GOOD AFTERNOON.
WELCOME EVERYBODY TO THE SENATE
COMMITTEE ON INSURANCE.
THIS IS OUR FOR INAUGURAL
MEETING LEAST AS A STANDALONE
COMMITTEE THIS YEAR. AND AS IS
THE APPROPRIATE CUSTOM WE WILL
ASK FIRST THE ITEM OF BUSINESS
IS TO ADOPT OUR RULES.
NOT BECAUSE WE DON'T CURRENTLY
HAVE A QUORUM OR NOT A POSITION
TO DO THAT THERE FOR. OPERATING
AS A SUBCOMMITTEE WHICH WOULD
LIKE TO DO AS A COURTESY TO OUR
AUTHORS.
AREN'T WE ARE UNABLE TO THE TO
DO WITH THIS MOMENT SAID LIKE
ASK SENATORS WHO ARE NOT HERE.
BUT ARE IN THE BUILDING CAN
HEAR MY VOICE TO COME ON DOWN SO
WE CAN GET OUR QUORUM WE CAN
ADOPT A RULES.
AND WE CAN MOVE OUR BUSINESS
FORWARD TODAY SO THANK YOU ALL
FOR YOUR PATIENCE AS WE ARE WE
FOR SOME OTHER SENATORS TO COME.
INTO OUR PLACE THANK YOU TO LOCK.
REALLY APPLY.
DOESN'T
ALRIGHT THANK YOU EVERYBODY FOR
YOUR PATIENCE.
WE CONSULTED WITH THE POWERS
ABOVE AND BELOW.
WITH OUR CHIEF CLERK WHO
ADVISES THAT UNDER THE HOUSE
RULES THAT WE CAN PROCEED AS A
SUBCOMMITTEE.
PRIOR TO THE. ESTABLISHMENT OF
A QUORUM THE ADOPTION OF OUR
RULES SO WITH THAT I WANT TO
INVITE UP BY SENATOR. JACKSON.
OFFER HER LEGISLATION SB NINE
SEVENTEEN.
GOOD AFTERNOON MISTER CHAIRMAN
MEMBERS ASSIST YOUR INAUGURAL
BILL HIGH GUESTS FOR SO.
I'M GOING TO HAVE LOTS OF
CITY OF THOUGHTS AND I KNOW THAT
YOUR WIFE IS SITTING RIGHT HERE
SO. SHIELD KEEP YOU ON THE
STRAIGHT NARROW AND.
LOOK FOR TO AN OPPORTUNITY
PERCENT THIS FIRST BILL.
BEFORE YOU.
THIS IS SENATE BILL NINE
SEVENTEEN A BILL THAT CLARIFIES
EXISTING CALIFORNIA INSURANCE
LAW BY STATING THAT AN INSURANCE
POLICY. CHAU COVER LOSS OR
DAMAGE RESULTING FROM A MUD FLOW.
DEBRIS FLOW OR SIMILAR OF AND IF
THAT FLOW WAS INDEED OR WHAT'S
ITSELF CAUSED BY ANOTHER COVERED.
PERIL SUCH AS A FIRE AND I KNOW
THAT THERE ARE PROPOSED
AMENDMENTS BY APPRECIATE WORKING
WITH THE.
COMMITTEE AND.
I JUST HAVE ONE THE SLIGHT
TWEAK THAT I WOULD LIKE TO MAKE
AN OTHERWISE EXCEPT AS AUTHORS
AMENDMENTS.
ON PAGE FOUR UNDER.
PARAGRAPH SIX THE SUGGESTED
AMENDMENT.
I ASKED THAT WE INCLUDE.
ONE OF WHICH IS A LANDSLIDE MUD
SLIDE MUD FLOW DEBRIS FLOW OR
OTHER SIMILAR BIRTH MOVEMENT
COVERAGE SHALL BE PROVIDED IF AN
INSURED PERIL IS THE EFFICIENT
PROXIMATE CAUSE FOR LOS EXCUSE
ME ALL THE LOSS OR DAMAGE. THERE
WAS AN ATTEMPT TO DEFINE TO
CLARIFY WHAT WE'RE TALKING ABOUT
WHEN WE TURN TALK ABOUT.
FIRST MOVEMENT AND SO THAT IS
ACCEPTABLE AND I THINK OF A
GREAT SUGGESTION.
AND THEN IT GOES ON AND
COVERAGE WOULD OTHERWISE
HAVE BEEN PROVIDED FOR THE
INSURED PARA WE'RE ASKING THAT
IT'S A AND COVERAGE WOULD
OTHERWISE BE PROVIDED FOR THE
INSURED PERIL. COVERAGE SHALL BE
PROVIDED UNDER THE SAME TERMS
AND CONDITIONS AS THE INSURED
PERIL AND WITH THAT I WOULD BE
HAPPY TO ACCEPT THOSE AMENDMENTS
AS AUTHORS AMENDMENTS.
WITHOUT.
.
I COME BEFORE YOU.
AS THE STATE SENATOR.
WHO REPRESENTS THE?
COMMUNITY OF MONASHEE DOUGH.
AND ALL OF SANTA BARBARA COUNTY
AND ALL OF WESTERN VENTURA CA
COUNTY. WHICH SUFFERED OF THE
RAVAGES OF THE THOMAS FIRE.
WHICH OCCURRED IN EARLY DECEMBER.
AND BECAME THE LARGEST WILDFIRE
IN THE HISTORY OF THE STATE OF
CALIFORNIA.
DURING THE FORTY DAYS THAT THIS
FIRE BURNED TO IN A WESTWARD
DIRECTION STARTING IN SANTA
PAULA. AND MOVING FORTY MILES TO
THE BACK OF MIND SETO.
THIS FIRE OF BURNT OF OVER A
THOUSAND STRUCTURES.
TWO HUNDRED EIGHTY TWO THOUSAND
ACRES AND RESULTED IN A HORRIFIC.
DEBRIS FLOW WHICH OCCURRED AT
THREE O'CLOCK IN THE MORNING. ON.
MONDAY JANUARY NINTH.
THIS DEBRIS FLOW RIPPED THROUGH
THE COMMUNITY OF MONASHEE DOUGH
AND I HOPE MANY OF YOU. THAT I
HAVE BEEN TO THIS ABSOLUTELY
GORGEOUS BUCOLIC AREA.
IT'S RIGHT DOES TO THE SOUTH OF
SANTA BARBARA BY GOOD ABOUT
SANTA BARBARA EIGHT. KILLED
TWENTY THREE PEOPLE.
AND SIGNIFICANTLY DAMAGED OR
DESTROYED ALMOST TEN PERCENT OF
THEIR COMMUNITIES HOMES.
THE MUD FLOW RESULTED WHEN
SIGNIFICANT RANGE AT ONE POINT
REACHING THE RATE OF HALF AN
INCH.
IN FIVE MINUTES.
A LEFT.
ILL FIT FELL UPON A BURN SCAR
LEFT BY THE THOMAS FIRE.
AND.
BASICALLY LEFT THE TERRAIN
BEHIND MONO SETO WITHOUT
VEGETATION AND SEARED THE BARON
PURSE WITH SUCH HEAT.
THAT AN IMPERVIOUS CROSSED
FORMED ON THE SURFACE.
WHEN THE RAINS CAME THIS WATER
REPELLENT LAYER IMPEDED THE
ABILITY OF THE SOIL TO ABSORB
ANY SIGNIFICANT MOISTURE.
RESULTING IN A DEBRIS FLOW OF
WATER BOULDERS TREES AND
HUNDREDS OF THOUSANDS OF CUBIC
YARDS OF SOIL. AND HILL SIDE THE
CAME DOWN FROM THE MOUNTAINS
JUST ABOVE.
ONCE SHE DOES.
IT MOVED.
.
TOWARD THE SEA AND ENDED UP IN
THE C. ULTIMATELY.
EDDIE SPEED OF UP TO TWENTY
MILES AN HOUR.
TAKING OUT EVERYTHING IN ITS
WAKE.
IN THE AFTERMATH OF THIS
DISASTER MANY RESIDENTS ARE NOW
FACED WITH THE PROSPECT.
OF REBUILDING AND TRYING TO
RECOVER THEIR LOSSES.
THE PUBLIC DEBATE HAS EMERGED
ABOUT WHETHER HOMEOWNERS
INSURANCE POLICIES WILL COVER
MUCH FLOW BECAUSE DAMAGED.
OR WHETHER COVERAGE FOR THIS
PAYROLL REQUIRES SPECIALIZED
FLOOD INSURANCE.
MUCH OF THE DEBATE CENTERS ON
WHETHER FIRE CAUSED MUD FLOWS
ARE CONSIDERED TO RESULT FROM A
COVERED PERIL SUCH AS FIRE.
UNDER HOMEOWNERS POLICY OR
WHETHER DAMAGE FROM MUD FLOWS
FALLS WITHIN A POLICIES
EXCLUSION FOR EARTH MOVEMENT AND
WATER DAMAGE.
WITHIN DAYS OF THE EVENT TWO
OPPOSING OFFENSE OF WRITTEN BY
TWO OPPOSING SIDES APPEARED IN
THE LOS ANGELES TIME DRAWING
OPPOSITE CONCLUSIONS AS TO
WHETHER HOMEOWNERS POLICY. WOULD
COVER DAMAGE FROM THESE MUD
FLOWS.
LATER THAT MONTH THE DEPARTMENT
OF INSURANCE SOUGHT TO CLARIFY
THE ISSUE OF COVERAGE THROUGH A
NOTICE ISSUED TO PROPERTY AND
CASUALTY INSURERS REMINDING THEM.
OF THEIR RESPONSIBILITY TO
PROVIDE COVERAGE FOR UNCOVERED
PERILS UNDER CALIFORNIA'S
EFFICIENT PROXIMATE CAUSE
DOCTRINE. AND THAT IS THE
DOCTRINE THAT BRINGS US HERE
TODAY.
BUT EVEN WITH THIS CLARIFICATION.
AND WITH THE FACT THAT MANY
COMPANIES.
ARE HONORING THEIR
RESPONSIBILITY UNDER THE
EFFICIENT PROXIMATE CAUSE
DOCTRINE. BY HAVE STILL HEARD
NUMEROUS ACCOUNTS NUMEROUS
ACCOUNTS FROM CONSTITUENTS IN MY
DISTRICT WHO BEEN GIVEN
CONFLICTING OPINIONS. AND AS A
RESULT MAY BE STUCK IN
UNNECESSARY DISPUTES AND
LITIGATION WITH THEIR INSURERS
AND I CAN ASSURE YOU THAT THIS
IS THE LAST THING THESE PEOPLE
WANT TO BE DOING RIGHT NOW IS
HAVING THIS BATTLE. AND I KNOW
THAT UP IN THE NORTHERN
CALIFORNIA FIRES EQUALLY WHEN
THE FIRES CAME TO HAVE THEIR
INSURANCE POLICIES AVAILABLE
COVERAGE AVAILABLE TO THEM SO
THAT THEY. ONLY HAVE TO DO WITH
THE MACHINATIONS OF WHERE
THEY'RE GOING TO LIVE BUYING NEW
CLOTHES TRYING TO RETRIEVE ITEMS
THAT THAT THAT HAVE LOG THEY
HAVE LOST.
AND TO MAKE SURE THAT THEIR
LOVED ONES ARE SAFE PROBLEM IS
IS THE LAST THE LAST CHALLENGE
THEY WANT TO HAVE TO DEAL WITH.
NO OFFICIAL PROXIMATE CAUSE HAS
BEEN IN THE LARA IN CALIFORNIA
SINCE NINETEEN SIXTY THREE. AND
IT HAS REQUIRED A PROPERTY
INSURER TO PROVIDE COVERAGE
WHENEVER AN INSURED PERIL IS THE
EFFICIENT PROXIMATE CAUSE OF LOS.
THE OFFICIAL PROXIMATE CAUSE IS
THAT BECAUSE AMONG OTHER
DIFFERENT CONCURRENT CAUSES TO
WHICH A LOSS IS MOST DIRECTLY
ATTRIBUTABLE EVEN THOUGH OTHER
CAUSES MAY FOLLOW IT. AND
OPERATE PERHAPS MORE IMMEDIATELY
IN PRODUCING THE LOS.
SPIKE THIS LONG STANDING
PRECEDENT
SOME INSURERS CONTINUE TO
DISPUTE WHETHER HOMEOWNERS
POLICIES PROVIDE COVERAGE WHEN
LOSSES OCCUR DUE TO MUD FLOWS
THAT WERE THEMSELVES. CAUSED BY
OTHER COVERED PERILS SUCH AS
WILDFIRE. IN THE CASE OF
MONTECITO RESIDENTS THIS
CONFUSION IN THE MARKETPLACE
LEAVES HOMEOWNERS WONDERING
WHETHER THE LOSS OF THEIR
LARGEST SINGLE ASSET. THEIR HOME
WILL BE COVERED BY INSURANCE AND
FOR SOME OF THESE PEOPLE.
THEIR HOME IS NOT ONLY THEIR
ONLY ASSET BUT THESE ARE PEOPLE
WHO ARE ESSENTIALLY LAND RICH
AND CASH POOR.
THEY HAVE NOWHERE ELSE TO GO
WITH THE LOSS OF THEIR FROM.
THIS BILL AIMS TO CODIFY
CALIFORNIA SUFFICIENT PROXIMATE
CAUSE DOCTRINE IN IN ANY
CONFUSIONONCE AND FOR ALL. AS
AMENDED THE BILL STATES THAT IF
A LOSS OR DAMAGE RESULTS FROM A
COMBINATION OF PERILS. ONE OF
WHICH IS A LANDSLIDE COVERAGE
SHALL BE PROVIDED IF AN INSURED
PERIL IS THE EFFICIENT PROXIMATE
CAUSE OF THE LOSS OR DAMAGE.
THIS FORMULATION OF THE DOCTRINE
FOLLOWS THE RELEVANT PRECEDENTS
IN CALIFORNIA LAW SUCH AS THE
HOWL VERSUS STATE FARM CASE. AS
WELL AS THAT USED BY THE
DEPARTMENT OF INSURANCE IN ITS
JANUARY NOTICE TO THE INDUSTRY.
CRITICALLY THE SOURCES EXPRESS
THE DOCTRINE IN AFFIRMATIVE
LANGUAGE.
AND THAT IS ALSO CRITICAL IT
SAYS COVERAGE SHALL BE PROVIDED
NOT IN DOUBLE NEGATIVES LIKE
COVERAGE SHALL NOT BE DENIED.
AND THE INDUSTRY AS I UNDERSTAND
IT WOULD PREFER THAT DOUBLE
NEGATIVE LANGUAGE BUT THE CASE
LAW AND THE CONSISTENT BY
APPLICATION OF THIS DOCTRINE IS
IN THE AFFIRMATIVE WHICH IS WHY
WE HAVE PUT THIS IN THE
AFFIRMATIVE. THE LAST THING WE
WANT IS MORE CONFUSION THAT'S
THE REASON THAT I HAVE BROUGHT
THIS BILL. AND I APPRECIATE THE
HELPFUL SUGGESTIONS.
THE IT INDUSTRY OFFERED ON
EARLIER VERSIONS OF NINE
SEVENTEEN I BELIEVE WE'RE MUCH
CLOSER TODAY THAN WE WERE
PREVIOUSLY BUT AGAIN. I MUST
INSIST BECAUSE I BELIEVE THAT IT
REDUCES CONFUSION THAT WE NOT
USE A NEGATIVE FORMULATION WE
STAY WITH WHAT HAS BEEN.
CONSISTENTLY IN PLACE SINCE
NINETEEN SIXTY THREE.
THERE'S NO CASE LAW THAT I'M
AWARE OF THAT APPROACHES THE
SUBJECT IN THE NEGATIVE AS IS
SUGGESTED BY THE INSURANCE
INDUSTRY AND AS I SAID.
CHANGINGTHE FORMULA NOW WOULD
LIKELY CREATE MORE CONFUSION.
I HAVE WITH ME TODAY TO TESTIFY
HOTLY HARRIS HE'S A PARNER IN
THE FIRM OF GOLDSTINE GELMAN
MELBA STAT HARRISON EXPERIMENT.
AND IS RECOVERING LAWYER I WISH
SOMEDAY WE WOULD REDUCE THE
NAMESOF LOWER LAW FIRMS NAMES.
AND JUST PICK ONE OR TWO
PARTNERS OR SOMETHING. BUT I'M
GLAD I'M NOT THE POOR A PHONY
ANSWERABLE HAS TO RECITE THAT
EVERY TIME THE PHONE RINGS.
AT ANY RATE HE ISN'T IT EXPERT
IN INSURANCE LAW AND THE CURRENT
PRESENT PRESIDENT CONSUMER
ATTORNEYS TO CALIFORNIA. PLEASE
JOIN BY AMY BARKER THE CO
FOUNDER AND EXECUTIVE DIRECTOR
OF UNITED POLICY HOLDERS AN
ORGANIZATION THAT WAS FOUNDED TO
HELP CONSUMERS NAVIGATE.
UNEXPECTED INSURANCE GAPS IN
DIFFICULTIES IN THE CLAIMS
PROCESS FOLLOWING A DISASTROUS
WILDFIRE IN THIS CASE THAT
DESTROYED A MERE THREE THOUSAND
HOMES IN NORTHERN CALIFORNIA. IN
THE NINETEEN NINETIES THESE TWO
EXPERTS ARE WORK VERY WELL
VERSED IN THE LAW OF A FISSION
PROXIMATE CAUSE. AND I WILL BE
HAPPY TO ANSWER ANY TECHNICAL
PARA JACKSON THANK YOU.
AND.
.
WELCOME TO THE WITNESS I WANTED
ADMONISH THEM AND THOSE THAT ARE
GONNA FOLLOW THEM THAT. ABOUT
WHERE WE'RE GOING TO TRY TO
IMPLEMENT A PRACTICE HERE THAT
TWO WITNESSES ON EACH SIDE TWO
MINUTES I EACH IF YOU CAN TRY TO
BE RESPECTFUL OF THOSE TIME.
LIMITATIONS I KNOW THEY'RE TIGHT
WE DO HAVE A FULL THAT THAT'S A
GOOD RULES SEVEN FIVE I LEARNED
IT FROM US. ANOTHER
DISTINGUISHED SHARE WHO SITS IN
THIS THIS YEAR ACTUALLY. ANOTHER
COMMITTEE HERE. SO WITH THAT OUT
MISTER HARRIS WELCOME AND WE
LOOK FOR YOUR TESTIMONY THANK
YOU. FOR. THE FIRST OF ALL.
IF IF G. THREE MH WORKS BETTER
THAN THE FULL FOR MAY WE COULD
BE HAPPY TO USE THAT.
AND.
AS THE SENATOR SAID.
I'VE BEEN PRACTICING IN THE
AREA OF HOME DESTRUCTION CASES
AN INSURANCE LAW A SINCE OF FOR
OVER THIRTY YEARS.
AND OF THE.
QUESTION OF EFFICIENT PROXIMATE
CAUSE.
IF
TO MAKE IT AS SOMEWHAT SIMPLER
IF YOU THINK OF IT'S A ROW OF
DOMINOES.
.
AND YOU START THE DOMINOES
TOPPLING OVER EFFICIENT
PROXIMATE CAUSE IS THE MOST
IMPORTANT OR THE. THE THE FORCE
THAT SETS THOSE DOMINOES A
TUMBLING AND THE COURTS HAVE
HELD THAT YOU LOOK AT THAT
EFFICIENT PROXIMATE CAUSE THE
ONE THAT SETS THE DOMINOES IN
MOTION. AS THE.
BASIS FOR FINDING COVERAGE YOU
DON'T TAKE ONE OF THE OTHER
DOMINOES IT'S TUMBLING OVER OUT
OF CONTEXT AND.
USE THAT TO DENY COVERAGE.
THE OTHER CASES.
THAT ARE IN THAT EGGS ARE
AVAILABLE FOR THAT.
THAT THE.
THE CALIFORNIA SUPREME COURT.
WRESTLED WITH THIS ISSUE AND
AND THOUGHT THROUGH VERY
CAREFULLY IN THE GUARD THE CASE
AND THEN THE COURT OF APPEALS.
IN THE HALL CASE A STATED THAT.
.
THE OF.
A FISH AND PROXIMATE CAUSE WAS
THE BASIS FOR.
DETERMINING WHETHER OR NOT.
THERE IS A COVERAGE YOU
REQUIRES A PROPERTY INSURER TO
PROVIDE COVERAGE WHENEVER AN
INSURED PAYROLL IS THE EFFICIENT
PROXIMATE CAUSE THE LOSS. OF SO
IN TRYING THIS IN STATUTE.
FROM MY EXPERIENCE WILL ASSIST.
ADJUSTERS AND TO HOMEOWNERS IN
KNOWING A VERY CLEARLY WHAT THE
RULES ARE NGUYEN AND.
THERE IS A CATASTROPHIC LOSS
MEDINA COMES FROM EXAMPLE FROM A
MUCH LIGHTER MUD FLOW.
I'M AVAILABLE HERE TO ANSWER
QUESTIONS FOR THE COMMITTEE ON
THE HAPPY TO DO THAT. THANK YOU
VERY MUCH. THIS BOX WELCOME
THANK YOU OFFER THE OPPORTUNITY
TO TO BE OF SERVICE HERE TODAY.
SO I CONCUR IN AND LEASE
COMMENTS THAT
SETTING A CLEAR RULE THROUGH
THIS LAW IS THE WISE THING FOR
THE LEGISLATURE TO DO ESPECIALLY
IN LIGHT OF. THOSE CONFLICTING
EDITORIALS THAT SENATOR
JACKSON'S REFERENCED AND THE
FACT IS AND OUR ORGANIZATION AS
SOON AS THE. THE TRAGIC EVENTS
UNFOLDED WE ERE WORRYING I'M
AND WE WERE VERY RELIEVED
WHEN A WHEN A NEWSPAPER REPORTED
A STATE FARM OF REPRESENTATIVE
SAYING WE'RE GOING TO BE PAYING
WE'RE GONNA BE COVERING. AND
BECAUSE WE ARE IN A WE CERTAINLY
ARE VERY PROUD OF THE CALIFORNIA
CONSUMER PROTECTIONS THAT ARE ON
THE BOOKS. I'M AYE YOU GO ALL
OVER THE COUNTRY WORKING IN
DISASTER AREAS WHERE THEY DON'T
HAVE.
EFFICIENT PROXIMATE CAUSE
DOCTRINE AND WHERE INSURANCE
COMPANIES HAVE REALLY ARE TAKING
ADVANTAGE OF THAT TO PUT A LOT
OF COMPLICATED EXCLUSIONS IN THE
TRIP PEOPLE UP. AND AND I THINK
YOU KNOW WHAT I'M WE ALL SHOULD
BE PROUD OF THE CALIFORNIA
JURISPRUDENCE AND THE
PROTECTIONS THAT WE MAINTAIN.
AND KNOW THAT THAT IS WHY WE
RECOVER PRETTY WELL FROM
DISASTERS IN THE STATE AND WE
HAVE A LOT OF EXPERIENCE WITH IT.
AND SO I WOULD REALLY URGE THE
AYE VOTE ON THIS BECAUSE I THINK.
IT WILL CLARIFY AND OUR POLICY
HERE IN THE STATE OF CALIFORNIA
AND BE HELPFUL IN THE YEARS TO
COME. GREAT THANK YOU VERY MUCH
SO OUR PRACTICE NOW FOR THOSE
WHO ARE NEW IS FOR THOSE WHO
AGREE WITH THE SUPPORT ASIDE DID
YOU COME TO THE MICROPHONE INTO
THAT MEET TWO IF YOU COULD
IDENTIFY YOURSELF AND ANY
AFFILIATION YOU MIGHT HAVE.
MIKE MATIC CONSUMER WATCHDOG OF
ME TO.
THANK YOU MIKE WELL DONE GREAT
EXAMPLE IS SET.
THREE ZERO COUNTY REPRESENTS
CALIFORNIANS SUPPORT.
OKAY ANY OTHERS IN SUPPORT HERE
IN THE ROOM.
OKAY VERY GOOD AND THAT WE'D
LIKE TO NOW INVITE THOSE WHO ARE
IN OPPOSITION.
HOPEFULLY THEY'VE SELECTED TO TO
US SPEAK TO US FOR A COUPLE
MINUTES AND. THEN WE CAN HAVE
THE METES.
MORTGAGE.
WELCOME AND PLEASE IDENTIFY
YOURSELF FOR THE RECORD.
GOOD AFTERNOON CHAIRMAN BRUCE
CATHERINE PENNIES ON A BEHALF OF
THE AMERICAN INSURANCE
ASSOCIATION.
UP PLEASED TO BE HERE TO
DISCUSS SB NINE ONE SEVEN. AND.
I'D LIKE TO SAY THAT I THINK
AND MANY WAYS WE COMPLETELY
AGREE ON THE ON THERE A DOCTRINE
OF EFFICIENT PROXIMATE CAUSE.
FROM WHAT I HAVE HEARD AND
UNDERSTAND ARE THE INDUSTRY HAS
BEEN DOING A REALLY GOOD JOB IN
THE AREA OF COVERING THESE SPOTS
SITES I DON'T THINK KILEY STAR
MEMBERS.
THEATRE TWENTY FIVE COMPANIES A
NATIONAL INTERNATIONAL CARRIERS.
WE BELIEVE IT AS WITH THE
SENATOR AND THE AND THE FOLKS
DOWN THERE THAT THIS
THESE WEBSITES WERE DOUBLING
CAUSED BY THE FIRES.
I WILL SAY THIS THIS PARTICULAR
ISSUE AND WE ALSO AGREE WITH THE
COMMISSIONERS.
BULLETIN NOTICE ON THAT ISSUE
WHEN IT CAME OUT TOO SO.
I THINK WHEN WE GO TO CODIFY
CASE ON THERE THERE IS ROBUST
CASE ON IT WE JUST HAVE TO BE
REALLY CAREFUL WITH THE WORDS.
I OFTEN DON'T HEAR FROM ALL MY
MEMBERS THIS PARTICULAR BILL
GENERATED INCREDIBLE AMOUNT OF.
CONVERSATION AND CONCERN TO
MAKE SURE WE GET IT RIGHT AND SO
I THINK THAT WHERE. WE ARE VERY
CLOSE TO BEING THERE AND.
I THINK CODIFYING THE CASE SIZE
IS IMPORTANT IF THEY'RE SUCH A
CONCERN WE ARE A LITTLE BIT
CONCERNED ABOUT THE NOTION OF.
IF THE CASELOADS CLEAR WHEN THE
COURTS THAN SAY ALL WHAT DID THE
LEGISLATURE MEAN TO DO WITH THIS
THAT THEY MEAN THE CODIFIED OR
WERE THEY ACTUALLY TRYING TO
CHANGE AND SO WE'VE SEEN COURTS
DO THAT AND SO THAT KIND OF IS
ALSO IN THE BACKGROUND. OF AND
ALSO ONE OF THE REASONS THAT WE
REALLY REALLY WANT TO GET THIS
LANGUAGE RIGHT.
AS YOU HEARD OF THE ALL RISK
POLICIES HERE IN CALIFORNIA IN
THE UNDER THE OFFICIAL PROXIMATE
CAUSE WHEN IN THE NUMBER OF
PAYROLLS THE PREDOMINANT BECAUSE
IF IT'S A COVERED PERIL THEN
THERE WILL BE COVERAGE. THERE
ARE OTHER PROVISIONS HOWEVER IN
RINGGIT REGARDS TO COVERAGE.
SUCH AS FRAUD AND CONCEALMENT OR
PROP NOT NOTICE REQUIREMENTS
THAT MIGHT MAKE A COVERAGE. NO
LONGER APPLICABLES AND SO WE
WANT TO MAKE SURE THAT WE
PROTECT THOSE AND I KNOW THAT
YOUR ARM.
YOUR STAFF HAS DONE YEOMAN'S
WORK ON TRYING TO TO HANDLE THIS
BECAUSE AGAIN THESE WORDS MATTER.
DRAMATICALLY THESE THESE THES
ARE THINGS THAT COVER OUR DUTIES
TO OUR INSUREDS A HELP US.
I UNDERSTAND THE RISKS THAT WERE
UNDERWRITING FURNAD THE FUTURE
INTO CATASTROPHES AND SO WE JUST
WANT TO BE CAREFUL AND.
AND APPRECIATE ALL THE WORK
SPENT. HIS FELLOW ABOUT THANK
YOU FOR YOUR TESTIMONY I CAN
STONE STONE ADVOCACY ALLSTATE
INSURANCE ON AND A MEMBER OF
THAT PERSONAL INSURANCE
FEDERATION. OF CALIFORNIA I'M IN
RESPECTFUL OPPOSITION ALSO WANT
TO THANK THE CHAIR A COMMITTEE
STAFF THE AUTHOR OR AUTHORS
STAFF AND WE HAVE HAD. MANY I
THINK FRUITFUL AND PRODUCTIVE
CONVERSATIONS ON ON THIS AND
WE'RE VERY GRATEFUL FOR THAT WE
DO YOU HAVE MEMBERS OF OUR
COALITION WHO FEEL STRONGLY THAT
IT'S ON THE INTERESTS AND
PERHAPS.
OR UNNECESSARY TO CODIFY
EXISTING LAW AND CASE LAW IS AN
EVOLVING COM BEAST AND CONTINUES
TO NAM CHANGE AND SO IF YOU'RE
GOING TO STOP IT IN TIME AND PUT
IN STATURE YOU LIKE AND
CATHERINE. SAID YOU NEED TO BE
SURE.
YOU GET IT RIGHT WE DON'T
DISAGREE AT ALL WITH THE
STATEMENTS OF WHITE. ON EXISTING
LAW IS BUT. YOU CAN GET A LOT OF
LAWYERS WHO AGREE BUT STILL
DISAGREE ON.
THE FORMULATION.
THE LANGUAGE THAT WE PRESENTED
WHICH SAYS WHEN THE LOSS OR
DAMAGE RESULTS FROM A
COMBINATION OF PAYROLLS ONE OF
WHICH IS LANDSLIDE AND THE
OFFICIAL PROXIMATE CAUSE OF THE
LOSS OR DAMAGE IS A COVERED
PERIL. COVERAGE MAY NOT BE
DENIED ON THE GROUND THAT THE
LANDSLIDE IS NOT A COVERED RISK.
THAT TOOK.
LIKE THREE WEEKS IN EMAILS AND
THIRTY PLUS INSURANCE COMPANY
LAWYERS EMAILING BACK AND FORTH
AND PEOPLE COMING IN THE LAST
MINUTE AND IT THERE WAS A LOT OF
WORK. THAT WENT INTO GETTING A
BUNCH IT'S PROBABLY NOT UNLIKE
LEGISLATORS. GETTING A BUNCH OF
LAWYERS EVEN ON THE SAME SITE TO.
AGREED TO THAT AND WHILE WE
ABSOLUTELY ARE GRATEFUL AND
RESPECT THE COMMITTEE'S PROPOSED
LANGUAGE OUR EXPERTS AND. TO NOT
FEEL THAT THAT IS THE SAME AS
THE LANGUAGE THAT WE PROVIDED
THEM THE QUESTION OF WHETHER%
IT'S IN THE AFFIRMATIVE OR IN
THE NEGATIVE. MATTERS BECAUSE
SAYING THAT YOU MUST PROVIDE
COVERAGE OR THE COVERAGE IS
THERE IS DIFFERENT THAN SAYING
YOU SHALL NOT EXCLUDE FOR THIS
REASON AND THERE'S A LITTLE BIT
OF LANGUAGE IN SOME OF THAT
FURTHER SUBSTANTIAL LANGUAGE IN
THE CASE LAW. IT IS ALSO WRITTEN
IN THAT SHALL NOT EXCLUDE
LANGUAGE FOR EXAMPLE IN JULIAN
VERSUS HARTFORD UNDERWRITERS.
THEY SAY TRY ME READ THIS CASE
CALLS ON US TO DECIDE WHETHER AN
INSURER MAY.
CONSISTENT WITH SECTION FIVE
THIRTY AND THE EFFICIENT
PROXIMATE CAUSE DOCTRINE DENY
COVERAGE FOR LOSS RESULTING FROM
A RAIN INDUCED LANDSLIDES.
THERE'S SUBSEQUENT.
LANGUAGE REFERRING TO ANOTHER
CASE.
THE WEATHER CONDITIONS CAUSE
DID NOT VIOLATE SECTION FIVE
THIRTY OR THE EFFICIENT
PROXIMATE CAUSE DOCTRINE.
BECAUSE THE BECAUSE PLAINLY
EXCLUDED WEATHER CONDITIONS
THERE'S ANOTHER CASE.
I STATED SIMPLY THE IMPORTANT
QUESTION PRESENTED BY THIS CASE
IS WHETHER A PROPERTY INSURER
MAY CONTRACTUALLY EXCLUDE
COVERAGE WHEN A COVERED PERIL IS
THE EFFICIENT PROXIMATE CAUSE OF
THE LOS.
AND SO MUCH OF THE CASE LAW HAD
MUCH OF THE ANALYSIS IS DONE.
BY TELLING INSURANCE COMPANIES
YOU MAY NOT EXCLUDE FOR THIS AND
WE DON'T DISAGREE THAT WE MAY
NOT EXCLUDE. COM.
THURMOND SLIDE DOOR LANDSLIDE
DAMAGED IF THAT WAS OFFICIALLY
PROXIMALLY CAUSED BY PRECEDING
FIRE.
BUT UNFORTUNATELY BOMB WE ARE
NOT COMFORTABLE WITH THE
PROPOSED LANGUAGE AND I'M URGING
TO ACCEPT LANGUAGE THAT WE
SUGGESTED BUT THANK YOU VERY
MUCH FOR YOUR TIME AND ATTENTION
TO STONE THANK YOU VERY MUCH.
SO OF THEIR OTHER WITNESSES IN
OPPOSITION OF THEY COULD SHARE
THEIR. NAME AND AFFILIATION I
KEEP MANUALLY ON BEHALF OF THE
PROPERTY CASUALTY INSURERS OF
AMERICA OPPOSING US MAD.
RIGHT ANY OTHER FOLKS SEE IF YOU
COME OUT.
CHARACTERIZED PERSONAL INSURANCE
FEDERATION OF CALIFORNIA OPPOSED
LOS AMENDED.
IF YOU.
JOHN DIRTY WITH THE CIVIL
JUSTICE SITUATION OF CALIFORNIA
OPPOSE UNLESS AMENDED. THANK YOU
NOBODY ELSE I WISH TO PUT THEIR
NAME ON THE RECORD IN OPPOSITION.
ALRIGHT SEEN NINE WILL BRING IT
BACK FOR OF MEMBERS
WE DON'T HAVE A QUORUM YET SO.
MISS AND ONE SENATOR OUT THERE
PLEASE I JOIN US HERE IN THIS
WONDERFUL HEARING ROOM SO WE CAN
ESTABLISH A QUORUM.
BY ANY OTHER THOGHTS OR
COMMENTS FROM MY COLLEAGUES ON
THE PANEL.
I SEE SENATOR GALGIANI AND
SENATOR FOR LIFE.
AND.
THIS TIME I'M HOPING TO HAVE A
LITTLE BIT MORE CONVERSATION
ABOUT ABOUT THE LANGUAGE.
AND I'M SURE MAY NOT DENY
COVERAGE IF.
AS OPPOSED TO.
COVERAGE SHALL BE PROVIDED IF
AND AND I HEARD THE AUTHOR SAY
EARLIER THAT.
.
THE E. ONE AFFIRMATIVE LANGUAGE
SO THAT IT'S EASIER TO
UNDERSTAND.
AND IF THE OPPOSITION COULD COME
BACK UP I THINK. WHAT I
UNDERSTAND IS THAT?
THE INDUSTRY WANTS LANGUAGE THAT
IS FAMILIAR.
BECAUSE OF CASE LAW AND THE
OPPOSITE PAGE OKAY CAN YOU
EXPLAIN THAT TO ME OR WHAT WE
HAVE OUR EXPERT HERE SO FOUND
THE CASE LAW IS POSITIVE. AND
SEE FUHRMAN OF LANGUAGE IN IT.
IN THAT'S WHAT THIS BILL IS
PHRASE JUST LIKE THE CASE LAW IN
HALL.
AND.
I THINK THERE WAS THERE ARE
SOME CONCERNS THAT WERE
EXPRESSED TO YOU BY THE OF FOLKS
FROM THE INSURANCE. GROUPS.
IT AND I BELIEVE FROM MY
READING OF A CASE OF THAT WOULD
IF YOU PHRASED IT THAT WAY YOU
WOULD ACTUALLY BE CHANGING THE
CASE LAW WHICH I DON'T THINK
WOULD BE THE INTENT.
THAT YOU WERE TRYING TO GET TO.
AND I KNOW THAT THERE WAS A LOT
OF BACK AND FORTH OVER THE DISK
DISCUSSIONS OVER THERE IN THE
LANGUAGE THAT WAS. OF
POTENTIALLY AGREED TO IS THE
PART IS THAT IS PHRASED IN THE
WAY THE CAS LAW IS. THE ONLY
CHIP ONE CHANGE THAT THE SENATOR
WAS REQUESTING WAS TO CONTINUE
THAT POSITIVE.
CASE LAW WHERE IT.
WOULDN'T WOULD SIT WOULD
OTHERWISE BE I BELIEVE.
YOU KNOW AND.
AT THE END OF THE LAST SENTENCE.
BUT WAS CHANGED TO. HAVE HER
COULD BE CHANGE IS A POSITIVE.
PHRASING OF THAT.
I THINK THE REAL CONCERN IS THAT
THERE THAT BY PUTTING IT IN THE
NEGATIVE THAT SORT OF OPENS UP
RESPONSIBILITY OF OTHER
EXCLUSIONS THAT COULD BE
INSERTED. AND THAT THAT'S KIND
OF THE OPPOSITE OF WHAT WE'RE
TRYING TO DO THE ARM THE CASES
THAT WERE CITED BY.
THE IN IN OPPOSITION.
WERE FACTUAL ISSUES ABOUT
WHETHER OR NOT THESE WERE
COVERED LOSSES THAT WERE BEING
COMPARED TO.
NON COVERED LOSSES. ARE IN THE
COURTS FOUND THAT THEY WERE NOT
COVERED LOSSES IN THAT WERE
BEING COMPARED TO OTHER NON
COVERED LOSSES.
RAIN FOR EXAMPLE IN SOME
POLICIES IS EXCLUDED.
AND SO THE COURTS FOUND THAT
YOU CAN'T FIND COVERAGE IF YOU
HAVE TO NON COVERED LOSSES.
IT'S VERY SIMPLE ABOUT. WHAT
WE'RE TALKING ABOUT HERE IS A
SITUATION WHERE YOU HAVE A WILD
FIRE WHICH IS COVERED?
FOR EXAMPLE.
AND YOU HAVE A.
EXCLUSION IN THE POLICY AND
WHEN THE CAUSE OF THE LOSS A
PREDOMINANT BECAUSE THE THING IS
IF THE DOMINOES IN MOTION IS THE
WILD FAR WHICH IS COVERED. YOU
CAN'T EXCLUDE IT AND ALL YOU'RE
DOING HERE I BELIEVE IS
INCORPORATING WHAT EXISTS IN THE
CASE LAW SO THAT WHEN SOMEONE
COMES IN AND LOOKS AT IT THEY
SAY OKAY. THIS IS CALIFORNIA'S
LAW THEY AND WE WE UNDERSTAND
WHAT WE'RE DOING HERE.
IT MAY NOT.
PLEASE BECAUSE I'M I'M VISITORS
WHERE ADVICE IF I MAY ANSWER THE
QUESTION SO.
WE DON'T REALLY DISAGREE ON THE
STATEMENT OF LAW REGARDING
EFFICIENT PROXIMATE CAUSE BUT
THE QUESTION OF WHETHER IT IS
PHRASED IN THE AFFIRMATIVE HER
THEY. THAT NEGATIVE IS CRUCIAL
AND IN READING DIRECTLY FROM
HOWELL VERSUS STATE FARM FIRING
CASUALTY THE CASE SAYS THE
QUESTION TO DECIDE IS WHETHER AN
INSURER PROVIDING COVERAGE UNDER
AND ALL RISK.
PROPERTY INSURANCE POLICY MAY
CONTRACTUALLY EXCLUDE COVERAGE
WHEN AN INSURED PARA IS THE
EFFICIENT PROXIMATE CAUSE OF A
LOST AND AND THEY SAY YOU CAN'T
IN THIS PARTICULAR CASE BASED ON
ON THE FACTS AND THERE'S THERE'S
CASES THAT GO. YOU KNOW BOTH WAY
THROUGHOUT THE HISTORY BUT THE
FEAR IS THAT THE LANGUAGE
PROVIDED IN THE STATUTE BY
SAYING. MUSK URGED A COVERAGE
SHALL BE PROVIDED WILL SUPERSEDE
LANGUAGE IN THAT INSURANCE
CONTRACT
THAT.
WOULD THAT MAY NOT EXIST SO IF
IT WAS NON PAYMENT OF PREMIUMS
OR IF THERE WAS FRAUD OR IF
THERE WAS SOMETHING ELSE GOING
ON. THEN YOU WOULDN'T FOR.
BOB AUTOMATICALLY HAVE COVERAGE
BECAUSE THEY DIDN'T PAY THEIR
PREMIUMS HE WOULDN'T HAVE
COVERAGE JUST BECAUSE THERE HAD
BEEN A MONTH'S Y. AFTER A FIRE.
IF THE COVERAGE EXISTS FOR THE
FIRE AND THEN THE COVERAGE
EXISTS FOR THE MUD SLIDE WE
DON'T DISAGREE WITHOUT AND I'M
SURE IT'S REALLY FRUSTRATING FOR
YOU ALL TO HEAR THAT WE AGREE
THAT WERE SELF FIGHTING ABOUT
THE LANGUAGE AND SO I WANNA
APOLOGIZE FOR THAT. BUT. COME
THERE IS A DIFFERENCE BETWEEN
SAYING SHALL NOT EXCLUDE FOR
THIS AND SHALL COVER NO MATTER
WHAT AND THAT'S WHY WE'RE AT THE
POINT WHERE WE MUST MAINTAIN OUR
POSITION. THE PROBLEM IS THAT
THE.
THAT THE LANGUAGE PROPOSED BY
THE COMMITTEE.
THAT COVERS ACT SO THAT'S WHY
WE'VE ACCEPTED IT BECAUSE WITH
THAT'S WE WANT CLARITY HERE WE
DON'T WANT CONFUSION WE'VE
ACCEPTED THE LANGUAGE IT SAYS.
THAT ABOUT COVERAGE WOULD
OTHERWISE HAVE BEEN PROVIDED
SO IF SOMEONE THE FRAUDS ARE
DOESN'T PAY A PREMIUM COVERAGE
ISN'T PROVIDED YOU DON'T QUALIFY.
SO THAT'S WHY WE PUT THE
LANGUAGE IN THERE AND ACCEPTED
THE PROPOSAL BY THE. THE
COMMITTEE.
SENATE ALL JOHN ANYTHING FURTHER
ON THAT.
I AM I HEARING TWO DIFFERENT
THINGS OF MY HEARING THAT BUT
THAT THE ON THE AUTHOR
UNDERSTANDS THAT. THAT THE
CONCERN OVER FRIED IS TAKING
CARE OF WITH THE EXISTING IRA.
IT IS TAKING CARE OF IF IT
EXCUSE ME IF IT SAY. IT IT
THOUGH THE LANGUAGE SAYS.
COVERAGE SHALL BE PROVIDED IF
AN INSURED PERILS APPROXIMATE
BECAUSE.
AND COVERAGE WOULD OTHERWISE BE
PROVIDED.
IT OTHERWISE BE PROVIDED IT'S
NOT GOING TO BE PROVIDED IF YOU
HAVE AN PAGE A PREMIUM IT'S NOT
GONNA BE PROVIDED IF YOU
DEFRAUDED THE COMPANY.
SO THAT'S THE THAT'S THE REASON
WE TOOK THAT LANGUAGES SUGGESTED
BY THE COMMITTEE.
ALRIGHT SO IT IF I MAY BE WRONG
PLACE.
CENTER GOT JENNY ARE YOU GET WE
CAN COME BACK TO HAUNT CENTER
MORLOCK NEXT YOU WANT TO.
