An act to amend Section 10095.5 of, and to repeal Section 10094.5 of, the Insurance Code, relating to insurance.
Summary
AB 488 would revise two provisions of the Insurance Code governing the California FAIR Plan Association, the state’s insurer of last resort for basic property insurance. First, it would repeal a requirement that the FAIR Plan file a new or amended rate application with the Insurance Commissioner within 90 days of the law’s effective date. Second, it would amend the FAIR Plan’s consumer-contact requirements by removing the mandate that its statewide toll-free telephone number be published in all general distribution telephone directories, while keeping the requirement that the number and website be maintained and included on communications with applicants and insureds.
The bill is narrowly focused on administrative and disclosure requirements for the FAIR Plan rather than on broader insurance market reforms. It would eliminate a specific rate-filing obligation tied to prior legislation and reduce one legacy print-directory publication requirement, while leaving the FAIR Plan’s website, toll-free number, and agent/broker assistance duties in place.
Impact
If enacted, AB 488 would amend Insurance Code Section 10095.5 and repeal Section 10094.5, removing a statutory directive that the California FAIR Plan Association submit a new or amended rate application and deleting the requirement to publish its toll-free number in all general distribution telephone directories. The practical effect would be to reduce one regulatory filing obligation and modernize the FAIR Plan’s consumer outreach rules by shifting away from directory publication, while preserving the association’s basic access and assistance obligations for applicants and insureds.
Sentiment
The available record shows little overt debate or division around the bill: there are no recorded committee transcripts or votes in the provided materials, and the bill was simply filed with the Chief Clerk pursuant to Joint Rule 56. Based on the text alone, the measure appears technical and limited in scope, suggesting a generally procedural or housekeeping character rather than a highly contested policy change.
Contention
The main point of potential contention is the repeal of the mandatory rate-application filing, which could be viewed by some as reducing oversight or delaying rate review for the FAIR Plan, while supporters may see it as removing an outdated or unnecessary requirement. A secondary issue is the deletion of the requirement to publish the toll-free number in printed telephone directories, which may raise concerns about consumer visibility for some stakeholders but is also consistent with a shift toward website-based and direct communications. No specific opposing or supporting groups are identified in the provided record.