renewed by their insurer 180 days to make dwelling repairs and enhancements vital for renewal in the event that they face unavoidable allow, development and different delays.
“The Insurance coverage Policyholder Invoice of Rights ensures that individuals who spend money on wildfire mitigation get protection and prevents firms from canceling folks just because they file a declare,” Rosenfield stated in an announcement.
Insurers can search six-month waivers of the rule in sure geographic areas however would wish to indicate they’ve an overconcentration of threat there.
The proposed initiative comes after insurers started pulling again from the California market just a few years in the past after a spate of wildfires and commenced searching for double-digit fee will increase. Nevertheless, it’s unclear whether or not the group will even begin gathering the five hundred,000-plus signatures it could must make the poll.
Carmen Balber, government director of Client Watchdog, stated the measure was prompted by a separate initiative filed by a Roseville, Calif., insurance coverage dealer that may repeal core reforms of Proposition 103, which established an elected insurance coverage commissioner with the best to assessment requests for fee hikes earlier than they take impact.
The proposed initiative — known as the California Insurance coverage Market Reform and Client Safety Act of 2026 — was filed by Elizabeth Hammack, proprietor of Panorama Insurance coverage Associates. It could permit insurer fee will increase to take impact previous to any fee assessment, although they could possibly be suspended later if the insurance coverage commissioner determines the market will not be “moderately aggressive.”
Moreover, insurers must present premium credit to policyholders who take steps to scale back fireplace risks on their property, beneath the measure.
The measure additionally would abolish one other core component of Proposition 103, by banning funds to “intervenors” comparable to Client Watchdog, which insert themselves within the rate-review course of and search to dam or scale back will increase — a provision that has irked the business since its inception.
Hammack didn’t instantly reply Monday to requests for remark.
In an earlier electronic mail trade with The Instances, she stated: “I drafted up the initiative and filed it out of pure frustration in regards to the horrible California insurance coverage market dysfunction and the sensation of simply needing to do one thing, something, to make a distinction.”
Balber stated it requires $5.5 million to assemble the required signatures for an initiative. Whereas the group is assured it may elevate the funds, she stated it could not proceed with its personal measure until Hammack raises cash and strikes ahead past the submitting stage — or if Client Watchdog is swamped by donations.
“There are lots of, if not hundreds of Californians who’re fed up with the insurance coverage business and after the Los Angeles fires, I can assure you that there are folks on the market who could be begging to fund a poll measure that may lastly maintain the insurance coverage business accountable,” she stated.
Proposed poll initiatives in California have to be reviewed by the lawyer common, who prepares a title and transient abstract. After that, proponents have 180 days to assemble signatures.
The proposed dueling poll measures come at a time when there’s widespread anger not solely over fee will increase, however how some insurers have dealt with claims stemming from the Jan. 7 Los Angeles-area fires, which destroyed hundreds of houses and killed at the least 19 folks.
The Eaton Fireplace Survivors Community in Altadena and native politicians have demanded that Insurance coverage Commissioner Ricardo Lara halt anymore fee will increase for State Farm Normal, California’s largest dwelling insurer, until complaints over its claims dealing with are resolved.
Along with State Farm, the state’s insurer of final resort, the California FAIR Plan, has come beneath assault for denying smoke-damage claims. That prompted Gov. Newsom to ship a letter this month calling on the plan to deal with the claims “expeditiously and pretty.”
The plan has taken on lots of of hundreds of policyholders in recent times as insurers started pulling out of the state’s fire-plagued owners market. Hammack’s initiative seeks to have the plan set up a schedule to shrink its roles when extra protection from carriers turns into obtainable.
Her measure additionally would require the California insurance coverage commissioners to have at the least 5 years of insurance coverage expertise, both with a regulator, insurer or in different roles, comparable to actuarial science.
Instances employees author Paige St. John contributed to this report.