CONTINUE WHERE YOU AND I WOULD
LIKE TO HEAR THE OTHER SIDE
BECAUSE I'M NOT BY AYE.
SO WHAT I UNDERSTAND THAT THAT
COMMITTEE STAFF IN THE SENATOR
DISAGREED BUT WE SHARED THE
PROPOSED LANGUAGE WITH A NUMBER
OF INSURANCE COVERAGE LAWYERS
WHO WANT TO REACH AGREEMENT ON
THE SPELL LIKE WE WANT TO COME.
AND THEIR REASONS AND EXPERIENCE
OPINION WAS THAT THAT LANGUAGES
ARE NOT THE SAME AND THAT BY
PLACING IT IN THE AFFIRMATIVE
YOU MAY PUT A BURDEN ON US THAT
WOULD NOT OTHERWISE.
EXIST AND THAT THERE ARE
LEGITIMATE REASONS ON ON CERTAIN
OCCASIONS THAT THAT MAY COME UP
THAT THAT ARE DIFFERENT AND SO
WE FOUND WE ARE AT A POINT OF
DISAGREEMENT ABOUT UNDERSTANDING.
AYE ABOUT IF THOSE TWO SETS OF
SENTENCES TO MEAN THE SAME THING
OR NOT SO WHAT IF IT WAS THE
LANGUAGE THAT THE AUTHORS ASKING
FOR BUT THEN SOME CLARIFICATION
THAT.
EXCLUDING FRAUD OR SLOW WE'VE
HAD IT WILL IT'S NOT JUST FRAUD
THAT THAT IT IN THAT MIGHT BE
AFFECTED UNDER THE CONTRACT.
WHAT THAT ROOM LANGUAGE THAT WE
PROVIDED SAID THE COVERAGE MAY
NOT BE DENIED ON THE GROUND THAT
LANDSLIDE IS NOT A COVERED RISK
WHEN THERE'S AN? EIGHT AND AND
WE FEEL THAT DOT FORMULATION IS
AN ACCURATE AND TRUE
REPRESENTATION OF CASE LAW WE
ARE FULLY WILLING AND ABLE TO
COME FULFILL OUR OBLIGATIONS
UNDER THE LAW. BUT WE DON'T WANT
AS A BILL WHOSE DECLARED PURPOSE
IS TO BE DECLARATORY OF EXISTING
LAW TO TO CHANGE THE LAW AND PUT
IT TO SOME OBLIGATIONS WHERE
THERE WERE NONE BEFORE.
BECAUSE. AND THAT'S THAT'S
PROBLEMATIC.
WILL IT DOESN'T CHANGE LLOYD
RESPECTFULLY DISAGREE AND AGAIN
I THINK.
.
THE LANGUAGE IS CLEAR AND
CONTRARY TO WHAT'S BEEN A
PROPOSED OR SUGGESTED HERE.
THE.
ENTRANCE CODE SECTION FIVE
THIRTY WHICH IS REFERENCED IN
THIS TEXT ON ANALYSIS SAYS AN
INSURER IS LIABLE FOR A LOSS OF
WHICH A PERIL INSURED AGAINST
WAS THE PROXIMATE CAUSE. A PERIL
INSURED AGAINST IF YOU DON'T
HAVE THE INSURANCE YOU DON'T
HAVE COVERAGE.
BUT THE BUT THE LANGUAGE OF THE
CASE LAW THE LANGUAGE OF THE
CODE SECTION IS IN THE
AFFIRMATIVE.
AND SO WE ARE MAINTAINING THAT
CONSISTENCY WITH WHAT ALREADY IS
IN THE LAW AND IN THE CASE LAW.
THANK YOU THAT I COULD ENTER GOT
JOHN ANYTHING FURTHER.
CENTER MORLOCK THANK YOU MISTER
CHAIR OF THE CENTER JACKSON.
I LOVE MINE ACETO.
.
PHIL Y. WITH IT WHEN I VISITED
THE WEST FUND.
CAMPUS FOR MORE THAN FORTY YEARS
AGO AND WE LOVE STAYING AT THE
BILTMORE OR VISITING IT EVEN FOR
BATHROOM BREAKS A FOR DRIVING.
OF SAID ON MORE LOCKED SO THERE
WELL BEFORE YOU ASK YOUR
QUESTION I THINK WE HAVE A
QUORUM SIDE LARRY ESTABLISH THAT
AND TAKE CARE OF OUR RULES IF I
MAY.
SO I THANK YOU FOR THAT QUICK
FLIES IN IF I COULD ASK THE.
THE COMMITTEE SECRETARY TO TAKE
THE ROLE GLAZER HERE. CAMPAIGNS
HERE THINGS HERE BERRYHILL.
GILLIAN TING.
LAUNCHING GALGIANI LEONTES
GIVING.
HERNANDEZ HUESO LARA MITCHELL
MORLOCK WASN'T.
THE RAIL NEWMAN.
PORTANTINO.
ROTH HERE OKAY SO WE HAVE A
QUORUM PRESIDENT LIKE TO ASK OUR
PEOPLE RECEIVE COPIES OF OUR
COMMITTEE RULES.
SOCIAL LIBERALS UNMOVED BY THE
VICE CHAIR TO LIVE PROVE THE
RULES ANY. FURTHER DISCUSSION.
I'D SING OUT OF TUNE CALL THE
ROLL ON THE RULES LATEST HERE
YES. GAME.
BERRYHILL.
GIL COUNTING.
FINANCES GRENADES. HUESO LARA
MITCHELL MORE ALIVE.
MORRELL NEWMAN. PORTANTINO.
BOB.
IF YOU.
OKAY SO IT HAS US SEVEN VOTES
OUT FOR THE RULES.
RICKY THAT ROLE OF AVERAGE JUST
A MOMENT.
AND THAT AND THEN WE'LL CLOSE IT
ON SO WE HAVE A. OPERATING RULES
SO THAT.
WE CAN OPERATE AS A SUB WE'RE
NOT OPERATING AS A SUBCOMMITTEE
SO ROBBERY AS A FULL COMMITTEE.
OKAY CENTER OCT POLICIES FOR
INTERRUPTING YOUR FAVORITE YOUR
QUESTION PREP PREPARATION BICU
I WANTED TO LAY THE GROUNDWORK
THAT I'VE BEEN REALLY PAYING
ATTENTION TO THIS I SOMEHOW I
THINK THERE'S A BUT IN THERE
YEAH. BUT THANK YOU.
SO.
BUT.
I HAVE NOT HEARD OF ANY.
ISSUES WITH THE CURRENT
SITUATION WHERE A PROVIDER OR
CARRIER. REFUSE TO.
PROVIDE. INSURANCE PROCEEDS TO
REPAIR THE DAMAGE IN.
IF THERE IS THAT THE CASE OR DO
WE HAVE SOMEONE THAT'S THAT
WE'VE WE'VE HAD A NUMBER OF
INSURANCE COMPANIES WAFFLING ON
THE US SO I SAW RUMORS AT THIS
POINT ALWAYS HEARING LIVES
JOKING TO DIRECTLY WHO ARE
HAVING TROUBLE WITH THEIR
INSURANCE CARRIERS WHO ARE.
TO SLID HESITATING IT'S NOW BEEN
THREE MONTHS AND OTHER TRUST ARE
AND. YOU HAVE TO REMEMBER THERE
IS MUD.
UP TO FOUR TO FIVE FEET HIGH
THAT IS SITTING IN PEOPLE'S
LIVING ROOMS CREATING MOLD WHICH
IS CAUSING THESE HOME STAFF TO
BE DESTROYED. RATHER THAN
REPAIRED
BECAUSE THERE ARE SOME INSURANCE
COMPANIES THAT TO THIS VERY DAY
ARE STILL CHALLENGING. WHETHER
OR NOT THEY ARE REQUIRED TO
COVER THIS.
AT THE END OF THE DAY I SUSPECT.
THEY ALL WILL BE BUT THE POINT
IS TO AVOID LITIGATION ON THIS
WE WANT TO AVOID A FIGHT. THESE
PEOPLE AS YOU CAN IMAGINE ARE
HAVE SUFFERED THROUGH A
DEVASTATING. SITUATION THEY BEEN
WERE THEY BEEN A.
REQUIRED TO VACATE THEIR HOME
SIX OR SEVEN TIMES FOR LONG
PERIODS OF A WEEK OR MORE
THEY'VE COME BACK TO A HOME THAT
IS. EITHER PARTIALLY OR TOTALLY
DESTROYED THEIR NEIGHBORS HAVE
DIED
I MEAN THERE SHOULD BE NO REASON
THAT WE ARE HAVING THIS BATTLE
WHICH IS WHAT I AM TRYING TO
CODIFY THIS.
SO THAT WE DON'T HAVE ANY
QUESTIONS ABOUT WHAT CASE LAW
SAYS ON THE ONE HAND AND THERE
ARE SOME COMPANIES. THAT HAVE
BEEN TREMENDOUSLY SUPPORTIVE
COME RIGHT IN IMMEDIATELY
STARTED HELPING CLEAR THE MONEY
AWAY IT'S COSTING PEOPLE SIXTY A
HUNDRED THOUSAND DOLLARS JUST TO
CLEAR THE MUD. OFF THEIR
PROPERTY A MEAN IT'S JUST AN
ENORMOUS MASS.
AND THE GOAL HERE IS JUST TO BE
CLEAR ON WHAT THE LAW CALLS FOR
AND WE KNOW THE CASE ARE CALLS
FOR THIS WE KNOW THAT.
A INSURANCE CODE SECTION FIVE
THIRTY BECAUSE FOR THIS I WANT
TO JUST. PUT THIS INTO LAW SO
THAT WE DON'T HAVE THESE BATTLES
THERE ARE STILL COMPANIES THAT
HAVE YET TO SEND OUT ADJUSTERS.
TO LOOK AT THIS MASS AND THE
LONGER IT TAKES THE MORE THE
COST I DON'T KNOW MIGHT EVEN
COST THE INSURANCE COMPANIES
THEIR LAWYERS LINING UP BECAUSE
PEOPLE ARE NOT GETTING. THE KIND
OF PROTECTION THAT THEY HAVE
PAID FOR AND THAT THE LAW
REQUIRES THAT THEY RECEIVE.
EVERY NIGHT I GUESS MISTER
CITY'S PREEMPTIVE AND I I SEE
THAT WE CAN STILL WORK TOGETHER
WITH BOTH SIDES.
THE COME UP WITH. MORE
APPROPRIATE LANGUAGE THAT THANK
YOU MATURE THANK YOU US SENATOR
MORE LIKE WILL FUND ETCETERA
PLEASE.
THANK YOU MISTER JUST TO COME
AND I APOLOGIZE FOR COMING IN
THE LATER THIS PARTY WE HAVE
ANOTHER COMMITTEES ROLLING UP
STAIRS.
HAVING REVIEWED THE SUGGESTED
AMENDMENT LANGUAGE WHICH AS I
UNDERSTAND THAT THE SENATOR HAS
ACCEPTED.
I'M PERSONALLY COMFORTABLE THAT
THE.
ISSUES HAVING TO DO WITH
EXCEPTIONS WHICH I UNDERSTAND TO
BE IMPORTANT TO.INDUSTRY OR THE
TRADES AS THEY CALL THEMSELVES.
AND SOME OF THE OTHER ISSUES
WITH RESPECT TO MAKING SURE THAT
THIS COMPLIES WITH.
EXISTING LAW I HAVE.
APPEAR TO BE SATISFIED AT LEAST
FROM MY REVIEW OF THE STUFF IS
IT'S MOVES THROUGH.
RECENTLY SELF JUST WANTED TO
MAKE THAT COMMENT MISTER THANK
THANK YOU SENATOR AND. SENATOR
GAINES.
ASK A QUESTION OF THE.
OPPOSITION IN TERMS OF.
.
THEATER JACKSON LAID OUT A CASE
WHERE THERE'S UNCERTAINTY ON
CERTAIN CASES
BEING RESOLVED AND CLAIMS PAID.
WITH THE LANGUAGE THAT YOU'RE
SUGGESTING HAVE PAID OUT IN THE
CASES THAT SHE'S DESCRIBING.
YES.
OKAY.
SO WHY CAN'T WE. MARKET WILL USE
THAT LANGUAGE THAT INDUSTRY
LANGUAGE THEN.
BECAUSE WE'RE TRYING TO PLACES
IN THE CONFLICT IN THE
AFFIRMATIVE WHICH IS CONSISTENT
WITH THE CASE LAW. AND
CONSISTENT WITH THE CODE SECTION.
IF WE CHANGE THE LANGUAGE I
SUSPECT WE'RE GOING TO OPEN UP
THE DOORS TO MORE LITIGATION.
THE GOAL HERE BELIEVE IT OR NOT
IS TO HAVE LESS LITIGATION AND
THAT'S WHY WE'RE TRYING TO
MAINTAIN THE SAME FRAMEWORK THAT
WE HAVE BEEN THAT HAS BEEN IN
PLACE.
SINCE THE SIXTIES THROUGH AND
THROUGH SUBSEQUENT CASE LAW.
AND THAT'S WHAT WE'RE LOOKING AT
AND THEN THE COACH SECTION
INSURANCE CODE SECTION FIVE
THIRTY SO IT'S ALL IT'S ACTUALLY
BEEN I THINK VERY WELL
ARTICULATED IN THE. ANALYSIS
THAT'S BEEN DONE WE WANT TO BE
CONSISTENT
INCONSISTENCY LEADS TO
LITIGATION.
WE KNOW THAT AND SO I'M TRYING
TO BE CONSISTENT HERE SO WE CAN
TRUST.
CONTINUE WITH THE LAW AS IT HAS
BEEN INTERPRETED MEAN CODIFY IT
HERE AND MAKE SURE THAT WHEN
CLAIMS ARE BASED IN THERE IS.
THE.
AT THE AND EXPLICIT PROXIMATE
CAUSE OF THE FISSION PROXIMATE
CAUSE THAT THERE. THAT THE.
INSURANCE COMPANIES THAT THEIR
ADJUSTERS WILL COME IN AND WORK
WITH THOSE WHO WORK WITH THE.
THE POLICY HOLDERS AND FIX THE
PROBLEM AS QUICKLY AS POSSIBLE
THAT'S THAT'S A RECENT.
INTERVIEW NAM PORTION OF THE
OPPOSITION.
I'M JUST TRYING TO GET CLARITY
IN TERMS OF.
.
IF WE'RE USING MOVING FOR WITH
YOUR LANGUAGE.
.
WHAT WOULD HAPPEN WITH RATES ON
HOMEOWNERS POLICIES
THEY WERE NOTHING WOULD CHANGE
WEEP WE BELIEVE? WE DON'T
DISAGREE REALLY WITH ANYTHING
THAT SENATORS JACKSON JUST SAID
ABOUT WANTING CERTAINTY AND
AVOIDING LITIGATION AND ALL THAT
OUR FOLKS ARE IN EXACTLY THE
SAME PAGE WE JUST DON'T BELIEVE
THAT THE LANGUAGE PROPOSED WILL
ACTUALLY DO THAT WE BELIEVE THAT
OUR LANGUAGE WILL DO THAT.
.
HELP ME WITH THAT WITH THE
LANGUAGE PROPOSED WHAT DO YOU
THINK THE RESULT WOULD BE.
THAT MOVES FORWARD WITH THAT
LANGUAGE.
HOW ARE POLICY HOLDERS IMPACTED
WELL? IT'S DIFFICULT TO SAY
EXACTLY BUT WHAT THE FEAR IS IS
THAT THAT LANGUAGE WOULD CHANGE
THE STATUS OF EXISTING LAW AND
POTENTIALLY SORT OF MAGICALLY
CREATE COVERAGE IN CERTAIN.
CASES WHERE IT MIGHT NOT
OTHERWISE EXIST
BUT AS A PRACTICAL MATTER.
.
NONE OF THE INSURERS WHO WHO
I'VE SPOKEN TO OR HAVE BEEN
WORKING ON THIS BILL DISAGREE
THAT IN THAT CASE IS.
IN CERTAIN THE SENATORS
DISTRICT THAT THOSE.
MUDSLIDES WERE OFFICIALLY
APPROXIMATELY CAUSED BY THE
FIRES THAT HAPPENED BEFORE AND
SO IT'S NOT A CASE WHERE THE
INSURANCE COMPANIES ARE TRYING
TO.
AVOID COVERAGE IN THIS
PARTICULAR SITUATION WHAT WE'RE
TRYING TO DO IS MAKE SURE WE
DON'T MESS WITH THE LAW AS IT IS
BECAUSE WERE OKAY WITH INSURANCE
SECTION FIVE THIRTY WERE OKAY
WITH THE CASE LAW. BUT IF IF
YOUR BODY IS GOING TO CREATE NEW
STATUTE LIKE. IN LAW SCHOOL LIKE
YOU READ CASES AND THE JUDGES
SAY THE LEGISLATURE WOULD NOT
HAVE CREATE ON THIS IF THEY
DIDN'T MEAN SOMETHING YOU KNOW
AND. AND THERE ARE CONSEQUENCES
TO THAT AND YOU KNOW IT'S LIKE
THAT LITTLE BIT OF THE INSECT
BLOOD IN JURASSIC PARK THAT WAS
IN THE THING DON'T WORRY
NOTHING'S GONNA HAPPEN AND THEN
LOOK WHAT HAPPENED ALL THE
DINOSAURS AND I DON'T MEAN TO BE
YOU KNOW OVERLY DRAMATIC HERE.
THE LAWYERS.
WORDS MATTER TREMENDOUSLY AND
THAT'S WHY WE'RE FIGHTING SO
HARD ABOUT WHAT SEEMS LIKE
SOMETHING.
NOT VERY DIFFERENT ON ON THE
LAWYERS I REALIZE THAT.
BUT OUR FOLKS ARE VERY VERY
CONCERNED.
HOLD ON HOLD ON FOR JUST A FINAL
GIVE A FINAL THOUGHT THAT I WANT
TO CONSUME THOUGHT I.
.
MY CONCERN WOULD BE UNINTENDED
CONSEQUENCES THAT COULD INCREASE
RATES OVER TIME.
AND SO.
IF IF THIS BILL MOVES FORWARD
WITH THE LANGUAGE AS IT EXISTS
WITH THE AMENDMENT SUGGESTED BY
COMMITTEE.
WILL THERE BE A CONSEQUENCE OF
HIGHER RATES.
TEN IS A HOMEOWNER AS RESULT OF
LARGER PAY OUT ON CLAIMS IN THE
FUTURE AND I THINK THAT'S
SOMETHING THAT. OUGHT TO BE
ADDRESSED AND WELL WE DO ADDRESS
IN SENATOR HOLD ON FOODS LAZARD.
DAHLE FINIHED OKAY. THANK YOU
SENATOR GAINES A FEW THINGS I
WANT TO SAY I'M.
BUT FIRST I'D SENATOR JACKSON'S
HEALING YOUR CONSTITUENTS ARE A
HARD A HARD BREAK ABOUT WHAT
HAPPENED TO THEM HOME MY
GOODNESS THE STORIES AND.
AND THAT IS THAT. WHAT A
DISASTER THAT YEAR RESIDENTS
HAVE GONE THROUGH AND IT'S GONNA
TAKE A LONG TIME TO COME OUT OF
THAT AND FOR THOSE WHO LOST
THEIR LIVES?
CERTAINLY FOR THE FAMILY MEMBERS
THE HEARTBREAK OF FOR THE REST
OF THEIR LIVES.
AND I I APPRECIATE YOUR WORK TO
TRY TO CREATE CLARITY I IN THIS
AREA AND I THINK THAT. THE POINT
THAT YOU MADE EARLIER.
HOW ABOUT THE UNDERLYING CODE
BEING WRITTEN IN THE POSITIVE I
THINK FOR ME WAS VERY COMPELLING
POINT?
AND IT'S WHY I I'M I'M
CONVINCED THAT THERE.
AMENDMENT IS JUST TO BY STAFF
WITH YEAR CHANGES. IS AN
APPROPRIATE ONE I APPRECIATE THE
THOUGHTFULNESS FROM INDUSTRY AND
FROM OTHERS.
.
AND I KNOW HOW CAREFUL I WE ALL
LOOK AT.
EACH OF THESE WORDS AND WE KNOW
THEY DO HAVE IMPACTS.
TO THE COMMENT FROM THE THE
VICE CHAIR A MOMENT AGO WE'RE
ALL CONCERNED ABOUT RATES ARE
GOING TO TALK ABOUT THAT IN.
BILLS THAT I THINK HAVE MUCH
MORE SUBSTANTIAL AYE IMPACTS.
TWO THAT ENDEAVOR THAT-POTENTIALITY AND IT'S SOMETHING
I KNOW EVERY MEMBER OF THE
COMMITTEE IS SENSITIVE TO.
SO WITH THAT I APPRECIATE THE
CONVERSATION.
TODAY I'M I'M SUPPORTIVE OF THE
AMENDMENT AS AMENDED IF THERE'S
A MOTION AND HAPPY TO ENTERTAIN
IS THE CHAIR.
SAID THE CENTER PORTANTINO'S THE
BILL AS THE SUGGESTED AMENDMENT
WITH THE ONE CHANGE FROM HAVE
BEEN TO BE.
ALRIGHT.
BUT ANY FURTHER DO LIKE TO ASK
THE. SECRETARY TO CALL THE ROLL.
MAY MAY I CLOSE CENTER OF
SURGERIES DEPARTMENT I'D I DO
WANT TO RESPOND TO THE CONCERNS
EXPRESSED BY THE VICE CHAIR.
SECTION TO THE BILL READS THE
ADDITION OF SECTION FIVE THIRTY
POINT FIVE TO THE INSURANCE CO
BY THIS ACT DOES NOT CONSTITUTE
A CHANGE IN BUT IS DECLARATORY
OF. EXISTING LAW SO THAT IT IS A
WILL TAKE CARE OF ANY QUESTION
THAT MIGHT. ARISE FROM THAT AND
WITH THAT I RESPECTFULLY ASK
YOUR I'VE FOUGHT. THANK YOU
SENATOR COLOR OF.
GLAZER AYE LEISURE AYE GAINES.
BERRYHILL.
GALGIANI.
HERNANDEZ. HUESO.
LARA.
MITCHELL.
MORLOCK.
MORE LIKE YOU KNOW MORALE.
NEWMAN.
PORTANTINO.
FOR JULY AYE ROTH. ROTH AYE.
ALRIGHT THAT BILL IS FOUR VOTES
WILL HOLD THE ROLE OPEN FOR
ABSENT MEMBERS THANK YOU SENATOR.
THANK YOU VERY MUCH MR CHAIRMAN
MEMBERS.
OKAY NEXT UP I HAVE ON THE SIGN
IN SHEET US SENATOR DODD SENATOR
JOHN WELCOME.
SENATOR JOHN I KNOW YOU HAVE TO
BILLS UP TODAY IS THERE ANY
ORDER YOU'D LIKE TO GO AND.
TAKE THE EASY ONE FIRST.
YEAH I I'M NO I'D I'D LIKE TO DO
THE MORE DIFFICULT ONE FIRST
OKAY.
IF THAT'S OKAY WITH THE CHAIR
ABSOLUTELY.
THAT WOULD BE.
HAS TO BE EIGHT NINETY FOUR IS
I'M JUST GUESSING HERE SO. I
JUST GUESS AND I THINK YOU'RE
CORRECT.
ALRIGHT SO WELCOME HERE OPENING
STATEMENT AND I'D LIKE TO ASK
THE WITNESSES AGAIN TRAFFIC.
COMPLY WITH THE TWO MINUTE RULE
THANK YOU.
PLEASE MISTER CHAIR AND MEMBERS
OF THE COMMITTEE.
IN THE EARLY MORNING HOURS OF
OCTOBER.
EIGHT.
A LIFE FOR RESIDENTS IN MY
DISTRICT.
IT CENTER MAGUIRE'S DISTRICT
CHANGED FOREVER WHEN A FIRE
RIPPED THROUGH THE NORTH BAY.
GOVERNOR BROWN SAID THIS IS
TRULY ONE OF THE GREATEST IF NOT
THE GRADES GREATEST TRAGEDY.
THAT CALIFORNIA'S EVER FACED.
THE FIRE LEFT A PATH TO
DESTRUCTION IN ITS WAKE IN THE
NUMBERS ARE TRULY STAGGERING.
TWO HUNDRED FIFTY BAHT SQUARE
MILES BIRD AT LEAST FORTY TWO
PEOPLE DEAD. OVER EIGHT THOUSAND
STRUCTURES DESTROYED AND LOSSES.
OR OF OWE MORE THAN TWELVE
BILLION DOLLARS.
WITH THE EVENTS OF THIS
MAGNITUDE OCCURRED THE STATE HAS
A MORAL IMPERATIVE TO ACT.
THIS BODY HAS A MORAL IMPERATIVE
TO ACT IN THIS REPRESENTATIVES
OF THE AFFECTED AREA CENTER
MCGUIRE AND I.
HAVE A MORAL IMPAIRMENT AT THEM
TO IT.
IMPERATIVE TO ACT AS WELL.
WE NEED TO DO EVERYTHING WE CAN
TO HELP VICTIMS OF THE WILD
FIRES AND NATURAL DISASTERS.
RECOVER.
WE ALSO NEED TO BE PROACTIVE
INSURER REFORMS BENEFIT VICTIMS
OF FUTURE DISASTERS.
FAMILIES PAY THEIR INSURANCE
PREMIUMS YEAR IN AND YEAR OUT
AND WHEN A MAJOR DISASTER
STRIKES WE NEED THE INSURANCE
COMPANIES TO HAVE OUR BACK.
THAT'S WHY I HAVE AUTHORED S. B.
EIGHT NINE FOUR.
THIS BILL GUARANTEES UP TO THREE
YEARS OF COVERAGE FOR LIVING
EXPENSES.
THE BILL WOULD ALSO WHICH SHOULD
BE ASSURED THAT INSURANCE
COMPANIES PROVIDE VICTIMS WITH
THE POLICY RENEWALS FOR AT LEAST
TWO YEARS FOLLOWING A DISASTER.
LASTLY MY BILL WOULD ALLOW
PEOPLE TO COMBINED COVERAGE
CATEGORIES IN THE WAKE OF
DECLARE DISASTERS.
IT THE COST TO REBUILD EXCEEDS
OUR COVERAGE BUT THE OF UNUSED
CONTENTS COVERAGE THE SHOULD
HAVE FLEXIBILITY.
THE ANALYSIS CHARACTERIZES THIS
IS ALLOWING INSUREDS TO
AUTOMATICALLY COVERED THE FULL
LIMITS ON ALL FOUR COVERAGES.
THAT IS NOT THE CASE.
IT'S ABOUT RECOVERING FOR PROVEN
LOSSES BY USING AVAILABLE
COVERAGE AMOUNTS
IN DIFFERENT CATEGORIES.
I'M PROUD TO BE JOINTLY
AUTHORING THIS BILL WITH SENATOR
MCGUIRE WHO'S BEEN A TREMENDOUS
PARTNER FOR FIGHTING FOR THE
REGION.
OUR CONSTITUENTS DON'T HAVE
ACTUARIAL SAYS.
INSURANCE COMPANIES DO.
OUR CONSTITUENTS DON'T HAVE RISK
MANAGEMENT TEAMS.
INSURANCE COMPANIES DO.
THE COMMITTEE IS ASK ME TO TAKE
A NUMBER OF AMENDMENTS WHICH
I'VE APPRECIATED THE BACK AND
FORTH FROM THE CHAIRMAN THANK
YOU. ABOUT MS CHAIR IN THE IN
THE IN THE CONSULTANT.
MY OFFICE OF THE DEPARTMENT OF
INSURANCE HAVE BEEN HAVING
CONVERSATIONS WITH THE
OPPOSITION AND MANY OF THESE
AMENDMENTS ARE WORKABLE. BUT TO
FOR ME. ARE FUNDAMENTALLY
UNWORKABLE.
FIRST THE COMMITTEE SUGGEST
STRIKING THE PROVISION MAKING
THE BILL RETROACTIVE.
CONSTITUENTS AND SENATOR
MAGUIRE'S CONSTITUENTS WITHOUT
ANY PROTECTION WHATSOEVER.
WE CANNOT IN GOOD CONSCIENCE DO
THAT.
CASE LAW HAD SHOWN.
AND THIS IS PARTICULARLY FOR
SENATOR ROTH TO TALK TO BE ABOUT
THAT THANK YOU FOR YOUR TIME
YESTERDAY. CASE LAW HAS SHOWN
THAT YOU CAN CHANGE THE TERMS OF
THE CONTRACT AFTER THE FACT JUST
AS WE ARE PROPOSING HERE. SECOND.
THE COMMITTEE WANTS ME TO TAKE
AN AMENDMENT THAT WOULD GET THE
PROVISIONS OF THIS BILL THAT
ALLOWS PEOPLE TO COMBINED
COVERAGE AS IN THE CASE OF
TAUGHT. AT A TOTAL LOSS AFTER
DECLARED STATE OF EMERGENCY.
WE SIMPLY. CANNOT DO THAT.
OUR CONSTITUENTS PAID THEIR
INSURANCE PREMIUMS.
THEY PAID FOR COVERAGE OF WAS
CALCULATED BASED ON THE COST TO
REBUILD THE HOME.
THAT ANY ONE OF OUR CONSTITUENTS
LOST THEIR HOME BEFORE THAT
DEVASTATING FIRE.
THEIR INSURANCE WOULD HAVE BEEN
SUFFICIENT.
TO COVER THE REBUILD COSTS.
BUT NATURAL DISASTERS
CHANGE EVERYTHING.
IT JUST WORKS FOR THOUSANDS OF
HOME OR LOST IN MASK OF THE
STATION. THE USUAL INSURANCE AND
MATH
SIMPLY. DOES NOT ADD UP.
THE IN THE SITUATION MARKET
FORCES RECAP AT COME WOULD
OTHERWISE WOULD HAVE BEEN
SUFFICIENT INSURANCE COVERAGE.
THESE MARKET RISK ARE SUCH THAT
NOT EVEN THE MOST SOPHISTICATED
OF INDIVIDUALS.
COULD IT POSSIBLY FORESEEING.
THE INSURANCE COMPANIES COULD
HAVE.
SHOULD HAVE.
BUT DIDN'T THEIR FAILURE TO WARN
PEOPLE THAT THESE TYPES OF FIRES
COULD HAPPEN.
MEANS THEY DIDN'T PURCHASE MORE
INSURANCE.
THIS MASS DEVASTATION MEANS IN
ADDITION TO DELAYS HOMES ARE
COSTING MORE TO REBUILD
MATERIALS ARE SCARCE LABOR COSTS
ARE INCREASED INTO USUALLY AND
YOUR USUAL POLICY LET. POLICY
LIMITS.
ARE NOT ENOUGH.
THAT IS WHY THIS PROVISION OF
OUR BILL IS SO IMPORTANT
WHAT WE'RE SAYING. IS THAT KNEE
SITUATIONS AND ONLY THE
SITUATION WHEN A PERSON HAS
SUFFERED A TOTAL LOSS.
AFTER A DECLARED A STATE OF
EMERGENCY WHAT WE'RE ASKING FOR
IS TO GIVE THESE FOLKS
SOME FLEXIBILITY.
THE HAD SOME EXAMPLES BUT I'M
NOT GOING TO GO INTO I THINK
WE'VE GOT SOME OTHER PEOPLE
COVERING THAT WHAT WE'RE SAYING
IS. THE PEOPLE TAP IN THE
COVERAGE AMOUNTS THEY'VE BEEN
PAYING PREMIUMS FOR TO HELP
COVER THE INCREASED COSTS THAT
COME WITH A TOTAL LOSS. AFTER A
DECLARED STATE OF EMERGENCY.
IN THIS NARROW SET OF
CIRCUMSTANCES GIVE SOME PEOPLE
SOME FLEXIBILITY TO COVER THE
COST TO REBUILD THEIR HOMES GIVE
PEOPLE A CHANCE. TO REBUILD
THEIR LIVES.
THE INSURANCE COMPANIES WILL
TELL YOU THAT EXTENDING THESE
BENEFITS TO A SMALL FRACTION OF
THE MILLIONS OF POLICIES IT'S
FINANCIALLY UNFEASIBLE.
BUT THESE ARE THE SAME ISURANCE
COMPANIES THAT ARE ALSO SEEKING
TO SUBJUGATE THEIR PAYOUTS TO
UTILITIES.
INSURANCE COMPANIES ARE HAPPY TO
TAKE PREMIUMS YEAR IN AND YEAR
OUT AND HAVE A THIRD PARTY BACK
FILL THEIR PAYOUTS. THEY SHOULD
BE EQUALLY EAGER TO MAKE
DISASTER VICTIMS HOLE.
WE KNOW THAT FIRES FLOODS AND
OTHER NATURAL DISASTERS WILL
HAPPEN AGAIN WE NEED TO TAKE
STEPS TO AND NOW TO IMPROVE
INSURANCE COVERAGE AND CONSUMER
PROTECTION.
A FIRE DEVASTATED OUR DISTRICT
LAST FALL SENATORS JACKSON'S
DISTRICT HAS BEEN HIT WITH FIRES
AND MUD SLIDES YOUR CONSTITUENTS
MIGHT BE THE NEXT VICTIM. OF A
NATURAL DISASTER AND DECLARED
STATE OF EMERGENCY THIS BILL
WILL HELP PROVIDE THEM THE
PROTECTION THAT THEY ALL NEED
WHEN THAT HAPPENS.
THANK YOU.
THANK YOU SENATOR DIED.
FISHER I ASSUME YOU'RE HERE IN
FAVOR WELCOME. THANK YOU MISTER
CHAIRMAN SENATORS SAID DAVE
JONES CALIFORNIA'S CHURCH
COMMISSION RIGHT HERE IN SUPPORT
OF THE THE SENATORS TO BILLS AS
WELL AS MR CHOIRS BILLS THE-OTHER BILLS YOU HEAR OR. SEE
AFTERNOON THIS IS A CRITICALLY
IMPORTANT DAY FOR THE SURVIVORS
OF THE TWENTY SEVENTEEN FIRES.
SOME OF WHOM ARE HERE AS WELL AS
FIVE THE MUD SLIDES BECAUSE
TODAY. YOUR COMMITTEE AGAINST TO
DECIDE WHETHER TO PASS THESE
IMPORTANT BILLS THAT WILL ENABLE
SURVIVORS OF THE MONTH SIZE OF
THE FIRES HAVE A BETTER
OPPORTUNITY TO RECOVER. AND
RECOVER SIMPLY WHAT THEY WANT TO
DO THAT YOU HAD A CHANCE
TESTIFIED BEFORE THIS. COMMITTEE
PREVIOUSLY ABOUT THE ENORMITY
AND THE EFFORTS OF THE
DEPARTMENT THE WAKE OF THE FIRES
A SADLY OUR LAWS ONLY GO SO FAR
IN PROTECTING CONSUMERS IN
HELPING THEM RECOVER.
OF THE SENATORS SENATOR
JACKSON'S INNER DODSON MCGUIRE
THE OTHER SENATORS WERE
PREPARING FOR YOU TODAY. ARE
SEEKING TO A MODESTLY AMEND OUR
LAWS TO MAKE SURE THAT ALL
SURVIVORS OF THESE FIRES
MUDSLIDES HAVE A BETTER CHANCE
TO RECOVER. A SPECIFICALLY WITH
REGARD TO THE BILL THAT YOU'RE
HEARING RIGHT NOW.
.
I SUPPORT THE CENTERS REQUEST
THAT YOU NOT THE IMPOSE
AMENDMENTS TO THIS BILL OR ANY
OF THE OTHER BILLS THAT HAVE
BEEN AGREED TO BY THE AUTHORS.
OF THE CORE OF THIS BILL IS THE
ABILITY TO COMBINE COVERAGES I
THINK IT'S SUPPORTER MY THE
SENATORS. PEOPLE PAID FOR THESE
COVERAGE IS ALREADY AND SO TO A
SKINNER REQUIRES BILL FOR THE.
CLUB WHEN THE PORTAGE THAT.
PEOPLE THAT ACCESS TO THE
PERSONAL CONTENTS COVERAGE
WITHOUT GOING TO THE PAINFUL
EMOTIONAL BIRDS SOME HAVING TO
RECOUNT EACH AND EVERY PIECE OF
PROPERTY THAT YOU HAVE. THESE
ARE COVERED IS THAT HAVE BEEN
PAID FOR SO YOU'LL HEAR LATER ON
I'M SURE FROM THE INSURANCE
INDUSTRY THAT THE WORLD'S GONNA
STOP SPINNING ON ITS ACCESS AND
THAT INSURANCE COMPANIES CAN BE
BROUGHT TO THEIR KNEES BY THESE
BILLS. IT'S SIMPLY NOT THE CASE
YOU GOTTA PUT IT IN CONTEXT
FIRST THESE BILLS ARE TRIGGERED
BY DECLARE DISASTERS SUDDEN
COVER EVERY LOSS OUT THERE ONE
TWO. THESE LOSSES OF THOUGH
ENORMOUS ORIGINALLY ARE A
FRACTION OF THE NUMBER OF
INSURED HOMES OVERALL EIGHT
MILLION HOMES INSURED VERSES.
THE FIVE HUNDRED TOTAL HOMES
LOST IN THE WAKE OF THESE FIRES
AND SO IT WILL NOT HAVE AN
IMPACT ON RATE. CORRESPONDINGLY
THIS WILL HELP PEOPLE GET WHAT
THEY PAID FOR AND SO I
RESPECTFULLY ASK YOUR AYE VOTE
WITH THAT I'M GOING TO GIVE WAY
AND ALLOW OTHER WITNESSES TO
TESTIFY. THE CHAIRMAN CENTERS
THANK YOU VERY VERY MUCH WELL
BILL PASSES BILLS YOU
COMMISSIONER ALSO BUT I THANKS
FOR THEIR YOUR. FURNACE WORK IN
HELPING THE VICTIMS OF THE FIRE
I KNOW YOU'VE GONE TO ALL THE
PLACES IN WHICH PEOPLE THAT
IMPACTED AND THAT'S A. LOT OF
EFFORT BY YOU AND YOUR
DEPARTMENT WE APPRECIATE IT VERY
MUCH.
OKAY OTHER WITNESS IN IN SUPPORT
OF THE BILL.
GOOD AFTERNOON I'M SUSAN GORIN A
SUPERVISOR FOR CINEMA COUNTY I
REPRESENT.
EASTERN PART OF SANTA ROSA
FOUNTAIN GROVE AND ALL THE WAY
DOWN THE CINEMA VALLEY.
COLLECTIVELY THE THREE
SUPERVISORIAL DISTRICTS LOST
ABOUT FIFTY THREE HUNDRED HOMES.
ARE DURING THE WEEK AND A HALF
THE FIRES ARE COLLECTIVELY NORTH
BAY PROBABLY LOST ABOUT SIXTY
ONE HUNDRED SIXTY TWO HUNDRED
HOMES.
WE'RE REELING. AND AT THE TOP OF
OUR. SUB PERSONAL SADNESS AND
GRIEF GOING THROUGH SIFTING OF
THE ASHES OF OUR HOMES TO
RECOVER ANY AND EVERYTHING AND
ANYTHING.
FINDING VERY LITTLE.
WE ARE PUT IN THE POSITION OF
HAVING A TO POTENTIALLY HIRE
PROFESSIONALS TO HELP US
UNDERSTAND INSURANCE. WE HAD TO
ELECTRONICALLY ACCESS ARE
INSURANCE POLICIES BECAUSE WE
LOST EVERYTHING. NINE CLUED
MYSELF IN THAT SADLY. MY HUSBAND
AND I LOST OUR HOME.
WE ARE ILL EQUIPPED TO REALLY
UNDERSTAND THE INSURANCE
INDUSTRY AND HOW TO EFFECTIVELY
ADVOCATE FOR OURSELVES. WE'VE
ABOUT TEN TO TWELVE THOUSAND
DISPLACED PEOPLE WHO ARE NOW
GOING THROUGH THE PROCESS OF
UNDERSTANDING. HOW THEIR
INSURANCE?
POLICY WOULD APPLY TO THEM IF
THEY WERE IN SHORT SOME OF THEM
WERE NOT.
AND UNDERSTANDING THE VARIOUS
POCKETS OF THE INSURANCE FOR
BOTH STRUCTURAL VEGETATION
MANAGEMENT AS WELL AS CONTENT.
COVERAGE.
CAN YOU IMAGINE HAVING LOST
EVERYTHING BEING PUT IN THE
POSITION OF HAVING TO INVENTORY.
EVERY PURCHASED IF THE VALUE OF IT
AND POTENTIAL REPLACEMENT COST
I SURE CAN'T AND I HAVE NOT YET.
AND YET THAT'S WHAT THE VICTIMS
ARE BEING ASKED TO DO.
I REALLY AM HERE TO APPRECIATE
IT AWESOME ORDER ROBINSON
REQUIRE FOR THEIR VIGILANCE AND
ALL OF THE BILLS THAT THEY'VE
BEEN WORKING ON.
AND YOUR DUE DILIGENCE ARE ON
THE LANGUAGE OF THE BILLS.
FEW OF US IN CALIFORNIA ARE
PREPARED FOR THE EMERGENCIES
THAT WE HAVEN'T TOURED IN THE
LAST YEAR. AND I SUSPECT THIS
WILL BE THE NEW NORMAL.
I WOULD HOPE I WOULD WISH THAT
WHAT YOU'RE CONSIDERING COULD BE
RETROACTIVE WE SIMPLY CANNOT
REBUILD IN THE TWO YEAR TIME
FRAME THAT WE'RE BEING ASKED TO.
UP REBUILD WE CAN'T FIND THE
MATERIALS WE CAN'T FIND THE
LABOR FOUND IT IS FOR THE FIVE
THOUSAND HOMES THAT ARE LOST.
MOST PEOPLE FIND THEMSELVES
UNDER INSURED MINIMUM FIFTY
THOUSAND. MOST OF US FIGHT WE
CONSERVATIVELY ESTIMATE THREE
HUNDRED THOUSAND DOLLARS
UNDERINSURED AND THAT'S FOR A
VERY MODEST HOME IN A RETIREMENT
COMMUNITY.
SO I'M HERE TO ASK YOU ABOUT TO
CAREFULLY CONSIDER THE VICTIMS
OF THE FIRES AND OF THIS
UNPRECEDENTED FIRE STORMS THAT
WE HAVE EXPERIENCED. BOB BECAUSE
YOU HAVE THE POWER TO NOT ONLY
HELP US BUT TO PREPARE FOR THE
FUTURE AND ONCE AGAIN THANK YOU
SENATOR MCGUIRE AND SENATOR DODD.
SUPERVISOR THANK YOU FOR COMING
HERE AND FOR YOUR TESTIMONY OUR
CONDOLENCES ON YOUR LOSS.
AND FOR THOSE OF SO MANY OF YOUR.
FRIENDS AND NEIGHBORS WHAT AT
WHAT A TERRIBLE THING TO HAVE TO
LIVE THROUGH WE APPRECIATE YOUR
TESTIMONY THINK.
AUTHOR OTHER WITNESSES THAT
WOULD LIKE TO JOIN IN SUPPORT OF
THIS VILLAGE YOU COULD IDENTIFY
YOURSELF AND YOUR AFFILIATION IF
ANY THING I MISTER CHAIRMAN
MEMBERS SOME MIGHT MATTER
COUNSEL FOR CONSUMER WATCHDOG.
IF I CAN JUST A BRIEF SECOND.
WOULD LIKE TO WOULD LIKE TO
THANK GOD SENATOR DODD WE
RECEIVED THAT.
HUNDREDS OF COMPLAINTS ON THIS
AND FIRST NOT ALL INSURANCE
COMPANIES ARE BAD SOME DO THE
RIGHT THINGS I USED TO WORK FOR
ONE. THANK SENATOR DODD FOR
BRINGING THIS FORWARD BECAUSE
THE INSURANCE COMMISSIONER HAS
TO REGULATE FOR THE WORST
OFFENDERS AND THIS GIVES THEM
THE ABILITY TO GO OUT OF FORCES
THANK YOU THANK YOU. PACKAGE
PATRICK MCCALLUM.
I AM PART OF A GROUP CALLED UP
FROM THE ASHES ITS VICTIMS FROM
THE TERRACE SANTA BARBARA SONOMA
COUNTY WE HAVE NOT FORMALLY
TAKEN POSITIONS ON THE BILLS.
