On February 14, 2025, Commissioner Lara announced that he is joining with legislative leaders to “safeguard consumers” by introducing a comprehensive legislative package aimed at protecting wildfire survivors and improving preparedness for future disasters. This package focuses on three key goals: Consumer Protection, Climate Resiliency, and Market Strength. Among the ten proposals sponsored by the Commissioner are a new statewide grant program to assist with wildfire hardening, protections for businesses against insurance non-renewals, initiatives to combat deceptive disaster advertising, and measures to maximize insurance claim payouts by limiting the fees that public adjusters can charge.
Below is a summary of the ten bills and our position.
The California Safe Homes Act (AB 888, Assembly Member Lisa Calderon) – Aims to create safer homes and communities by providing state-tax-free funds to help residents purchase fire-rated roofs and develop non-ignition zones around their properties, along with other crucial mitigation measures. The act would establish a grant program at the Department of Insurance, utilizing the growth in gross premium tax (state General Fund) revenue to fund the program. CDI indicates this approach is like current programs in other states that address windstorm threats.
Position: Support
Click Here to View the Industry Support Letter.
The Business Insurance Protection Act (SB 547, Senators Sasha Renée Pérez and Susan Rubio) – Would broaden the existing one-year insurance nonrenewal moratorium established by The Wildfire Safety and Recovery Act of 2018 (SB 824, Lara) to include commercial policies, covering businesses, homeowners’ associations (HOAs), condominiums, affordable housing units, and non-profits.
Position: Neutral
The Insurance Payment Protection Act (AB 597, Assembly Member John Harabedian) - Would establish a 15% cap on fees for adjuster-contracted work and prohibits any additional awards outside the contract. Currently, there is no limit on the fees that public adjusters can charge, which may include claims funds received before a consumer-adjuster contract is finalized—ultimately reducing the funds available for consumers to rebuild their homes and lives.
Position: Support
Click Here to view the PIFC support Letter.
Eliminate “The List” Act (SB 495, Senator Ben Allen) – Requires insurance companies to pay wildfire survivors 100 percent of their contents coverage without a detailed inventory list. It also grants consumers additional time—at least 180 days—to provide proof of loss following a declared state of emergency. The bill also establishes specific data collection authority to assist the Department in understanding long-term trends in risk management tools, technical data, and the integration of information related to climate-intensified risks that can affect insurance availability.
Position: Oppose
Click Here to View the Industry Oppose Letter.
The California Community Fire Hardening Commission Act (SB 616, Senators Susan Rubio, Dave Cortese, and Henry Stern) – Proposes the creation of an independent statewide commission within the Department of Insurance. This commission is designed to develop new wildfire community hardening standards to reduce fire risk and improve access to fire insurance. The bill would require the commission to make recommendations to the Insurance Commissioner, the Office of Emergency Services, and the Department of Forestry and Fire Protection and would require the commission to consult with specified stakeholders, including those from the insurance industry. It also requires CDI, in consultation with the commission, to develop guidelines for state and local agencies to aggregate and make available data related to wildfire risk for purposes of a data sharing platform.
Position: Neutral
The Deceptive Disaster Relief Advertising Act (AB 637, Assembly Member Heath Flora) – Requires that advertisements on social media, traditional broadcast media, and digital streaming platforms clearly display the statement: “This is a solicitation for business. Not affiliated with any government entity or non-profit.”
Position: Neutral-The author pulled this bill from Committee, and it may not be heard again until January 2026.
The California Wildfire Public Model Act (SB 429, Senator Dave Cortese) Establishes a public catastrophic model for wildfires to assist wildfire planning and enhance transparency.
Position: Neutral
The Insurance and Wildfire Safety Act (AB 1, Assembly Member Damon Connolly) - Builds on Commissioner Lara’s Safer from Wildfires regulation. The legislation requires future insurance commissioners to assess the need for updates to the regulation based on new fire science and public input.
Position: Support
Click Here to View the PIFC Support Letter.
The FAIR Plan Stability Act (AB 226, Assembly Members Lisa Calderon and David Alvarez) - Aims to strengthen consumer safeguards by allowing the FAIR Plan to access catastrophic bonds through the California Infrastructure and Economic Development Bank.
Position: Support
Click Here to View the PIFC Support Letter.
The Savings Accounts for Mitigation and Catastrophes Act (AB 232, Assembly Members Lisa Calderon and Mike Gipson) – Creates a tax-exempt savings account for consumers. This account allows them to set aside funds specifically for home hardening and insurance deductibles in the event of a disaster.
Position: Support