BUT LET ME VERY QUICKLY
PERSONALIZE IT WE LOST OUR HOME
WILL SLAUGHTER LIVES LOST
EVERYTHING.
WE ARE.
SEVEN MONTHS INTO IT.
WE ARE NOT CLOSE WITH OUR
INSURANCE COMPANY WHERE ABOUT A
FIFTY PERCENT DIFFERENCES
BETWEEN WHAT CONTRACTORS SAY. IT
THE HOUSE TO REBUILD AND WHAT
OUR INSURANCE COMPANY.
WE.
OUT THEY ALLOCATED WE FIT EIGHT
PERCENT OF OUR DEBRIS REMOVAL ON
ACTUAL DEBRIS REMOVAL TO THERE'S
NINETY TWO PERCENT LEFT WITH
THAT IT.
WE WILL PROBABLY GO WITH OUR
ARCHITECT IN DESIGN CITY OF
SANTA ROSA BEEN AMAZING IN
SEPTEMBER AGITATING MUCH TO
BILLS. SO ADDING MORE TIME.
ALLOWING US TO SWITCH IN POTS.
DOING EIGHTY PERCENT NONSTOP
MAKES OUR LIVES A LOT EASIER TO
HOLD A SUPPORT THOSE BILLS AND I
THATCHER CAN YOUR PERSONAL
TRAVAILS OF BEEN DOCUMENTED AND
ARE TERRIFYING AND WORK.
SO GLAD YOU'RE HERE WITH US
SHARE YOUR THOUGHTS YES CHAIRMAN
OTHER MEMBERS POLIO TO SHUDDER
AND TO HAVE THE BOARD SU
PRESENCE IN NAPA. MENDOCINO
COUNTIES I'M JUST VERY GRATEFUL
THESE TWO SENATORS HER DRIVE
VOTE THANK YOU.
MISTER CHAIRMAN RIVER SCOUT
WHICH SHOULD BE HAVE TODAY
CALIFORNIA'S TO ASSOCIATION OF
ELECTRICAL WORKERS COVERAGE THE
PATRIOTS CANCEL THE WEST MC
SKINS OF SHEET METAL WORKERS.
AND ELEVATOR CONSTRUCTORS UNION
ON BEHALF OF THE HUNDREDS OF OUR
MEMBERS WHO LOST THEIR HOMES IN
THE FIRES THINKING.
THANK YOU MISTER CHAIRMAN LEE
HARRISON BEHALF THE CONSUMER
ATTORNEYS OF CALIFORNIA AND WANT
TO THANK THE AUTHORS AND WE
SUPPORT THIS BILL AND I HAVE
PERSONALLY WORKED WITH MANY
PEOPLE WHO HAVE THESE KINDS OF
PROBLEMS.
THANK YOU THANK YOU MISTER
CHAIRMAN THERE'S THE COMMITTEE
JEREMY SMITH HAPPY HALF OF THE
STATE BUILDING AND CONSTRUCTION
TRADES COUNCIL BEHALF OF. ALL OF
OUR MEMBERS WHO LOST THEIR HOMES
TO OUR SPORT THANK YOU.
MISTER CHAIRMAN MEMBERS MY
CARPENTER HERE ON BEHALF OF
MEDTRONIC UP. BASICALLY TO THANK
OUR HOMETOWN SENATORS A FIFTY
TWO OF THEIR SANTA ROSA
EMPLOYEES LOST THEIR HOMES AND
JUST HERE TO EXPRESS.
THEIR APPRECIATION FOR WHAT
YOU'RE DOING AND THANKS.
CAROLINE SPEZZA.
WHEN WE LOST HER.
HOME.
HAVE THE CONSULTANT DOING
REPORTS FOR THE DEPARTMENT OF
HEALTH CARE SERVICES.
THE TEN COUNTIES.
CHRIS WELL POSITIONED. TO DO ALL
THE PAPERWORK THAT OUR INSURANCE
COMPANY ASKED OF US. WHO WAS ON?
PREPARED FOR THE FIGHT THAT THEY.
LOVE
BUT THAT BRIDGE THAT HAS TO GET.
WITH EACH.
HAVE THE BUCKETS OF REBUILDING
MONEY. ON IT.
IN THE END WE HAD TO SUBMIT.
COVER FIVE. HUNDRED PAGES. THE
CORRESPONDENCE.
THE DOCUMENTATION.
IT UP TO ADVOCATE OF.
FOR THE MONIES.
HONOR.
UNDER.
RICHARD POLICY.
PLEASE HELP US.
THANK YOU.
GOOD AFTERNOON MR TURKEY ARE
ALSO BEHALF OF THE CITY OF SANTA
ROSA WE SINCERELY APPRECIATE ALL
THE EFFORTS OF THE AUTHORS ON
THIS ISSUE AND STRONGLY SUPPORT
THE BILL.
IF YOU.
JOE SPITZER.
ADAM.
THE CLAIM PLOT THE CLAIM PROCESS
WE ENDURED.
SEVERELY HAMPERED MY ABILITY AS
A FATHER.
TO BE AN EMOTIONAL SUPPORT FROM
MY FAMILY.
MY FAMILY AND I STRONGLY SUPPORT
S. B. EIGHT NINETY SEVEN THANK
YOU FOR BRINGING IT FORWARD AND
I MEAN NO DISRESPECT FOR THE
WITNESSES THAT.
JUST HAVE A LONG AGENDA AND A
LOT TO GET THROUGH SO IF YOU CAN
JUST SAY YOUR NAME AND. YOUR
AFFILIATION AND IF YOU'RE IN
SUPPORT OF THE BILL OKAY THANK
YOU THANK YOU RICHARD BLAME
COFFEE PARK WE LOST EVERYTHING
I'D LIKE TO THANK THE COMMITTEE
FOR FOR HEARING THESE BILLS. AND
SENATORS DODD MCGUIRE FOR
PRESENTING THEM AND SUPPORTING
US.
AND HOPEFULLY HE'LL MAKE US ALL
HOLD AGAIN THANK YOU THANK YOU.
EARL HUTCHINSON REPRESENTING THE
COUNTY OF LAKE SO GRATEFUL TO
OUR SENATORS AND TOTALLY IN
SUPPORT OF THIS BILL THESE BILLS
THANK YOU SHERYL.
MATTHEW CREEL I'M AN ADVOCATE
FOR THE FIRES FIRES OF TWENTY
SEVENTEEN AND I AM HERE
REPRESENTING THE FOLKS THAT
COULD NOT COME TODAY AND VOICE
THEIR OPINIONS IT'S A. DIRE
SITUATION AYE THAT THEY
DESPERATELY NEED HELP IN GETTING
ALLTHESE RETROACTIVELY NOT FOR
THE FUTURE SO AYE URGENT AYE
VOTE THANK YOU THANK YOU.
K. MCCASKEY I LOST MY HOME IN
GLEN ELLYN. IT MAKES ME SICK TO
WRITE OUT MY LIST EVERY NIGHT I
HAVE THE. SIXTIES HIT HALF A
ROOM OF FOURTH ROOM I HAVE TO
SAY I LOST MY GRANDMOTHER'S
WEDDING RING. I HAVE TO SAY LOS
ALL THE FAMILIES BIBLES AND THEN
I HAVE TO SAY I LOST MY SHOES MY
SOCKS MIGHT BROUGHT US THIS IS
CRAZY. AND THEY'RE ONLY GOING TO
GIVE ME PENNIES ON THE DOLLAR.
IT'S HELPED ME.
THANK YOU FOR COMING TODAY.
I MICROTEL SKI FROM GLEN ELLEN
AND I AGREE WITH MY WIFE IT'S
REALLY CRAZY. AND THANK YOU FOR.
THE BILL. THANK YOU.
ANY TALK OF THE UNITED POLICY
HOLDERS AND WE DID RECENTLY
CONCLUDED SURVEY.
OF ALMOST AT NINE HUNDRED OF
THE FIRE SURVIVORS AND EVERY
SINGLE ONE OF THE PROVISIONS IN
THIS BILL INSURANCE COMPANIES
ARE DOING FOR SOME PEOPLE. SO I
THINK THE IDEA HERE IS WE KNOW
THAT THEY CAN BE DONE THEY MAKE
PEOPLE'S LIVES BETTER.
FOR COMING AND THANK YOU.
MY NAME IS EARL SMALL AND TIME
LIVIN LARGE FILL THE STATE'S
AND WE LOST EVERYTHING ALONG
WITH ANOTHER FIVE HUNDRED AND
FORTY EIGHT HOMES.
AND TO ALL WHO SUPPORT THESE
BILLS.
AND. WE NEED YOUR HELP.
INSURANCE COMPANIES ARE REALLY
MESSING WITH US.
FOR THREE MONTHS AND ONE DAY WE
WERE TOLD THAT THEY WERE GONNA
REBUILD OUR HOUSE NO MATTER WHAT.
AND THAT ONE DAY HE CALLED HIS
BAG SO THE PHONE ANOTHER CLAUSE.
THIS IS THEY DON'T HAVE TO DO IT.
PLEASE HELP US THANK YOU FOR
COMING TODAY.
DAVID MARTIN ARMY A LIFELONG
RESIDENT OF NAPA CALIFORNIA.
AFTER A THIRTY THREE YEAR CAREER
IN THE FIRE SERVICE.
I WAS UNABLE TO SAVE MY HOME.
AND IT THIS TIME.
.
WE DON'T KNOW HOW MANY YEARS IT
OUT BEFORE IT'LL BE REBUILT WE
NEED HELP.
THEY KINDLY LOOK AT YOU LIKE
YOU'RE COMING.
JOHN DERMODY TWENTY FOUR FORTY
ONE ALICE P. GROWED MY WIFE HAD
A TERRIFYING RESCUE AND I WANT
TO PUBLICLY THANK THE FIRST
RESPONDERS AND MY VERY GOOD.
NEIGHBOR THAT MARTONE WHO KEPT
HER ALIVE.
THIS PROCESS IS BEEN.
MUCH MORE TIME CONSUMING HAS
BEEN MUCH MORE EXPENSIVE AND
MUCH MORE DIFFICULT THAN I EVER
WOULD HAVE DREAMS HIGH VERY VERY
MUCH APPRECIATE ALL THE EFFORTS
YOU ARE MAKING KEY THANK YOU
SENATOR DODD THANK YOU.
MY NAME IS FIONA MY HOUSE BURNED
DOWN IN TWO THOUSAND FIFTEEN AND
I WOULD LIKE TO SUPPORT THIS
BILL THANK YOU SO MUCH FOR
COMING AND SHARING YOUR THOUGHTS.
ANYBODY ELSE THAT WISHES TO
TESTIFY AS A ME TOO SPORTS SITE.
ALRIGHT. THANK YOU ALL FOR.
FOR SHARING YOUR THOUGHTS I'D
LIKE TO NOW INVITE UP BY THOSE
WHO ARE OPPOSED TO THIS
LEGISLATION.
AND. HOPEFULLY THEY'VE
COORDINATED THE TWO THAT ARE
GOING TO SPEAK AYE AND
OPPOSITION AND THEN THE ME TO
SET THE THE BACK MICROPHONE.
WELCOME AND IF YOU COULD
IDENTIFY YOURSELF FOR THE RECORD.
BECAUSE SENATOR CARA CROSS WITH
THE PERSONAL INSURANCE
FEDERATION FOR CALIFORNIA. WOULD
REPRESENT SIX MEMBER COMPANIES
THAT TOGETHER RIGHT THE MAJORITY
OF HOMEOWNERS INSURANCE IN THE
STATE.
AND. BEFORE I TESTIFY I DO YOU
WANT TO SAY HOME MUCH OUR HEARTS
GO OUT TO FOLKS ARM I'D
PERSONALLY SUFFERED MY HOUSE
BURNING DOWN WHEN I WAS A CHILD.
I GET IT ARE COMMITTEES GOT IT
I'VE BEEN SO PROUD AND SO ON
IMPRESSED BY HOW OUR COMPANIES
HAVE BEEN HANDLING.
CLAIMS.
ON THE GROUND FROM DAY ONE THEY
HAVE BEEN THERE TRYING TO HELP
PEOPLE REBUILD THEIR HOMES AND
RECOVER AS QUICKLY AS POSSIBLE
THEY'VE BEEN.
ISSUING ADDITIONAL LIVING
EXPENSES RIGHT AWAY SO THAT
FOLKS CAN GET APARTMENTS ARE
HOMES OR WHATEVER THEY NEED TO
BE ABLE TO LIVE AND GET BACK ON
THEIR FEET.
.
I ALSO WANT TO THANK SENATOR
DIED ON HIS STAFF AND OUR OUR
COMMITTEE STAFF FOR WORKING WITH
US WE HAVE HAD SEVERAL
DISCUSSIONS. UNFORTUNATELY AT
THIS POINT WE HAVE NOT BEEN ABLE
TO COME TO ANY KIND OF AGREEMENT.
AND AT THIS POINT WE DO NEED TO
REMAIN OPPOSED TO LESS AMENDED
TO.
S. B. EIGHT NINETY FOUR.
BEFORE I GO INTO MY FORMAL
TESTIMONY I DID WANT TO ADDRESS
A COUPLE QUESTIONS THAT CAME UP
WERE POINTS ARE MADE.
WITH RESPECT TO WHAT'S CALLED
DEMAND SURGE WHICH IS WHAT A LOT
OF PEOPLE ARE. DEALING WITH
RIGHT NOW.
WHERE THE COST OF MATERIALS IN
THE COST OF LABOR GO UP
UNFORTUNATELY SOMETIMES
DRAMATICALLY FOR ALL KINDS OF
DIFFERENT REASONS?
WE ACCOUNT FOR THAT AND
INSURERS WILL WORK WITH
HOMEOWNERS WHEN THEY FIRST
PURCHASE INSURANCE AND TALKED
ABOUT THE FACT THAT THIS IS
SUBMIT EXCESS.
EVERY YEAR AT RENEWAL TIME THERE
IS A BILL OF RIGHTS FOR
HOMEOWNERS THE COMES OUT. THAT
ASKS THEM TO YOU KNOW MAKE SURE
THAT THEY HAVE THE RIGHT AMOUNT
OF INSURANCE. AND THAT ALSO
TALKS ABOUT DEMAND SURGE AND
FINALLY THERE IS A LOT OF
INSURANCE OUT THERE THAT HELPS
ADDRESSES THE ISSUE EXTENDED
REPLACEMENT CUT COVERAGE. IS
HUNDRED FIFTY PERCENT OFTENTIMES
OF COVERAGE THAT WILL HELP FOLKS.
DEAL WITH DEMAND SEARCH.
AND THEN ONE OTHER POINT I
WANTED TO MAKE WAS THAT I I'VE
BEEN HEARING A LOT ABOUT
COMBINING OF POTS AND I WILL GET
INTO THAT A LITTLE FURTHER IN MY
TESTIMONY. BUT.
IT'S NOT AS SIMPLE AS IT SOUNDS
AT THE GIVE FIRST IT SOUNDS
SIMPLE AND EVEN SOUNDS LIKE CATS
A GOOD IDEA. BUT IT'S REALLY
IT'S COMBINING APPLES AND
ORANGES AND THE WAY THE
INSURANCE IS PRICED WHICH WE
STILL NEED TO PAY ATTENTION TO.
IS NOT BY COMBINING APPLES AND
ORANGES.
SO WOULD YOU CONTINUE TO HAVE
SIGNIFICANT CONCERNS BECAUSE THE
OR SO BUT WILL RESULT IN
INCREASING PREMIUMS. AND
REDUCING CHOICE AND HAVING
UNINTENDED CONSEQUENCES FOR
HOMEOWNERS.
COMBINED COME AS A SET BY THE
COVERAGE MAY SOUND SIMPLE BUT IS
NOT. HOMEOWNERS POLICIES
COMPRISE AND VERY MANY DIFFERENT
COVERAGES ARE DIFFERENT POTS
WITH DIFFERENT LIMITS AND
DIFFERENT RISKS EACH OF THESE
RISKS MUST BE CONSIDERED AND
PRICED INDEPENDENTLY DOT IS HALL
FOLKS POLICIES WORK NOW. TO
CHANGE THAT WOULD RESULT IN A
INCREASE IN PREMIUMS FOR
EVERYBODY ACROSS THE STATE.
THE COMBINING COVERAGES IN ITS
CURRENT FORM THE TELL PROPOSES
TO PAY OUT THE ENTIRE COVERAGE
LIMITS REGARDLESS OF THE AMOUNT
OF ACTUAL LOSS.
THROUGH THE UNDERWRITING MODELS
USED TO PRICE POLICIES THE
LOSSES INCURRED WILL NOT ALL
REACH THE POLICY LIMITS AND THAT
DIFFERENT TYPE OF CUT TO THE
DIFFERENT TYPES OF COVERAGE WILL
ENCOURAGE DIFFERENT TYPES OF
COSTS.
CAN SOUND ACTUARY'S DON'T AND
STEP BACK. A. BIT THE BIG TICKET
ITEM HERE IS THE COVERAGE FOR
YOUR HOME.
THERE IS OTHER COVERAGE THAT
DOESN'T COST AS MUCH IMPACT TO
COST VERY LITTLE BECAUSE OUR
ACTUARIES NO AND COMPANIES KNOW
FROM LOTS AND LOTS OF EXPERIENCE
AND LOTS LOTS OF DATA OVER LOTSA
LOTSA YEARS. THAT THOSE SOMEBODY
MAY HAVE A HUNDRED AND SEVENTY
FIVE THOUSAND DOLLAR LIMIT.
IN THERE CUP IN THEIR COVERAGE
IS NOT COVER THEIR HOME THE
COVERS MAYBE THEIR FARM WHERE
THE GREENHOUSE OR WHATEVER IT IS.
THAT MOST FOLKS REALLY HOW THE
TWENTY THOUSAND DOLLAR SHED. AND
THAT'S WHAT THE EXPERIENCE IS
BATES ON AND THAT'S WHY IT'S
PRICED NOTS WHITE ABLE TO BE
PRICE LOW THE BOOKS CAN AFFORD
INSURANCE.
YOU COULD WRAP.
BUT THAT YOU CAN WRAP UP THE
OKAY AYE WELL SO.
.
I I JUST A SAY THAT YOU KNOW
WHAT ARE THE RESULTS FOR
CONSUMERS THEY ARE INCREASE
PREMIUMS UNLESS.
COVERAGE CHOI SAYS
OUR CUSTOMERS TO BE ABLE TO
MAINTAIN THE FLEXIBILITY THEY
WANT TO MAKE THEIR OWN DECISIONS
ABOUT COVERAGE LIMITS AND PRICE
WITHOUT GOVERNMENT INTERFERENCE.
SB EIGHTY NINETY FOUR BUT
UNDERMINE THE SYSTEM OF
INSURANCE COMPANIES USED TO KEEP
INSURANCE AFFORDABLE AND
ACCESSIBLE FOR CONSUMERS AND FOR
ALL THESE REASONS WE
RESPECTFULLY REQUEST YOUR NO
VOTE ON THIS BILL TODAY YOU VERY
MUCH.
THIS YOU MISTER CHAIR MEMBERS
THE COMMITTEE I MONTHLY SEATTLE
ON PROPERTY CASUALTY INSURERS
WHERE NATIONAL TRADE
ORGANIZATION.
REPRESENTING ABOUT THREE HUNDRED
INSURANCE COMPANIES IN
CALIFORNIA.
I TOO WOULD LIKE TO THANK
SENATOR DODD UP FOR WORK WITH US
ON THIS ISSUE.
AND WHEN I RECOGNIZE IT IS TOUGH
TIMES FOR ME FOR MANY OF THE
FOLKS TO TESTIFY JUST NOW.
HAVING SAID THAT WE DO HAVE AN
OPPOSE ON THIS AMENDED THE
POSITION I'M NOT GONNA BE REPEAT
WHAT MY COLLEAGUE JUST SAID BUT
I JUST A COUPLE POINTS.
ABOUT WHAT WE'RE CONCERNED ABOUT
IS STRIKING A BALANCE MOVING
FORWARD IN THAT WE DO HAVE OTHER
HOMEOWNERS.
THAT MAY BE IMPACTED WITH HIS
BILL MOVING FORWARD. ARE
SPECIFICALLY WHAT DO YOU DO
ABOUT CONSUMER CHOICE I IT THIS
IS A ONE SIZE FITS ALL
LEGISLATION WHAT IF THAT
CONSUMER DOES NOT WANT TO PAY
FOR ITS TITLE POLICY. OR OR MORE
TO POINT TO THE EXCITED THAT IS
WE HAVE REGIONAL COMPANIES
THAT'S RIGHT SPECIFICALLY IN
SMALLER AREAS. WHAT IF THEY
CAN'T COMPLY WITH THE BILL I'M
IT IS OUT WE BETTER OFF?
IF YOU KNOW WITH THAT LESSEN
SURE IS BEING IN THE MARKET.
I THINK THE ANSWER'S NO.
WERE ALSO CONCERNED ABOUT THE
RETROACTIVE. OF THE BILL.
IN IT I THINK SOME FOLKS TOUCH
ON THAT IT'S A SERIOUS ISSUE.
HOW DO WE MAKE THAT WHAT? WE WE
SETTLE THE CLAIM WE NOW GO BACK
AND SAY UNDER THIS NEW LAW. EVEN
IF IT ITSELF FOR THE ACTUAL LOSS
YOU'RE NOT ENTITLED TO X. AMOUNT
OF MONEY.
I THINK THERE'S SOME CONTRACTS
AWS ISSUES THERE. OF.
YOU KNOW I JUST WANT TO
RECOGNIZE THAT THE SENATE
COMMITTEE ANALYSIS ON THE ACTUAL
LOSS.
I THINK THAT THAT WOULD BE JUST
A STEP IN THE RIGHT DIRECTION.
AND NOW WITH DATA HOME.
HUBBY IF ANY QUESTIONS THINKING
THANK YOU VERY MUCH OKAY. THERE
ARE OTHERS WHO LIKE TO. REGISTER
THEIR OPPOSITION PLEASE STEP THE
MICROPHONE KATHERINE PETTY BUT
AMERICAN ENTRANCES CESSATION
OPPOSE ANNOUNCEMENT FOUR DOOR
HIMSELF.
THANK YOU. SHERRY MCKEE
REPRESENT THE PACIFIC
ASSOCIATION DOMESTIC INSURANCE
COMPANIES UNFORTUNATELY STILL
OPPOSE LOS MENTAL.
I THINK YOU HAD ONE LOMBARD
TODAY I'M REPRESENTING THE
VERMONT SLAWSON ECONOMIC
DEVELOPMENT CORPORATION.
THE LOS ANGELES AFRICAN AMERICAN
WOMEN'S PUBLIC POLICY INSTITUTE.
THE LOOK LOS ANGELES CIVIL
RIGHTS ASSOCIATION THE BLACK
BUSINESS ASSOCIATION AND BAY
PACK.
AND WE REPRESENT UNDERSERVED
COMMUNITIES HERE IN THE STATE OF
CALIFORNIA OUR CONCERN IS THAT.
WE DON'T WANT OUR CONSTITUENTS
TO HAVE TO SUBSIDIZE POLICIES OF
FOR INDIVIDUALS WHO CHOOSE TO
LIVE IN A HIGH RISK AREA. AND
WE'RE ALSO CONCERNED THAT. IF
INSURANCE COMPANIES DECIDE TO NO
LONGER WRITE THESE POLICIES THAT
WE WILL HAVE WATERED DOWN
VERSIONS OF POLICIES FOR
OURSELVES SO WE OPPOSE THE BILL
THANK YOU VERY MUCH.
ANYBODY ELSE WHO WISHES TO
REGISTER THEIR OPPOSITION IN
THIS LEGISLATION PLEASE STEP
FORWARD.
OUR IT SEEMED THAT NO FURTHER
OPPOSITION TO HEAR.
YEAH.
SO BEFORE WE BRING IT TO THE
COMMITTEE FOR A CONVERSATION
ABOUT THIS PROPOSED BILL I WANT
TO. FIRST SAY THANK SENATOR DODD
SENATOR.
MCGUIRE FOR HERE.
HILLMAN'S EFFORTS TO FIGHT HARD
FOR YOUR COMMUNITY AND FOR THE
TERRIBLE LOSSES THAT THEY.
INDOORS AND WE APPRECIATE AS
THEY HAVE SO INDICATED YOUR
GREAT LEADERSHIP IN THIS AREA.
SENATOR DODD I WANTED TO GO
THROUGH A.
THE PROPOSED AMENDMENTS THAT
HAVE BEEN SUGGESTED TO THE STAFF
ANALYSIS TO MAKE SURE RELEASED
FOR ON THE SAME PAGE AS WE.
BEGIN OUR CONVERSATION.
BUT IF YOU WOULDN'T MIND.
WHAT IF WE COULD STEP THROUGH
THE SIX SUGGESTED AMENDMENTS
THAT WE CAN BE CLEAR ON WHAT
YOU'RE ACCEPTING WHAT YOU'RE NOT?
SO THE FIRST AMENDMENT.
A.
THAT'S OKAY GOOD OKAY WITH THAT
PROPOSED AMENDMENT OKAY.
THIS IS ON PAGE FIVE OF THE
ANALYSIS.
THE BOTTOM OF PAGE FIVE.
AWAY TO THE.
JUST VERSION CITIES LEFT OKAY.
I THAN IF YOU GO TO THE TOP OF
PAGE SIX WE HAVE THE SUGGESTED
AMENDMENT BE.
AS THIS IS THE DATA REPORTING I
THINK THIS IS THE ELEMENTS THAT
ARE. GOING TO BE COVERED IN THE
LARA BILL BUT ARE YOU
COMFORTABLE WITH THE LEADING THE
REQUIREMENTS HERE SENATOR.
YEAH IT IS LONGER IF IT'S. IF
I'VE GOT YOUR ASSURANCES THAT
IT'S GOING TO BE DONE IN ANOTHER
BILL I'M FINE WITH THAT COMPLY
WITH TAKING THAT A MEDIC THAT
THE CONCLUSION THAT WE TALKED
ABOUT THIS MORNING IS THAT THE
ESSENCE OF THE.
REQUEST THAT YOU'RE MAKING ON
THE DATA SIDE WOULD BE COVERED
UNDER THE LARA BILL AS PER AS A
MAN THAT'S PROPOSED TO BE
AMENDED HERE BUT UPWARDS. OKAY.
ALRIGHT THEN WE HAVE SEE.
ABOUT THE INSOLVENCY OF THE
INSURER. A OKAY WITH THAT
SUGGESTED AMENDMENTS TONIGHT.
MENTIONED THAT THERE HAVE BEEN
SOME A DID YOU COULD YOU LIKE
AND IDENTIFY YOURSELF FOR THE
RECORD PLEASE SORRY THIRD OF.
THE.
I'M TO ALLOW SURE I'M THE CHIEF
DEPUTY FOR THE DEPARTMENT OF
INSURANCE.
AND.
THERE HAVE BEEN SOME OTHER
DISCUSSIONS ON THESE PARTICULAR
AMENDMENTS
CITY IN PARTICULAR. THERE WERE
SOME AGREEMENTS THAT WERE MADE
TO REVISE THIS.
BUT A BIT OF LANGUAGE TO.
REQUIRE INSURERS TO. NOTIFY THE.
COMMISSIONER OR THE DEPARTMENT
OF INSURANCE.
BEFORE THEY WOULD A MAKE THESE
MOVES AND THE.
I DELETED NUMBER THREE.
BUT.
RIGHT OKAY SEAS WITH AND BE DONE
WITH IT THAT OF ALL OF OUR
SENATOR DODD THEN SO. UNDERSEA
DELETING NUMBER THREE INTER AB
OR WHAT I DID IN ADDITION WITH
IT THAT THE ADDITION OF A
REPORTING REQUIREMENTS OF THE
COMMISSION INSURANCE ARE YOU
OKAY WITH THIS. YEAH I I BELIEVE
THAT WITH WITH THAT WE'VE GOT TO
IT.
ESSENTIAL AGREEMENT FOR SURE
OKAY VERY GETS THAT COVERS SASSY
AS AMENDED.
RIGHT AND THEN NOT DE.
YOU.
THAT THIS IS THE EXTENSION.
YES HERE OKAY WITH THE PROPOSED
AMENDMENT ANDY OKAY.
AND THEN IN E. N. F. RUSSELL AB
I I UNDERSTAND EITHER SOMETHING
THAT TO YOU ARE NOT COMFORTABLE
WITH SO THAT'S NOT. ONE THAT
YOU'RE AGREEING TO TODAY IS THAT
RIGHT. AND THEN F. IS THIS ISSUE
OF RETROACTIVITY. OF POLICY
RENEWALS.
EXTENSION AND AGAIN BY MY
REMINDER THERE IN OUR
CONVERSATION THIS MORNING.
THIS ONLY APPLIES TO TWO YEAR
RENEWALS AS PER THAT
CONVERSATION YOU HAD BE HAPPY TO
HAVE FEATHERS IT THERE'S MAYBE
ALSO TO A MONTH.
WHERE A FEW CONSUMERS MIGHT I
GET? I WOULD AGREE TO THAT BUT I
WOULD I WOULD WANT SOME
CONSULTATION AS WE MOVE A LOT TO
SEE IF THERE'S A WAY OF.
HANDLING FOR THOSE TWO DEBT TOO
MUCH OF CONSUMERS.
OKAY THAT THAT'S THAT'S FINE SO
WE'RE CLEAR ABOUT THAT THAT.
THAT HERE OKAY WITH APHIDS WITH
THE HOPE THAT IF THE BILL DOES
MOVE FORWARD THAT. HE WOULD HAVE
CONSULTATION ON NOT THOSE WHO
FALL IN THAT TWO MONTH WINDOW.
GRETA ENOUGH OKAY SO THE
DIFFERENCES THAT REMAIN ARE THE
A. I. R. E. TERMS OF FOCUSING
OUR CONVERSATION.
FAIR ENOUGH ERNA OKAY SORRY THAT
WOULD BE FIVE.
OF THE AMENDMENTS.
ACCEPTED OUT OF SIX.
ALBEIT THE ONE.
THE PANEL BUT THIS IDEA YES YES
SIR.
DID YOU HAVE SOME NEW OKAY.
KNOWN FOR NOT GOOD OKAY ALRIGHT.
SO I I KNOW I HAVE SOME COMMENTS
ON OF THAT HELEN INVITE MY
COMMITTEE MEMBERS TO HAVE
THERE'S SHARE THEIR THOUGHTS TO
SENATOR ROTH AND SENATOR GAINES
FOR CHAIR COULD BECAUSE I HAVE A.
MY WITNESS TALK ABOUT
BECAUSE I THINK COULD BE GIVE
BACKGROUND TO THE COMMITTEE
PLEASE.
ALRIGHT.
OKAY FOR THE FIRST TIME AND.
I'D BEEN WITH THE DEPARTMENT
FOR THIRTY TWO YEARS ALL HAD
TEACHERS.
UNTIL ALLOWED HER I'M CHIEF
DEPUTY NOW BUT I WAS ALSO.
THE DEPUTY COMMISSIONER FOR
RATE REGULATION.
FOR SEVEN YEARS.
AND I WOULD SAY IN HOMEOWNERS
PRICING ONE THING YOU SHOULD
KNOW. IS THAT IT IS ALL COMBINED
TOGETHER THERE ISN'T LIKE A
SEPARATE. PREMIUM THAT IS
GENERALLY PUT ASIDE FOR CONTENTS
AND SUCH.
IT IS TRUE THAT WHEN THE IN THE
STORY LIKE IT'S A ABOUT YOU NOW
I'M TALKING ABOUT. THE.
NOT S. COMBINED BUT I'M TALKING
ONLY ABOUT THE ONLINE COVERAGE
OF CAN WRITE THE COMBINED
COVERAGES FOUR FOUR ID AND SINCE
THEY DON'T HAVE COPIES
NECESSARILY CAN YOU JUST GIVE US
A JUST A QUICK SUMMARY.
OKAY CERTAINLY THERE A PIECE
ABOUT BEING ALLOWED TO COMBINE
YOUR COVERAGES.
SO THAT ANY LIMITS YOU DON'T USE.
YOU COULD APPLY TOWARDS YOUR
HOME REBUILD IF YOU'RE UNDER IN
SHIRT. THAT'S THE MAIN PROPONENT
OF IT AND THAT'S MEANT TO HELP
ALL THESE PEOPLE. WHO ARE UNDER
INSURED THAT GIVES THEM THE
ABILITY TO APPLYTHAT EXTRA MILE
LIMIT THAT THEY DIDN'T USE? FOR
THEIR RECOVERY ON THEIR CONTENTS.
FOR THEIR.
BUT OTHER STRUCTURES. AND APPLY
THAT MONEY TOWARDS REBUILDING
THEIR HOMES IF THEY'RE UNDER
INSURED.
THE INDUSTRY REPRESENTATIVES
MENTIONED THAT THAT IS PRICED
WITH THE UNDERSTANDING THAT SOME
PEOPLE. MAY HAVE THAT ENTIRE
AMOUNT OF CONTENTS IT'S AN
EXAMPLE AND WOULD BE REIMBURSED
FOR THAT ENTIRE AMOUNT OF THEIR
LIMITS.
JUST TO PAY FOR THEIR CONTENTS.
WHILE OTHER PEOPLE DON'T HAVE
THAT MUCH CONTENTS.
AND THE PRICING KIND OF REFLECTS
THAT THAT THEY DON'T TAKE OUT
THE LIMITS ALL THE TIME.
BUT WITH THIS BILL THEY STILL
WOULDN'T BE PAYING OUT THAT
LIMIT ALL THE TIME.
THIS BILL IS LIMITED TO THOSE
PEOPLE WHO ARE IN THIS
PARTICULAR SITUATION.
WHERE THEY'VE HAD A TOTAL LOSS
WITH THE DECLARED DISSTER AYE I
THINK WE'RE CLEAR ON THAT
SOMETHING OUT OVER ADDING TO IT
THAT THAT WAS ACTUALLY VERY
INCREMENTAL NUMBER OF PEOPLE
ADDED TO IT? AND THUS WHEN THEY
TALK ABOUT THE RATES GOING UP.
THE RATES WOULD NOT GO UP IT IS
PRICED INTO THE RATE ALL I'M
GONNA SAY THAT'S GONE INTO AN
EDITORIAL COMMENT LA CAIXA CLERK
WELL IT'S NOT A IT'S NOT
EDITORIAL ITSELF WORKS BUT. I
APPRECIATE THAT
ALRIGHT SO I HAD THAT SENATOR
ROTH AND THEN I HAD SENATOR.
GAINES.
WELL FIRST LET ME.
.
CERTAINLY ECHO THE COMMENTS OF
MY CHAIR WITH RESPECT TO THE.
THE. NATURE AND EXTENT OF WHAT
CAN ONLY BE DESCRIBED IS A
TRAGEDY FOR THOSE PEOPLE WHO.
HAVE SUFFERED AND CONTINUE TO
SUFFER THROUGH IT AND IT
CERTAINLY.
SOMETHING THAT WE'RE CHARGED
WITH DEALING WITH SUPERIOR BOTH
IN THIS COMMITTEE AND THE BIG
FLOOR WITH THE RED CARPET.
AND WE TAKE IT SERIOUSLY.
YOU KNOW THERE SEVERAL MOVING
PIECES TO. THE SENATOR YOUR BILL
AND AND.
CINEMAGOERS COMPANION BILL AND
SOME OF THEM.
OR.
.
MORE EASILY DEALT WITH AND
OTHERS YOU KNOW DIRECTING
CARRIERS TO ALLOW MORE TIME FOR
CONSTRUCTION FOR EXAMPLE.
DIRECTING CARRIERS TO.
.
PERMIT MULTIPLE RENEWALS DURING
THE CONSTRUCTION PERIOD THOSE
SEEM TO FIT INTO ONE.
CATEGORY.
THEN CHANGING THE BASIC
ARCHITECTURE OF THE CONTRACTUAL
DOCUMENT WHETHER IT'S COMBINING
COVERAGE IS.
OR OR INCREASING THE REPLACEMENT
VALUE THAT WAS CONTRACTED FOR.
IN MY VIEW.
ARE ANOTHER MUCH MORE DIFFICULT
ISSUE.
WELL OBVIOUSLY THE ARGUMENT IN
FAVOR OF DOING SOMETHING LIKE
THAT THE LATTER.
CHANGING THE ARCHITECTURE IS
VERY COMPELLING HERE.
NOT JUST BY THE TESTIMONY THAT
WE RECEIVED BY THE STORIES WE
READ ON A DAILY BASIS IN THE
NEWSPAPER AND BY THE ACCOUNTS
THAT YOU AND OTHERS HAVE.
ACCURATELY.
AND THANKFULLY PROVIDED TO US.
OF ABOUT CONSTITUENTS WHO ARE
TRULY SUFFERING.
THE ISSUE THOUGH IS WE WE
WHEREVER WE CALL AND WE'RE
REFORMING A CONTRACT.
COURTS OCCASIONALLY DEAL WITH
THAT.
AND I'M SURE THE INSURANCE.
COMMISSIONER IN THE DEPARTMENT
UNDERSTAND WHAT CONTRACT
REFORMATION IS ALL ABOUT.
AND IT HAPPENS NOT FREQUENTLY
BUT SOMETIMES.
IT HAPPENS.
TO MOVE WERE A CORD OR SOME
OTHER ENTITY REFORMS A CONTRACT
IN ORDER TO REFLECT THE TRUE
AGREEMENT OF THE PARTIES.
AGREEMENT THAT IS SOMEHOW
DEFEATED BY A MUTUAL MISTAKE OR
A FRAUD IN THE TRANSACTION.
IN SOME CASES SO THE QUESTION
HERE IS FOR EXAMPLE IF YOU HAVE
CONTRACTED FOR. A POLICY WITH A
HUNDRED AND FIFTY PERCENT OF
REPLACEMENT VALUE.
IS THAT THE AGREEMENT OF THE
PARTY.
WAS THEIR MUTUAL MISTAKE OF
FRAUD OR IN FACT SIMPLY BECAUSE
OF CIRCUMSTANCES IT DOESN'T COST
A HUNDRED AND FIFTY PERCENT TO
REPLACE ITS TWO HUNDRED AND
FIFTY PERCENT.
TO REPLACE.
AND SO.
YOU KNOW I WONDER.
.
IS THAT TRUE IS THE REMEDY HERE
TO ACTUALLY REFORM THE CONTRACT
AND EXPECT THE INSURANCE.
INDUSTRY TO DO SO.
YOU KNOW BY THE WAY GENERALLY
SPEAKING.
I THINK LIVES BUT A LONG TIME
SINCE I'VE BEEN A LAWYER BUT AS
A GENERAL PRINCIPLE I THINK
COURTS NEVER HAVE. THE RIGHT TO
REFORM A CONTRACT TO IMPOSE A.
AN OBLIGATION ON A PARTY OR
PARTIES WHO NEVER AGREED TO IT.
HENCE THE MUTUALISTIC BUSINESS.
CORD ONLY HAS THE OPPORTUNITY TO
REFORM AND I WOULD THINK THAT WE
PROBABLY FOLLOW THE SAME RULE WE.
ONLY HAVE THE OPPORTUNITY TO
REFORM A CONTRACT TO REFLECT
WHAT THE PARTIES REALLY AGREED
TO.
AND SO I GUESS MY.
SEMI RHETORICAL QUESTION IS IS
THE REMEDY HERE TO REQUIRE
INDUSTRY TO REFORM THESE
CONTRACTS.
TO DEAL WITH THIS TRAGEDY.
OR IS THIS SOMETHING WHERE WE
SHOULD HAVE A DEBATE ABOUT THE
PUBLIC POLICY.
AND TAP THE GENERAL FUND.
TO COVER THE LOSSES THAT ARE NOT
OTHERWISE COVERED BY THE
INSURANCE POLICIES OF BOTH THE
INDUSTRY AND THE CUSTOMERS ARE
CONSUMERS AGREED TO AT THE TIME.
BUT NOW APPEAR TO BE
INSUFFICIENT
SO I DO HAVE A QUESTION.
NOT FOR YOU SENATOR BUT FOR THE
DEPARTMENT HAS THE DEPARTMENT
CONSIDERED.
SUBMITTING A BUDGET PROPOSAL IN
ADVOCATING WITH THE
ADMINISTRATION TO ESTABLISH A
FUND TO DEAL WITH THE TRAVESTY
THAT WE HAVE GOING ON HERE WHERE
THE PARTIES HAVE AGREED BOTH IT.
TRADES THEY CALLED THEMSELVES
THE CARRIERS AND THE CONSUMERS
TO THE TERMS OF POLICIES.
BUT DUE TO THE MAGNITUDE OF THAT
SITUATION.
EVEN FACTORING IN THE INCREASED
COST OF CONSTRUCTION AND REPAIR
DURING TIMES OF.
OF TRAGEDY AND AND.
AND TURMOIL AS WE HAVE TODAY
WERE A HUNDRED AND FIFTY PERCENT
OF REPLACEMENT VALUE FOR EXAMPLE
OR TWO HUNDRED PERCENT. OF
REPLACEMENT VALUE WHEN YOU'RE
TALKING ABOUT SEVEN THOUSAND
FIVE HUNDRED HOMES ARE EIGHT
THOUSAND HOMES IS WOEFULLY
INADEQUATE HAS A DEPARTMENT
CONSIDERED SUBMITTING A BUDGET
PROPOSAL.
TO SET ASIDE PORTIONS OF THE
GENERAL FUND.
TO DEAL WITH THESE INDIVIDUALS
WHO WERE SUFFERING RATHER THAN
UP AND.
THE BILL THE CONTRACT PROCESS
THE INSURANCE INDUSTRY IN THESE
POLICIES BY CHANGING THEM IN A
WAY THAT THE PARTIES NEVER
CONTEMPLATED.
WHEN THEY SUBMITTED OF. WELL
PREMIUMS AND RATES TO YOU FOR
REVIEW.
AND WHEN THEY SUBMITTED POLICIES
TO CONSUMERS FOR REVIEW AND
SIGNATURE.
SENATOR I APPRECIATE YOUR
QUESTION THE DEPARTMENT HAS
HELPED SPONSOR NUMEROUS PIECES
OF LEGISLATION THAT ARE BEFORE
THIS BODY AND BEFORE THE
ASSEMBLY. THAT WOULD HELP TO.
BRIDGE THAT GAP THAT PEOPLE ARE
FINDING IN THEIR COVERAGE.
THEY ALL ALL OF OUR EFFORTS I
THAT AYE AS I UNDERSTAND THEM
HAVE BEEN. DEALING WITH.
FINDING COVERAGE THAT CAN BE
MADE AVAILABLE TO CONSUMERS TO
ADDRESS THIS.
WHETHER THROUGH. BETTER COVERAGE
FOR EXTENDED REPLACEMENT COST
BETTER ESTIMATES OF THE COST.
TO REPLACE THE DWELLING THIS
BILL LOOKING FOR COVERAGE WITHIN
THE CONTRACT.
NONE OF THESE.
EFFORTS ARE INTENDED TO BE.
SOMETHING THAT THE WOULD.
BE ANY DIFFERENT AND PRICING IN
TERMS OF.
WHERE THE MONEY COMES FROM IT
DOES COME FROM CONSUMERS?
IT IS A STATE WHERE WE DO HAVE
THIS RISK.
BROADLY AND.
I THINK WE DO HAVE TO LOOK AT
IT AS SOMETHING THAT COULD
HAPPEN TO ANY ONE OF OUR
COMMUNITIES.
AND THEREFORE I I THINK IT'S.
BROADENING THESE COVERAGES AND
MAKING SURE PEOPLE GET THE RIGHT
COVERAGE HAS BEEN OUR FOCUS WE
HAVE NOT.
SOUGHT TO DO ANYTHING WITH THE
GENERAL FUND TO MIND YOU
TYPICALLY DO THAT ON A
PROSPECTIVE BASIS NOT
RETROACTIVELY TO CHANGE.
THE ARRANGEMENT THAT THE PARTIES
NEGOTIATED YOU HAVE TO ADMIT
THAT THIS IS A TRAVESTY. AND A
TRAGEDY BEYOND ANY IMAGINABLE
TRAGEDY THAT WE COULD.
BEYOND ANY LARGER THAN ANY FIRE
THAT WE'VE EVER HAD ISN'T IT.
I WOULD SAY WE HAVE MADE
PREVIOUS EFFORT SOME OF THESE
BILLS FOR YOU ARE.
IMPROVEMENTS ON EFFORTS THAT
CAME AFTER PAST TRAGEDIES.
IN TWO THOUSAND THREE AND TWO
THOUSAND SEVEN FOR EXAMPLE.
WHERE YOU HAVE THESE?
WHERE THIS STORY FROM THE
PEOPLE WHO SUFFER IS SO APPARENT?
THAT.
IT BRINGS OUT THE BEST I HOPE
IN IN OUR LEGISLATORS AND.
AND BEING SYMPATHETIC TO THEM
THEY'RE NOT ASKING FOR SOMETHING
FREE. THEY'RE ASKING FOR
SOMETHING THAT INSURANCE
COVERAGE.
TYPICALLY COVERS IT'S A FIRE LOS.
THERE'S A CATASTROPHE LOADING IN.
INSURANCE RATES THAT RECOGNIZES
THAT EVERY SO OFTEN.
WE HAVE MAJOR CATASTROPHIC
EVENTS IN CALIFORNIA. INSERTS
ARE ALLOWED TO PRICE FOR THIS.
TYPE OF EVENT.
I DON'T KNOW THAT IT'S GOTTEN TO
A POINT THAT INSURERS WOULD SAY
THEY CAN'T HANDLE THESE EVENTS.
THEY CAN. I THINK THE ISSUE HAS
BEEN. THAT ARE AT ONE
SIGNIFICANT ISSUE ALSO ADDRESSED
AND PIECE OF LEGISLATION IS TO
GET PEOPLE'S ESTIMATES OF
REPLACEMENT COST.
TO BE CONSISTENT WITH WHERE THE
ACTUAL COSTS ARE. AND THEN HAVE.
EXTENDED REPLACEMENT COST LIMITS
AVAILABLE THAT ARE THERE TO DEAL
WITH THE DEMAND SEARCH.
THAT IS THE PURPOSE OF THE
EXTENDED REPLACEMENT COST IS TO
DEAL WITH TWO THINGS DEMAND
SEARCH. AND THE.
VICKERY THAT AN ESTIMATE IS
INACCURATE WE KNOW THERE CAN BE
A LITTLE BIT OF INACCURACY.
BUT.
A FIFTY PERCENT EXTENDED
REPLACEMENT COST SHOULD BE
ENOUGH. IF THERE IS A WELL DONE
ESTIMATE OF REPLACEMENT COSTS IN
THE FIRST PLACE.
TO TAKE CARE OF THIS SITUATION.
WELL.
I'M OBVIOUSLY CONCERNED ABOUT
THE RESPECT FOR THE CONTRACTING
PROCESS IN GENERAL.
THE LEGAL SYSTEM IN THE WAY WE
DEAL WITH CONTRACTS AND
REFORMATION.
.
I'M I'M A I YOU KNOW OBVIOUSLY.
COMPANIES ARE IN BUSINESS TO
MAKE JUDGMENTS BUT OF COURSE
PREDICTABILITY IS IS I WOULD
ASSUME.
UP A LARGE PART OF THE INSURANCE
INDUSTRY IN THE INSURANCE
BUSINESS WHICH IS HOW THEY'RE
ABLE TO RATE POLICIES AND ISSUE
POLICIES.
SO THOSE ARE SOME OF THE
CONCERNS I HAVE AT THE SAME TIME.
I DO. RECOGNIZE.
.
THE MAGNITUDE OF THIS TRAGEDY
AND I'M NOT ATTEMPTING TO RUN
FROM AND I DO THINK THAT IS A
STATE WE HAVE AN OBLIGATION TO
STEP UP. AND HELP THESE
INDIVIDUALS WHO WERE IN DIRE
STRAITS.
WHOSE INSURANCE POLICIES MAY BE
WOEFULLY INADEQUATE RECOVER FROM
THIS AND RECOVER THEIR LIVES.
I JUST HAVE SOME CONCERNS ABOUT
REFORMING INSURANCE CONTRACTS IN.
AND WHO WHO NEEDS TO STEP UP
WHETHER IT'S THE STATE. OR
WHETHER WE JUST PUT IT ON THE
BACKS OF THE INSURANCE INDUSTRY
AND LET THEM HANDLE IT SO THANK
YOU MISTER CHAIR THANK YOU
SENATOR ROTH AND SENATOR GAINES
AND THEN SENATOR PORTANTINO
SENATOR GAINES.
YEAH I GUESS.
.
THIS ISSUE DEMAND SEARCH.
.
I WOULD LIKE YOU CLARIFICATION
BECAUSE IT APPEARS TO ME.
IN THIS.
THESE VERY TRAGIC FIRE LOSSES
THAT WE'RE.
EXPERIENCE SAYING THAT THE
DEMAND SERVICER SEEMS LARGER IN
THIS PARTICULAR CASE THAT IT'S
BEEN HISTORICALLY.
BECAUSE SOME OF THE STORIES I
HAVE I AM HEARING IS THE COST OF
REPLACEMENT PER SQUARE FOOT.
IS UP DRAMATICALLY SO IF YOU
COULD.
CAN YOU HELP ME WITH THAT IN
TERMS OF WHAT'S HAPPENED
HISTORICALLY IN TERMS OF DEMAND
SURGED.
AND WHAT HAPPENED IN THESE
LATEST STUFF FIRES IN CALIFORNIA.
BR I AGREE OF FROM WHAT I'VE
HEARD AND I I DON'T KNOW THE
EXACT.
PERCENTAGES OF OF THE EFFECTIVE
DEMANDSURGED IN THIS PARTICULAR
INSTANCE BUT I UNDERSTAND TO BE
SIGNIFICANT.
THERE HAVE BEEN TIMES IN THE
PAST
WHERE THIS HAS BEEN A
SIGNIFICANT ISSUE WAS WELL.
IN THE.
SOUTHERN CALIFORNIA FIRES AND
TWO THOUSAND THREE AND TWO
THOUSAND SEVEN.
CERTAIN OF THE COMMUNITIES THAT.
THAT WERE BURNED UP IN THE
MOUNTAINS IN SOUTHERN CALIFORNIA.
DIDN'T HAVE READILY AVAILABLE.
DWELLINGS SERVE FOR PEOPLE THE
RENT
SO THEY'D HAVE TO MOVE FOR
PAYING MORE FOR THE FEW
DWELLINGS THAT WERE AVAILABLE.
THERE WEREN'T MANY CONTRACTORS
IN THAT AREA SO IN CERTAIN
COMMUNITIES THIS WAS CERTAINLY A
PROBLEM FOR THEM.
I WOULD SAY IN THE PAST THE
DEPARTMENT HAS WORKED TO TO TRY
TO GET ANSWERS TO VOLUNTARILY.
INCREASE THEIR.
EXTENDED REPLACEMENT COST
LIMITS
VOLUNTARILY TO PAY FIFTY PERCENT
FACTOR. WE DID A SET OF MARKET
CONDUCT EXAMS
AFTER THE TWO THOUSAND AND SEVEN
FIRES.
AND FOUND THAT SOMETHING LIKE
SIXTY PERCENT OF THE PEOPLE.
WHO HAD RELIED ON THE?
?
LIMITS THAT THE INSURER HAD TOLD
THEM.
STILL HAD LOSSES BEYOND THEIR
EXTENDED REPLACEMENT COSTS.
SO FIFTY PERCENT I THINK IS A
REASONABLE MARTIN.
TO A TO DEAL WITH DEMAND SEARCH
IT MAY NOT DEAL WITH AT ALL IN
THIS CASE BUT IT REALLY IS
IMPORTANT THAT FEE ESTIMATE OF
REPLACEMENT COST.
WHICH IN THE REGULATIONS IS
REQUIRED TO BE BASED ON
INFORMATION THAT IS UPDATED
ANNUALLY. IS UP TO DATE TO
REFLECT THE ACTUAL COST.
OF MATERIALS AT LEAST.
I KNOW IN THIS SITUATION THAT.
IT IS MORE DIFFICULT BEEN THAT
THERE IS PROBABLY A LACK OF
LABOR FOR THE AMOUNT OF DAMAGE.
AND THE US LABOR CAN A DEMAND A
HIGHER WEIGHT SO. THAT IT IS A
CONVERGENCE OF MANY IMPACTS THAT
HAS EXACERBATING THIS PARTICULAR
SCENARIO THANK YOU I APPRECIATE
THAT I.
I HAVE SOME OF THE SAME CONCERNS
CENTER ROTH.
.
BROUGHT UP IN TERMS OF THE
CONTRACT AND OBLIGATIONS OF A
CONTRACT AND. GOING BACK
RETROACTIVELY.
REALLY CONCERNS ME IN TERMS OF
SETTING UP PRESIDENT'S.
I'M VERY CONCERNED THOUGH ABOUT
YOUR CONSTITUENTS WHO HAVE LOST.
EVERYTHING AND IT LOOKS LIKE IN.
MANY CASES AS DESCRIBED HERE
THEY'RE NOT TO BE MADE WHOLE.
AND I'M WONDERING IF.
I WOULD.
BRING FORWARD THE IDEA AGAIN
THAT CENTER ROTH DID THAT. USER
OPPORTUNITY.
WHERE WE CAN WORK WITH YOU
CENTER MCGUIRE AND?
SENATOR DODD IN A AN EMERGENCY
ASK.
THAT WOULD COME FROM THE GENERAL
FUND THAT MAY MAKE FUNDS
AVAILABLE FOR THOSE WHO WERE.
HARMED FINANCIALLY.
AS A RESULT OF THESE FIRES.
AND.
AYE BY WOULD LIKE TO LOOK AT
OTHER ASPECTS OF YOUR BILL ALSO.
TO SEE IF WE CONTINUE TO WORK
ON THAT THAT.
I'M THINKING WE MIGHT BE ABLE
TO ACHIEVE SOME RELIEF FOR THOSE
FOR THAT WERE HURT.
UNITS IN ONE LAST THING ON THAT
REFORM THOUGH THIS IS A VERY
NARROW RETROACTIVE PIECE RIGHT
IT IS VERY LIMITED IN TERMS.
ITS APPLICATION.
AND.
OKAY COULD I WOULD LIKE TO IT
IS.
.
CARE ACROSS WISHY.
MAYBE BECAUSE I LIKE TO HEAR
FROM INDUSTRY TO IN TERMS OF.
.
HOW WE WOULD IMPLEMENT THIS?
?
GOOD LOOKING AT CONTRACT AT A
CONTRACTING GOING RETROACTIVE
THERE'S THERE'S OF EXPENSE
INVOLVED WITHOUT.
AND I GUESS I'M ALSO LOOKING
FORWARD THOUGH IN TERMS OF WHAT
THE OBLIGATION WOULD BE. IN THE
EVENT OF FUTURE CATASTROPHIC
LOSSES.
AND HOW DO YOU FACTOR THAT COST
IN.
TO POLICY HOLDERS THROUGHOUT.
CALIFORNIA.
BUT CAN YOU. EXPAND ON THAT
EDUCATE ME ARE IT'S A FIRST
QUESTION CONCERT MOMENT. YEAH
JUSTIN IN TERMS OF TIS.
PROVISION WE'RE LOOKING AT.
THERE WAS AMENDMENT HE.
WHICH IS BASICALLY THEY'RE
LOOKING AT COMBINING LIMITS
RIGHT OKAY.
SO I KNOW THAT THAT FROM AN
ACTUARIAL STANDPOINT INSURANCE
COMPANY KNOWS THAT NOT EVERY
CLAIM IS GONNA. HAVE MAXED OUT
LIMIT SO WE HAVE A CONCERT
CATASTROPHE WE HAVE THOUSANDS OF
INDIVIDUALS THAT HAVE.
.
THE POTENTIAL OF MAX OUT LIMITS.
THAT THERE SHOULD BE A HIGHER
OBLIGATION BUTWHEN YOU START
MIXING DIFFERENT COVERAGES THAT
HAVE. DIFFERENT RATES ASSIGNED
TO THEM EXACTLY THAT CREATES.
THAT ISSUE I'M TRYING TO GET A
HANDLE ON WHAT IS THE COST OF.
WHAT'S BEING PROPOSED IN SENATOR
THOUGHTS LEGISLATION WILL IF
IT'S RETROACTIVE THE COST OF THE
DB THAT INSURERS WILL BE PAYING.
FOR COVERAGE THAT WAS NEVER
PURCHASED AKA.
ALRIGHT AND SO WHAT WOULD BE THE.
OR BE THE CONSEQUENCE OF THAT I
MEAN.
IS IT SOMETHING THAT WOULD STAND
OR SOMETHING THAT WOULD BE
CHALLENGED IN COURT AND. YOU
KNOW IF THE BILL MOVES THROUGH
OF THE LEGISLATURE AS PROPOSED
IS COULD BE STRUCK DOWN IN THE
COURT AND THEREFORE THE BENEFITS
NOT PROVIDED. TO THE POLICY
HOLDERS I'M TRYING TO GET A
HANDLE ON.
THE PRESIDENT'S IS BEING SAT AND
WOOD BENEFITS TRULY BE PROVIDED
AND ARE THERE OTHER WAYS THAT WE
CAN ADDRESS THE ISSUE BECAUSE I
THINK THE ISSUES THAT ARE BEING
BROUGHT UP BY SENATOR.
DODD SAID REQUIRE A REAL.
ON THIS TRYING TO FIGURE OUT
THE BEST LINE OF.
THE BEST SOLUTION.
BUT.
SENATOR. GAINES AYE I THINK HE'D.
I DON'T KNOW OF INSURANCE
COMPANIES WOULD CHALLENGE IT BUT
I IF YOU LOOK AT THE BILL
SECTION FOR. I THINK THERE'S A
SAVINGS LAW SO THERE I THINK
THERE'S SOME KINDA DISSIPATION
FOR THE DEPARTMENT SIDE THAT'S
WHY THEY PUT THAT THERE THAT IF
ONE. ONE PORTION WE GOT STRUCK.
THE REST WOULD ACTUALLY KICKIN
SO I A THAT'S MY SHORT ANSWER. I
DON'T KNOW EXACTLY WHAT THEY'RE
THERE'S GONNA BE LAWSUIT BAY YOU
CAN LOOK AT IT JUST PLAINLY. IS
A SAVINGS COSTS AND THEY DIDN'T
DISSIPATE THAT THERE'S A
CONTRAST BECAUSE ISSUE AND
THERE'S.
AND I WOULD GO BACK TO WHAT
SENATOR ROTH SAID AND I
APPRECIATE DOT THAT WE WERE
TALKING ABOUT CHANGING CONTRACT.
RIGHT OKAY.
VERY WELL ABOUT THE AMENDMENTS
THAT HAVE BEEN PROPOSED.
.
I OF THE COMMITTEE.
LOOKS LIKE SENATOR DARDIS
ACCEPTED NUMBER OF THEM.
CAN YOU COMMENT ON THOSE THAT
HAVE BEEN ACCEPTED THE ONES THAT
HAVE NOT BEEN ACCEPTED.
.
WERE. I'D LIKE TO KNOW WHERE WE
ARE IN TERMS OF YOUR.
PERSPECTIVE.
THE WORKABILITY.
SURE I MEAN.
.
AND I'M GLAD YOU ASKED THAT
QUESTION BECAUSE THE INSURANCE
INDUSTRY AS I SAID WE'VE BEEN
WORKING WITH SENATOR AND. THERE
ARE SOME AREAS IN THE BILL THAT
WE ACTUALLY DECIDED THAT
SOMETHING THAT WE CAN DEAL WITH
AND ONE OF THEM HAVE TO DO WITH
THE RENEWAL. AND I'M CHANGING
FROM TWELVE MONTHS TO TWENTY
FOUR MONTHS THAT FOLKS TO BE
RENEWED FOR THAT AMOUNT OF TIME.
SO THAT'S SOMETHING THAT WE
DEFINITELY WERE.
WELDING THE GO AHEAD.
OKAY ALL RIGHT VERY WELL THANK
YOU I.
.
LIKE TO SUPPORT YOUR LEGISLATION.
I GOT CONCERNED RIGHT NOW.
I'M HOPING THAT SOME OF THESE
ISSUES CAN BE ADDRESSED MOVES
ALONG.
AND I AM VERY WILLING TO FOLLOW
THE LEAD OF SENATOR.
BROTH IN TERMS OF.
OF BUDGET ASK TO HELP THOSE
PARTIES THAT HAVE BEEN INJURED.
AS A RESULT OF FIRES THAT THANK
YOU SENATOR GAME TO BEFORE WE GO
TO SENATOR PORTANTINO AYE. IS
CROSS SINCE YOU'RE HERE LET ME
pJUST FOLLOW UP ON SENATOR GAINES
IS QUESTION.
.
COULD YOU ADDRESS THE ISSUE OF
THE IT IF THIS BILL GOES FORWARD
AND SIGNED INTO LAW.
AND.
.
AND THERE THAT ALL CERTAIN.
WERE CHANGING.
THESE THESE
SILOS OF FOR OUR COVERAGE
COVERING PRIMARY DWELLING OTHER
STRUCTURES CONTENTS.
LIVING EXPENSES THAT. WERE
BREAKING DOWN THE WALLS NOW YES
RIGHT CAN YOU. TALK ABOUT. THE
EFFECT OF THAT WOULD HAVE ON THE
ON THE MARKETPLACE SO YOU. WHEN
INSURERS ARE TRYING TO SELL THAT
NEXT POLICY TO. THE MILLIONS OF
OTHER CALIFORNIANS OUT THERE
THAT ARE GOING TO NEED
HOMEOWNERS INSURANCE AS THEIR
RENEWED WHAT WHAT EFFECT IS THAT
CAN HAVE ON THEIR.
ABILITY TO GET COVERAGE AT THAT
SAME LEVEL THEY'RE GETTING OUT
THE SAME COSTS.
I'M AN* AND I JUST THAT
QUESTION AS WELL. THOUGH I'M
IT'S GONNA HAVE IMPACT THREE
WAYS ONE IT'S WE DISCUSSED
SEVERAL TIMES IT WILL HAVE AN
IMPACT ON PRICE BUT AS FAR AS
COVERAGE INSURERS ARE NOT IF
THEY'RE NOT.
THEY'RE NOT GOING TO BE ABLE TO
OFFERS MUCH THE SAME KIND THE
COVERAGES THEY'RE OFFERING. NOW.
THAT RIGHT NOW THERE'S A PRETTY
RICH
COVERAGE IS THERE REALLY DIDN'T
JUST FOR JUST IN CASE SITUATIONS
SO I THINK SAID SOMEBODY MAY
HAVE. A THE.
HUNDRED AND SEVENTY FIVE
THOUSAND DOLLARS ON AT A
DWELLING THAT'S NOT THEIR HOUSE
BUTTON THE ME YOU KNOW MOST
FOLKS PROBABLY HAVE ABOUT A
TWENTY THOUSAND DOLLAR SHED THEY
DON'T HAVE FOUR HUNDRED SEVENTY
FIVE THOUSAND DOLLAR. LOSS.
SO WHAT WILL HAPPEN IS THAT
INSURERS WON'T BE ABLE TO OFFER
IS A BREACH OF POLICIES ARE
GENEROUS THE POLICIES TO
POLICYHOLDERS IT'LL BE LAST
CHOICE OUT THERE AS FAR AS
WHAT'S OUT THERE IN THE
MARKETPLACE. AND WE'RE IN A VERY
COMPETITIVE MARKET INSURERS WANT
TO BE ABLE TO COMPETE AND
PROVIDE DIFFERENT OPTIONS FOR
FOLKS AND RIGHT NOW I THINK
THERE ARE A LOT OF OPTIONS OUT
THERE FOR FOLKS THAT PEOPLE CAN
MAKE CHOICES ON WHAT WORKS FOR
THEM AND WHAT DOESN'T. BUT
THERE'S NOT GONNA BE THAT CHOICE
AVAILABLE ANYMORE ARE NOT AS
MUCH LET ME.
.
PUSH BACK A LITTLE BIT SO YOU
ARE EXAMPLE THEY USE IS THAT.
THE POLICY MAY ALLOW FOR
HUNDRED SEVENTY FIVE THOUSAND
DOLLARS FOR THE COVERAGE FOR IT
OTHER DWELLING. BUT THE PRACTICE
IS BEEN ONLY ABOUT.
A LOT OF PEOPLE DON'T HAVE THEM
AND THAT COSTS THERE.
MIGHT BE TWENTY THOUSAND
DOLLARS WILL.
THE AT THE INSURANCE COMPANY
SAYS OKAY SO I UNDERSTAND UNDER
THE NEW PROVISIONS UNDER THE
DODD BILL IF IT'S ENACTED THAT.
IF WE'RE GOING TO PUT A HUNDRED
SEVENTY FIVE THAT THAT'S HUNDRED
SEVENTY FIVE IS
AT SUBJECT TO BEING A PART OF A
CUMULATIVE. RIGHT BASED ON A
SERIOUS AND A TOTAL LOSS FOR
SERIOUS LAW CENTER EMERGENCY
CONDITIONS UNDER IS THE
PROVISION OF THE BILL.
SO THEY RIGHT THE POLICY NOW FOR
TWENTY FIVE THOUSAND TO TWENTY
THOUSAND WHY IS THAT GONNA
REALLY AFFECT THE MARKETPLACE Y.
THAT CAN AFFECT THE COST OF THE
COVERAGE. IT'S GONNA AFFECT THE
CHOICE AND THE WRITING A POLICY
THAT'S GONNA COVER LAST SO THE
PERSON WHO DOES HAVE A HUNDRED
THIRTY FIVE THOUSAND DOLLAR LOSS
THIS IS GONNA BE UNDER INSURED
NOW.
I CITY SO I IT BUT IT WOULDN'T
IN THAT CASE THAT THE AND SINCE
BEFORE IT WAS THAT WAS THE
THEORY THAT YOU GAVE HIGH LIMITS
BECAUSE IT WAS A PROPORTION.
EITHER COVERAGE NOW.
THERE ARE FEW PEOPLE THAT ARE
GOING TO FIT INTO THAT TWENTY
THOUSAND DOLLARS PACKAGE OF THE
TWENTY FIVE THOUSAND WOODEN.
WOODEN AN AGENT GO OVER AND SAY
LOOK IT WE PROVIDE OTHER
DWELLING COVERAGE.
FOR TWENTY THOUSAND DOLLARS
WHAT YOU HAVE ON YOUR PROPERTY.
I SEE IT'S WORTH A HUNDRED AND
SEVENTY FIVE WELL YOU MIGHT
CONSIDER THAT AS AN EXTENSION OF
SOME KIND OVER THE BASIC POLICY
BECAUSE YOU WANT TO HAVE THAT
COVERED BECAUSE. UNDER THE BASIC
POLICY ONLY GET A FOR TWENTY OR
TWENTY FIVE. IF IF I MEAN YEAH
I'VE COMPANIES OFFER THAT.
BUT ISN'T THAT CONSISTENT WITH
LIKE REPLACEMENT COST TO
REPLACEMENT COST PLUS ANOTHER
AND THAT'S WHAT EXTEND THAT
REPLACEMENT COST COVERAGE IS FOR
RIGHTS THAT'S IN ADDITION OVER
WHAT PEOPLE CAN ONLY BY THE
MARKETPLACE SIR THAT MAYBE THE
AYE ABOUT STANDARD HOWEVER YOU
CLASSIFY THEM. BUT IS THAT HOW
THEN THE MARKETPLACE IS
ADJUSTING TO.
THAT ARE POTENTIALLY WOULD
ADJUST TO THIS ISSUE THAT'S
BEFORE US I THINK WHAT'S GOING
TO HAPPEN SENATOR IS YOU'RE
YOU'RE GOING TO CHANGE THE WAY
THAT THE CONTRACT WORKS IN THE
COVERAGE WORKS. AND IT'S RIGHT
NOW YOU HAVE A GENEROUS POLICY
THERE THAT IS GIVING FOLKS
DIFFERENT ABILITIES TO COLLECT
WHERE THEY NEED TO. GO THE OTHER
EXAMPLE I'VE AGO DO IS MAYBE.
BECCA CONTENTS COVERAGE PARTY A
POLICY.
THERE ARE.
AS THE MORE GENEROUS POLICIES
OUT THERE WHERE SOMEBODY WILL BE
ABLE TO GET. UP TO THEIR LIMIT
WILL BE EIGHTY PERCENT.
OF THEIR HOME VALUES SO EIGHT
HUNDRED THOUSAND DOLLARS OF A
MILLION DOLLARS IF THEY EVER
REALLY HIT THAT CONTENTS RIGHT.
BUT THEN THERE MAY BE OTHER
COULD.
POLICIES THAT ARE FIFTY PERCENT
OF THAT THE DISK THERE'S GOING
TO BE LESS ABILITY TO OFFER
THESE RICHER MORE GENEROUS
POLICIES TO ANYBODY BECAUSE OF.
IT THE PRICE ISN'T GOING TO BE
ABLE TO BE REFLECTED IN IT OR
FOLKS ARE NOT GOING TO BE ABLE
TO AFFORD IT IT'S JUST GOING TO
BE LESS AVAILABILITY.
OKAY.
.
THE I AM WORRIED ABOUT THIS THIS.
CHANGE BUT I NOT THIS SURELY I
DIDN'T FIND THAT THAT SO
CONVINCING THAT THE MARKETPLACE
WOULDN'T JUST.
BECAUSE AS THEY ADJUST FOR
DIFFERENT COVERAGE FROM THAT
REQUIREMENTS THAT THAT
HOMEOWNERS MIGHT HAVE BASED ON
THEIR. YOU CAN I MEAN THE
MARKETPLACE MAY ADJUST BUT IF IT
JUST THE QUESTION IS IF THEY
GONNA JUST IN A WAY THAT
CONSUMERS THROUGHOUT THE STATE
WANTED TO ADJUST.
AND THAT'S THE IMPACT IS THAT
IT'S GOING TO BE IMPACTING ALL
CALIFORNIANS AND NOT SOMETHING
THAT YOU KNOW NEEDS TO BE
CONSIDERED BY EVERYBODY IF
THAT'S SOMETHING THAT. THEY'RE
WILLING TO DO I MEAN A PRICE IN
PARTICULAR YOU'RE GOING TO WIND
UP WITH.
FOLKS IN SOME AREAS PAYING FOR
FOLKS IN OTHER AREAS.
OKAY THANK YOU FOR THAT. WE HAVE
SENATOR PORTANTINO AND THEN WE
HAVE SENATOR HUESO.
MISTER CHAIR WITH WITH ALL
RESPECT AND YOU HAD A ONE WAY
DIALOGUE IN YOUR THE CHAIR YOU
CAN DO WHATEVER YOU WANT BUT I
WAS WONDERING. IF OUR WITNESS
COULD RESPOND TO THAT TO GIVE
YOUR COMMITTEE MEMBERS SOME.
MORE INFORMATION I THINK JUST BE
PATIENT I THINK WE'RE GONNA
PROBABLY HAVE THAT OPPORTUNITY
SO JUSTICE GIVEN ADAMANT THE
CENTERS HAVE BEEN VERY PATIENT.
AND WANTED TO ASK THEIR
QUESTIONS ARE ENOUGH THANK YOU
SENATOR PORTANTINO THANK YOU
THANK YOU MISTER CHAIR AND NOW.
I THINK WHAT.
HAS A SOLVE.
I DON'T WANT YOU STORAGE
STRUGGLING WHY IT WHY THIS ISSUE
IS.
THIRTY UNIQUE IS.
THE LEVEL OF DEVASTATION.
WAS UNIQUE AND I THINK THAT'S
WHY WE'RE HAVING CONVERSATIONS
AT.
PERHAPS HAVEN'T.
IN HAD BEFORE ON. YOU KNOW.
TALKING ABOUT THE NATURE OF
CONTRACTS AND BUDGET. REQUESTS
AND. LISTENING TO THE TO THE
PASSION OF. THE FOLKS WHO'VE
BEEN AFFECTED SO LIKE TO START
BY COMPLEMENTING THE AUTHORS FOR
BRINGING THIS FORWARD IN THE
CHAIR FOR WORKING SO DILIGENTLY.
TO TRY TO TO GET TO THE HEART OF
THE MATTER AND.
INTRIGUED BY THE GENERAL'S
COMMENT AND SEEING BIPARTISAN.
YOU KNOW AGREEMENT THAT YOU KNOW
THERE'S LOTS OF WAYS TO SOLVE
THIS PROBLEM. AND I THINK THAT'S
A VERY VALID STRONG ARGUMENT.
BUT I ALSO THINK IT'S BEING
CRYSTALLIZED BECAUSE THE BILLS
BEFORE US WE WERE HAVING THAT
CONVERSATION.
BECAUSE THE BILL WAS INTRODUCED
TO SORT OF FORCE US.
TO HAVE THOSE CONVERSATIONS AND.
YOU KNOW THE THINK THE THE
AUTHORS HAVE TAKEN A NUMBER OF
SIGNIFICANT AMENDMENTS.
EVEN NON. F. WHERE.
MAYBE FOUR HOURS AGO THERE
WASN'T AGREEMENT ON THAT.
THE OTHERS BIN.
YOU KNOW MOVEMENT TO GET
EVERYBODY NOW TWO TO AGREE WITH
HER A WAY TO PROCEED.
WITH HALF AND I THINK ONE WAY
TO KEEP THE BUDGET.
REQUEST CONVERSATION LIVES KEEP.
THE BILL MOVING FORWARD BECAUSE
IT'S FORCING US TO HAVE THAT
CONVERSATION AND. AND I YOU KNOW
I I LIKE THE FACT THAT THAT THE
AUTHORS IN THE CHAIR BEEN
WORKING ON IT.
AND YOU KNOW I AGREE WITH HAT
GENERAL'S COMMENTS BUT ALSO
UNDERSTAND THAT THIS IS UNIQUE.
AND I YOU KNOW I I CAN SUPPORT
THE EFFORT BEFORE US TODAY AND I
CAN SUPPORTER TO.
WITH THE.
TAKING ALL OF THE AMENDMENTS
EXCEPT SO I JUST WANTED TO
MAKE SURE THAT THAT I THAT I
EXPRESS THAT. BUT I THINK THAT'S
IMPORTANT BECAUSE I THINK IT'S
DRIVING THE OTHER CONVERSATION.
AS WELL SO.
JUST WANT TO ADD THAT THANK YOU
SENATOR PORTANTINO CENTER HUESO.
THANK YOU AND. YOU KNOW I CAN'T
IMAGINE BEING IN YOUR SEAT RIGHT
NOW HAVING.
HAD DEALT WITH THIS IN YOUR
COMMUNITIES AND.
AND JUST THE THE AMOUNT OF.
HARM THAT HAS COME.
TO THE PEOPLE OF YOUR DISTRICT.
AND.
THE DAMAGE TO WHAT WERE VERY
BEAUTIFUL COMMUNITIES IN THE
STATE OF CALIFORNIA.
I THINK WE HAVE AN OBLIGATION TO
DO AS MUCH AS WE CAN.
TO RESTORE. THE VIBRANCY OF
THOSE COMMUNITIES AND TO TO
BRING PEOPLE BACK TO THEIR HOMES
I DON'T KNOW THAT WE CAN.
HOWEVER.
FULLY COMPENSATE EVERYBODY.
FOR WHAT THEY HAVE LOST
ESPECIALLY.
BECAUSE LIVES AREN'T IN THE WAR
IN THE MIX.
IN THE IN THE LOSSES.
BUT IT'S ALSO IMPORTANT TO
ENSURE THAT.
.
MOVING FORWARD WE'VE WE'VE.
WE MAKE THE MOST RESPONSIBLE
DECISIONS.
AND HOW WE BRING.
HELP TO THE PEOPLE OF THESE
COMMUNITIES.
I THINK MORE WORK NEEDS TO BE
DONE IDON'T THINK THE BILL.
GETS TO.
THE WHAT WE'RE TRYING TO
ACCOMPLISH OR THINK WHAT YOU'RE
TRYING TO ACCOMPLISH.
HOW THE IN?
TO ENSURE THAT EVERY MAN
EVERYBODY GETS EVERYTHING THEY
SIGNED UP.
THAT POLICY SHOULD BE THE GOAL.
WHAT'S FAIR IS FAIR WOULD
PEOPLE PAID FOR THEY SHOULD GET.
AND INSURANCE COMPANIES SHOULD
BE HELD RESPONSIBLE FOR MAKING
PEOPLE HOLE UNDER THEIR POLICIES.
THAT SHOULD BE.
THE THE PRIMARY PURSUIT OF
ANYTHING DEALING WITH THE
INSURANCE COMPANIES.
AND I THINK WE OWE THE PEOPLE
THESE COMMUNITIES A LOT MORE
THAN THAT AS WELL.
BUT APPROACHING IT TO WHERE WE
HAVE SOME RESOURCES TO PROVIDE
SUPPORT I LIKE THE IDEA.
OF OF LOOKING UNDER BUDGET TO
USING THAT AS A MEANS OF
PROVIDING ASSISTANCE THESE
FAMILIES.
WHAT WHY SHOULD THEY HAVE TO PAY
FOR A ASSISTANCE IN THIS PROCESS
OF FATS?
I KNOW WHAT SOME PEOPLE MAY NEED
SOME PEOPLE MAY NOT.
UNDERSTAND THEIR POLICIES WELL
ENOUGH
I THINK THEY NEED HELP
UNDERSTAND THEIR POLICIES THEY'D
NEED TO. UNDERSTAND HOW TO
MAXIMIZE THE BENEFIT OF THE
POLICIES GETTING.
SOME ASSISTANCE FROM OUR.
INSURANCE COMMISSIONER'S OFFICE
OR IF WE HAVE.
CONSUMER.
PROTECTION.
SIDE OF OF OUR STATE.
WHAT WE COULD PROVIDE SOME
FUNDING TO PROVIDE ASSISTANCE TO
MAKE SURE THE PEOPLE UNDERSTAND
THEIR POLICIES TO THE? SO
THEY'RE FULLY COMPENSATED.
WHAT WE CAN GO? WHERE THEY CAN
GO TO THE INSURANCE COMPANIES
SAY MAKE ME WHOLE AS SOON AS
POSSIBLE?
AND AND.
WERE OWED OUR MONEY NOW I WILL
I WOULD SUPPORT. MOVING DOWN
THAT PATH.
LET'S LET'S LOOK AT HOW WE CAN
USE.
THE CURRENT SYSTEM AVAILABLE TO
US YOUR BILL MAY TAKE
UNTIL OCTOBER TO FINALIZE.
LET'S LOOK AT HOW WE CAN ADD
THIS TO OUR BUDGET PROCESS.
LOOKING AT.
THE BUDGET ASK LOOKING AT A
PROCESS THAT'LL HELP.
BUT I'D.
PROVIDE A SUPPORT.
TO THE PEOPLE OF THESE
COMMUNITIES.
I WOULD ENCOURAGE YOU TO LOOK
ARE ARE CHAIR HERE.
TO WILL INSURE THAT.
WE'VE WE PICKED THE RIGHT
APPROACH.
THERE ARE LEGITIMATE CONCERNS
THAT WE NEED TO CONSIDER.
IT HAVE BEEN.
LOOK AT CHANGING THE THE TERMS
OF A CONTRACT AFTER IT'S BEEN.
FINALIZED AND PROVED.
THAT CONCERNS ME VERY MUCH AND
AND WRONG MESSAGE
TO.
THE BUSINESS ENVIRONMENT THAT.
.
THAT.
OUR STATE IS NOT GONNA HONOR.
THE CONTRACTS THAT WORD INTO IN
GOOD FAITH.
THAT'S A THAT'S A WRONG MESSAGE
TO SEND I HOPE WE CAN GET AROUND
THAT AS MUCH POSSIBLE NOT DO
THAT.
HERE HERE.
YOUR BILL. COMES TO CLOSE TO
DOING THAT BUT IT ALSO.
.
ATTEMPTS TO TO TO TO GAME THE
SYSTEM A LITTLE BUT THAT IS NOT
I I DON'T THINK IT'S FAIR.
BUT WHY NOT COMPENSATE PEOPLE
ONE HUNDRED PERCENT.
FOR WHAT THEY'RE OWED AND WHAT
THEY'D BE LOST AND WHAT THAT
INSURANCE COMPANY.
PROMISED.
CHIU TO PROVIDE.
THAT'S THAT'S WHAT WE SHOULD BE
ANGLER BEFORE AND.
LET'S WORK ON THAT.
.
I WORK WITH YOU ON THAT AND AND
I HOPE MEMBERS OF THE SENATE
WILL BE.
WILL END OF WORK ON THAT AS WELL
LET'S LET'S LOOK AT THE BUDGET
PROCESS AND LETS PEOPLE BREAK
RELIEF.
TO THE PEOPLE OF THESE COMMUTER
SERVIC POSSIBLE.
OUR EXIT IRWIN RESPOND YEAH
CENTER I WITH ALL DUE RESPECT I
WOULD I WOULD WORK WITH YOU IN A
IN A HEARTBEAT ON THIS IF WE CAN
YOU KNOW MOVE DOWN THAT LINE I
WOULD ARGUE.
THAT THERE'S PROBABLY A GREATER
PRECEDENT AGAINST THE STATE
COMING YEAR AND IT AND DOING IT
THE STATE WANTS TO DO THAT. YOU
KNOW CEOS SO BE IT I THINK WE
TALK ABOUT GAMING THE SYSTEM.
I THINK THE INSURANCE COMPANIES
ARE IN A BETTER POSITION TO GAME
THIS A THE SYSTEM. THAN ANYONE
ANY CONSUMER POSSIBLY.
AS I SAID IN MY OPENING REMARKS
THE CONSUMER EVEN THE MOST
SOPHISTICATED INSURANCE.
CUSTOMER COULD NEVER HAVE
ANTICIPATED THE MARKET RATES
THEY DON'T HAVE ACTUARIAL SO
THEY DON'T HAVE WORKED AT RISK
THERE BEEN ENOUGH.
INCIDENTS IN THE STATE OF
CALIFORNIA ALONE THAT SHOULD
HAVE MADE IT NECESSARY CERI. AND
ALSO FRANKLY FROM.
OBLIGATORY STANDPOINT
FOR THE INSURANCE COMPANIES TO
LET LOOK PUT THEIR CUSTOMERS ON
NOTICE WE HAVE A NUMBER OF
DIFFERENT CONSUMERS. THAT.
ACTUALLY DID GO TO INSURANCE
COMPANIES TO TRY TO GET MORE
COVERAGE AND WERE TURNED DOWN
THIS WHAT WERE. WERE HEARING SO
THE IDEA THIS IS A CONTRACT AND
YOU'VE GOT A CONSUMER THEY'RE
SITTING ON ONE SIDE NOT
REPRESENTED.
A AND IS THAT THIS IS.
A NEAT TIDY CONTRACT IT JUST I
THINK.
YOU'RE IN IN. IN SPEAKING FOR MY
CONSTITUENTS ARE ACTUALLY MYSELF.
YEAH AS AN INSURANCE EMPIRE.
DOESN'T HOLD WATER.
OKAY DOT I HAVE TO ADD
SEASONINGS HIS MOTHER.
ADDING ALL SAID I THOUGHT SO I
LET IT EITHER THEY ARE I I
WANTED TO.
.
I THINK AT THAT THE AUTHOR
CERTAINLY FOR BRINGING THIS BILL
FORWARD AND FOR THE THOUGHTFUL
CONVERSATION AND FOR THE MANY.
WITNESSES THAT WE'VE HEARD FROM
TODAY DO I.
FOR ALL OF US.
WHAT WHEN I WHEN I THINK ABOUT
THIS ISSUE I THINK THAT WHAT
THIS IS ME THROUGH SIMPLE WHAT
IF THIS IS ME AND MY FAMILY?
EYES ICTIMS IN THIS AREA. AND I
ALSO THINK OF ME AS A CONSUMER
OF INSURANCE AND WHAT THIS IS
GOING TO AFFECT I HAVE THE AN
EFFECT ON ME. A BUT I CERTAINLY
TRY TO PERSONALIZE IT EAT AS I
KNOW THAT SO MANY PEOPLE HAVE X..
FELT DIRECTLY OFF WHO'VE COME TO
TESTIFY BEFORE US TODAY AND I'D
SAY IF IT HAPPENED TO ME I
WOULDN'T WANT ANYBODY BETTER
THAN SENATOR DODD AND SENATE
REQUIRED THE MY SENATORS.
BECAUSE OF THEIR TENACIOUS
ADVOCACY I DON'T THINK THERE'S
BEEN A MEETING. THAT I'VE BEEN
IN THE LAST. MANY MONTHS WHERE
SENATOR MCGUIRE CENTER DOT
HAVEN'T MADE INCREDIBLY
IMPASSIONED.
PLEASE INFORMATION ABOUT ALL
THAT PEOPLE ARE GOING THROUGH.
AND.
IT THAT IT.
THAT THEY'RE JUST COULDN'T BE A
STRONGER FIGHTERS.
UP FOR THEIR COMMUNITY THEN
THESE TWO GENTLEMEN ON THE
WINNIE THE WITH WITNESSES
INDICATED THAT AND WE CERTAINLY
AFFIRM THAT HERE. THAT THEY'VE
BEEN REAL CHAMPIONS AND AND
THAT'S A CHALLENGE IN LOOKING AT
THIS PROPOSAL HERE BEFORE US THE
SAME THAT WILL. HAPPEN AND
LOOKING AT SOME OF THESE OTHER
BILLS.
.
BUT THAT OF THE FOCUS THAT THAT
I YOU TAKE YOURSELF AWAY FROM
THAT.
THE MOTIONS OF AT THE MIDDLE OF
IT. ANY SAY. IS THIS THE RIGHT
WAY TO PROTECT CONSUMERS TODAY.
AND THE ISSUES OF CONTRACTS ARE
RELEVANT HERE. HAND HOW WE
RESPECT CONTRACTS
AND WHAT ARE THE EFFECTS ON
CONSUMERS GOING FORWARD BECAUSE
WHILE THERE ARE THOUSANDS OF
PEOPLE HAVE BEEN AFFECTED HERE
AND WE'RE TRYING TO. DO
EVERYTHING WE CAN TO HELP THEM
IN THEIR SOME IN. SOME
SUGGESTIONS THAT ADDITIONAL
SUGGESTIONS MADE HERE.
IN THIS CONVERSATION.
AND. WE HAVE MILLIONS OF PEOPLE
HAVE HOMEOWNER POLICIES AROUND
THE STATE.
AND THEY'RE GONNA BE UP FOR
RENEWALS AND THE CHOICES THAT WE
MAKE HERE ARE GOING TO HAVE AN
EFFECT ON THEM.
AND.
ABOUT THE AVAILABILITY.
HAD ABOUT THE COSTS.
AND.
.
AND THOSE ARE THINGS THAT ARE
CHALLENGING WE KNOW FOR OUR
CONSUMERS BECAUSE IT'S NOT EASY
TO READ THESE POLICIES I WENT
BACK AND READ MINE AGAIN.
I RECENTLY AND THEY'RE NOT EASY
TO GO THROUGH AND. WE'VE HAD
SOME CONVERSATIONS JUST THIS
WEEK ABOUT THINGS THAT WE MIGHT
DO TO CREATE GREATER CLARITY AND
TRANSPARENCY SO CONSUMERS KNOW.
WHAT THOSE CHOICES ARE SO THEY
CAN MAKE GOOD CHOICES BECAUSE OF
THE HEART OF IT WE WANT THE
CONSUMERS TO MAKE GOOD CHOICES?
I'M.
BUT THE THE NO THE POINT THE
SENATOR HUESO MADE IT SO
RELEVANT WHICH IS THAT. HIGH IF
INSURERS ARE FALLING DOWN ON
THEIR OBLIGATIONS IN WHICH
PEOPLE HAVE PAID FOR.
THAT THAT CERTAINLYHAS TO BE AT
THE HIGHEST PRIORITY TO MAKE
SURE THAT THOSE OBLIGATIONS ARE
MET.
I DON'T THINK THAT'S THE
DIRECTION THAT THIS BILL IS
ATTEMPTING TO GO BUY IT LEAST IN
A DIRECT FORM. BUT I CERTAINLY
THINK IT'S SOMETHING THAT THAT
CERTAINLY GETS MY ATTENTION AND
I KNOW ALL OF OUR OUR ATTENTION.
BUT THE THE THE CHALLEGING AND
CERTAINLY THAT THAT THERE IS THE
ISSUE OF OF.
OF RETROACTIVITY TO SOME EXTENT.
DE EXTENSION OF TIME THOSE ARE
ALL TOTALLY REASONABLE
PROVISIONS OF YOUR BILL SENATOR
DIED AND I THINK AND I'M HAPPY
TO SUPPORT THE US BUT.
IN THE HEART OF THE BILL IS THIS
SEPARATE CAN DOWN OF THE SILOS
OF COVERAGE.
AND ARE TAKING WHAT OF BEEN
CONTRACTUAL OBLIGATIONS THAT
CAME OUT OF OFFERS.
IT CAME OUT OF THE ACTUARIAL
REVIEW OF US OUT OF OF OF RISK
AND AND AND OBLIGATIONS.
THAT THAT'S A BIG THAT'S A BIG
ASKING HERE.
BECAUSE IT'S A.
IT IS CHANGING THE RULES.
UNDER THESE CONTRACTS
AND IT'S GOING TO HAVE IMPACTS
BEYOND JUST TRYING TO MAKE
PEOPLE WHOLE IN THEIR
COMMUNITIES PANDA AND THAT'S
WHAT. PLEASE ME.
I'M COMFORTABLE AT THE MOMENT AT
LEAST WITH WHAT WHAT'S BEING
PROPOSED AND THAT.
I I'D LIKE TO WORK ON THIS THE
MORE I APPRECIATE ALL THE
CONVERSATIONS THAT WE'VE HAD ON
THIS.
I'M NOT.
I'M INSTRUCTED THAT BECAUSE THIS
BILL IS NOT KEYED FISCAL.
IMMEDIATE DEADLINE PRESSURE OF
ACTING UPON IT TODAY.
AND THAT IS IT POSSIBLE THAT WE
COULD TAKE A LITTLE MORE TIME IN
THE NEXT FEW WEEKS TO TRY TO.
WORK OUT SOME OF THESE SIDE.
THIS THE DIFFERENCE IS THAT WE
HAVE IN IN THE AREA OF AMENDMENT
EITHER THAT YOU HAPPEN THAT
WILLING TO ACCEPT TODAY SO.
THAT'S KIND OF MY BY FEEDBACK ON
THE ISSUE BUT CERTAINLY DOESN'T
COME OUT OF ANY LOOK. AT
ANYTHING BUT GREAT ADMIRATION
FOR YOUR LEADERSHIP ON THIS AND
IF WE CAN WORK ON IT SOME MORE
AND CERTAINLY. COMMITTED TO
TRYING TO DO THAT AYE I GUESS OF
ITS CHAIR I GUESS I I DON'T HAVE
ONE QUESTION ANSWERED THROUGH
THE CHAIR.
I'D DO THE INSURANCE COMPANY
COMPANIES STE I DO THEIR
ACTUARIAL IS WHEN THEY'RE DOING
THEIR RATE MAKING.
I DO THEY.
.
FACTORY IN INVERSE
AND THE IDEA OF THE THIRD PARTY
IS GOING TO PAY. ALL THEIR
CLAIMS IN THE FACTORY AND FOR
LATER RATES DOWN THE LINE TO
REDUCE RATES FOR HOMEOWNERS
EVERYWHERE BECAUSE NOW EVERY
RATED THAT'S EVER BEEN PAID TO
THEM IS PURE PROFIT.
WELL LOOK AT US ADMITS THAT. I
I'M JUST SAYING THIS IS A WE
TALK ABOUT ONE SIDE OF THE
EQUATION HERE IN THIS ROOM.
ABOUT WHAT'S IMPORTANT FOR
INSURANCE COMPANIES BUT WE
NEGLECT THE OTHER SIDE OF THE
COIN OF WHAT'S IMPORTANT FOR OUR
CONSUMERS. SO WITH ALL DUE
RESPECT I.
I REALLY WHAT I WOULD LIKE IN
ALL USES MY CLOTHES.
WHAT WHAT I WOULD REALLY LIKE
RESPECTFULLY ASK FOR THIS
COMMITTEE?
IS TO GIVE US A COURTESY VOTE ON
THIS TODAY AND LET US WORK THIS
OUT BEFORE WE GOT A THIRTY DAYS
BEFORE THIS COMES TO THE.
BEFORE THAT THE THE SENATE
FLOOR.
AND WE CAN WORK WITH THE
INSURANCE COMPANY WE CAN WORK
WITH THE ADMINISTRATION. A
CENTER HUESO WELL I'D LOVE TO GO
TO THE GOVERNOR'S OFFICE WITH
YOU TO SEE IF THERE'S ANY. HOPE
OR HELP OF THERE. BUT THAT'S
REALLY WHAT.
WHAT I'M LOOKING FOR AND WOULD
RESPECTFULLY ASK FOR YOUR VOTE?
OKAY WILL. WILL TAKE THAT AS
SENATOR DODD'S CLOSE I KNOW
THERE'S SOME COLLEAGUES IN THAT
THEY HAVE TO HAVE SOME.
OBSERVATIONS ARE COMMENTS AS WE
FINISH THIS UP I GO TO SENATOR
NEWMAN WHO HASN'T SPOKEN YET
FIRST ATI AND AND TO THE FOLKS
HERE I WANNA APOLOGIZE WE THAT
WE HAVE YOU MAY KNOW EVEN
INSURANCE COMMITTEE HEARING
GOING AT THE SAME TIME THAT'S
WHY. FOLKS KEEP GOING IN AND OUT
SO TO OUR APOLOGIES.
MAJOR LEAGUE BASEBALL MANAGED
PLAY HUNDRED SIX TWO GAMES HERE
IN TEAMS DON'T SCHEDULE TWO AND
A TWO TEAMS THE SAME TIME BUT WE
CAN'T DO THAT. CRIME.
BUT IS SO I I WANT TO COME BACK
TO IT SOONER HUESO TOUCHES
SOMETHING EH ABOUT.
THE NOTION WHICH I THINK IS IS
VALID OR THOUGH THE WORTHY GOAL
OF ENSURING THAT FOLKS ARE BOTH
FULLY COMPENSATED. THAT MADE
HOLE BY AND AND IT'S IT'S VERY
CLEAR THAT EACH THESE ARE
NECESSARILY THE SAME THINGS. YOU
YOU CAN FULLY COMPENSATE
SOMEBODY AND AND I THINK THAT
SHOULD BE A IT AN ABSOLUTE. THAT
BASELINE REQUIREMENT THAT
INSURANCE COMES TO THAT BUT THAT
WILL NOT ALWAYS MAKE THE POLICY
HOLDER FULLY HOLE. GUY AND AND
SO THAT SEEMS TO ME THAT IS WHAT
WERE WRESTLING WITH HERE A
VERTICALLY WHERE.
WE'RE AND EVERY DO THAT
RETROACTIVELY.
AND THE UNINTENDED CONSEQUENCES
ACROSS THE WHOLE SYSTEM THAT MAY
ENTAIL AND SO I JUST WANT YOU
THAT THAT IS WHAT I'M WRESTLING
WITH HERE.
I THINK IT IS IT IS IS GOOD AND
NECESSARY IN FACT TO LOOK
FORWARD TO AND THINK ABOUT HOW
WE CAN PLAN THROUGH A RAPIER
STRUCTURE TO OUR PROCESS
CALIFORNIA. TO TAKE IN ACCOUNT
THE LIKELIHOOD OF FUTURE SUCH
EVENTS BUT AS IT RELATES TO THIS
ONE WE ARE IN A CAPE GO HERE.
BECAUSE IT IS DIFFICULT.
AND IT IN IN IN SOME WAYS NOT.
NECESSARILY POSSIBLE FROM A FROM
TO MY MIND FROM A POLICYMAKING
STANDPOINT. TO DO BOTH THINGS AT
ONCE AND SO IN THIS IS WHAT I'M
GRAPPLING WITH YOUR.
ANNA AND I ACTUALLY DUH DUH I
DIED WELCOME BY SENATOR GLAZERS
A SUGGESTION THAT WE GIVE THE
SOME MORE TIME TO THANK YOU. HIS
SENATOR.
CENTER GAINES INSISTS SENATOR
GALGIANI DO YOU. HAVE LEAVING
BRING THIS TO A CLOSE TO RECAP.
I JUST WANTED TO OF. THE SUPPORT
YOUR SUGGESTION AND I WOULD HOPE
THAT THE AUTHOR WOULD BE WILLING
TO WORK WITH THE COMMITTEE WE
HAVE TIME THIS IS.
.
NOT A NOT A FISCAL BILL. AND SO
MY THINKING IS IF WE HAVE TIME
TO JUST GO THROUGH AND FIGURE
OUT. OF WHAT WE CAN DO I THINK
WE COULD COME TO A SOLUTION.
THAT'S GOING TO HELP YOUR
CONSTITUENTS.
OKAY ANY OTHER COMMENTS.
SENATOR GALGIANI IF THE AUTHORS
DON'T WISH TO PUSH THIS.
FORWARD I'M I'M WILLING TO MAKE
A MOTION ON THE BILL.
PRIDE ANYBODY ELSE.
ALRIGHT.
SO I HAVE AND I DON'T HEAR A
MOTION IS THERE A MOTION ON THE
BILL I JUST MADE A MOTION.
OKAY.
I THOUGHT IT WAS A FORM OF THE
QUESTION IT THAT'S A FORM OF
ENGLISH AND IF.
OUR BLEED. IS IT THAT THE
AUTHORS STRAYED DO NOT WANT TO
WAIT A WEEK OR TWO I THINK WE'LL
I THINK THAT THE RULES. OF THE
COMMITTEE SYSTEM ALLOW YOU TO DO
THAT ANYWAY.
AND I JUST FEEL LIKE IT'S
IMPORTANT.
THEY HAVE A VOTE UP OR DOWN
TODAY.
ON SOMETHING THAT'S SO IMPORTANT
AND THE REALITY IS IS I'VE TAKEN.
HAD WE BOTH HAVE TAKEN.
THE NEGATIVE PORTIONS.
OF THIS BILL HERE TODAY TO A
HEART WE UNDERSTAND WHAT BECOMES
THE FLOOR IF WE HAVEN'T WORKED
OUT SOME OF THESE THINGS THIS IS
GONNA BE A TOUGH CLIMB. I WOULD
ALSO MENTION EVEN IF IT WASN'T A
TOUGH CLIMB IN THE SENATE. THIS
THEY WOULD GET UP IN THE
ASSEMBLY. AND I KNOW THAT
THERE'S A. YOU KNOW WAY MORE.
OBSTACLES GUY YOU KNOW YOU OVER
THERE THIS GIVES US THE
OPPORTUNITY AND THE TIME TO DO
IT FOR CONSTITUENTS.
WORK WITH CHAIRMAN.
I HAVEN'T SEEN WORKFORCE VOTE.
WITH ALL DUE RESPECT. THIS BOOK
AND LOOK WHAT SENATOR WITH ALL
DUE RESPECT.
I KNOW WHERE THE CHAIRMAN STANCE.
I COMPLETELY DISAGREE.
WITH THE PROMISE.
THAT.
THIS IS GOING TO HURT INSURANCE
COMPANIES.
THAT THIS IS GONNA BECAUSE WE'VE
HEARD FROM THE INSURANCE
COMMISSIONERS OFFICE
WHO'S GOT MORE EXPERIENCE IN
INSURANCE THAT ANYBODY PROBABLY
IN THE ROOM MAYBE NOT. WELL
THIRTY YEARS I DON'T KNOW IF THE
CONSULTS AS THAT MUCH BUT THE
BUT THE POINT I'M TRYING TO MAKE
HERE IS.
WE WE WE WERE YOU HAVE EVIDENCE.
EARLY ON BEFORE MANY OF YOU WHEN
YOU WEREN'T IN THE ROOM.
SUGGESTED THAT THIS ISN'T THE
RISK.
THAT THAT IS SUGGESTED BY THE
INSURANCE INDUSTRY THAT IT THAT
IT ISN'T SO I REALLY BELIEVE
THAT.
.
OKAY I THINK YOU'VE MADE YOUR
POINT CLEAR AYE I'M GONNA
RECOGNIZE SENATOR GALGIANI THE
KILLER.
OKAY SO AS I SAID I I BELIEVE
THAT WHAT WE'RE HEARING IS THAT
THE AUTHORS WANT TO. A VOTE
TODAY AND YOU WANT TO CONTINUE
MOVING THE BILL ITEM I WANT TO
BETTER UNDERSTAND HOW THE
NUMBERS WORK OUT BUT I ALSO
UNDERSTAND THAT IT'S IMPORTANT
TO GIVE. YOUR CONSTITUENTS SOME
CERTAIN NEED THAT THAT THEY ARE
GOING TO BE MADE WHOLE IN NICE
FOR ME THAT MATTERS MORE THAN
ANYTHING ELSE I'D LIKE TO SEE US
PROCEED WITH THE BUDGET PROCESS.
SIMULTANEOUSLY BUT WE HAVE NO
GUARANTEE THERE.
SO I'M WILLING TO MAKE THE
MOTION OF THE BITS
TWO FOR THE BILL.
TODAY WITH THE AMENDMENTS THAT
YOU'RE TAKING IF THAT IS THE
WELL OF THE AUTHORS SAY HE SAID
THE ONE OF THE THINGS THAT I I
KNOW THIS IS UNCOMFORTABLE FOR
MY COLLEAGUES.
BUT I'M NOT GOING TO MAKE THESE
VICTIMS COME BACK TO SACRAMENTO
AGAIN.
WE BILLION WHAT THEY'VE ALREADY
BEEN THROUGH THERE ARE THE
VICTIMS I DON'T WANT AND EIGHTY
VICTIMIZED ANYMORE SO WE CAN
HAVE THIS TODAY AND THEN.
ULTIMATELY HAVE A DISCUSSION.
ABOUT IN THE FUTURE.
IS THAT JUST TO BE CLEAR FOR
CENTER GALGIANI YOU JUST PLEASE
DEVELOP MOTIVE FOR EITHER
RECOGNIZE THAT BUT I I MEAN IT
JUST HAVE SENATOR PORTANTINO HAD
A CLOSE AND I JUST WANTED TO
COMMENT ON A PROCEDURAL THING
THE OTHER DAY IN PERSON
COMMITTEE. MISTER MOCK HAD
SEVERAL BILLS UP.
AND WANTED A MOTION AND THE
CHAIR ASKED ME DID TO GIVEN THE
COURT YOU KNOW IF THE AUTHOR
WANTS.
MY MOM AND I GET I SAID I AGREE
WITH THAT I DON'T I THINK THAT'S
A NICE COURTESY TO HAVE I HAVE
NO PROBLEMS WITH IT. AND SO NOW
LIKE AT RECOGNIZE IT SENATOR
GALGIANI TO HIS PROMOTION TO
MOVE THE BILL WITH THE
AMENDMENTS WITH EXCEPTION OF THE.
IS THAT RIGHT.
YES YES I'M OF THE BILL OKAY SO
WE HAVE A MOTION ON THE SIX.
SO WE HAVE A MOTION TO MOVE.
THE BILL WITH THE AMENDMENTS
THAT SUGGESTS THAT WITH THE
EXCEPTION OF THE. OK AND WE'D
LIKE TO ASK THE SECRETARY TO
CALL THE ROLL.
BLASIER.
GAINES.
BERRYHILL. GALGIANI. GALGIANI
AYE HERNANDEZ. HUESO.
LARA.
MITCHELL.
MORE LIKE.
MORRELL. NEWMAN.
PORTANTINO.
PORTANTINO AYE ROTH.
OKAY CENTER THAT THAT THAT NET
MOTION IS TO VOTES WERE TO KEEP
THE ROLE OF. PAST
RECONSIDERATION IF THAT FAILS
OKAY THANK YOU VERY MUCH.
OKAY.
NQUIRE.
YEAH SO I'M GONNA I'M GONNA ASK
US TO TAKE A FIVE MINUTE RECESS
GENTLEMEN AND LADIES FIVE
MINUTES AND WE'LL GET BACK
TOGETHER SO I.
THAT'S AT FOUR OH FIVE
Q. EVERYBODY WELCOME BACK WE
STATE OR A FIVE MINUTE RECESS.
.
WE WOULD WANT TO INVITE SENATOR
DIED BACK IN
AS FOR HIS SECOND BILL.
CHAIRMAN.
POSSIBLE RIGHT NOW.
BUT AT LEAST IT'S A STEP IN THE
SCHOOL WE TOLD.
ABOUT BEING TOLD NOW.
IT WILL BIGELOW.
NEVER. MORE TIME AND.
LEADERS
WELL I GOT
IT'S A. RECONSIDERATION.
YOU CAN ESTIMATE NOW RIGHT.
DON'T THINK.
CHAIRMAN.
THE LONG.
WE EXPECT THIS BILL TO BE LONG.
OKAY THAT'S ALL WE CARE ABOUT ME
BECAUSE.
I'M READY.
WHENEVER YOU'RE HIDING.
BOB HERE.
THANK YOU MISTER CHAIRMAN THAT
HUMOR HIGH NOW BUT THANK YOU.
WE COULD ALL USE A LITTLE HUMOR
EVERY ONCE IN AWHILE RIGHT.
VERY GOOD.
MISTER CHAIRMAN MEMBERS.
BUT FIRST I WANT TO THANK THE
COMMITTEE STAFF FOR THEIR WORK
ON THIS BILL AND I AGREED TO THE
MEN MEN'S.
THAT WILL REQUIRE THE DEPARTMENT
OF INSURANCE SAID IN ANNUAL
NOTICE.
DESCRIBING IMPORTANT PROVISIONS
A CALIFORNIA LAW PERTAINING TO
PROPERTY INSURANCE
POLICIES THAT REQUIRE NON
RESIDENT ADJUSTERS TO READ THE
NOTICE.
YES THREE TWELVE NINETY ONE
MAKES CHANGES THE INDEPENDENT
INSURANCE
I JUST ARE ACT TO ENHANCE
CONSUMER PROTECTION AND FOR GOOD
FORMED A NATIONAL LIFE SEEING.
RECIPROCITY AND UNIFORMITY.
SPECIFICALLY THIS BILL ENSURES
IT INDEPENDENT ADJUSTERS PASS A
FINGER.
FOR IT BASS BACKGROUND REVIEWING
LICENSE EXAM ALLOWS INDIVIDUALS
AND STATES WITHOUT INDEPENDENT
ADJUSTERS LICENSE TO DO AS THEY
CALIFORNIA'S OUR HOME STATE
WHICH WOULD INCLUDE FINGER BASED.
BACKGROUND CHECKS REQUIRES THE
DEPARTMENT OF INSURANCE TO
PREPARE AND DELIVER. DELIVER TO
EVERY LICENSEE ON AN ANNUAL
BASIS UNNOTICED DESCRIBING THE
MOST SIGNIFICANT CALIFORNIA LAWS
PERTAINING TO PROPERTY INSURANCE
POLICIES INCLUDING THOSE RELATED
TO DECLARED STATE OF EMERGENCY.
FINALLY ESTABLISHES THE
REGISTRATION FOR EACH NON
LICENSE INDEPENDENT INSURANCE
ADJUSTER IS VALID ONLY IF THE
REGISTRATION INCLUDES A SELF
CERTIFICATION THAT HE OR SHE HAS
READ AND UNDERSTANDS. THE MOST
RECENT NET.
NOTICE.
I'VE GOT ANOTHER PAGE AND A
HALF BUT I'M JUST GOING TO.
.
A. TO A COUPLE POINTS WE CAN
MAKE IT SHORTER FOR YOU BY THE
DEPARTMENT INSURANCE ESTIMATES
ARE APPROXIMATE THIRTY THOUSAND
EMPLOYEES ADJUSTING CLAIMS HAVE
NOT MET FINGERPRINT EXAM. IN
EDUCATION REQUIREMENTS
BECAUSE OF EXACT EXEMPTIONS.
THESE WE TAKE ABOUT BRITISH SURE
THAT THIS IS NOT GOING TO BE A
BURDEN. ON THE DEPARTMENT OF
INSURANCE AND THE TIMING IT
WITHIN THIS.
LEGISLATION GIVES PLENTY OF
TIME TO GET THIS DONE.
WITH THREE TODAY'S ROBERT
CORRAL FROM THE DEPARTMENT OF
INSURANCE.
GREAT THANK YOU TO WITNESSES IN
SUPPORT GOOD AFTERNOON MISTER
CHAIRMAN AND MEMBERS OF ROBERT
RULED THAT THE COMMISSION FOR
LEGISLATIVE AFFAIRS FOR THE
DEPARTMENT OF INSURANCE SINCE
WE'RE HERE ON THE THIRD BILL OF
A SIXTH TOE HERE AND I'LL BE
VERY BRIEF.
THAT WE WANNA THINK SENATOR
DODD FOR HIS WORK ON THIS THIS
BILL IS VERY SIMILAR TO A BILL
THAT THE LEGISLATURE SAW TWO
YEARS AGO BY SOME A MEMBER
KANSEN CHU.
THE QUESTION IS NOT WHETHER WE
SHOULD LICENSE SO CALLED
INDEPENDENT OUT INSURANCE
ADJUSTERS WHO BY THE WAY HAVE A
CONTRACT WITH AN INSURANCE
COMPANY SO THERE INDEPENDENT
ONLY PERHAPS IN THE PAYMENT
SENSE.
TEN NINETY NINE AS OPPOSED OF W.
TO THE QUESTION IS OW WE SHOULD
BEST LICENSE THEM.
THIRTY FOUR OTHER STATES LICENSE
THEM ON UP INDIVIDUAL BASIS.
CALIFORNIA DOES IT LARGELY ON AN
ORGANIZATIONAL BASIS WHAT THAT
MEANS IS YOU HAVE ONE PERSON
WHO'S DONE ALL THE PROCESSES
EXAM FINGERPRINT BACKGROUND
CHECK A CONTINUE EDUCATION. THAT
THEY MAY HAVE A NUMBER OF PEOPLE
UNDER THEM WHO ARE ALSO
ADJUSTING DOING THAT JOB
PROFESSIONALLY BUT THEY HAVE
DONE NONE OF THOSE THINGS SO WE
WANT TO TRY TO JOIN THE OTHER
THIRTY FOUR STATES. THAT HAVE
THAT LEVEL OF INDIVIDUAL
LICENSURE HOW WE THINK THIS IS A
DATA CONSUMER PROTECTIVE IT DID
COME UP LAST FALL A BIT IN THE
FIRES AS COMMISSIONER JONES
MENTIONED.
LAST MONTH IN THIS TESTIMONY
BEFORE YOU MISTER CHAIRMAN.
AT WHERE SOME PEOPLE WERE GIVEN
BAD INFORMATION AND WHEN THEY'VE
LOST EVERYTHING THEY WANT GOOD
INFORMATION SO THAT THEY CAN
MAKE THAT THE MOST REASONABLE
DECISION AS THEY TRY TO PUT
THEIR LIVES BACK TOGETHER MANY
OF THE SURVIVORS THAT YOU'VE
HEARD FROM.
I'M JOINED BY MY COLLEAGUE
CHARLENE FERGUSON WHO HEADS OUR
LICENSING A SHOP IN CASE THERE
ARE ANY QUESTIONS THAT PERTAIN
TO THAT ELEMENT OF IT WITH THAT
WE ARE TO SUPPORT THANK YOU
MISTER CHAIRMAN EIGHT THANK YOU
ANY OTHER WITNESSES IN SUPPORT.
OR ANY OTHER WITNESS YES IS
THERE.
YEAH OKAY PLEASE STEP UP
IDENTIFY YOURSELF AND.
MISTER CHAIRMAN MIKE MATT
ACCOUNTS WERE CONSUMER WATCH
THAT WE ARE THANKS TO THE.
INFORMATION FROM THE DEPARTMENT
OF INSURANCE AND YOUR
OUTSTANDING STAFF WORK CHANGING
OUR POSITION FROM OPPOSED TO
SUPPORT THANK YOU.
I THANK YOU ANYBODY ELSE IN
SUPPORT. OF RICHARD LANE COFFEE
PARK.
IN OUR CLAIM ARE VIOLATORS
CLAIM WE HAD SEVEN ADJUSTERS IN
SIX MONTHS IT WOULD BE NICE TO
HAVE ADJUSTERS FROM CALIFORNIA
WHO KNEW WHAT THEY WERE DOING.
THANK YOU SENATOR DODD.
ANYONE ELSE IN SUPPORT.
I NEED BALK WITHIN OUR
POLICYHOLDERS AT OUR MEETING
LAST NIGHT FOUR HUNDRED PEOPLE
RAISED THEIR HANDS WHEN ASKED
DID YOU HAVE AN OUT OF STATE YOU
JUST.
SO I THINK WE DO NEED TO TIGHTEN
UP ON THE REGULATION.
PEARL SMALL LARK FILL STATES
WE SUPPORT THIS.
WE NEED YOUR HELP.
BUT THANK YOU ANYONE ELSE IN
SUPPORT.
PLEASE ADVISE ANYBODY ELSE'S
WORK PLEASE COME UP BEHIND THE
MICROPHONE SO WE CAN TO
OFFICIALLY GET THROUGH A HOWARD
FRIZZY SANTA ROSA.
LOST MY HOUSE.
THAT HAD SEVEN ADJUSTERS.
ONE FROM ARKANSAS ONEFROM TAXES
ONE FROM ILLINOIS.
KIND OF FORGOTTEN BUT NONE FROM
CALIFORNIA OKAY THANK YOU
ANYTHING ANYBODY ELSE IN SUPPORT.
ARE THERE ANY WITNESSES IN
OPPOSITION.
THERE'S.
CHARLIE.
GOOD AFTERNOON THAT MISTER CHAIR
MEMBERS THAT CHRIS MCKAY WE ON
BEHALF OF THE AMERICAN
ASSOCIATION OF CLAIMS
PROFESSIONALS.
BY THE WAY HAPPY BIRTHDAY TO
YOUR VICE CHAIR.
WE ARE A NATIONAL ORGANIZATION
WITH.
MEMBERS SEE IT WORKING IN ALL
THE FIFTY STATES WE HAVE.
WORKED I THINK WITH THE
DEPARTMENT OF INSURANCE OFTEN ON
THE LAST COUPLE OF YEARS.
SIMILAR.
LANGUAGE WAS IN A SENATOR BLOCK
BILL OBVIOUSLY WE WORKED ON
MISTER CHOOSE BILL.
AND I THINK THAT THE DEPUTY
COMMISSIONER.
WILL ATTEST THAT WE'VE ACTUALLY
HAD CONVERSATIONS ON BOTH THE
EAST AND WEST COASTS. BETWEEN A
CP IN THE DEPARTMENT OF
INSURANCE.
THEN I THINK ALL ALONG WE HAVE
SOUGHT. A COLLABORATIVE APPROACH
IN WHICH WE HAVE
PAST DILIGENTLY WHAT ARE THE
ISSUES.
THAT YOU BELIEVE INDEPENDENT
ADJUSTERS ARE IF YOU WILL
FAILING IN THIS STATE AND IS
THERE A WAY TO ADDRESS.
ANY OF THOSE SPECIFIC INSTANCES
AND.
BUT WE HAVE NOT RECEIVED
ANYTHING PARTICULAR.
WITH OUR INDUSTRY ALTHOUGH YOUR
ANALYSIS INDICATES THAT THE
DEPARTMENT HAS PROVIDED.
SOME DATA IN TERMS OF.
CLAIMS BEING FILED THIS IS THE
FIRST THAT WE'VE HEARD OF IT
WHEN I GOT THE ANALYSIS IN QUITE
IS AT THE BOTTOM OF PAGE FOUR OF
YOUR ANALYSIS.
I'VE SURVEYED OUR MEMBERS AND
OTHER THAN WHAT I WOULD DEEM TO
BE
RUN OF THE MILL.
TYPE COMPLAINTS WERE NOT AWARE
OF ANYTHING AGAINST.
ANY OF OUR COMPANIES IN THAT
REGARD INVOLVING ANY OF THEIR
INDIVIDUALS AND NOTHING FIRE
RELATED.
I THINK THE DEPUTY COMMISSIONER.
REFERENCE TESTIMONY BY THE
INSURANCE COMMISSIONER. AND
MISTER JONES DID TESTIFY ON
MARCH TWENTIETH BEFORE THIS
COMMITTEE.
AND WHAT HE SAID.
PER THE A TRANSCRIPT OF THAT
HEARING.
THAT SOME CAN QUOTE SOME
CONSUMERS INITIALLY WERE
PROVIDED INCORRECT INFORMATION
BY THEIR AGENTS OR THEIR
INSURERS. AND OF COURSE THAT
RESULTED IN A NOTICE THAT WAS
ISSUED BY THE DEPARTMENT IN
NOVEMBER.
AND AS A RESULT THE
COMMISSIONER TESTIFIED TO THIS
COMMITTEE.
THAT THE AGENTS AND INSURERS
CORRECTED THAT PROBLEM.
AND WE STOPPED GETTING THOSE
COMPLAINTS.
SO I GUESS WE COME BACK TO THE
GOVERNOR'S VETO OF AB TWENTY
FIVE EIGHTY EIGHT TWO YEARS AGO
IN WHICH SHE INDICATED THAT.
HE DIDN'T SEE THE NEED FOR THIS
PARTICULAR BILL AND WE'RE OF THE.
SAME MIND SET I THINK THE
GOVERNOR SAID I'M NOT CONVINCED
THAT AN OVERHAUL IS NEEDED.
AND I DO QUESTION WHETHER OR NOT
A HE DID OPEN THE DOOR.
IN HIS VETO MESSAGE AND THE DOOR
WAS IN ESSENCE
SHOW ME WHY THIS IS NECESSARY.
THE COMMISSIONER'S OFFICE I
GUESS HAS PROVIDED THE.
COMMITTEE WITH SOME ADDITIONAL
INFORMATION I THINK PAY PAGE
FIVE AOUT MR MAKOTO SORRY PAGE
FIVE WELL. OF THE AYE IN ESSENCE
IS YOU KNOW ARE THERE ANY
JUSTIFIED COMPLAINTS RELATED TO
TO THIS AND SPECIFIC IT'S BEEN
DESCRIBED AS A PUBLIC SAFETY
PROBLEM AND YET WE'RE NOT AWARE
OF ANY PUBLIC SAFETY. THREATS
FROM INDEPENDENT INSURANCE
ADJUSTERS IT CETERA SO WITH THAT
WE DO ASK FOR YOUR NO VOTE THANK
YOU THANK YOU. YES SIR REMEMBERS
GOOD AFTERNOON MY NAME IS ACROSS
BUCKLEY WITH THE PERSONAL
INSURANCE FEDERATION WAS
RESPECTFULLY OPPOSE SP TWELVE
NINETY ONE WHICH TO CREATE A NEW
INDIVIDUAL LICENSING PROGRAM FOR
INDEPENDENT JESTERS AT PRENTICE
ADJUSTERS. OVER BIGGEST CONCERN
CENTERS ON THAT ACCESS TO
SERVICES FOR CALIFORNIA POLICY
HOLDERS. THIS BILL WOULD REQUIRE
THEN APPLE IT MUST HAVE TWO
YEARS EXPERIENCE ADJUSTING CLAIM
SUPPORT THE ONE YEAR
APPRENTICESHIP.
THIS THESE MEN APARTMENTS FOR
THE NEW INDIVIDUAL LICENSE
ESTABLISHED UNDER THIS BILL. MAY
RESULT IN A SHORTAGE OF CLAIMS
ADJUSTERS WHEN THEY'RE NEEDED.
CURRENTLY WHO IN A MAJOR EVENT
HAPPENS IN CALIFORNIA WHETHER
IT'S AN EARTHQUAKE OR A WILDFIRE
OR SOME OTHER NATURAL DISASTER.
INSURERS OFTEN USE QUALIFIED
ADJUSTING COMPANIES ASSIST WITH
THEIR INFLUX IN CLAIMS.
THESE COMPANIES ARE LICENSED BY
THE DEPARTMENT INSURANCE
EMPLOYEE JUSTICE WHO DO NOT NEED
TO BE INDIVIDUALLY LICENSE
BECAUSE THE COMPANIES ARE
OBTAINED A LICENSE. TO DATE
WE'VE NOT SEEN ISSUE WITH THE
EXISTING LICENSING PROGRAM
BELIEVE THIS LEGISLATION HAS THE
POTENTIAL TO DO MORE HARM THAN
GOOD. SPECIFICALLY WE FEAR THAT
THIS LEGISLATION COULD RESULT IN
OUR POLICYHOLDERS NOT RECEIVING
TIMELY ACCESS TO SERVICES DUE TO.
AN UNNECESSARY SHORTAGE ASTERS.
FURTHER THROUGH THE ADDITION OF
REGULATIONS AND EXPENSES
ASSOCIATED WITH THIS MEASURE WE
HAVE CONCERNS ILL PUT IT ADDED
COST PRESSURES UPON OUR
POLICYHOLDERS FOR THESE REASONS
WERE SUPPOSED TO BILL.
OKAY ANY OTHER WITNESSES IN
OPPOSITION PICKS HIM FORWARD.
US.
I DON'T SEE ANY FURTHER
WITNESSES IN OPPOSITION TO BRING
THE MATTER BACK TO US.
THE COMMITTEE HAS SENATOR THANK
YOU FOR YOUR GOOD WORK IN THIS
AREA AYE. AYE WE'VE HAD A NUMBER
OF CONVERSATIONS ABOUT ABOUT IT
I I THINK THAT SAID THE
CHALLENGE THAT.
THAT I FACE FROM THE BEGINNING
WAS THE ISSUE WHAT'S THE EXTENT
OF THE PROBLEM.
AND THAT WE'VE HEARD THAT FROM
US.
FOLKS WHO HAVE TESTIFIED TODAY
THAT THE PROBLEMS THAT THEY
ENCOUNTERED AT LEAST THROUGHOUT
THE STATE AND THAT'S WHY
APPRECIATE THE EXTRA EFFORT YOU
HAVE PUT IN.
TO TRY TO.
DEAL WITH THAT THAT CONCERNED.
WITH THE AMENDMENTS THAT IF WE
TOOK THE AMENDMENTS EARLIER OF.
BUT WILL CLARIFY THAT IN THE
SECOND.
I. I I AM NOT CONVINCED THAT THE
COMPANY AGENTS HAVE BEEN THE
PROBLEM THAT I AM WORRIED THAT
THIS REGULATORY ENVIRONMENT
THAT'S GOING TO BE CREATED.
COULD POTENTIALLY CREATE
SHORTAGES AND WILL INCREASE
COSTS.
BUT I'M WILLING TO MOVE THE BILL
FORWARD AND THEN IT GETS MY OF
MY SUPPORT TODAY. SO ANY OTHER
COMMENTS OR THOUGHTS FOR
COMMITTEE MEMBERS.
I DO CONSIDER GAINES.
THIS TRYING TO GET CLARIFICATION
AS TO THE EMPLOYEE STATUS VERSUS.
INDEPENDENT CONTRACTOR STATUS
AND.
HIM MY CRACKED IN.
IN THAT IT'S MY UNDERSTANDING
THAT THIS WOULD MAKE THE
INDEPENDENT.
ADJUSTER.
A EMPLOYEE. AND A NO SENATOR AYE
IT WOULD NOT.
THERE ARE THREE TYPES OF
ADJUSTERS THERE'S EMPLOYEE
ADJUSTERS WHO ARE AN EMPLOYEE OF
SAVED STATE FARM OR ANY OTHER
ENSURE.
THERE ARE INDEPENDENT ADJUSTERS
WHO MAY BE WORKING ON THEIR OWN.
HANGING OUT THEIR OWN SHINGLE OR
THEY MAY BE WORKING FOR ONE OF
THE SORT OF OUTSOURCING FIRMS
THAT GET USED.
SOMETIMES AS A MATTER OF
REGULAR COURSE OF BUSINESS
SOMETIMES WHEN YOU HAVE A
SITUATION LIKE WHEN WE HAVE
SERIOUS EVENTS.
AS MANY OF THE SURVIVORS IN THIS
ROOM ATTACHED TO TO KIND OF SIX
OR SEVEN ADJUSTERS GOING THROUGH
VERY QUICKLY AND LIKE TO KNOW
MORE ABOUT THAT BY THE WAY. MOM
AND THEN YOU HAVE PUBLIC
ADJUSTERS THEY HAVE A CONTRACT
WITH THE CONSUMER. ON A
CONTINGENCY BASIS SO IT DOES NOT
MAKE BY HAVING THEM BE
INDIVIDUALLY LICENSE DOES NOT
MAKE THEM EMPLOYEES.
AND IN FACT SOME INSURERS DON'T
WANT AS MANY EMPLOYEE ADJUSTERS
PARTLY BECAUSE THE PAY AND
BENEFITS SO THEY CAN SAVE MONEY
I GUESS SOME THINGS LIKE THAT I
DON'T KNOW. I'M BUT IT DOES NOT
MAKE THEM EMPLOYEE AND I WOULD
JUST NOTE THAT THE NATIONAL
ASSOCIATION OF INSURANCE
COMMISSIONERS TO THE CHAIR WHICH
I DID MENTION MY OPEN FOR TIME
CONSTRAINTS.
THIS IS THEIR RECOMMENDED.
PATH TO HAVE INDEPENDENT
ADJUSTERS BE INDIVIDUALLY
LICENSE
AND THAT'S WHY WE'D LIKE TO JOIN
THIRTY FOUR OTHER STATES THAT DO
THAT.
OKAY ALRIGHT GIVE RATE.
COULD HAVE THE WITNESS COME
FORWARD THAT REPRESENTED THE.
INSURANCE ADJUSTERS AS HAVE NOT
KELLY MISTER MAKAYLA HIS PLACE
YEAH.
SHARE BERKELEY TO HOUSE. OKAY AS
SKIP THAT ONE MORE PAUSE AND
WE'LL DO THAT RIGHT AFTER CENTER
GAIN GETS QUESTIONS ANSWERED.
MODERATE MAYBE YOU COULD PROVIDE
SOME CLARITY THERE WERE A NUMBER
OF. FOLKS WHO CAME FORWARD AND
SAID THERE WERE A NUMBER OF
ADJUSTERS FURTHER CLAIMS ON I AM
CONFUSED AS TO WHY. THAT IS
HAPPENING.
AND THEN SECONDLY I'D ALSO LIKE
TO KNOW.
THE DEMAND FOR ADJUSTERS HOW
MANY ADJUSTERS ARE IN CALIFORNIA
WIRE THE. FROM OUT OF STATE.
WELL THE FOLKS WOULD COME FROM
OUT OF STATE WITH A DECLARED
EMERGENCY.
THE DATA THAT WE HAD INITIALLY
RECEIVED FROM THE DEPARTMENT WAS.
THIRTY FOUR FORTY TWO THIRTY
FOUR.
PEOPLE SO I'M NOT SURE I CAN I
CAN HELP YOU WITH THE STATEMENT
FROM. AN EARLIER WITNESS THAT
SAID CAMINO PEOPLE SAID THERE
WERE FOUR HUNDRED. OUT OF STATE
ADJUSTERS Y. TO I DON'T KNOW
WHERE THOSE NUMBERS COME FROM.
OKAY THAT REGISTER THAT
INFORMATION WITH THE DEPARTMENT
THAT PERHAPS IS AN IMPORTANT
CLARIFICATION THAT WE WOULD HAVE
TO LOOK INTO THAT MORE BUT I
THINK WHAT HAPPENS IS.
AND OUR LICENSE SCENE I HAD
COULD DELVE INTO THEM MORE IF
YOU'RE INTERESTED SENATOR I
THINK THAT THERE ARE COMPANIES
THAT HAVE BROUGHT AN OUT OF
STATE ADJUSTERS. AFTER AN EVENT.
AND AB UNNECESSARILY MET THE
REPORTING REQUIREMENT UNDER
CURRENT LAW THAT THEY LET US
KNOW WHO THEY ARE.
AND AS SOME OF THESE COMPANIES
ARE ALSO BRINGING AN EMPLOYEE
ADJUSTERS WHO OUR EMPLOYEES PER
SE STATE FARM MAY BRING IN
EMPLOYEES FROM OTHER STATES WHEN
CALIFORNIA HAS A DISASTER OF
THIS MAGNITUDE BECAUSE OBVIOUSLY
YOU WANT TO HAVE. BODIES ON THE
GROUND WE ALL AGREE ON THIS AND
THAT'S WHY WE WORK SO
COLLABORATIVELY WITH MISTER
MACKENZIE'S CLIENT. ON THE BILL
TWO YEARS AGO.
AND KNOW ALL THOSE AGREEMENTS
ARE REFLECTED IN THIS BILL BY
THE WAY SENATOR THAT YOU WANT
THOSE PEOPLE TO COME AND IN THAT
TIME OF NEED FOR THE PEOPLE LIKE
SOME OF THE PEOPLE IN THIS ROOM.
WHO THEY NEED TO TALK TO
SOMEBODY NOW AND FIGURE OUT WHAT
THEIR OPTIONS ARE AND GET HELP?
ALRIGHT IN THE PURPOSE BUILT.
PROPOSED.
REQUESTS AND EDUCATIONAL
REQUIREMENTS INTERJECTS CLASSES
IT DOES AND WE'RE HAPPY TO
CONTINUE HAVING THAT
CONVERSATION OF THE CHAIR AND
OTHERS ABOUT IT MAKING SURE THAT
ARTISTIC FOLKS TO COME INTO THE
STATE UNDERSTAND CALIFORNIA LAW.
I'M THE WE TRY TO AVOID
COMPLAINTS AND THAT'S WHY WHEN
WE DID THE BULLETIN LAST FALL HE
WAS BECAUSE WE'RE TRYING TO GET
GOOD INFORMATION ON THE GROUND
SO THAT WE DON'T HAVE TO GO
THROUGH THAT COMPLAIN PROCESS.
BECAUSE THAT DOESN'T SERVE
ANYBODY WE'RE TRYING TO AVOID
THE COMPLAINTS WHICH IS WHY WE
DID THE BULLETIN AT THAT TIME.
AND THEN FINALLY MR MCHALE A.
FATHER BEEN AMENDMENTS TAKEN BY
THE COMMITTEE. YOU STLL HAVE
CONCERNS AND TRY TO GET CLARITY
ON WHAT THOSE CONCERNS ARE CAN
THEY BE ADDRESSED OR NOT.
MISTER CHAIRMAN I.
YES BUT THE.
BUT WE HAVE A PHILOSOPHICAL BUT
THE THE AMENDMENTS IN TERMS OF.
NOTICED THE TRAINING COMMENTS
THAT WERE JUST MADE WE HAVE
EVERY REASON TO ME
SURE THAT OUR FOLKS.
ARE TRAINED ONE OF OUR MEMBER
COMPANIES THAT WAS OUT HERE
PREVIOUSLY TALKED ABOUT HOW. THE
EFFECTUALLY COLLEGE SEDGWICK
UNIVERSITY SUCH WORK IS A MAJOR
COMPANY.
AND IT'S AS INSURANCE ADJUSTING.
THEY HAVE EVERY REASON TO HAVE
VERY HIGHLY TRAINED INDIVIDUALS
ANOTHER COMPANY TALKED ABOUT HOW
THEY REQUIRE ACTUALLY FOR. THE
CALIFORNIA FOLKS TO DO AN ANNUAL
TEST THAT THE COMPANY
ADMINISTERS TO ENSURE THAT THERE
UP TO DATE WITH.
THE LAW WITH CLAIMS PROCESSING
IT CETERA PHILOSOPHICALLY WE
HAVE A DIFFERENCE OF OPINION I
KNOW THAT THE DEPUTY
COMMISSIONER HAS REPEATEDLY
CITED DNA I SEE MODEL IN THIRTY
FOUR OTHER STATES.
WE RESPECTFULLY BELIEVE THAT THE
COMPANY MODEL THE CALIFORNIA
UTILIZES IS THE BETTER APPROACH
AND THAT'S WHAT WE HAVE A
PHILOSOPHICAL DIFFERENCE OF
OPINION ON THIS BILL ALRIGHT
THANK YOU SO MUCH ALRIGHT SO
I'VE ENTERTAINED A MOTION FROM
CENTER PORTANTINO I WANT TO GET
CENTER GOT THE OPPORTUNITY CLOSE.
YES MISTER CHAIRMAN AS I NOTED
EARLIER IN AN ENVIRONMENT WHERE
WE HAVE VICTIMS OF LOST
EVERYTHING WE DON'T WANT TO HAVE
THEM BE VICTIMIZED. YET ONCE
AGAIN JUSTIN ANALOGY I NOTICED
THAT ALL OF YOU. MORE THAN
LIKELY HAVE HAD YOURHERE CUTS
BY A LICENSED BARBER KIND OF OFF
TOPIC.
BUT IT IT IT JUST BLOWS MY MIND
THAT IN THE STATE OF CALIFORNIA
YOU HAVE TO BE LICENSE TO CUT
SOMEBODY'S HAIR.
BUT WOULD YOU COME DOWN TO.
ADD ADJUSTING FOR CRITICAL
THING SAYS THAT SOMEBODY'S HOME
AT ALL THEIR VALUABLES THEY
DON'T HAVE TO HAVE THE
APPROPRIATE LICENSING.
THAT I THAT I FEEL IS NECESSARY
MOVING FOR THANK YOU RESPECT
LAST ROW BOAT THANK YOU CENTER
DODD SECRETARY CALL THE ROLL IN
YOU THAT SOME BELIEVE.
YEAH THIS IS THE THAT THAT THAT
THE MOTION IS TO APPROVE OF THE
LEGISLATION WITH THE AMENDMENT
SAYS.
AS DETAILED IN THE STAFF REPORT
NOT NO NO AT AS AS AS. DESCRIBED
BY THE AUTHOR.
BLEACHER AYE LEISURE AYE GAINES
THEM GAINES NO BERRYHILL. GOING.
BILL DONE GALGIANI IS ME.
HERNANDEZ.
HUESO.
LARA. MITCHELL MORLOCK.
MORE LIKE NO.
MORRELL NEWMAN.
PORTANTINO AYE PORTANTINO AYE
ROTH.
SO LET.
ONE THING I.
NATALIE I.
WE.
TO NATIVE.
CENTER THAT HAS THREE YESES TO
NOSE WE THE ROLE OPEN FOR ABSENT
MEMBERS
THANK YOU MEMBERS. MISJUDGMENT
THANK YOU.
SENATE MCGUIRE I KNOW THAT
SENATOR HERTZBERG GUIDE RAISED
AN ISSUE YOU GUYS RESOLVE WHO'S
GOING. OUT YES ONLY OKAY VERY
GET OKAY SO WE'RE GONNA PRETTY
MOVED OUT SB EIGHT NINETY SEVEN
BY SENATOR MCGUIRE.
THINK HOW MUCH BETTER WELCOME.
THANK YOU VERY MUCH MISTER
CHAIRMAN I I WANT TO THANK YOU
THE CHAIR.
AND YOUR STAFF.
BUT FOR ARE YOU WORK ON THIS
BILL AND I WOULD APPRECIATE YOUR
ATTENTION COMMITMENT.
TO DEVELOPING A BETTER AN
EXPEDITED ROAD TO RECOVERY FOR
STATES RESIDENTS.
MEMBERS I.
.
BUT EASY START WITH THIS BUT I
AM TODAY AND START WITH THE
POLICE.
AND A HEAVY HEART.
DEPLETE TO LET.
SOONER DOT MYSELF CONTINUE TO
WORK.
ON THS IMPORTANT ISSUE AFTER
TODAY.
BECAUSE THE FUTURE OF OUR
COMMUNITIES HEALTH AND WELL
BEING.
TRULY DEPENDS ON IT.
THE MORE IT NORTH BAY FIRESTORM
WAS THE MOST DESTRUCTIVE AND
DEADLY IN MODERN AMERICAN
HISTORY.
THE LEVEL OF DESTRUCTION WAS
UNPRECEDENTED WITH SIX THOUSAND
HOMES COMPLETELY DESTROYED.
AND FORTY FOUR FORTY FOUR OF OUR
NEIGHBORS.
TRAGICALLY LOSING THEIR LIVES.
THE FIRES THAT HIT SOUTHERN
CALIFORNIA IN EARLY DECEMBER WAS
THE LARGEST WILDFIRE STATE HAS
EVER SEEN.
DESTROYING THOUSANDS OF
STRUCTURES AND TOTALING ONE
POINT EIGHT BILLION IN DAMAGES.
WE HAVE A STATE.
HAD NEVER WITNESSED SUCH A FIRE
SEASON WITH SUCH TRAGEDY.
AND SUCH SUFFERING. COULD TOTAL
THIRTY THOUSAND STRUCTURES WERE
DESTROYED OR DAMAGED TOTALING
TWELVE BILLION IN TWO THOUSAND
SEVENTEEN.
EXCERPTED EXPERTS BELIEVE
THERE'S MORE TO COME.
THAT'S CLIMATE CHANGES
EXASPERATING THE SIZE AND SCOPE
AWHILE THEN FIRE VINCE HERE IN
THE GOLDEN STATE.
LOSING A HOME.
IS ONE OF THE WORST EXPERIENCES
THAT A PERSON CAN LIVE THROUGH.
AND THE LOS ITSELF.
TEXAS SIGNIFICANT EMOTIONAL TOLL
ON THE FAMILY.
THE THOUSANDS AND.
THOUSANDS OF RESIDENTS WHO LOST
THEIR HOMES IN LAST YEAR'S
WILDFIRES.
COULD NOT HAVE IMAGINE THAT THEY
WOULD SOON BE FORCED TO RELATE
THIS TRAGEDY. BY PRODUCING AN
INVENTORY OF EVERYTHING THAT
THEY HAD LOST.
THAT'S EXACTLY WHAT'S HAPPENING
RIGHT NOW IN THE NORTH BAY
BECAUSE KERN INSURANCE POLICIES
REQUIRE RESIDENTS.
TO PREPARE AN INVENTORY SHOWN IN
DETAIL THE QUALITY DESCRIPTION
H. REPLACEMENT COSTS IN AMOUNT
OF EACH LOS.
FOR HIGHER VALUE ITEMS THERE ARE
ALSO REQUIRED TO ATTACH AND I
QUOTE.
TO THE INVENTORY ALL BILLS
RECEIPTS AND RELATED DOCUMENTS
TO SUBSTANTIATE THE FIGURES IN
INVENTORY COULD GIVE ME AN
EXAMPLE OF WHAT YOU'LL NEED TO
COME UP WITH. A FOUR YEAR ON
TELEVISION.
IF YOU WANT TO GET YOUR
TELEVISION BACK TO WHAT YOU HAD.
THIS IS WHAT YOU'RE GONNA HAVE
TO REPORT AND I WOULD ASK IF ANY
OF YOU COULD DO IT I COULDN'T.
FOR YOUR TELEVISION WHICH ROOM
WAS LOCATED HOW MANY.
DESCRIPTION OF EACH TELEVISION
INCLUDING THE BRAND. IN YOUR
MODEL NUMBER.
THE TV'S AGE.
TV'S AGE IN YEARS AND MONTHS.
IT'S CONDITION.
AND HOW MUCH IT COSTS TO REPLACE
WITHOUT TAXES.
AGAIN I PERSONALLY COULD NOT
COME UP WITH.
THAT INFOMATION.
AND I WOULD THINK THE VAST
MAJORITY OF ALL OF US IN THIS
ROOM COULD NEITHER.
AT THE BEGINNING OF THIS YEAR
FROM JANUARY FIRST TO JANUARY
TENTH. IN OUR OFFICES
BUT RECEIVED HUNDREDS OF FORMAL
COMPLAINTS MAIN ARTS PERSONALLY
ONE HUNDRED FROM COMPLAINTS AND
HORROR STORIES.
HORROR STORIES OF RESIDENTS
FEELING GRAVELY OVERWHELMED FROM
WHAT WAS BEING REQUIRED OF THEM
BY THEIR INSURANCE.
WE GOT CALLS FROM SURVIVORS.
LEGALLY EXPERIENCING PTSD.
BOB TO RELIEVE THE MOST HORRIFIC
NIGHT OF THEIR LIVES IN RECALL
AN ATTEMPT TO PUT A PRICE ON THE
MOST PRICES PRESENT POSSESSIONS
I WILL TELL YOU.
WE HAD TO.
WITNESSES WHO LOST THEIR HOMES
ARE GOING TO TESTIFY TODAY.
ONE WOULD TROOPS.
BECAUSE SHE HAD ANXIETY ATTACK.
IT'S SIMPLY TOO MUCH TO ASK
IT IS THE REASON WE ALL PAY HOME
INSURANCE EACH MONTH FOR WHAT
OUR HOMES AND VALUABLES ARE
WORTH.
SO THAT WHEN TRAGEDY STRIKES WE
CAN DO OUR BEST A REPLACED WHAT
WE'VE LOST.
YEAH LET'S FAST FORWARD APRIL
TWENTY SIX
SEVEN MONTHS AFTER THE NORTH BAY
FIRESTORM BROKE OUT. ACCORDING
THE UNITED POLICY HOLDERS HERE
THE STATISTICS AND LET ME KNOW
IF YOU THINK THE SYSTEM IS
WORKING.
SIXTY PERCENT OF NORTH BAY
HOMEOWNERS HAVE YET TO SETTLE
THEIR CONTENTS POLICY.
EIGHTY PERCENT HAD NOT SETTLED
ON THE STRUCTURE.
AND THOSE WHO HAS SETTLED THE
OUTLOOK IS BLEAK.
NEARLY HALF OF ALL HOMEOWNERS
ARE UNDER INSURED FOR THEIR
CONTENTS.
SIXTY PERCENT ARE UNDER INSURED
FOR THEIR STRUCTURE.
AND THIS IS WHY THESE NOT IN
THESE NUMBERS ARE SO ARMY.
EVEN WHEN A CONSUMER RECEIVES A
SETTLEMENT IT'S ANA DEPRECIATED
VALUE WHICH MEANS HOMEOWNERS
HAVE LESS MONEY IN THEIR POCKET
TO REBUILD.
NUMBER ONE.
NUMBER TWO LABOR COSTS HAVE
SKYROCKETED IN THE BURN ZONE
IT'S NOT UNCOMMON TO HAVE HOME
CONSTRUCTION GOING FOR THREE TO
FIVE HUNDRED.
DOLLARS PER SQUARE FOOT.
NUMBER THREE. RENTS HAVE SOARED.
SO MANY HOMEOWNERS WHO HAVE
SETTLED WITH THEIR INSURANCE
COMPANIES ARE. USING SIGNIFICANT
SUMS OF THEIR MONEY.
FOR THE RICH.
MAYBE AN EXAMPLE. THE PRESIDENT
A CINEMA STATE SHE AND HER
HUSBAND. HER FORMER HUSBAND
EARLIER TODAY.
THE PRESIDENT CINEMA STATE WHO
LOST HER HOME IS SPINNING
SIXTEEN THOUSAND DOLLARS PER
MONTH.
FOR FED FOUR BEDROOM AVERAGE
HOME.
SIXTEEN THOUSAND PER MONTH.
THE OTHER CHALLENGE WE HAVE IS
THE SETTLEMENTS ARE EVEN. SOME
COMPANIES ARE PROVIDING THIRTY
PERCENT.
MANY AROUND SEVENTY FIVE EIGHTY
PERCENT. HONOR DEPRECIATED VALUE.
THAT'S BE A NINETYSEVEN WOULD
CREATE STANDARDS EXPEDITE
RESIDENTIAL INSURANCE CLAIMS
AFTER A GOVERNOR DECLARED
DISASTER AND ALLOW SURVIVORS TO
START REBUILDING THEIR LIVES AND
HOMES.
CALIFORNIA IS FACING A NEW
REALITY WHEN IT COMES A WILDFIRE
DISASTER
IN AN EXPEDITED ROAD TO RECOVERY
IS ESSENTIAL TO THE WELL BEING
OF OUR STATE.
RESIDENTS IN OUR LOCAL ECONOMIES.
NOW ONE OF KNOWLEDGE.
SOME OF THE INSURANCE COMPANIES
WHO STEPPED UP AFTER THE FIRES.
WE ARE GRATEFUL THAT THERE ARE
SOME COUNTIES THAT VOLUNTARY
OFFER TO PAY OUT FAIR AMOUNTS OF
CONTENT CLAIMS WITHOUT REQUIRING
A DETAILED INVENTORY. BUT.
THE FACT IS. MANY DID THIS ONLY
AFTER COMMISSIONER JONES
REQUESTED.
IN IN FACT CAJOLED.
THOSE COMPANIES TO EXPEDITE
SETTLEMENTS DUE TO THE VOLUME OF
REQUESTS.
UNFORTUNATELY NOT EVERY
INSURANCE COMPANY DECIDE TO MAKE
A FAIR OFFER. TO SURVIVORS OF
LAST YEAR'S FIRES MORE THAN A
THOUSAND SURVIVORS AND I'D LIKE
TO ASK IF YOU PUT YOURSELF. AS
WE ALL DO IN TO THESE FOLKS IS
PLACE ONE IN A THOUSAND
SURVIVORS WHO LOST THEIR HOMES
AND OTHER CONTENTS WERE OFFERED
FIFTY PERCENT OR LESS.
FOR THE CONTENT POLICIES.
THIS BILL OFFERS A NUMBER A FAIR
COMPROMISES AND PROVIDES PEACE
OF MIND TO SURVIVORS OF
DISASTERS INCLUDING A
REQUIREMENT THAT THEY'RE OFFERED
NO LESS THAN EIGHTY PERCENT OF
THE CONTENTS POLICY LIMITS.
WITHOUT THE BURDEN OF PRODUCING
AN INVENTORY FOR WHAT THEY'RE
ALREADY OFFERED.
PUTERI PAID TO COVER BUT LISTEN
TO THE CONCERNS INSURANCE
COMPANIES MAY RESPOND TO.
IN REGARDS TO MY.
TALK YOU TODAY AND LIKE TO
BETTER COVER SOME OF THEM THE
TRUTH IS THIS. IF INSURANCE
LOWER POLICY LIMITS TO RATE FOR
THIS NEW REQUIREMENT HEY MAYBE
IT BETTER ESTIMATION OF WHAT
PEOPLE ACTUAL WHAT PEOPLE'S
ACTUAL COVERAGE SHOULD BE
INSTEAD ARBITRARY INFLATED WAY
COVERAGES ARE ACTUALLY
CALCULATED NOW.
LIKE TO TALK ABOUT HIGHER RATES.
MANY NOT ALL INSURANCE COMPANIES
HAVE VERY SOLVENT. THREE
INSURANCE POLICIES WHO CAN
REIMBURSE THEM FOR LARGE CLAIM
AMOUNTS LIKE WE SAW LAST YEAR TO
RAISE RATES FOR LOSSES THEY'VE
ALREADY HAVE COVERAGE FOR WOULD
BE UNFAIR TO CONSUMERS.
THE FACT IS A INSURANCE RATES
PREMIUMS FOR WHAT THE POLICY
LIMIT IS A NOT FOR WHAT'S
ACTUALLY COVERED.
TWO PEOPLE WHO PAY THE SAME
POLICY MOUNT IN PREMIUMS EVERY
MONTH SHOULD BE COMPENSATED AND
TOTAL LOSSES FOR WHAT THEIR
POLICY LIMIT IS REGARDLESS IT IS
REGARDLESS OF WHAT THEIR HOME.
BUT MAYBE
EIGHTY PERCENT MAY BE ENOUGH FOR
A PERSON REPLACE LESS EXPENSIVE
ITEMS BUT NOT THEIR NEIGHBORS
MORE COSTLY ITEMS.
THIS BILL ALLOWS HOMEOWNERS TO
COLLECT A HUNDRED PERCENT OF
THEIR POLICY LIMITS AFTER
COMPLETING AN INVENTORY OF THAT
EIGHTY PERCENT AUTOMATIC CASH
OUT.
ALSO DUE TO EXTREME
CIRCUMSTANCES AND LACK OF
TRADITIONAL HOUSING AFTER A
MAJOR DISASTER UNIQUE SITUATIONS
ARISE THAT MAY NOT BE COVERED
SPECIFICALLY UNDER ADDITIONAL
LIVING EXPENSES.
SUCH AS VACATION RENTALS AND
AIRBNB.
SHORT TERM RENTALS ARE THESE IN
HOUSING FOR PETS.
WE WOULD BE HOST IN THE NORTH
BAY IF WE COULD NOT TURN TO
VACATION RENTALS THROUGH HOME
AWAY VRB O. AIRBNB AFTER THE.
AND THEY SHOULD BE IN TO RECOUP.
SO FORALL NEW HOME INSURANCE
POLICIES THIS BILL ROSS REQUIRE
INSURANCE COMES DISCLOSING
WRITING EXACTLY WHAT IS COVERED
UNDER ADDITIONAL LIVING EXPENSES.
TO THOSE WHO SAY THIS IS A FEEL
GOOD MEASURE.
AND THERE WAS.
A REPRESENTATIVE THAT SAID THIS
IS A FEEL GOOD MEASURE IN OUR
LOCAL PAPER.
BUT THEY SAY THAT IT WON'T
AFFECT TO SURVIVORS ON THE
GROUND TODAY.
I GO BACK TO WHAT I DID IN THE
BEGINNING.
AND I DON'T MEAN TO GET
EMOTIONAL.
THERE'S BEEN A RECENT SURVEY TO
SAY OTHERWISE.
SIXTY PERCENT OF SURVEY SURVEY
RESPONDENTS HAD NOT SETTLE THE
CONTENTS PORTION OF THE CLAIM.
THIS BILL WILL GO A LONG WAY IN
HELPING CALIFORNIANS INDEED.
AND IF THIS HAPPENED IN YOUR
DISTRICT YOU WOULD BE RIGHT HERE
WITH ALL OF US AS WELL.
I HAVE TODAY. THE MAYOR OF SANTA
ROSA CHRIS CORSI.
ALONG WITH LISA FREEZY RESIDENT
A SANTA ROSA WHO LOST THEIR HOME.
AND THEN I'M.
I WOULD ALSO BE HAPPY TO TALK
ABOUT THE BACK STILL IS WELL I
IN REGARDS TO THE STATE BUDGET
IS THAT IT IS AN ITEM THAT WE
CAN FOCUS ON. HOW OVER THE LAST
MANY MONTHS THINK SUCH AS
RICHARD THANK YOU SENATOR AND
I'D LIKE TO ASK YOUR TO WITH TWO
WITNESSES TO?
RESPECT THE TWO MINUTE LIMIT IF
THEY WILL AND WILL ASK OTHERS TO
DO THE ME TOO IN THE BACK SO
THANK YOU MAYOR WELCOME.
THANK YOU CHAIRMAN AND MEMBERS
OF THE COMMITTEE. ON ITS CHRIS
COURSES ON THE MAYOR OF SANTA
ROSA.
AND I APPRECIATE THE OPPORTUNITY
TODAY TO SPEAK IN SUPPORT OF SB
EIGHT NINETY SEVEN.
I'M HERE TO ASK YOU TO SUPPORT
THE BILL IN FRONT OF YOU AS WELL
AS OTHERS LEGISLATION RELATED TO
INSURANCE REFORM.
AND I'M ASKING THIS ON BEHALF OF
THOUSANDS OF FAMILIES IN MY
COMMUNITY WHO ARE TRYING TO
RECOVER FROM THE DEVASTATING
FIRES OF LAST FALL.
IT'S SANTA ROSA THE WILD FIRES
BURNED THROUGH COMPLETE
NEIGHBORHOODS IN JUST A FEW
HOURS.
RESIDENTS FLED THEIR HOMES.
OFTEN LEAVING IT BEHIND
EVERYTHING THEY OWNED EXCEPT FOR
THEIR PAJAMAS.
SO NO MY COUNTY LOST MORE THAN
FIFTY TWO HUNDRED TOLL HOMES.
SANTA ROSA.
WAS WORTH THREE THOUSAND OF
THOSE HOMES WERE LOST.
IN THE PAST SIX MONTHS I'VE
HEARD FROM COUNTLESS COMMUNITY
MEMBERS AND DURING BURDEN
BURDENSOME INSURANCE CLAIM
PROCESSES. AND REQUIREMENTS.
THIS REPRESENTS ADDITIONAL
STRESS ANXIETY AND EMOTIONAL
TURMOIL FOR PEOPLE WHO'VE
ALREADY SUFFERED SUFFERED
UNIMAGINABLE LOSS YOU SAW SOME
OF THEM THIS AFTERNOON
TESTIFYING IN FRONT.
THEY'VE HAD TO FINDNEW
TEMPORARY HOMES AND HOUSING
MARKET WITH INCREDIBLY LIMITED
LIMITED INVENTORY. THEY'VE HAD
TO SHOP TO REPLACE EVERY ITEM
THEIR FAMILY MEMBERS NEED TO
FUNCTION ON A DAILY BASIS.
AND THEY'VE HAD TO BECOME HOME
DEVELOPERS FIGURING OUT HOW TO
BEST REBUILD THE HOMES THAT THEY
LOST.
THROUGH ALL OF THAT MOST ARE
ALSO STRUGGLING WITH ARCANE AND
OFTEN UNFAIR INSURANCE RULES AND
REQUIREMENTS.
BUT THIS ISN'T JUST A PROBLEM
FOR INDIVIDUALS IN OUR COMMUNITY.
THIS AFFECTS.
ALL OF SANTA ROSA ALL OF CINEMA
COUNTY IT'S BAD FOR FOR OUR
ECONOMY IT'S BAD FOR OUR
ENVIRONMENT. ULTIMATELY IT'S BAD
FOR THE STATE OF CALIFORNIA.
SO YOU HEARD THE NUMBERS FROM
UNITED POLICY HOLES HOLDERS
SURVEYED.
EIGHTY PERCENT OF RESPONDENTS
HAVEN'T SETTLED THEIR INSURANCE
CLAIMS ON THERE ON THEIR HOMES
STRUCTURES.
TWO THIRDS REPORT THAT THEY ARE
UNDER INSURED.
WELL SIXTY THREE PERCENT OF
FOLKS SAY THEY PLAN TO REBUILD
THEIR STILL TWENTY FIVE PERCENT.
OF THE OF THESE PEOPLE WHO
AREN'T SURE IN THE REASON THAT
THEY'RE NOT SURE IT IS LARGELY
BECAUSE OF UNSETTLED INSURANCE
ISSUES.
WE'VE CREATED A BUILDING A
SEPARATE BUILDING DEPARTMENT IN
SANTA ROSA TO DEAL WITH.
REBUILD ISSUES.
YOU CAN GET A PERMIT. YOU CAN
GET YOUR INSPECTION STARTED
WITHIN FIVE DAYS.
SEVEN MONTHS HAVE GONE BY WE GOT
ONE HUNDRED PERMITS THAT ARE
ACTIVE RIGHT NOW.
THAT'S TOO FEW. THE REASON THT
WE HAVE SO FEW I BELIEVE IS
PRIMARILY BECAUSE OF THE
UNCERTAINTY UNCERTAINTIES AND
DEFICIENCIES RELATED TO
INSURANCE.
SO THIS IS A DISASTER ON TOP OF
A DISASTER FOR INDIVIDUALS
IT'S DETRIMENTAL TO THEIR
RECOVERY IT'S BAD FOR OUR
COMMUNITY.
CALIFORNIA NEEDS INSURANCE
REFORM ON MANY LEVELS WHEN OUR
RESIDENTS PAY INSURANCE BILLS
MONTH AFTER MONTH HE SHOULD BE
ABLE TO TRUST THAT INSURANCE
WILL BE THERE WHEN DISASTER
STRIKES. THAT'S NOT THE CASE
TODAY.
PLEASE SUPPORT S. B. EIGHT
NINETY SEVEN. PLEASE PASSED LAWS
SIMPLIFYING THE CLAIMS PROCESS
FOR FIRE SURVIVORS WHO ARE
ALREADY STRESSED AND EXHAUSTED
AS THEY TRY TO RECOVER.
AND PLEASE HELP RESTORE TRUST IN
OUR INSURANCE INDUSTRY BY
REQUIRING POLICIES TO DELIVER
THE BENEFITS THAT THEY PROMISE.
NO HOMEOWNER OWN NO HOMEOWNER
INTENTIONALLY BUYS INSURANCE TO
REPLACE HALF A HOME. NOW LOOK
FORWARD TO THE DAY IN CALIFORNIA
WHEN NO INSURANCE AGENT CAN SELL
THAT POLICY EITHER. THANK YOU
VERY MUCH HIM THERE.
THAT'S WHAT THIS.
GOOD AFTERNOON CHAIRMAN MEMBERS
THANK YOU FOR ALLOWING ME TO
SPEAK TODAY. MY NAME IS LISA
FRIZZY AND MY HUSBAND HOWARD AND
I ARE BOTH TEACHERS WHO RESIDE
IN SANTA ROSA WITH A FIFTEEN
YEAR OLD SON AND NOW SINCE THE
FIRE. MY EIGHTY FIVE YEAR OLD
MOTHER.
I'M IN SUPPORT OF SB EIGHT
NINETY SEVEN BECAUSE THE
ACCEPTED PRACTICE OF INSURANCE
COMPANIES REQUIRING HOMEOWNERS
AND SURVIVORS OF THE NORTH BY A
FIRE STORM OR ANY OTHER NATURAL
DISASTER. TO COMPLETE A PERSONAL
CONTENTS LISTENER TO RECOVER.
THE PERSONAL PROPERTY PORTION OF
OUR INSURANCE CLAIMS IS
PREPOSTEROUS THIS STACK HERE
REPRESENTS ONE THIRD OF MY HOUSE.
BUT I STILL HAVE TWO THIRDS TO
GO. THE TUBS WILDFIRE CONSUMED
BOTH MY HOUSE AND MY MOM'S AND
ALL OF OUR BELONGINGS ON OCTOBER
NIGHT MY TWENTY FIFTH WEDDING
ANNIVERSARY.
THOUSANDS OF HOMEOWNERS JUST
LIKE MY HUSBAND MOTHER AND I ARE
PAINFULLY NAVIGATING OUR NEW
LIVES.
WHAT HAPPENED TO US CAN HAPPEN
TO ANY OF YOU YOUR CONSISTENT
CONSTITUENTS OR EVEN YOU? I HOPE
YOU NEVER HAVE TO EXPERIENCE A
FIFTEEN MINUTE EVACUATION IN THE
PITCH BLACK OF NIGHT.
WITH NO ELECTRICAL POWER SMOKING
AMBER SWIRLING AROUND YOU.
I HOPE YOU NEVER HAVE AN
INDELIBLE IMAGE FOREVER BRANDED
IN YOUR MEMORY OF YOUR CHILD
RUNNING IN THE YARD FOR EASTER
JOYFULLY PLACE SCREAMING WE'RE
ALL GONNA DIE. AND FIREMEN ALL
YELLING.
GET OUT GET OUT GET OUT NOW.
AND I HOPE YOU NEVER NEVER HAVE
TO DEAL WITH THIS OUT RIGHT
BARBARIC PROCESS DESIGNED BY THE
INSURANCE COMPANIES IN ORDER TO
LIMIT THE AMOUNT THEY NEED TO
REPAY TO THEIR LOYAL CUSTOMERS.
MY MOM AND I SHARE THE SAME
INSURANCE AGENT AND BOTH OF OUR
HOMES WARNED SHIRT TO MONETARILY
REPLACE OUR PERSONAL PROPERTY.
ARE HOMES ARE CONSIDERED TOTAL
LOSSES BY THE INSURANCE COMPANY
MY MOM IS EIGHTY FIVE YEARS OLD.
AND WE ARE OVER FIFTY WE CANNOT
REBUILD LIVE SIMILAR LIVES OR
EVEN RETIRE WITHOUT A TOTAL
INSURANCE SETTLEMENT.
IN ORDER TO RECOVER A
SIGNIFICANT AMOUNT OF POLICY
LIMITS WE ARE INSULTINGLY BEING
ASKED TO REMEMBER AND DOCUMENT
EACH AND EVERYTHING. WE HAD IN
OUR HOME AND PROVIDE THIS
INVENTORY ALONG WITH
DOCUMENTATION AND SIMILAR PRICES
TO OUR INSURANCE COMPANY IT IS
INSULTING. PASSED MY MOM TO PUT
A PRICE ON THE PHOTO OF HER
GRANDMOTHER FEEL THE PHOTO FOR
KNOWN TO EXIST.
I CAN'T EVEN FIND THE WORDS TO
DESCRIBE MY MOM'S HOPELESS.
WE JUST WANTED EMOTIONAL STATE
AS SHE TRIES TO LIST IN PRICE
HER BELOVED LATE SON'S
BELONGINGS WHICH FOR SOME THE
BETTER OF HER HOME.
SO MANY THE ITEMS ARE
IRREPLACEABLE AND PRICELESS
EVERY TIME MY MOM WORKS THE
MILITIA NORMALLY BECOMES
DESPONDENT. BUT THIS EMOTIONAL
DURESS HAS EXACERBATED
PHYSIOLOGICAL PROBLEMS THAT ARE
ADVERSELY AFFECTING OUR HEALTH
REQUIRED MORE MEDICAL VISITS AND
HAS DIRECTLY CONTRIBUTED TO OUR
CURRENT DIAGNOSIS OF PTSD.
COMPOUNDING THIS EMOTIONAL
BLACKMAIL A REVOLVING DOOR OF
ADJUSTERS WITH DIFFERENT
PARAMETERS AND REQUIREMENTS FOR
COMPLETING THE STRIDENT LIST.
I'VE HAD SEVEN ADJUSTERS MY
MOTHER FIVE NEVER THE SAME AS
EACH OTHER THE INVARIABLY TRY TO
SWAY JUST BY SAYING. JUST FIND
SOMETHING LIKE THAT ITEM ON THE
INTERNET PUT ANYTHING DOWN IT
DOESN'T HAVE TO BE EXACT FOR MY
PERSONAL FAVORITE. YOU HAVE TWO
YEARS TO COMPLETE YOUR LIST YOU
KNOW.
WHY WOULD ANYONE LET ALONE THE
EIGHTY FIVE YEAR OLD WOMAN ONE A
LIVE IN THIS EMOTIONAL GRAVEYARD
FOR TWO FULL YEARS?
JUST YESTERDAY I GOT ANOTHER
PHONE CALL FROM TEXAS FOR MY NEW
ADJUSTER STATING THAT I NEEDED
TO ADD AN ADDITIONAL COMPONENT
TO EACH ITEM ON MY LIST THAT MY
PREVIOUS ADJUSTER TO CHARM ME
WAS NOT NECESSARY. AYE CYNICALLY
QUESTION THE VALIDITY OF THIS
REQUEST AND VIEW IT AS ONE MORE
IN A LONG LINE OF STALL TEST
TACTICS BY THE ALL POWERFUL
INSURANCE COMPANY.
TRUE HE I'M ASKING YOU SUPPORT
THIS BILL BECAUSE NO ONE SHOULD
HAVE TO EXPERIENCE THIS KIND OF
EMOTIONAL TRAUMA. OR JUMP
THROUGH HOOPS.
AND ALREADY TRAUMATIC AND
STRESSFUL TIME IN THEIR LIVES
ASK YOU TO VOTE YES ON THIS BILL
BECAUSE THE RIGHT THING TO DO.
YOU CAN SUPPORT YOUR
CONSTITUENTS AND HELP PREVENT
THIS ABSURD PRACTICE OF
CATALOGING OUR LIVES FROM
HAPPENING IN THE FUTURE BY
SUPPORTING THIS BILL TODAY.
THANK THANK YOU THANK YOU MISTER
Z.. WHEN ASKED OF THOSE OF
OTHERS WHO ARE IN SUPPORT TO
COME UP TO THE MICROPHONE BEFORE.
MISTREATED YOU FEEL COMFORTABLE
IDENTIFYING YOUR WHO TURNS
COMPANY ON THE RECORD THAT YEAR.
YES STATE PARK THE FARM AND DID
THEY OFFER YOU.
I CASH OUT THAT WOULD REQUIRE
DOCUMENTATION.
THE I HAD TO DOCUMENT TO GET MY
SO THEY DID NOT FEWER CASH AT
ANY LEVELS THEY DID AFTER OF THE
CONTROLLING THAT HAPPENED AT
STATE BUT BEFORE THAT I WAS TOLD
I WAS GOING TO HAFTA. WRITE DOWN
EVERYTHING AND WHAT WAS THAT
WHAT DID THEY OFFER YOU WITH YOU
FOR A COUPLE ST THEY OFFERED ME
SEVENTY FIVE PERCENT SO HE HELPS
ADVOCATE THANK YOU VERY MUCH
HERE COMPELLING TESTIMONY.
OTHERS IN SUPPORT IF YOU COULD
IDENTIFY YOURSELF AND IMPROVISER
SUSAN GORE AND ON FIRE SURVIVOR
EMPHATICALLY SUPPORT THIS
LEGISLATION AND REALLY WANT TO
ECHO THE TESTIMONY THAT MY
COLLEAGUES HAVE PROVIDED. A FEW
OF MY CONSTITUENTS HAVE SETTLED
WITH INSURANCE COMPANIES.
MY CONTRACT IS A CONTRACT THEY
SHOULD BE REQUIRED TO PAY US ONE
HUNDRED PERCENT OF EVERYTHING IN
THAT CONTRACT
WITH OUT THE REQUIREMENTS THAT
THERE FORCING US TO DO THINK I'D
SUPERVISOR. IF YOU COULD JUST
HAVE YOUR NAME AND THAT I NEED
TO PLEASE IF YOU WOULD. GOOD
AFTERNOON TRACY REID WORLD
COUNTY REPRESENTS A CALIFORNIA
AND SUPPORT THANK YOU.
THE COMPUTER CHAIR MEMBERS THE
COMMITTEE JEREMY SMITH YOUR
BEHALF OF THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL ALSO
IN SUPPORT.
THANK YOU.
KAREN LAYING ON GOV OF THE NAPA
COUNTY AND MENDOCINO COUNTY
BOARDS OF SUPERVISORS IN SUPPORT.
LEE HARRISON BE PRESIDENT OF
CONSUMER TEARS OF CALIFORNIA IN
SUPPORT.
AIMEE DOT COM BEHALF OF UNITED
POLICYHOLDERS IN LEGAL AID OF
CINEMA AND NAPA COUNTIES AND
AGAIN. THESE ARE ALL THINGS THAT
INSURANCE COMPANIES ARE ALREADY
DOING AND CAN DO.
THANK YOU.
PARENTS AND ON BEHALF OF THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES IN STRONG SUPPORT.
MICHAEL YOUNG THE BAT THE
CALIFORNIA LABOR FEDERATION ALSO
YOUR SUPPORT.
THE AN ESPRESSO AND I WOULD LIKE
TO SUPPORT THIS BILL THANK YOU.
JOE SPITZER MIDDLETOWN
CALIFORNIA. BELLY FIRE WE LOST
OUR HOME IN TWO THOUSAND FIFTEEN.
TEACH PAY OUT OF HOUSING AND
LIVING EXPENSES REQUIRED SIX TO
SEVEN POINTS OF CONTACT.
BEFORE WE SUBMITTED OUR PERSONAL
PROPERTY ITEM AS A NATION WE HAD
TO SUBMIT.
OVER FIVE HUNDRED PAGES OF
DOCUMENTATION.
BUT PERSONAL PROPERTY INVENTORY
HAS OVER TWO THOUSAND LINE ITEMS.
AND DISTILLING COMPLETE IF YOU
CARE TO READ IT IT'S RIGHT HERE.
THANK YOU VERY MUCH FOR SHARING
YOUR THOUGHTS OOPS WE HAD TO
JUMP THROUGH CAUSE MORE STRESS
THAN LOSING OUR HOME AND
EVERYTHING IN IT.
GETTING POLICY MONEY SHOULD NOT
REQUIRE HIRING ATTORNEYS.
THIS BILL WOULD ALLOW FAMILIES
TO GET ON WITH THEIR LIVES AND
THRIVE THANK YOU FOR COMING
TODAY THANK YOU.
CAROLYN SPEZZA. AND. TELL SELECT
MAIN.
COMING VALLEY FIRE.
I SUPPORT THIS BILL THANK YOU
VERY MUCH FOR COMING.
MICHAEL CAO SCALE LAS MY HOUSE
ENGLAND ELLEN AND THIS PROCESS
IS.
I'M GLAD I'M RETIRED BECAUSE
IT'S A FULL TIME JOB GOING
THROUGH THAT AND I CANNOT SEE
HOW ANYBODY THAT IS WORKING. A
FULL TIME COULD POSSIBLY DO THAT
IN THE LIMITED TIME THAT'S
AVAILABLE.
Q..
MY NAME'S SAM BECAUSE HE A LOST
MY HOME IN GLENDALE ONE WE GOT
FIFTY PERCENT OF OUR.
.
CONTENTS WHICH WE PAID FOR FAR.
.
A HUNDRED THOUSAND DOLLARS WE
PAID FOR IT WAS IN THAT CONTRACT
I GOT FIFTY PERCENT AND I'M
STILL HAVING TO.
LIST EVERYTHING ANDTHEY WILL
DEDUCT FOR DEPRECIATION THAT IS
NOT WHAT I PAID FOR.
THANK YOU.
ALISON LANE I LOST MY HOME IN
COFFEE PARK LA I USE DO I STILL
WORK FOR THE HUMANE SOCIETY OF
CINEMA COUNTY. A AND I'M FINDING
THAT I NEED TO QUIT THAT JOB
BECAUSE I CANNOT SPEND ENOUGH
TIME DEALING WITH ALL OF THE
INSURANCE.
AND ALL THE THINGS THAT ARE
BEING REQUIRED OF US IN ORDER TO
TRY TO MOVE FORWARD A WHICH IS A
VERY PAINFUL THING ON FOR US TO
DO. THANK YOU VERY MUCH I
SURPLUS MONEY.
I RICHARD LANE COFFEE PARK THANK
YOU COMMITTEE MEMBERS AND AND
CHAIRMAN AYE AFTER PAYING OUR
PREMIUMS IN FULL IN GOOD FAITH
FOR AS LONG AS OUR POLICIES HAVE
BEEN IN FORCE. ARE INSURANCE
COMPANIES ARE NOW SAYING THAT
LOSING EVERYTHING EVERYTHING
DOES NOT ENTITLE US TO OUR FULL
COVERAGE DOESN'T DID COULD PRO
QUO JUST DOESN'T BALANCE. OUT
WHEN YOU'RE TRYING TO KEEP A JOB
HOUSE A FAMILY REPLACE CLOTHING
GET KIDS TO SCHOOL AND MANAGE
REBUILDING AND AN INSURANCE
CLAIM. EUROPE NOW SUPPOSED TO
ITEMIZE YOUR ENTIRE FORMER LIFE
THERE'S JUST NOT ENOUGH HOURS IN
THE DAY. SO THANK YOU FOR
SENDING THIS BILL ON TO
COMMITTEE I'M TO THE STATE.
MISTER CHAIRMAN MEMBERS F THE
COMMITTEE CHRISTY THEM ON BEHALF
OF THE CALIFORNIA PROFESSIONAL
FIREFIGHTERS POLICE TO BE IN
STRONG SUPPORT OF THIS BILL MANY
MALE MEMBERS LOST THEIR OWN
HOMES.
BUT FIGHTING THIS FIRE.
IF YOU.
EARL SMALL LIKE FELIZ STATES.
PLEASE SUPPORT THIS. MY WIFE.
FOR SEVEN MONTHS NOW. HAS BEEN
FILLING OUT PAPERWORK.
WE'RE STILL NOT DONE.
WE GOT SEVENTY FIVE PERCENT AND
THEY FINALLY CAME BACK COMPARES
THE REST.
IT DOESN'T EVEN COME CLOSE TO
COVERING HOW MUCH MONEY WE
REALLY LOST.
PLEASE
PLEASE.
THANK YOU PORTIS GENTLEMAN THANK
YOU VERY MUCH ANY OTHER
WITNESSES AND SUPPORTS.
MISTER CHAIRMAN AND MEMBERS
ROBERT ROUTE WITH THE DEPARTMENT
OF INSURANCE.
WE ARE THE SPONSOR AND HAVE A
CANNOT THINK ENOUGH SENATORS
MCGUIRE AND TAUGHT FOR ALL THEIR
EFFORTS ON AS A KID A HAPPY TO
ANSWER ANY QUESTIONS AS WE GO
INTO DETAILS THANK YOU. ALL
RIGHT LET'S HAVE A WITNESSES IN
OPPOSITION KING CLEAR THE TABLE
HERE IN FRONT.
GOOD AFTERNOON IT HAPPEN AGAIN
CARE ACROSS AT THE PERSONAL
INSURANCE FEDERATION OF
CALIFORNIA. AND LIKE TO START BY
THANKING SENATOR MCGUIRE.
HEART DOES GO OUT TO ALL THE
FOLKS THAT ARE IN YOUR DISTRICT
VANDERSTEEN IT'S VERY VERY TOUGH
ON THEM. ALSO YOUR STAFF BOMB
HAS BEEN VERY GRACIOUS AND
MEETING WITH US SEVERAL TIMES
AND WE ALSO REALLY APPRECIATE.
ALL THE WORK OF THE COMMITTEE
STAFFS WELL.
INVENTORIES.
THE ISSUE WITH INVENTORIES AND
EIGHT AND I'M S. B. IN THE
NINETY SEVEN IS THAT AGAIN WE'RE
TALKING ABOUT A CONTRACT AND I
DO WANT TO PICK BACK UP ON THAT
THEME. THAT BIRCH WERE TALKING
ABOUT CHANGING A CONTRACT THAT'S
ALREADY IN PLACE AND THAT WE'RE
ALSO TALKING ABOUT DIFFERENT.
KINDS OF COVERAGE AGAIN AND THAT
AGAIN ONE SIZE DOES NOT FIT ALL.
THERE'S OF THE BIG. A BIG
VARIETY OF COVERAGES THAT GREAT
GOOD ARE GREAT DIFFERENCES
BETWEEN THEM AND IT'S REALLY
ABOUT CHOICE FOR THE CUSTOMER.
THERE'S COVERAGES WHERE YOU CAN
GET A VERY RICH POLICY. THAT
WOULD PROVIDE FOR A LOT OF
CONTENTS COVERAGE AND THERE'S
COVERAGE LIMITS THAT ARE ARE
LESS BUT AGAIN IT GOES BACK TO
CONSUMER CHOICE. NOTE THAT
INVENTORIES ARE YOU KNOW IT
TAKES A LONG TIME TO DO ON YES I
GET THAT. BUT IT IS AN IMPORTANT
TOOL IN THERE'S A REASON THAT
THEY'VE BEEN THERE AND BEEN USED
BY THE INDUSTRY FOR A LONG TIME.
FIRST OF ALL I NEED TO NOTE THAT
THE INSURANCE RAGS.
THE SECTION TWENTY SIX NINETY
FIVE POINT NINE F.. REQUIRE THAT
INSURERS OFF THE QUESTIONS OF
CONDITION AT AGE SO THERE IS A.
UP PROCESS THAT INSURERS MUST GO
THROUGH TO ACTUALLY COMPLY WITH
THE INSURANCE RACKS.
BUT SECONDLY IT IS AN IMPORTANT
TOOL IN HELPING FOLKS GO THROUGH
THE PROCESS TO MAKE SURE THAT
THEY'RE ABLE TO ACCOUNT FOR ALL
THE THINGS THAT THEY'VE LOST.
AT THE SAME TIME IT ALSO
PROVIDES THE MEANS TO MAKE IT
ALSO PREVENTS INSURERS FROM
OVERPAYING WHICH IS IMPORTANT AS
WELL BECAUSE THAT KEEPS COSTS
DOWN.
SO WE DO WORK WITH THE
HOMEOWNERS TO GO THROUGH THE
PROCESS IT'S
IT DOES TAKE AWHILE WE GET BACK.
ESPECIALLY AFTER THESE
CATASTROPHES PAD CLAIMS
FESTIVALS ON THE GROUND WORKING
WITH FOLKS IF THEY NEED TO GO
ONE ROOM AT A TIME IF THEY NEED
TO STOP AND TAKE A BREAK.
IT'S NOT SOMETHING THAT FOLKS
ARE BEING RUSHED INTO. BUTTON
HAVING AN EIGHTY PERCENT ONE
SIZE FITS ALL PAYMENT THAT IS
NOT.
CONSISTENT WITH THE CONTRACT IS
IT'S GONNA BE INCREASE PRICE
AGAIN AND IT'S GOING TO LIMIT
THE ACTUAL CHOICES AVAILABLE TO
POLICY HOLDERS.
WE URGE YOU KNOW VOTE THANK YOU
THANK YOU.
MISTER CHAIR MEMBERS OF THE
COMMITTEE ARE MONTHLY SHOT ON
THE HAVE A PC I.
I WANT TO THANK SENATOR.
MCGUIRE.
BECAUSE WE ARE TRYING TO WORK
WITH HIM ON THIS ISSUE IT'S A
TOUGH ISSUE WE ALL RECOGNIZE
THAT. PACO MY COLLEAGUES POINTS
ABOUT CONSUMER CHOICE.
I THINK WE HAVE THE SAME
CONCERNS ABOUT THE RETROACTIVE
PORTION OF THIS.
IT DOESN'T DO CONTRACTS THAT WE
HAVE AGREEMENT ON.
I WOULD LIKE TO NOTE THAT I I I
THINK THAT THE STAFF AND POOR UP
POINTING OUT SOME OF THE ISSUES
THAT WE HAVE HERE BUT I DO. I
MEAN WE ARE OPEN TO US HAVING
MORE CONVERSATION ON THE EIGHTY
PERCENT. HE WILL SEE YOU ON THE
STAFF ANALYSIS HERE UP PAGE SIX.
HOW THERE IS TALK ABOUT FIFTY
PERCENT? BE OPEN TO HAVING THAT
DISCUSSION WITH THIS AT WITH THE
AUTHOR AND OTHER STAKEHOLDERS.
THANK YOU I THANK YOU VERY MUCH
BY THEIR OTHER WITNESSES IN
OPPOSITION PLEASE COME UP TO THE
MICROPHONE AND IDENTIFY YOURSELF.
THREE PAY BUT AMERICAN INSURANCE
ASSOCIATION GET WE LIKE TO THINK
THE AUTHOR AND WILL CONTINUE
WORK THE.
THANK YOU.
SHERRI RICKY REPRESENT THE
PACIFIC ASSOCIATION DOMESTIC
INSURANCE COMPANIES WE
APPRECIATE THE AUTHOR'S EFFORTS
WE APPRECIATE THE COMMITTEE'S
ANALYSIS ON THEM WE REMAIN
OPPOSED MUST AMENDED.
THANK YOU.
THE EDWIN LOMBARD REPRESENTING
THE. OF VERMONT SLAWSON ECONOMIC
DEVELOPMENT CORPORATION THE.
LOS ANGELES AFRICAN AMERICAN
WOMEN'S
A PUBLIC POLICY INSTITUTE. THE
LOS ANGELES CIVIL RIGHTS
ASSOCIATION BACKPACK AND THE
BLACK BUSINESS ASSOCIATION AND
WE OPPOSE THIS BILL.
GREAT THANK YOU VERY MUCH OTHER
ANY OTHER WITNESSES IN
OPPOSITION.
I'D SEEN THAT WILL BRING THE
MATTER OF FACT TO THE COMMITTEE.
MEMBERS COMMENTS QUESTIONS
SENATOR GAINES AND AND SENATOR
MORE LOCK.
FOR THANK YOU.
SENATOR GLAZERS DUH.
ONE QUESTION BASED ON THE
TESTIMONY THAT WAS GIVEN.
.
SO I WANNA GET CLARITY IN TERMS
OF CONTENT COVERAGE BECAUSE IT
SOUNDS LIKE.
SOME.
SOME OF THE INSURERS WERE
INSURED ON A.
ACTUAL CASH VALUE BASIS.
VERSES A REPLACEMENT COST BASIS
BECAUSE THEY'RE TALKING ABOUT
DEPRECIATION.
AND.
.
SO CAN CAN YOU CAN GO THROUGH
THAT NATURE OF THE DIFFERENT
TYPES OF POLICIES THAT ARE
AVAILABLE.
BECAUSE THERE ARE PICTURES GET
BROADER COVERAGES AND.
.
I WOULD I WOULD NEVER ADVISE A
CLIENT TO GET A POLICY THAT
WOULD APPRECIATE HUMOR.
CONTENT SIR OR THE VALUE OF A
BUILDING OR ANYTHING OF THAT
NATURE.
YEAH A LOT OF THEM MOST POLICIES
ARE REPLACEMENT COSTS POLICIES.
BUT THE WAY THAT THEY WORK IS
THAT YOU NEED TO ACTUALLY
REPLACE YOUR ITEM TO GET THE
REPLACEMENT COST HE CHOOSE NOT
TO REPLACE YOUR ITEM YOU'LL GET
ACTUAL COSTS VALUE.
LET'S SEE WHO THEN THERE'S AN
ISSUE WITH WITH DEVELOPING THE
INVENTORY.
THE ISSUE WITH DEVELOPING THEN
TOWARD.
WELL.
AS I SAID YOU'RE GOING TO GO
ROOM BY ROOM IN AND GO THROUGH
IT SLOWLY BUT IF YOU COULD.
ACTUALLY. GETTING ALL THOSE
CONTENTS REPLACED UP FRONT WHEN
SOMEBODY HAS ANNE MARIE BUILT
THEIR HOME THAT THAT WILL EVEN
MAKE SENSE REPUBLICAN I WANT TO
GET YOUR HOME FIRST AND THEN
START FILLING IN YOUR CONTENTS
THAT POINT YOU'RE GONNA. GO AND
DO IT AND GET REPLACEMENT COSTS
FOR ALL THOSE ITEMS.
ALRIGHT I KNOW THAT.
.
SOME INSURANCE COMPANIES DO AN
INSPECTION THE THINK PHOTOGRAPHS
OF THE INTERIOR AND EXTERIOR ON
THE HELP THAT ON FILE.
AND IN THE EVENT OF A TOTAL LOSS
THAT HELPS QUITE A BIT SIR.
.
IT IS SOMETHING THAT ARE ENSURE
RECOMMENDS YES ABSOLUTELY THAT
YOU SHOULD.
.
COMPLETED INVENTORY AND THEN PUT
IT OFF PREMISES.
OR VIDEOTAPE THE INTERIOR OF A
HOME SO YOU.
CAN HELP BREAK LIKE THAT BECAUSE
I.
I KNOW IT'S.
EXTREMELY DIFFICULT TO TRY TO
RECREATE THAT AND SO I'M
SYMPATHETIC TO THAT.
I HAVE CONCERNS ABOUT WHAT
HAPPENS TO RATE IF YOU IF YOU.
IF YOU HAVE A REQUIRED PAYOUT.
I THINK THAT INCREASES RATE
THAT'S MY UNDERSTANDING.
AND THEN.
WHAT DOES THAT DO IN TERMS OF
THE OFFERING OF COVERAGE SO?
MAYBE YOU WOULD.
FABIAN SHIRTS CARRIERS AS A
REACTION WILL LOWER THE CONTENT
LIMITS.
AVAILABLE ON HOMEOWNERS POLICIES.
IN ORDER TO COMPENSATE. FOR
WHAT WOULD BE A RATE INCREASE IF
IT WAS PAID OUT AT EIGHTY
PERCENT RATE AND WHATEVER THAT
PERCENT WOULD BE SO I. THAT'S.
BECAUSE OF THE RUB IN THE
CONCERN THAT BUT I'VE GOT.
MOVING FORWARD IT THROUGH THE
CHAIR TIED TO CENTER GAINES
REMOVED. LET'S PUT THIS IN
PERSPECTIVE.
WE ABOUT ANYWHERE BETWEEN EIGHT
TO TEN MILLION. HOMES THAT ARE
ENSURE.
WE'RE TALKING ABOUT SIX THOUSAND
SIX HUNDRED AND SIXTY FIVE.
IF WE'RE GOING TO BE LOOKING AT
A SIGNIFICANT RATE HIT.
WITH A POOL OF EIGHT TO TEN
MILLION.
FOR SOMETHING WRONG.
SIX THOUSAND SIX HUNDRED AND
SIXTY FIVE.
THE OTHER THRESHOLD FOR THIS
BILL.
IT IS THE GOVERNOR DECLARED
DISASTER.
WE LOOK AT THE WORST OF THE
WORST.
I ALSO WANNA CLARIFY BECAUSE.
THE ISSUE OF AMENDMENTS WERE
BROUGHT UP IN ABOUT A POTENTIAL
FIFTY PERCENT.
FAR WOULD I'M VERY GRATEFUL FOR
HAS BEEN ABLE SIT DOWN WITH CARE
SHE'S BEEN. GREAT TO WORK WITH
OUT OVER THE PAST MANY MONTHS
I TRULY.
THE AMENDMENTS THAT WE
ORIGINALLY WERE OFFERED WAS
HEARING OUT THE EIGHTY PERCENT.
THE SECOND ROUND OF AMENDMENTS
IS AT TWENTY FIVE PERCENT.
I JUST HEARD ABOUT FIFTY PERCENT.
FROM MONDAY FROM THE CHAIR.
SO WE WERE NEVER OFFERED FIFTY
PERCENT.
BY THE END DISTRICTS WOULD BE
VERY CLEAR ABOUT THAT.
BUT MISTER CHAIR WITH THAT. THE
ON THE ISSUE OF CONTENTS WE THE
DEPUTY COMMISSIONER JUST IF CAN
RESPOND.
FIVE SIXTY SECONDS IF THAT WOULD
BE POSSIBLE.
YEAH I'LL BE FINE THEN IT PLEASE.
MISTER CHAIRMAN MEMBERS TONY
SINGER LA DEPUTY COMMISSIONER OF
CONSUMER SERVICES BUT JUST TWO
QUICK POINTS UP THE DEPARTMENT
SUBMITS THAT REGARDLESS OF
WHETHER THE INSURER.
DOZEN INVENTORY OR DOES NOT IF
THIS BILL WERE ENACTED THE
INSURANCE COMPANY WOULD BE
PAYING AT LEAST EIGHTY PERCENT.
SO IT'S JUST THE WHAT IS THAT
BASED ON WHAT THE THE INSURED IS
GOING TO DO. IF THEY'RE FORCED
TO ITEMIZE THEY WILL ITEMIZE AND
THEY WILL GET TO THAT EIGHTY
PERCENT IT WILL JUST BE AN
INTENSE BURDEN ON THEM SO THAT
WE WOULD YOU BASE THAT ON.
BASED ON OUR EXPERIENCE WITH THE.
HUNDREDS AND THOUSANDS OF CLAIMS
AND MARKET CONDUCT EXAMSTHAT
WE'VE PERFORMED YOU'RE SAYING
THAT EVERYBODY WHO FILLS OUT A
CLAIM GETS AT LEAST EIGHTY
PERCENT.
WE'RE SAYING YEAH FOR UNLESS
SOMEONE HAD A SECOND HOME OR YOU
KNOW THAT WAS.
THEY WERE IN ESCROW THEY DIDN'T-HAVE.
FURNISHINGS IN THEIR HOME THERE
IS THERE IS STUDY THAT YOU CAN
PROVIDE TO US THAT HAS THAT
THOSE THOSE. THAT ANALYSIS THAT
WE CAN UNDERSTAND AYE I KNOW
THAT'S BEEN SUBMITTED I HAVEN'T
SEEN IT.
TODAY I CAN ONLY SINCE YOU KNOW
GIVE YOU ARE EXPERIENCING ON
THAT ARE ENOUGH AND I DON'T LIKE
ALSO LIKE DICK TO BABY CORRECT
THE POINT MADE BY THE INSURER
CONCERNS TRADE. REGARD TO THE
REGULATION THE DEPARTMENTS
REGULATION TWENTY SIX NINETY
FIVE POINT NINE F. THE
SUGGESTION THERE WAS THAT THAT
REGULATION REQUIRED THE
INSURANCE COMPANIES. TO A
REQUIRE NIGHT OF HIS ASIAN TO
GET THE AGING CONDITION OF EACH
INDIVIDUAL ITEM AND THEREFORE
THAT WAS ONE OF THE REASONS WHY
THEY WERE FORCING THE INSURER TO
DO THAT. THERE'S NO REQUIREMENT
THAT THE INSURANCE COMPANY
DEPRECIATE TO BEGIN WITH SO THIS
JUST THAT REGULATION IS ONLY
THERE TO MAKE SURE THAT IF THEY
ARE GOING TO DEPRECIATE. THAT
THEY THAT THEY HAVE SOME MEASURE
BILL ITEMIZED BASIS TO DO SO IT
HAS NO IMPACT ON AND A
REQUIREMENT OF THE INSURANCE
INDUSTRY TO FORCE AN INVENTORY
ON THE CLAIM.
OKAY I NOW PROBABLY GOING TO
NEED TO GET A COUNTERPOINT BUT
NEVERTHELESS CENTER GAINS ARE
YOU FINISHED WITH YOUR QUESTIONS.
OKAY CENTER. ISLAND OKAY IF YOU
WANT TO YOU GET THAT CHANCE
BECAUSE HE DID ADD THAT IN POWER
OUT WE HAD THE CHANCE I WANTED
TO TAKE WITH ABOUT THE EIGHTY
PERCENT.
PAYOUT THAT ALL INSURERS ARE
PAYING EIGHTY PERCENT THAT
THAT'S AND NOT MY UNDERSTANDING
AT ALL IT AGAIN IT DEPENDS ON
THE TYPE OF COVERAGE YOU HAVE.
WHEN YOU HAVE A VERY GENEROUS
POLICY. THE MAJORITY OF PEOPLE
ARE NOT GETTING TO EIGHTY
PERCENT SO I MEAN I WOULD BE
CURIOUS TO SEE THAT STUDIES WELL
BECAUSE THAT'S NOT WHAT WE'VE
EXPERIENCED FAIR ENOUGH I'VE
SENATOR MORE LOCK.
THANK YOU RICHARD IT WAS TIME IN
CALIFORNIA WE USED TO TAX.
HOMES BASED ON THE NUMBER OF
ROOMS.
I THEY HAD SO THAT'S WHY WE HAVE
THESE BIG WARDROBES BECAUSE
PEOPLE WOULDN'T HAVE THAT.
BECAUSE IT CONSIDERED A ROOM.
AND SO I'M THINKING BACK.
TWENTY YEARS ON WHEN.
WE WE HAD PERSONAL PROPERTY
TAXES SO EVERY WHAT CAUGHT.
TAX AMONG THAT SO BILLY SOMEONE
HAD AN INVENTORY ALL THE TIME
BUT.
I'M NOT HERE TO ADD TO ADVOCATE
TAXING EVERYBODY TO KEEP RECORDS
BUT I'M TRYING TO LOOK FOR.
BEST MANAGEMENT PRACTICES AND
AND SO HERE'S A HOME THAT'S
TOTALLY WIPED OUT.
EVERYTHING'S GONE AND THERE'S NO
RECORDS OFF SITE BECAUSE.
THAT'S JUST THE WAY IT JUST
HAPPENS TO BE.
I I'M JUST TRYING TO.
WHICH CAUSED JUST HELP ME OUT
NOT A KNOW. WHAT WE'RE FORCING
PEOPLE TO DO RECOLLECT?
?
IT IS IT DO YOU GUYS OFFER AN
ALTERNATIVE TO THAT.
AS FAR AS THE AMENDMENTS TO THE
BILL ONE THING THAT WE HAVE BEEN
TALKING TO SENATOR MCGUIRE ABOUT.
IS THE TWENTY FIVE PERCENT IN
ADVANCE OF CONTENTS COVERAGE SO
THAT SOMETHING THAT DOES WORK.
BUT WHEN YOU START UPPING THE
PERCENTAGE WHEN YOU GOT
DIFFERENT KINDS OF COVERAGES
IT'S IT'S NOT A ONE SIZE FITS
ALL IT'S ALL.
EVERYDAY. BUT IT CREDIT FOR GOD
BECAUSE WE'RE CAUGHT WE'RE
TALKING TIME THEFT MINUTE I
PREDICT THAT.
I WAS JUST GOING TO SAY YES TO
GET THE ON MY TWENTY FIVE WE
SOUGHT TO ACCOUNT FOR.
TO YOU YOU'RE STILL GOING ACCESS
HAVE TO ITEMIZE THAT TOO SO SO
THAT'S HE PIECE I GIVEN A FREE
PASS LIKE YOU TAKE TWENTY FIVE
PERCENT. AND DON'T. ABSOLUTELY
NET AND THAT'S WHY WE ARE IN
FRONT OF YOU HERE TODAY.
EVEN WITH THAT TWENTY FIVE
PERCENT IT'S NOT A ONE AND DONE
IT'S NOT AN AUTOMATIC NOT
ITEMIZE PAY OUT.
BUT USUALLY THEY'RE A LOT JUST
KEEP IT TAUGHT WELL HOMER
RENTERS.
YOU EAT WHEN YOU.
FIRST BY YOUR HOME THAT'S WHEN
YOU CAN TO DEAL WITH YOUR BROKER
TO GET A POLICY TO HOMEOWNERS.
AND THE FIRE INJURED ALL THAT
COMES FOR AT THAT POINT THE
MINUTE TAUGHT RENEWALS AFTER
THAT BUT.
AT THE TIME OF ACQUISITION.
WHY DOESN'T THE BROKER COME BY
THE HOUSE
AFTER YOU'VE MOVED IN OR? START
TAKING PHOTOS ARE PORTION TO
TAKE PHOTOS ORDER. FORCING
INVENTORY UP FRONT.
YEAH I MEAN SYNDICATE SHOULD
BECOME A RELATIONSHIP HERE WE
SAY HEY THEY ARE YOU. LIKE
COMPANIES ARE STRONGLY
ENCOURAGING FOLKS TO TAKE THEM
INVENTORIES THEY HAVE. OPS THEY
HAVE.
WILL GET THEM FORMS TO FILL
ENCOURAGED HIM TO TAKE PICTURES
IT STRONGLY ENCOURAGED BY
INSURERS. AND THEIR AGENTS AT
THE BEGINNING UP WHEN THEY
PURCHASE A HOME TO GO THROUGH
THAT PROCESS BUT WE CAN ONLY
INFORM HOMEOWNERS SO MUCH WE'VE
WE ASK HIM TO DO IT. WE STRONGLY
ENCOURAGE IN THE DO IT BUT AT
THE END OF THE DAY IT'S.
IT'S A HOMEOWNER NEEDS TO DO IT
DO A TIERED SYSTEM RESORT CATERS
FOR POLICY YOU CAN HAVE.
OPTION A WHERE YOU'RE GONNA GET.
AT THIS DOLLARS. YOU'RE PAYING
FOR THIS DOLLAR AMOUNT AND WE'RE
NOT GOING TO ASK ANY QUESTIONS
OR YOU YOU KNOW YOU. HAVE
DIFFERENT TIERS
IT'S IS THAT OFFERED WHEN WHEN A
HOMEOWNERS INSURANCE POLICY IS
IS NEGOTIATED. I DON'T KNOW OKAY.
.
SEVERAL GAYS XIN HASN'T BEEN
DISCUSSED I DON'T THINK.
IT SEEMS TO ME THAT. THERE ARE
SOME.
THAT MAY BE RESPONSIBLE FOR
HAVING STARTED TO REMOVE THESE
FIRES YOU UTILITY COULD BE
SOMETHING ELSE.
.
WHO NEED DO YOU HAVE ANY
COMMENTS OUT WHAT'S HIS IS HIS
OCCURRING IN IN THAT REGARD?
NOW.
I MEAN I DON'T KNOW WHAT YOU
WANT ME TO COMMENT ON EX FIVE
YOU STARTED ANY LAWSUITS TO
START GETTING SOME MONEY BACK
YOU GET ANYTHING BRAIN WAVES.
THERE'S BEEN SOME SIX YES.
SO WHAT OF THE. HERE OF COURSE I
CAN'T SEE THE FUTURE BUT IF
YOU'RE IF YOU'RE LOOKING AT
GETTING.
REIMBURSED HIM BECAUSE SOMEONE
STARTED THE FIRES HERE YOU YOU
KNOW YOU YOU'VE DONE YOUR JOB OF
TAKING CARE OF THE HOMEOWNER
YOU'RE GONNA GET THE MONEY BACK.
FROM THEORETICALLY FROM LET'S
SAY LET'S SAY P. JEANNIE.
THEN IT WILL. I'M I'M THINKING
WHY THE BIG HASSLE WITH TH
HOMEOWNERSHIP THURS SUBROGATION
WILL ENSURE SEPARATE ALL THE-TIME I MEAN THAT'S JUST PART OF
THE PROCESS I MEAN YOU COULD
TALK ABOUT. THAT AND AUTO
ACCIDENT AND IT'S SOMEBODY
ELSE'S AT FAULT THEY'RE GOING TO
SEGREGATE FROM THE OTHER INSURER.
OR THE OTHER OF AN INDIVIDUAL
THAT WAS DRIVING THAT'S JUST
PART OF HOW INSURANCE WORKS AND
EVERYTHING GOES INTO IT TO TAKE
INTO ACCOUNT AND RATES.
SOMETIMES HE.
AND OTHER INSURERS HAVE BRIGADE
AGAINST US IN CERTAIN SITUATIONS.
AND I APOLOGIZE FOR ASKING THESE
KINDS OF QUESTIONS WOULD.
IT SEEMS LIKE YOU KNOW AS A AS A
FINANCIAL PLANNER YOU CAN A. AYE
I DON'T I DON'T SEE ANYBODY
PUSHING NEEDED TO DO AN
INVENTORY.
AND I IN I WAS SITE BUT I'D LOVE
TO LIVE IN A CERTAIN AREA ORANGE
COUNTY. BUT IT'S IN THE HILLS
AND.
THERE'S VAMPIRES ARE SO I DON'T
I WANT TO LIVE THERE JUST
BECAUSE I'M AFRAID OF A OF A
FIRE JUST PERSONALLY BUT SO WE
MAKE SOME BUT IF I LIVED THERE
I'D SAY BY.
SOMEDAY I'D COULD SOMEHOW AT THE
BILL THAT INTO MY TIME
MANAGEMENT THAT EVERY WEEK AND
I'M RIGHT DOWN I'M BUILDING A
LIST. IN THAT I'M TAKING IT OFF
SITE BUT I DON'T HAVE ANYBODY
PUSHING ME TO DO THAT FOR. UP TO
SAY JUST THROUGH THE CHAIR. TO
CENTER MORLOCK WE HAVE TO
REMEMBER THAT.
THIS FIRE.
BURN TWO MILES INTO THE CITY
LIMITS.
HE JUMPED SIX LANES OF HIGHWAY
ONE ONE.
BURN DOWN SEVERAL STRIP MALLS A
MASSIVE KMART.
AND THEN TORE THROUGH COFFEE
PARK A COMMUNITY OF THIRTEEN
HUNDRED. THERE IS ABSOLUTELY NO
WILDLAND INTERFACE IT IS LIKE
ANY NEIGHBORHOOD WHETHER YOU
LIVE IN ORANGE COUNTY.
L. A. A OR IN THE VALLEY.
THE OTHER PART OF THIS AND I
WANT TO GO DOWN THAT ROAD. ABOUT
RECRUITING LOSSES ABSOLUTELY
INSURANCE COMPANIES ARE GONNA GO
AFTER.
ONCE THE INVESTIGATION HAS BEEN
COMPLETED GO AFTER WHAT THAT
POTENTIAL CAUSES.
AND IF FACT BECAUSE.
HAS MEANS AND OF COURSE THEY'RE
GONNA GO AFTER IT.
SO THEN THE BOTTOM LINE THAT
WERE LEFT WITH.
THAT WERE CASHING OUT FOLKS
A THOUSAND OF THEM. FIFTY
PERCENT OR LESS SENATE
DEPRECIATED VALUE OF HOMEOWNERS
TO TRY TO REBUILD THEIR LIVES.
AND THEN.
WHICH IP SHAPE STATE FARM'S AT
SEVENTY FIVE PERCENT.
BUT THE IMPORTANT PART TO
REMEMBER ON THIS IT'S A THE
DEPRECIATED VALUE.
MANY FOLKS THINK THAT'S GONNA BE
THE FAIR MARKET VALUE OF THE
WILL OF WHAT YOUR COUCH IS WORTH
WHAT YOUR TV IS WORTH.
ABSOLUTELY NOT.
SO THAT COMES TO THE IN. THE
CONVERSATION IF IT WILL MAYBE
THE STATE BUDGET SHOULD.
BACKFILL.
WHY WE BACK FEELING TO PUT INTO
RESPONSIBILITY?
BUT A PRIVATE CORPORATION.
AND I WILL ALSO SAY BUT THIS ONE
THING ON BACK FILL. THE WE'VE
BEEN HAVING CONVERSATIONS WITH
THE GOVERNOR'S OFFICE.
SO WE'RE GONNA CHARGE THREE TO
FIVE PERCENT INTEREST OF THOSE
HOMEOWNERS AN ASSIGNMENT SECOND
PROGRAM THAT WE'RE LOOKING AT.
ON TOP OF WHAT THEY'RE.
LOSS ALREADY IS.
SENATOR I'M GONNA GIVE YOU A
CHANCE TO CLOSE TO BUT I I IS
THAT ANSWERED YOUR QUESTION OR
WE. HAVE A GOOD I LIVE OFF
OFFLINE AYE AYE THERE'S MORE
QUESTIONS FROM OTHER COLLEAGUES
HERE OUT OF MY QUESTIONS THAT WE
CAN COME BACK TO THE AND I'M
SURE WE'LL COME BACK TO SENATOR
MCGUIRE BUT THERE ARE OTHER
QUESTIONS. THANK YOU FROM OTHER
MEMBERS HERE SIDE SENATOR ROTH
AND I SENATOR NEWMAN SENATOR
GALGIANI.
IRAQ.
BUT HOPEFULLY FOCUS ON THIS
CONTENT COVERAGE ISSUE.
.
THE INVENTORY REQUIREMENT IS A
PROBLEM.
LIKE I COMPLETELY UNDERSTAND.
SENATOR WHAT YOU'RE TALKING
ABOUT IF SOMEBODY ASKED ME WHAT
THE AGE OF THE TV WAS IN MY
HOUSE OR.
EVEN WHAT SIZE IT WAS OR WHAT
THE MANUFACTURER WAS I WOULD
HAVE A VERY DIFFICULT TIME YEAH
ADDRESSING THAT SO I CAN'T
IMAGINE. HAVING TO DO THAT.
WHEN YOU'RE TALKING ABOUT AN
ENTIRE HOUSE NOW HAVE BEING A
MILITARY GUY I'VE MOVED A LOT.
WE FILED LOTS OF CLAIMS BECAUSE
WHEN THE MILITARY IN THE PEOPLE
THAT MOVED TO STATE TENDED TO.
I THINK IF THEY COULDN'T JUST
DAMAGE AND THEY DESTROYED IT AND
SO YOU YOU HAD TO FILE A LOT OF
CLAIMS OVER YOUR.
MILITARY CAREER AND OF COURSE WE
ALWAYS DEALT WITH DEPRECIATED
VALUE AND THEY NEVER GAVE US
ANYTHING FOR WHAT THEY TORE UP
AND.
BUT THAT'S NOT TO SAY THAT IT'S
RIGHT IN THE MILITARY YOU KNOW
YOU SIT TO GET WHAT YOU GET YOU
KNOW PITCH A FIT.
THAT'S NOT HERE SO THIS
INVENTORY ISSUE IS A SIGNIFICANT
PROBLEM.
BUT.
IT ISN'T WHAT I'M HAVING. WHEN
I'M STRUGGLING WITH IS HIS THE
PAYOUT WITHOUT AN INVENTORY AND
I THINK I HEARD YOU SAY AT SOME
POINT TO BE A TRUE UP.
COULD THAT SOME POINT PER HOUSE
I WAS REFERRING TO THAT ORIGINAL
TWENTY FIVE PERCENT THAT IS
KICKED DOWN TO BE ABLE IN IT DID.
WHERE INSURANCE COMPANIES SO
ALMOST IMMEDIATELY AYE INTERNS
COMPANY WILL GIVE YOU TWENTY
FIVE PERCENT?
I TO BE ABLE TO COVER THE COST
OF A RENTAL TO BE A TO REPLACE
YOUR CLOTHES CAN KEEP GOING DOWN
THE LINE. BUT EVENTUALLY YOU ARE
GONNA HAVE TO TRUE UP ON THAT
TWENTY FIVE PERCENT YES WHAT
ABOUT YOUR BILL IN THE EIGHTY
PERCENT IS THERE A TRUE UP.
THERE'S ACTUAL OUT BUT IT WAS SO
HERE'S MY ISSUES SO RECOGNIZING
AND I'M NOT AN INSURANCE.
EXPERTS AT FACT I KNOW VERY
LITTLE ABOUT IT EVEN THOUGH I
SIT ON THIS COMMITTEE BUT WHAT I
DO UNDERSTAND IS THERE VARIOUS
LEVELS OF OF CONTENT COVERAGE.
AND YOUR POLICIES. AND SOME
CARRIERS.
I GUESS MAYBE PAY ATTENTION TO
THE AMOUNT OF THAT WHEN WHEN
THEY GO TO THE COMMISSIONER AND
GET THE RATES APPROVED AND
OTHERS.
YOU KNOW ONE OF LOOKED GOODEN
HAVE EVERYBODY FEEL GOOD AND
THEY GIVE FIFTY PERCENT OF
REPLACEMENT VALUE WERE EIGHTY OR
SEVENTY FIVE PERCENT OF
REPLACEMENT VALUE.
SO IF YOU APPLY AND EIGHTY
PERCENT.
STANDARD ACROSS THE BOARD AS THE
PAYOUT IN LIEU OF AN INVENTORY.
AND THERE'S NO TRUE UP.
BUT NOT SURE HOW THAT WORKS.
FOR EXAMPLE IF I HAVE A HOUSE
THAT IS VALUED AT EIGHT HUNDRED
THOUSAND DOLLARS IN MY POLICY IS.
REPLACEMENT VALUE IT AT EIGHT
HUNDRED THOUSAND LET'S SAY THE
STRUCTURES VIOLATED EIGHT
HUNDRED THOUSAND AND. THE
REPLACEMENT POLICY IS EIGHT
HUNDRED THOUSAND AND THE
CONTENTS COVERAGE IS FIFTY
PERCENT OF THAT.
FOUR HUNDRED THOUSAND AND UNDER
YOUR BILL.
A HOMEOWNER WOULD GET THREE
HUNDRED AND TWENTY. IF MY MATH
PUBLIC MATH RETURN TWENTY
THOUSAND IN CONTENTS COVERAGE.
WELL THAT'S THE BILL ISN'T OF.
SENATOR IF I COULD CLARIFY
ROBERT WROTE THE DEPARTMENTOF
INSURANCE SO GENERALLY SPEAKING
YOU'VE GOT APART ABC INDY PARA.
QUE IS YOUR HOUSE THAT ARE THE
MAIN STRUCTURE THAT'S WHY SO
MANY PEOPLE ARE STRUGGLING
BECAUSE WHAT'S NEXT BE IS.
DETACHED GARAGE AND OTHER
STRUCTURES STARTED.
SEIZE YOUR CONTENTS BRIGHTNESS
WILL USUALLY.
CITY IS ABOUT AS HALF OF YOUR A.
FOR SOME COMPANIES MAY BE A
LITTLE BIT MORE YOU KNOW WHAT I
SAID YEAH. BUT THAT REPLACEMENT
THE COST OF YOUR YOUR VALUE SET
FOR YOUR HOUSE NOT DIG GROUND
OUT THE DIRT.
THE STRUCTURE IN MY EXAMPLE IS
EIGHT HUNDRED THOUSAND OKAY.
SO FIFTY PERCENT OF REPLACEMENT
VALUE IN THAT CASE IS IS THAT
NOT RIGHT IS FOUR HUNDRED
THOUSAND.
IF YOU'RE IF YOU'RE CONTENTS
WHAT IF IF YOU'RE A YEAH IF
YOU'RE A IS A HUNDRED THOUSAND.
THEN CHANCES ARE YOUR SEED YOUR
CONTENTS IS HALF OF THAT AMOUNT
YOU WERE WONDERING WHY THESE
CONSUMERS DON'T UNDERSTAND THEIR
POLICIES RIGHT. DOESN'T
APPRECIATE IN VALUE SO I THAT'S
RIGHT THAT DOESN'T AS THE CENTER
POINTS OUT THAT HE YOUR
AFFECTING DEPRECIATION AFRICA'S
VALUE THINGS WE DON'T APPRECIATE
REPLACEMENT VALUE YOU DON'T
APPRECIATE. THE REPLACEMENT
VALUE OF YOUR HOME.
YOU DEPRECIATE THE CONTENTS
UNDER CERTAIN CIRCUMSTANCES
CORRECT. WELL THAT'S WHAT I'VE
SEEN SO THE TO SAY EIGHT HUNDRED
AND THEN YOU JUST PART OF THE
FOUR HUNDRED IT'S NOT GONNA BE A
FLAT FOUR HUNDRED BECAUSE YOU'RE
NOT GETTING. WHAT THAT VALUE IS?
YOU'RE GONNA GET THAT'S THE
LIMIT AT A AT A PRE IT'S A LIMIT
BUT. LET'S BE HONEST THE VAST
MAJORITY OF THE SIX THOUSAND SIX
HUNDRED SIXTY FIVE ARE NOT
GETTING.
THEIR FULL LIMIT THAT'S WHY
WE'RE SEEING SO MANY UNDER
INSURED YOUR SCENE HALF UNDER
INSURED ON CONTINENTS.
BUT RIGHT NOW IN ABOUT.
THE SIX PERSON UNDER INSURED ON
STRUCTURE.
BUT THAT'LL DEPEND ON THE VALUE
THE REPLACEMENT VALUE OF THE
HOME CORRECT BECAUSE YOUR
CONTENT COVERAGE IS TYPICALLY A
PERCENTAGE OF THE REPLACEMENT
VALUE OF YOUR HOME SO WHAT
YOU'RE SAYING IS. THAT THE VOTE
WITH FOLKS THAT HAVE SUFFERED
THIS TRAGEDY.
HAVE A REPLACEMENT VALUE OF THE
HOME THAT SLOWER BUT THEY HAVE
MORE EXPENSIVE INVALUABLE
CONTENTS IN THERE FOR. THEY'VE
EXCEEDED THE CONTENT LIMIT ON
THE POLICY.
YOU'RE GIVING ME A QUIZZICAL
LOOK SIR AND I'M JUST TRYING TO
I'M JUST TRYING TO UNDERSTAND
THE EXAMPLE BE WHAT WILL WANT
YOU CLARIFY MY EXAMPLE. THIS I
THINK THE CALL THE CORE OF OF
THIS PROVISION OF THE BILL.
IS THAT.
IN LIEU OF WHAT DO YOU FOR
PEOPLE TESTIFYING TO THAT KIND
HELL THEY'VE BEEN THROUGH.
I THAT'S PUTTING IT MILDLY.
THAT THE INSURER WHATEVER YOUR
C. S. WHATEVER THAT IS.
YOU GET EIGHTY PERCENT OF THAT I
WOULD NOTE THAT COMING OUT OF
LAST YEAR'S FIRES.
INSURERS REPRESENTING BETWEEN
ONE THIRD AND FORTY PERCENT OF
THE TOTAL LOSSES IN THE TWENTY
SEVENTEEN FIRES.
WE'RE GIVING AT LEAST EIGHTY
PERCENT SOME GIVE A HUNDRED.
NINETY EIGHTY PERCENT AND THEN
YOU WHAT THAT SAID YOU WALK AWAY
YOU GET YOUR YOUR THEORETICALLY
LEAVING MONEY ON THE TABLE
BETWEEN THE EIGHTY PERCENT AND
YOUR POLICY LIMIT ON YOUR CITY.
BUT MY SENSE IS THAT FOR THE
FOLKS IN THIS ROOM AND IN THOSE.
COMMUNITIES THEY WILL GLADLY
TAKE THAT TRADE.
TO AVOID THE HELL THAT THEY'VE
BEEN GOING THROUGH WELL I LISTEN
I UNDERSTAND THE TRAGEDY YEAR.
A PROBLEM IS YOU'RE TALKING
ABOUT CONTRACTS
AND PREDICTABILITY AND CARRIERS
MAKE PREDICTIONS BASED ON WHAT
YOU'RE IN THE BUSINESS OR YOU
SHOULD BE TALKING TO ME ABOUT
THIS.
CARRIERS MAKE PREDICTIONS BASED
ON LOS HISTORY CLAIMS EXPERIENCE
AND ALL THE OTHER THINGS THAT
YOU ALL LOOK AT. WHEN YOU
APPROVE RATES AND I ASSUME WHEN
IT COMES TO CONTENTS THAT WHILE
THE CARRIER MAY SAY WE'RE GOING
TO ALLOW YOU FIFTY PERCENT OF
YOUR REPLACEMENT VALUE FOR
CONTENT FOUR HUNDRED THOUSAND AS
AGAINST AN EIGHT HUNDRED
THOUSAND.
STRUCTURE VALUE THAT CARRIERS
ASSUME THAT NOT EVERYBODY HAS
FOUR HUNDRED THOUSAND DOLLARS
WORTH OF CONTENTS
IN A HOME IN THE EVENT OF A DISK.
XIN
A TESTER FREE AND THE FILING OF
THE CLAIM.
AND BASED ON THAT ASSUMPTION AND
THOSE ASSUMPTIONS ACROSS THE
BOARD THAT CARRIERS ARE NOT
ASSUMING THAT THEY'RE GONNA PAY
OUT A HUNDRED PERCENT. EACH AND
EVERY TIME A STRUCTURE IS
DESTROYED AND GIVEN THAT I GUESS
MY POINT AND I'LL GET TO THE
POINT SO I DON'T HAVE A HOOK
FROM MY CHAIR.
OKAY MIKE COMMENTED TO THE
AUTHOR HERE THE AUTHORS HERE IS
IT EIGHTY PERCENT ACROSS THE
BOARD IS PROBABLY NOT REASONABLE
UNDER THIS.
BUT IF YOU'RE IF YOU'RE CONTENT
COVERAGES TWENTY FIVE
PERCENT OF YOUR REPLACEMENT
VALUE THAT CARRIERS PROBABLY
ASSUME THEY'RE GONNA PAY OUT.
MOST OF THAT TWENTY PERCENT MOST
OF THE TIME IF NOT ALL THE TIME
IF THE POLICY PROVIDES SEVENTY
FIVE PERCENT.
CONTENTS COVERAGE AS AGAINST
REPLACEMENT VALUE CARRIERS
PROBABLY ASSUME.
BUT THEY'RE NOT GOING TO PAY OUT
SEVENTY FIVE PERCENT OF THE
VALUE OF THE HOME THE
REPLACEMENT VALUE.
MUCH OF THE TIME AND SO EIGHTY
PERCENT. OF THEIR IS PROBABLY A
LITTLE TOO MUCH TO EXPECT AND SO
MY SUGGESTION HAS ALWAYS BEEN
SINCE I FIRST HEARD ABOUT THIS
BILL. THAT THERE BE SOME SCALE
THAT EIGHTY PERCENT AS AGAINST
THE TWENTY PERCENT CONTENT
COVERAGE IS PROBABLY OKAY YOU
PICK A NUMBER. THAT AS THE
CONTENT COVERAGE PERCENT GOES UP
PERCENT OF REPLACEMENT VALUE
THAT THE EIGHTY PERCENT GOES
DOWN AND AT SOME POINT THERE'S A
SWEET SPOT AND YOU CAN HAVE A
SCALE LIKE THAT AND THEN
PROBABLY. NOT BEING AN ACTUARY
NOT BEING AN INSURANCE PERSON
NOT BEING IN THE DEPARTMENT OF
INSURANCE IT PROBABLY ALL WORKS
OUT IN BALANCE.
SO WORKGROUP PICKS A WHAT I
WOULD SAY THAT. A IN A IN BY THE
WAY PLUG THE QUESTIONS IN THE
COMMENTS BECAUSE IT'S THERE THAT
VERY HELPFUL.
CADA.
THEY REALLY ARE ME AND.
WE'VE BEEN ASKING FOR AMENDMENTS
TO THIS BILL.
HA I BELIEVE WE PRESENTED THE
BILL.
PRIOR TO INTRODUCTION BACK IN
JANUARY.
THE TWO AMENDMENTS THAT WE
RECEIVED.
IT'S HEARING OUT THE EIGHTY
PERCENT.
RENDON COMING BACK AT TWENTY
FIVE.
THE I'M NOT BEING CRITICAL OF
THE EFFORTS OF ETHER OF YOU TWO
I UNDERSTAND THOUGH THE
SACRAMENTO WAY YEAR WHICH IS ALL
OR NOTHING CHAU INTO THE ONLY
REASON I BRING THAT UP IS.
TO BE WOULD EVEN CONSIDER SCALE.
I I I DON'T EVEN KNOW AND NOT AT
ALL TRYING TO A PUT THEM ON THAT.
THE HOTTIE HERE BUT I KNOW
WHERE THEY STAND ON THAT BECAUSE
THEY NEVER EVEN PRESENT ANYTHING
LIKE THAT.
IN THAT GETS BACK TO MY ORIGINAL
POINT.
WE NEED MORE TIME TO CONTINUE TO
WORK ON THIS BILL.
WE DO.
AND.
THERE IS NO WAY THAT WE'RE GOING
TO BE ABLE TO COME TO SOME TYPE
OF CONCLUSION.
IN THE NEXT.
TWO WEEKS.
WE NEED MORE TIME. AND WE ALL
KNOW. BY THE TIME YOU GET OVER
TO THE ASSEMBLY. HE GOT TO BE
PREPARED TO GET A POUND OF FLESH.
AND WHAT I WOULD ASK.
IS ALLOW WAS TO CONTINUE WORK
THIS BILL.
WOULD BE GRATEFUL FOR THAT
CONSIDERATION OKAY BECAUSE THAT
THAT'S NOT EVEN THAT LETS US AND
WE'VE EVEN CONSIDERED BUT.
I WOULD BE WILLINGNESS TO GIVE
YOU A CHANCE FOR A CLOSE BUT I
WANT TO GET TO THE QUESTIONS
THAT I CAN'T CENTER OUT THE GOOD.
OKAY SENATOR NEWMAN SENATOR
GALGIANI.
OKAY FORGET.
FIRST FIRST OF ALL I JUST I
WANT TO SAY I AM REALLY REALLY
APPRECIATE THE DIFFICULT
SITUATION THAT YOU'RE AND TRYING
TO. TO.
ADDRESS CONSTITUENT CONCERNS
AND QUESTIONS AND I AM AND
EVERYTHING THAT YOU'RE DEALING
WITH AND YOUR COMMUNITIES I CAN.
I CAN'T EVEN IMAGINE THE CLOSEST
THING THAT I CAN THINK ABOUT IS
WHEN I WAS CHIEF OF STAFF TO.
WORK AS A FIELD REP TO MY
PREDECESSOR SENATOR PAT JOHNSON
WE HAD THE FLOODS. NOTHING LIKE
THIS OF FLED MOVES MUCH SLOWER
THAN A FIRE AND WE HAD NOTHING
LIKE THE DEVASTATION THAT YOU'VE
HAD HERE SO THE FACT THAT YOU'VE
EVEN BEEN ABLE TO PULL TOGETHER
BILLS.
IN THIS MATTER IS IS AMAZING TO
ME AND I KNOW IT HAD IT IT TOOK
A LOT OF WORK. AYE I HAVE
QUESTIONS I'M ASKED THEM FOR
PURPOSES OF DRIVING THE
CONVERSATION NOT CRITICIZE THE
BILL GOOD PURPOSES OF DRIVING
THE CONVERSATION BECAUSE. I
THINK ABOUT.
THE FACT THAT AND YOU'VE HEARD
ME SAY THIS BEFORE I OWN A HOME
MY OLD ASSEMBLY DISTRICT.
IT'S TWENTY TWO HUNDRED SQUARE
FEET FOUR BEDROOMS TWO BATHS
IT'S FOR THREE HUNDRED THOUSAND
DOLLARS. AND BECAUSE IT'S NOT
THE IT'S NOT AS EXPENSIVE TO
LIVE THERE A HOME LIKE THAT
WOULD BE I DON'T KNOW HOW MUCH
WOULD IT COST IN IN YOUR
DISTRICT MILLION.
IF SIX HUNDRED EIGHT HUNDRED
THOUSAND OPINION THE
NEIGHBORHOOD OKAY OKAY SELF.
YOU KNOW THE BUT IF I IF I'M
UNDERSTANDING WHAT THE INSURANCE
COMPANIES DO WHEN THEY'VE BUT
THEY DETERMINE THE CONTENTS IT'S
ABOUT HALF OF WHAT.
THE VALUE OF THE HOME IS CORRECT
SOME POLICIES ARE SOME POLICIES
ARE MORE. THE MULLAHS ARE THAT A
LOT OF THEM A FIFTY PERCENT PAY
CUT COMPANIES THAT OFFER SEVENTY
FIVE PERCENT OKAY.
I'D LIKE TO SEE PEOPLE NOT HAVE
TO ITEMIZE AND US BE ABLE TO
TREAT.
PEOPLE MORE FAIRLY WHO ARE IN
THIS SITUATION BUT I ALSO
RECOGNIZE AND UNDERSTAND THAT.
THE CONTENTS OF MY TENANT WHO
LIVES IN THE HOUSE THAT I HAVE
THAT WOULD BE A HUNDRED AND
FIFTY THOUSAND DOLLARS THEN
RIGHT THAT WOULD BE PAID OUT.
POTENTIALLY TO MY TENTATIVE THAT
WERE FIRE.
IT'S ABOUT A HUNDRED OR HE HAD A
HUNDRED FIFTY THOUSAND DOLLARS
FOR THE CONTENTS THE OKAY. AND
BUT IT DOESN'T MEAN THAT THE TEN
IT DOESN'T MEAN THAT A HOMEOWNER
IN THE.
EIGHT HUNDRED THOUSAND DOLLAR
HOME HAS FOUR HUNDRED THOUSAND
DOLLARS WORTH OF CONTENT IT'S
PROBABLY. CLOSER TO THE CONTENTS
THAT MY TEN AND HAS.
WHICH WOULD BE MUCH LESS.
AND SO I GUESS WHAT I'M
SUGGESTING IS THAT THERE BE SOME
CONVERSATION ABOUT MAYBE. YOU
KNOW MAYBE THAT FIGURE IS WHAT
NEEDS TO BE TWEAKED AND MAYBE
THAT'S NOT QUITE RIGHT BECAUSE
MAYBE SOME PEOPLE CONCLUDE.
COULD POTENTIALLY HAVE MUCH MUCH
MORE WHEN WITH WHERE WE ARE ALSO
TRYING TO MAKE SURE THAT WE TAKE
CARE OF FOLKS SENATE'S.
IT SEEMS THAT.
THE CONTENTS OF A HOME IN THE
CENTRAL VALLEY AREN'T GOING TO
BE WORTH IT THAT MUCH LESS THAN
A HOME.
SOMEWHERE ELSE AND SO. IT YOU
KNOW SENATOR ROD CISCO A IN A
SUGGESTION AND SENATOR.
MORE LOCK SUGGESTION ABOUT LIKE
A TIERED AND.
THINKING IN TERMS OF A TIERED
SYSTEM AND CONSIDERING SCALE YOU
KNOW SOMEONE THAT THAT. HAS LOST
THEIR HOME THEY'VE LOST
EVERYTHING IT'S THEIR ONLY HOME
AND THEY'RE JUST TRYING TO GET
THE BASICS VERSES.
YOU KNOW IF I HAVE TO PROVE THAT
I'VE GOT AN ANTIQUE THAT WAS
WORSE HOWEVER MUCH MONEY THAT
THERE SHOULD BE SOME ROOM FOR
FOR MOVING THINGS AROUND I JUST.
I THINK I'M GONNA VOTE FOR THE
BILL TODAY BUT I I'D LIKE TO SEE
SOME CONVERSATION. AND THAT AREA
BECAUSE I THINK THAT.
THE INSURANCE COMPANIES COULD DO
DIFFERENTLY TO.
MAKE THAT A MORE FAIR SYSTEM AND.
BUT IS THAT MAKE SENSE IT MAKES
SENSE I WOULD COMMIT TO THAT
WOULD ABSOLUTELY. HAVE THAT
CONVERSATION I THINK GETTING
BACK ALSO TO WEAR TIES CENTER
ROTH WAS AT AS WELL.
.
THAT IS AN ITEM KENNEDY THAT WAS
ON EXPLORE DURING ARTS THE SCALE
IN THE INCIDENT GOT JOHNNY WE
ARE AT.
WERE WILLING TO BE ABLE TO ON.
TO CONTINUE THAT CONVERSATION
UNITS SINCERE LA.
BUT IT'S NOT GOING TO BE SETTLED
THE NEXT TWO WEEKS UNDERSTOOD IT
IT IT CAN TAKE SOME TIME TO BE A
TO WORK IN.
.
AND I NEVER WANT SPEAK FOR THE
INDUSTRY BUT I THINK. THAT WOULD.
THE INDUSTRY IS GOING TO WORK
FOR SOME OF THEIR CONCERNS AS
WELL I AND. I BEEN COMMITTED ALL
ALONG TO BE ABLE TO HAVE THOSE
CONVERSATIONS ON WHATEVER
MINUTES
WE COULD PRETEND TO SEE COME
FORTH.
THAT MIGHT BE A GOOD POSH
SENEGAL AND ENOUGH IF YOU HAVE
MORE QUESTIONS ARE NOT THAT
MAYBE I COULD. TAKE A MOMENT TO
GET CLEAR ON THE AMENDMENTS
ISSUE PLEASE IF I LEFT IT WOULD
SENATOR MCGUIRE THINKING.
SURE.
MY COLLEAGUE.
AND. THANK YOU FEDERALLY AND NOW
I JUST HAVE I'VE NOW GET THIS
BURNING GO QUESTION AN ACCOUNT I
SEE MORE THAN YOU THINK. THAT
AND IT TOO IS A QUESTION SO BY
SENATOR REID MENTIONED.
DATE HE WOULD BE HARD PRESSED
TO FIGURE OUT WHAT TV DELEON.
BUT WHAT REPLACE YOU BECAUSE I I
MIGHT I REMEMBERED I AYE BUT I
PROMISE YOU.
UNLESS YOU PAY CASH FOR
SOMETHING I I COULD GO BACK.
AND PROBABLY FIGURE OUT TO THE
PENNY EVERYTHING I PURCHASED IN
THE LAST FIFTEEN YEARS BUT I
PROMISE YOU RECORDS YOU CAN IT'S
NOT THERE ARE NO GREAT WISH YOU
PAID CASH. BUT I DON'T SHOP
ADOPT BUT THAT'S NOT MY QUESTION.
I AND I'M SURE YOU WOULD WANT TO
DO THAT.
YEAH BUT IT DID THIS IS THE
QUESTION AND THE QUESTION IS.
WHO ARE TWO QUESTIONS ONE IS IN
YOUR?
SOMEBODY MEASURE EARLIER
GETTING REPLACEMENT.
DOT VALUE FOR YOUR CONTENTS
BEFORE YOU REBUILD YOUR HOME IS
IMPRACTICAL LE AND THAT MAKES
SENSE TO ME AND SO IS THERE A
RULE OF THUMB IN THE INDUSTRY AS
TO WHAT IS THE SHARE. OF THE C.
PORTION THAT YOU WOULD ATTRIBUTE
TO THE YOU DON'T NECESSARY ITEMS
RIGHT SO FRINGES MY BASEBALL
CARD COLLECTION BUT NOT
NECESSARY.
ALTHOUGH I LOVE AT A REALLY
HAPPEN I'M JUST USE AS EXAMPLE.
MY COMIC BOOK COLLECTION DAY
BUT AT WHAT OTHER THINGS IF YOU
LOOK AT THE CORNER SAYS CITIES
WHAT SHARE TYPICALLY.
OF SOMEBODY'S SEE THAT PART
PORTION ABOUT HOW MUCH IS THAT
TAKE UP TO REPLACE EVERYTHING
ONCE YOU'RE UNDER A ROOF AT YOUR
PLACE SHOULD THE CORNISH ISSUES
APPLIANCES BEDS IT'S ETRE. WHAT
WHAT'S THE SHARE OF COVERAGE
THAT TYPICALLY THEY USED? ONCE
YOU'RE UNDER A ROOF YES.
IT'S GONNA DEPENDENT EVENTUALLY
ON EACH HOMEOWNER BUT I AM GLAD
TO ME ONE POINT THAT WHEN YOU
STARTED TALKING ABOUT
REPLACEMENT COSTS.
VERSUS DEPRECIATION WHICH WE'VE
BEEN HEARING A LOT ABOUT TODAY
IF YOU REPLACE YOUR ITEMS.
YOU'RE GONNA GET YOUR
REPLACEMENT COST YOU'RE GONNA
GET REIMBURSED FOR HOW MUCH
ACOSTA REPLACE YOUR ITEMS WAS
LIKELY OR NOT TO THE PURE
PLACING MOST YEAR ITEMS UNTIL
YOU GET INTO YOUR HOME.
SO I I JUST WANT TO BE CLEAR
THAT'S WHAT WE'RE TALKING ABOUT.
.
IT'S A TO THE TWENTY THAT'S IT
THAT'S THE LEADING TO MANAGE
CROQUET THAT WHICH IS IF IF YOU
PAY ME OUT AND AND WITH IT THE
QUESTIONS WHAT ARE YOU SAYING
WATERPIK PEOPLE TYPICALLY DO NOT
MEAN YOU DO HAVE THE PROBLEM OF
UNDER INSURANCE I WANNA REBUILD.
GUY AND I'M GONNA USE GENEROSITY
TAMPA GOT EIGHT HUNDRED THOUSAND
DOLLARS A HOME AND THE ESSENTIAL
AND WE GET EIGHT PERCENT OF MY
MY FORTY THOUSAND DOLLARS JEFF I
GET A CHECK FOR THREE BY PEOPLE.
I WOULD ASSUME THEY'RE USING
THAT TO REBUILD THEIR USING THE
CITY PAYMENT FOR THE A PORTION.
IS THAT RIGHT VERY TRUE BUT THAT
THAT WASN'T THE INTENT OF THE
STRUCTURE THE POLICY RIGHT SO IF
YOU COULD TALK ABOUT THAT'LL
BECAUSE AT THAT SEEMS TO BE AN
IMPORTANT ISSUE TO ME.
THERE ARE TALKING ABOUT KIND OF
BOTH BILLS RIGHT NOW FOR I I
APPRECIATE THAT BUT BUT WITH THE
QUESTIONS WHERE YOU SING A FEW
BELIEVE WE'RE TREATING. THAT THE
CITY PORTION AS NECESSARY.
PRECISELY BECAUSE IT YOU KNOW
IT'S ASSUME THAT MONEY CAN WE
NEED TO REBUILD WHEN IN FACT THE
INTENT WAS TO REPLACE
POSSESSIONS NOT THE HOME. BY.
KATE SO WHAT WHAT ARE WE SEEING
ARE YOU SEEING PEOPLE USE THAT
MONEY TO REPLACE THEIR THEIR
CONTENTS OR WE SING THAT WERE
TYPICALLY USED. IN SOME OTHER
FASHION AND WHEN SOMEBODY
MAINTENANCE INTERMIXED PAYMENT I
DON'T THINK THE MATERIAL THAT
ARE YOU TALKING TO GET WHAT IT
WHAT ARE YOU SAYING CENTER BUT
THAT THEY'RE USING THEIR
CONTENTS COVERAGE BECAUSE
THEY'RE UP THERE UNDER INSURED.
TO BEGIN TO REBUILD THEIR HOME.
SO THERE.
THEY ARE TAKING.
THERE SEE PORTION IN POLICE
DEPARTMENT TRANSCRIPT REVIEW
THINK I'M WRONG.
AND HAVING TO BE TO PUT INTO
THE REBUILD BECAUSE THEY JUST
DON'T HAVE ENOUGH MONEY IN THEIR
POCKET TO BE A TO GET TO THE
REBUILD. BUT EVEN WITH THAT I'LL
ADD.
.
OVER HALF OF THESE FOLKS ARE
GOING TO BE ABLE TO BUILD TO
WEAR THEIR ORIGINAL SQUARE
FOOTAGE WAS.
RIGHT RIGHT BUT THAT'S A
CHALLENGE THAT WE HAVE THAT IS
EXTERNAL TO THE DO YOU KNOW THAT-THE CONVERSATION HERE. ABOUT HOW
WE TREAT THIS PARTICULAR SECTION
OF COVERAGE AND HOW WE WOULD HOW
WE WOULD DO IN THIS CASE RIDE.
OKAY.
THANK.
IF I'M IF OJ ADD TO THAT ARE.
WHAT TYPICALLY HAPPENS WITH
SEVERAL INSURANCE COMPANIES IS
THEY DO PUT A TIME REQUIREMENT
ON THE INSURED COMPLETING THE
INVENTORY SOME INSUREDS?
ARE REQUIRING THEIR CLAIMANTS TO
DO THEIR INVENTORY COMING UP ON
SIX MONTHS.
IF THEY DON'T DO IT WITHIN A
YEAR SOME CHARACTERS EMERGE
COMPANIES SAYING THEY'RE NOT
GOING TO PAY. A THE INVENTORY
THE CONTENTS COVERAGE WE HAD
ADDED A TOWN HALL MEETING IN
SANTA ROSA LAST NIGHT SEVERAL OF
THE CONSUMERS RAISE THEIR HAND
AND SAID JUST THAT MY INSURANCE
COMPANIES TELLING ME. THE FINAL
COMPLETE MY AMATORY WITHIN ONE
YEAR THAT AND THEY'RE NOT GONNA
PAY MY CONTENTS COVERAGE.
AND SO OR THEY'RE ONLY GONNA PAY
THAT PORTION THAT'S COMPLETE
THEY'RE ABLE TO REALIZE THAT
WOULD YOU SAY THAT'S NOT
REASONABLE BECAUSE IT CENTURIES
ALL.
WELL.
FOR A MOMENT LET'S SAY IT BUT I
WANT TO WITH THE TREES MORE NOT
RESOLVED BUT TO YOUR EARLIER
POINT THAT.
IF THEY'RE FORCED TO DO IT WITH
THEM APPEARED AT TIMES THEY HAVE
BUILT THEIR HOME YET I TRY ME
THERE'S A DIFFERENCE BETWEEN
THAT AND ID AND AND AND ADVANCE
PAYMENT RIGHT IN THAT DO YOU
KNOW AND. LIKE IT YOU KNOW SO
IMMEDIATE PAYMENT OF AB.
I THINK THE CHALLENGE WE HAVE
IS.
THE LABOR MARKET ALSO MEAN IT'S
ALL FACTORS IN RIGHT THE LABOR
MARKET IS SO TIGHT BACK AGAIN I
APPRECIATE THAT WE TALK ABOUT
THE BUT THAT'S NOT ABOUT
REPLACEMENT COSTS OF BUT THAT'S
IMPACTING. THE REBUILD OUT AS
WELL THEY'RE NOT COMMITTED
LIEUTENANT BUT THEN WE THAT WE
BUT WE HAVE A STRUCTURAL PROBLEM
WITH POLICIES I DON'T BELABOR IT.
BUT A BIG THIS IS THE ISSUE I I
BOUGHT A POLICY.
SOME SHARE WAS FOR THAT FOR
MIGHT TO HOW MY HOME IS YOU KNOW
SOME SHAREWARE HOWEVER IT WAS. A
PORTION WAS FROM A CONTENT BUT
IT'S DIFFERENT AND THOSE ARE
SEPARATE CATEGORIES AND I ASSUME
TREATED SEPARATELY WITHIN THE
THE INSURANCE ACTUARY MODELS
RIGHT YEAH AND I FORGET. TO.
YOU MENTIONED IT BUT.
YOU'RE NOT ALWAYS GOING TO WIND
UP WITH FOLKS HAVING AS MUCH
CONTENT AS THEIR LIMITS ARE.
SO WHEN YOU START GIVING IT
AUTOMATIC EIGHTY PERCENT PAYOUT
WHEN SOMEBODY MAY NOT IT HAD
GOTTEN OUT THE CONTENTS WE
ALREADY KNOW FROM ALL OF OUR
LOSS EXPERIENCE OVER ALL THE
YEARS THAT WE'VE BEEN COLLECTING
AT. THE DOT IS NOT GOING TO BE
THE AMOUNT THAT SOMEBODY WOULD
USUALLY COLLECT FOR THE CONTENTS
SO YOU'RE GOING TO BE AT SOME
POINT SOMETIMES OVERPAYING FOLKS
IT'S GOING TO HAVE AN IMPACT ON
RATES. OR IT'S GOING TO RESULT
IN COMPANIES NOT OFFERING ITS
GENEROUS THE POLICIES.
YEAH. CENTER OUT THE QUICK
FOLLOW UP AND THEN I. TRACKED MY
THOUGHTS WERE A MIXTURE OF SO
WHAT I HEARD WAS IF YOU REPLACE
YOUR CONTENTS.
THE TV YOU'RE GONNA GET
REPLACEMENT COST YOU'RE GOING TO
GET REIMBURSED FOR BY AND THAT.
IF YOU DON'T YOU'RE GONNA GET
DEPRECIATED VALUE OF WHATEVER
THE THING IS IT'S ON YOUR
INVENTORY ACTUAL CASH VALUE IT
TAKES AWHILE TO GET BACK IN THE
HOUSE PARTICULARLY UNDER THE
CIRCUMSTANCES WHERE IT'S TAKING.
TWENTY FORWARD THIRTY SUBMITS
ANTICIPATED I GUESS TWENTY FOUR
TO THIRTY SIX MONTHS OR YOU JUST
SAID SOME CARRIERS ARE REQUIRING
AN INVENTORY.
WITHIN. TWELVE MONTHS.
SOME ARE YES AND THAT THAT
PARTICULAR REQUIREMENT REALLY
SORT OF MAKES NO SENSE IF YOU'RE
NOT.
IF MANY PEOPLE DON'T BUY THE
REPLACEMENT STUFF UNTIL THEY GET
INTO THEIR HOUSE AND IF THEY
SUBMITTED EARLY IN THE SUBMIT
THE CLAIM AND END UP BUYING A
REPLACEMENT ARTICLE THEY'RE
GONNA GET DEPRECIATED VALUE.
IT'S PROBABLY NOT THIS BILL BUT.
IF THAT IF MY UNDERSTANDING IS
TRUE THEN WHAT WE HAVE JUST DONE
IS UNDER COVER UNCOVER OF.
STRUCTURAL PROBLEM IN THE WAY
THESE POLICIES WORKS IT PROBABLY
NEEDS TO BE ADDRESSED
SOMEWHERE ELSE THINKING IF FROM
THANK YOU MISTER CHEN. ALRIGHT I
APPRECIATE EVERYBODY'S PATIENCE
IS A VERY IMPORTANT ISSUE AND I
I.
I'M GLAD WE'VE HAD THE
OPPORTUNITY TO DELVE INTO IT I
NO NOT EVEN TO THE EXTENT IN
WHICH MANY WOULD LIKE BUT. I
WANT TO BRING US DOWN TO SOME
BRASS TACKS TO LISA CENTER
REQUIRED THAT THERE WERE SOME
SUGGESTED AMENDMENTS IN THE
STAFF ANALYSIS THAT WANTED TO
WALK THROUGH THOSE WITH YOU AND
I CAN BE REALLY QUICKLY SIR I
ARE NOTHING HEARING COULD DO. SO
I'M VERY COMFORTABLE WITH A.
OKAY.
OKAY SEE I JUST THAT ONE ITEM IS.
DEFINITION REASONABLY TIMELY
THAT'S GOING ON AND I JUST LIKE
TO BETTER CLARIFY INDIE.
THAT THAT ONE AND THEN OBVIOUSLY
IN A TECHNICAL LIMITS OF COURSE
ON E.. THE ONE. CHALLENGE IS ON
BE.
AND THAT'S WHY I WOULD
RESPECTFULLY ASK
TO BE ABLE TO MAKE A MOVE THIS
BILL TODAY. AND YOU HAVE MY.
HUNDRED PERCENT COMMITMENT TO
THIS COMMITTEE.
WILL CONTINUE TO WORK WITH YOU.
YOUR STAFF
ON ANYONE ELSE BUT TO BE ABLE TO
REFINE THIS BILL.
I APPRECIATE THAT'S AT LEAST WE
HAVE THAT CLARIFICATION ON THE
RECORD SO. THAT YOU KNOW THE
CHALLENGE THAT I HAVE ON THIS
WHOLE THING IS THAT. WE HAVE
OTHERS TO REALLY FOR FOR ME TO
ISSUES WE HAVE THE TRAGEDY. AND
THE RESPONSE TO THAT TERMS OF
THE INSURANCE INDUSTRY BEING
RESPONSIVE TO THAT THE CLAIMS
AND AND. AND.
AND THE VARIOUS ISSUES AROUND
THAT AND THE AND AND THEN THE
SECOND ISSUE IS. A.
ARE WE GONNA PUT INTO LAW NEW
INSURANCE REQUIREMENTS THAT HAVE.
IMPACT ON THE MARKETPLACE
CHANGES IN REQUIREMENTS.
SUCH AS WE'RE DISCUSSING HERE
WITH THE EIGHTY PERCENT NUMBER
THAT'S IN THE PROPOSED BILL.
WE WE HAVE POTENTIAL IMPACTS ON
AVAILABILITY OF COVERAGE AND
COVERAGE LEVELS AND HOW THEY MAY
CHANGE AND ADJUST TO THAT. WE
HAVE IMPACTS IN REGARD TO COSTS.
AND SO THAT IT WITH TWO
DIFFERENT THINGS OF A KIND OF
PUTTING TOGETHER HERE IN THIS
BILL AND IT MAKES IT PHYSICALLY
HARD BECAUSE AB PLUS WE HAVE THE
WHOLE ISSUE OF. OF DISCLOSURE
AND UNDER INSURANCE
WHICH ARE RELEVANT ON BOTH SIDES.
IN THE TRAGEDY WE HAVE THAT
CIRCUMSTANCE WE CERTAINLY DON'T
WANT TO SEE THAT CIRCUMSTANCE SO
IT FITS INTO THE WHOLE POLICY
CATEGORY HOW WE. HOW WE DO WITH
THAT AND? AND THE CHALLENGE FOR
ME AS A AS BE IS TO COMBINE
THESE TWO THINGS TOGETHER.
BECAUSE I ON THE ISSUE OF.
THE TRAGEDY IN THE RESPONSE.
SOME THINGS AT LEAST HAVE COME
TO LIGHT NOT JUST IN THIS
HEARING THAT IN THERE. HEARING
THAT WE HAD IN MARCH.
THAT TRIED TO FOCUS ON THE
HOMEOWNERS MARKET AND WHAT THAT.
EVENT WAS GONNA WAS DOING OR NOT
DOING.
.
AND SOME OF THE THINGS THAT WE
LEARNED THEN AND WE LEARNED
TODAY. IS THAT FOR MANY OF THE.
I INSURANCE COMPANIES
WHO ARE UNDER NO OBLIGATION.
TO PAY OUT ANY. CASH.
THE IMMEDIATE EXPEDITED CASH
CLAIM.
ARE THAT THEY HAVE BEEN DOING SO.
AYE AYES AYE EXCEPT THAT.
TO THE GOOD WORK OF OUR
INSURANCE COMMISSIONER. THAT
THEY HAVE.
HAVE BEEN.
.
STIMULATED IN THEIR
RESPONSIBILITY IRRESPECTIVE OF
THAT THAT THEY HAVE COME FORWARD
IN SOME SIGNIFICANT WAYS
IRRESPECTIVE OF THE QUESTIONING
BY MY PANEL MEMBERS THAT. THE
JURORS WHEN THEY SET THESE
POLICIES THAT THERE WAS AN
EXPECTATION THAT THEY BE PAYING
OUT AT A HUNDRED PERCENT OR
EIGHTY PERCENT. THAT THEY MAKE%
THEIR OWN CALCULATIONS OF THE
OFFER THESE POLICIES IS WHAT
THEY THINK THAT WOULD MEAN THE
RISK THAT IT WOULD. CARRY FOR
THEM AND THE AND THE AND THE OF
OPTICAL COST THAT THEY WANT TO
CHARGE FOR IT SO BUT
IRRESPECTIVE OF HOW IT'S
ACTUALLY PRICED.
THAT INSURANCE COMPANIES HAVE
COME FORWARD AND OFFERED UP THE
IN WE FOR EXAMPLES OF SEVENTY%
FIVE PERCENT TO EIGHTY PERCENT
IF YOU WITH A HUNDRED PERCENT
LEVEL. NOW I'VE ALSO HEARD THAT
SOME COMPANIES HAVEN'T COME
FORWARD.
AND THAT GOES BACK TO THE
TRAGEDY IN THE RESPONSE WHICH
CERTAINLY GETS MY ATTENTION.
AS THE CHAIR OF THIS COMMITTEE
THAT I WANT ARE INSURANCE
INDUSTRY TO BE RESPONSIVE. AS
BEST THEY CAN BE AND THOSE THAT
HAVE STEPPED UP.
AND GONE OVER AND ABOVE THE I
HAVE MY GREAT ADMIRATION I'M
SURE YOURS AND OTHERS.
FOR GOING ABOVE AND BEYOND.
AND THAT'S IMPORTANT AND I DON'T
WANT TO GET LOST IN THAT
CONSIDERATION OF THIS BILL
SENATOR.
WE WE NEED TO MAKE SURE THAT
THEY ARE AS RESPONSIVE AS THEY
CAN BE TO THIS TRAGIC
CIRCUMSTANCE OKAY.
ALRIGHT SO NOW WE HAVE THIS
ISSUE OF IN THIS BILL WE HAVE
NEW REQUIREMENTS THAT GO BEYOND
THE FOLKS THAT HAVE BEEN INJURED
AND. I YOU HAVE MADE CLEAR
SENATOR THAT. YOU WERE TALKING
ABOUT SIXTY SEVEN THOUSAND
PEOPLE WHO HAVE GOT A PROCLAIMS
AND. AND WE HAVE A MARKETPLACE
IN THE HOMEOWNERS MARKET OF
EIGHT TO TEN MILLION.
AND SO WHILE I AM CONCERNED
ABOUT THOSE SIX TO SEVEN
THOUSAND FOLKS AND THAT'S REALLY
IMPORTANT.
IT IT FOR MAKING POLICY CHOICES
HERE.
THAT HAVE THE ABILITY TO AFFECT
AIDS ITSELF TO EIGHT TO TEN
MILLION HOMEOWNER INSURANCE
POLICIES OKAY NOW THAT. THAT
CERTAINLY GETS MY ATTENTION
BECAUSE I CARE ABOUT THOSE WHO
HAVE BEEN AFFECTED AND WE HAVE
TO DO EVERYTHING WE CAN TO HELP
THEM. BUT I DON'T WANT TO DO
ANYTHING INADVERTENTLY THAT'S
GOING TO AFFECT THIS MARKETPLACE
IT'S GONNA AFFECT EVERY OTHER
CONSUMER.
BECAUSE IF I WAS THE INSURANCE
INDUSTRY I KNOW THAT I HAVE TO
ISSUE POLICIES THAT ARE THAT ARE
GOING TO HAVE THE POTENTIAL
CONSEQUENCE OF HAVING THAT MAJOR
DISASTER GOVERNOR DECLARED
DISASTER.
IN MY NEIGHBORHOOD OR IN YOUR
NEIGHBORHOOD OR IN YOUR
NEIGHBORHOOD BECAUSE THAT'S THE
ONLY WAY THEY CAN WRITE IT.
AND CERTAINLY THE EXPERIENCE
THAT WE SAW IN THE IN THE NORTH.
WE HAD CROSSED SIX LANE FREEWAYS
OUR A LANE FREEWAYS CHANGES HOW
WE ALL LOOK IT I'M SURE HOW THEY
ALL LOOK.
AT THAT WHAT'S THE RISK IN
WRITING THESE POLICIES AND YET
WE KNOW THAT WE NEED TO HAVE A
HEALTHY.
ASSURANCE MARKETPLACE
OR EVERYBODY GETS HURT BY THAT
SO WE HAVE TO FIND THAT BALANCE
AND THAT. THAT'S SOMETHING THAT
I'M STRUGGLING WITH A ON THIS
BILL.
I DO AGREE.
THAT WHEN YOU HAVE A
CIRCUMSTANCE WHERE SOMEBODY HAS.
HAS PERISHED IN THEIR HOME.
THAT SPECIAL CIRCUMSTANCE TO ME.
DICTATES THAT EIGHTY PERCENT
COVERAGE IS A REASONABLE AMOUNT
FOR A CASH PAYOUT FOR THE
RELATIVES OF THAT PURSE
I THINK THAT. WHAT YOU'RE
PROPOSING HERE I KNOW IT AFFECTS
THE MARKETPLACE?
BUT I FEEL LIKE THERE'S
SOMETHING TO THAT THAT THAT
MAKES SENSE TO ME. AS A
REASONABLE.
I ALSO HAVE HEARD IN AYE AYE
COULD USE A LITTLE CLARIFICATION
BUT IT MAY BE IN THE WEEDS THAT.
THAT.
THAT THE INSURER THAT SOME
INSURERS ARE GOING OR ARE
ACQUIRING THAT IF YOU LOST YOUR
REFRIGERATOR.
THE SAKE OF THIS ILLUSTRATION.
AND.
THAT THEY ARE REQUIRING THAT
THEY'RE GONNA PAY FOR THE
REPLACEMENT COST IF YOU BUY THAT
EXACT REFRIGERATOR. AGAIN.
AND FOR ME AND I. COLLEAGUES MAY
HAVE DIFFERENT VIEWS I DON'T
THINK THAT'S NECESSARILY
REASONABLE THAT. IF YOU WANT
THAT REFRIGERATOR REPLACED AND
YOU DECIDE TO TAKE THE MONEY AND
USE IT TO.
DO SOMETHING ELSE THAT YOU NEED
THAT'S THAT TO ME IS REASONABLE
I THINK THE. INSURERS THAT
REQUIRING THAT ARE NOT
NECESSARILY BEING REASONABLE AND
I DON'T KNOW.
I AM CONCERNED THAT THAT TIME.
WE'VE GOT TO FIND SOME MIDDLE
GROUND ON THIS.
.
ON THIS A FIFTY PERCENT CASH
PAYOUT OR SEVENTY FIVE OR EIGHTY
WHATEVER THE NUMBER IS AND. AND
I KNOW THAT'S WHAT WE WORKED ON-AND I APPRECIATE THE. POWER OF
CONVERSATION HOURS OF
CONVERSATION WE HAD ABOUT IT I
KNOW THAT. YOU'RE NOT ACCEPTING
OF THE AND I KNOW THE INSURANCE
INDUSTRY IS ACCEPTING OF THE
OTHER.
AND.
THAT'S UNFORTUNATE BECAUSE I
THINK THAT WHAT WE'RE TRYING TO
DO IS GO FROM ZERO TO SOMETHING
THAT'S REASONABLE THAT DOESN'T
DISRUPT THE MARKETPLACE.
AND AND THAT'S WHERE I AM AT
EYES THAT I I'D LIKE TO SEE THAT
THAT SPACE IN AND.
AND NOT HAVE US HAVE TO PICK.
BETWEEN EIGHTY PERCENT THAT I
THINK IS IT IS POTENTIALLY
DISRUPTIVE IN THE MARKETPLACE
AND ZERO WHICH I DON'T THINK I
WHICH RELIES UPON THE GENEROSITY
OF THE AND ITS INDUSTRY. AND I
DON'T WANT RELY UPON THAT EITHER
EVEN THOUGH I THINK TO A TO THE.
BEST OF MY KNOWLEDGE THEY'VE
BEEN VERY RESPONSIVE IN THAT
REGARD.
IN THESE FIRES AND THAT'S
THAT'S WHAT MAKES ME PROUD.
FIND A PLACE IN THIS
CONVERSATION THAT.
I I'D I DON'T THINK THIS BILL
HAS IT TOGETHER YET.
AND I THINK YOU'VE ACKNOWLEDGED
THAT THERE'S MORE WORK TO BE
DONE AND IT'S THAT DILEMMA DO
YOU MOVE SOMETHING FORWARD.
.
EVEN THOUGH IT DOESN'T REALLY
DEAL WITH SOME OF THESE BIG
QUESTIONS AND THIS THIS
DISRUPTION IN THE MARKETPLACE IS
NOT A LITTLE QUESTION.
IT'S NOT A LITTLE QUESTION.
AND.
YOU I WOULD LIKE MORE TIME TO
WORK ON THIS SENATOR. AND.
I KNOW THIS BILL DOES NOT.
KEYED FISCAL.
I THINK IT DOES MEAN THAT WE
MIGHT HAVE A FEW WEEKS TO TRY TO.
WORK ON IT SOME MORE I I THINK
THAT'S A HEALTHY THING TO DO.
AND THAT'S SOMETHING THAT I
WOULD ENCOURAGE SHOT THAT YOU
CONSIDER IN THIS.
AND THIS PROCESS SO THERE
THERE'S MY MY THOUGHTS ON THE
MATTER.
ANYBODY ELSE OF THE PANEL BEFORE
WE GIVE THEM THE OPPORTUNITY TO
CLOSE.
SENATOR GALGIANI AND SENATOR
GAINES.
.
IS SELL BACK TO THAT POINT THAT
I ORIGINALLY RAISED IS THERE
ROOM FOR DISCUSSION ON.
A CERTAIN PERCENTAGE.
AUTOMATIC PAY OUT.
OF WHATEVER WHATEVER THAT
PERCENTAGES. UP TO A CERTAIN
AMOUNT.
AND THEN AND HAVE A TIERED
EFFECT IS THERE ROOM FOR
DISCUSSION.
I THINK THAT IF WE ASK YOU BOTH
OF US.
SURE ALL KICK OFF A LOOK I I
THINK THERE'S ALWAYS ROOM FOR
DISCUSSION WHERE I CAN'T. GO.
ZERO FOUR I CAN'T GO IS TWENTY
FIVE IN THOSE OF THE TWO AND
THAT MEANS THAT WE'VE BEEN A
THAT WERE FORMALLY PROVIDED TO
US.
SO THE CHAIR I THINK ON MONDAY
QUICKLY FROM LONG MISTER CHAIR.
.
CAME UP WITH FIFTY BUT THERE WAS
NO. COMMITMENT ON. THE INSURANCE
INDUSTRY SIDE THAT THEY GO TO
FIFTY.
I HAD SAID TO THE CHAIR I CAN'T
ACCEPT FIFTY.
AND I'M I'M NOT ASKING FOR
DECISION TODAY BUT I'M WANTING
TO GET A SENSE OF WHAT HOW CLOSE
WE THINK WE MIGHT BE IF THERE
WAS A DISCUSSION ALONG THIS LINE.
WOULDN'T DOES IT SEEM REASON
THAT PERHAPS THE INDUSTRY
CONVICTED FIFTY.
IF THERE WAS MORE TIME. I KNOW
YOU PROBABLY HAVE TO GET BACK TO
AND OTHERS TO GET APPROVAL BUT
IT DOESN'T SEEM LIKE THAT'S A
REASONABLE DISCUSSION OR IS IT
JUST SO FAR OUT OF THE PARK THAT
IT'S.
NOT REALISTIC BUT I THINK IT'S
REASONABLE VERDICT AS TO
CONTINUE DISCUSSIONS ON YOUR
RIGHT AYE KENYA SPEAK FOR EACH
MY INDIVIDUAL THE HAPPENINGS OF
THE WHOLE INDUSTRY AS FAR AS. IF
THERE'S THEM SWEET SPOT OR NOT
BUT DEFINITELY WORKING WITH
AUTHOR HAVING SOME MORE TIME TO
DO THAT WE WOULD APPRECIATE.
I PLAY AT THE CENTER GAINES I
KNOW YOU HAD A HAND UP ITS
CENTER MITCHELL HASN'T HAD THE
CHANCE OF I LIKE TO DO DEFERRED
SENATOR MITCHELL.
IT.
OKAY CENTER GAINES THANK YOU.
ONE OF THE WANT TO THANK YOU FOR
BRINGING THIS FORWARD OR THANK
YOU FOR ACCEPTING.
ALMOST.
ALL THE AMENDMENTS. MY HOPE
WOULD BE THAT WE COULD WORK ON
THAT BE.
AND THAT.
MAYBE THERE'S AN OPPORTUNITY AS
YOU'VE DESCRIBED THAT. WE CAN
REACH A MIDDLE GROUND.
I'M OPEN TO IT I'D LIKE TO KNOW
WHAT THE IMPACT IS FROM THE
INDUSTRY WHAT IMPACT WOULD BE
FOR OTHER POLICY HOLDERS I KNOW
WE DEBATE AS TO WHETHER THAT'S
AN IMPACT OR NOT.
I BELIEVE IT IS AN IMPACT IN
THAT IF WE HAVE FUTURE
CATASTROPHES DISASTERS WILDFIRES
WHICH I THINK WE WILL.
HOW DOES THAT IMPACT OUR
INDUSTRIES SO?
?
AGAIN IF WE COULD HAVE I THINK
WE COULD DO IN A COUPLE WEEKS
AND WE ARE WORKING THROUGH THE
CARE.
WITH YOU IS THE AUTHOR.
SO THANK YOU.
ALRIGHT LA I HAVE SENATOR
MITCHELL AND PROCESS I HAD
SENATOR OF ROTH ON SUBSTANCE
SAID YOU WANTED TO FORGET.
WELL I.
PAN.
WE'RE GOING TO BE CALLED PERHAPS
CALLED ON TO MAKE IT DIFFICULT
TO ANOTHER YET ANOTHER DIFFICULT
DECISION HERE ON.
HOWEVER.
TEMPORARY ON A BILL.
I GUESS MY QUESTION IS DO YOU
HAVE TO THE SENATORS.
DO YOU THINK.
.
WITH SOME PARTICIPATION BY.
SOME OF US THAT WE CAN COME TO
WE CAN SIT DOWN AND WE HAVE A
CHANCE OF COMING TO SOME
AGREEMENT MY UNDERSTANDING THE
CENTRAL ISSUE ONE THIS BILL AS
OPPOSED TO.
SENATOR DODD'S BILL HAS TO DO
WITH THIS IMMEDIATE PAYOUT
WITHOUT INVENTORY AND EIGHTY
PERCENT VERSUS SOME OTHER
PERCENTAGE.
BUT THAT SEEMS TO BE THE MAIN
STUMBLING BLOCK ON.
THIS BILL IS MY UNDERSTANDING
CORRECT. AND IF IT IS CORRECT
AND DO YOU THINK WITH SOME
PRETTY
PETITION BY SOME OF US WE CAN.
COME TOGETHER AND DEVELOP SOME
SORT OF A SCALE WHERE IT'S
EIGHTY PERCENT OF SOMETHING AND
MAYBE SIXTY PERCENT OF SOMETHING
ELSE AND. FORTY PERCENT OF
SOMETHING ELSE DEPENDING ON THE
POLICY IN THE.
THE NATURE OF THE CONTENT
COVERAGE.
.
I'M JUST ASKINGYOU IF YOU'RE
WILLING TO SIT DOWN I I KNOW YOU
CAN AGREE TO SOMETHING YOU DON'T
KNOW.
AND.
THE I WOULD EXPECT THE INDUSTRY
TO SIT DOWN AND HAVE THE SAME
CONVERSATION OVER A RATHER SHORT
PERIOD OF TIME.
SO THAT WE COULD BRING THIS
THING BACK IN AND HAVE A
DEFINITIVE VOTE WHATEVER THAT'S
WHAT HAPPENS TO BE WHETHER OR
NOT THERE'S AGREEMENT BUT I
THINK.
ON THAT PARTICULAR ISSUE ON THIS
PARTICULAR BILL THAT WE OUGHT TO
BE ABLE TO COME TO SOME.
AGREEMENT THAT WORKS FOR
EVERYBODY.
THAT WAS MY YOU DON'T HAVE TO
ANSWER THAT SENATOR BUT THAT'S
WHY IT'S A RHETORICAL QUESTION.
I KNOW I APPRECIATE TO IN AND
AGAIN I JUST I WANT TO SAY.
THANK YOU CENTER ROTH BECAUSE I
THINK AYE AYE YOU BRINGING
FORWARD.
SOME OF THE IDEAS HE DID WOULD
LIKE TO BE ON DRUGS FOR.
JUST BE.
THE KIND OF BE ON ISN'T
SOMETHING I SAID TO THE CHAIR I
EARLIER TODAY HAVE BELIEVE.
.
I'VE BEEN HERE BEFORE ON TOUGH
BILLS.
AND I HAVE.
PUT OFF.
THE BILL BEFORE.
WEREN'T ABLE TO GET SUPPORT.
SENATE EVENTUALLY DIED.
IN A VERY SIMILAR FASHION AS FAR
AS TIMELINE LIKE RIGHT NOW.
IN WE'VE ALL BEEN THERE AT LEAST
MOST OF US HAVE BEEN THERE
BEFORE.
BOTTOM.
EVEN WORK IN THE SINCE JANUARY.
AND I WOULD ASK ALL OF YOU WHY
HAVEN'T IT THERE'S A SINCERE
BROKER AND A GOOD DANCE PARTNER.
WHY HAVE BEEN SINCERE MAN HAS
BEEN ADVANCE WHY IS IT JUST ME
ZERO TWENTY FIVE?
AND THE REASON BEING IS I MEAN I
MY I'LL GIVE YOU MY OWN
EDITORIAL DIDN'T WANT THIS BILL
TO MOVE FORWARD.
SO. I DO NOT BELIEVE PUTTING OFF
THIS BILL WILL BE A.
AREA I AND IN GO SHE SHE'S IN
STRENGTH FOR THE COMMUNITY BUT I
WOULD ASK RESPECTFULLY AND I'VE
BEEN ASKED BY SOME OF YOU ON
THIS COMMITTEE BEFORE. WHEN
THEY'RE REALLY TOUGH DISTRICT
BILLS.
YASSER USES FOR MY SUPPORT.
I TO BE ABLE TO LISTEN TO THE
PEOPLE WHO ARE YOUR DISTRICT.
AND THAT'S ONE COURTESY I ASKED
TODAY.
AND WHAT I WILL COMMIT TO YOU IS.
I NEED TO WORK WITH THE CHAIR.
I I'M NOT GOING TO GIVE THEM A
LINE THE MALARKEY. I AND I'M
GONNA SIT DOWN WITH HIM AND I'M
WE WILL IT'S A DOWN THE INDUSTRY
BUT WHAT I WOULD REQUEST.
HIS THAT WE. PASS THIS BILL
TODAY WE HAVE TO DEADLINES THAT
ARE COMING UP. WITH THE
APPROPRIATIONS DEADLINE THAT WE
ALSO HAVE.
PRIOR TO THIS BILL HITTING THE
FLOOR IF OR EVEN GET OUT OF
APPROPRIATIONS.
SO THAT WOULD BE MY.
FOR PRO AND SORRY I YOU'RE
RIGHT I BY PAULA JONES YOU'RE
ACTUALLY RIGHT PAY AND SO IT'S
NOT LARA. AYE AYES AYE AYE SO WE
HAVE
SEVERAL MONTHS
I'D THROUGH JULY TO BE ABLE TO
GET THIS HAMMERED OUT.
I'D BE MORE THAN WILLING BUT I
WOULD ASK. FOR A VOTE.
A COURTESY VOTE TODAY.
AND.
.
THE HAPPY DAY I CAN HAVE THE
CHAIR INVOLVED PRIOR TO BRING
THIS UP TO THE FLOOR. NEITHER
SENATOR MITCHELL THANK YOUR
PATIENTS THANK YOU VERY MUCH
THAT THAT'S WHAT I GET FOR
TAKING A PATH BECAUSE THAT'S
REALLY WHAT THE ISSUE THE PUBLIC
GOING TO GET TO THAT WANT TO
MAKE SURE.
I.
HEARD THE CHAIRS WISHES
CORRECTLY BECAUSE I WITH
GOVERNMENT MY POINT WAS GOING TO
BE. A WE ARE IN A PRO.
A WEEK IN SHORT OF ABOUT FOUR
MONTHS LEFT. IN THIS LEGISLATIVE
SESSION BUT ONE MUST BE OFF FOR
SUMMER BREAK.
SO.
I WANT TO KIND OF WALK THROUGH.
.
REALISTICALLY KNOWING THAT THE
ASSEMBLY CAN BE A HURDLE AND FOR
MEMBERS OF THE SENATE. I WONDER
WHAT THE REALISTICALLY THAT IF
INDEED THE COMMITTEE CHAIRS
ASKING TO HOLD THE BILL YOU KNOW
WHAT DO WE HOPE TO ACCOMPLISH.
AND AND AND AND IS THAT FAIR TO
THE AUTHOR IN THAT WE'RE APRIL
AND HE'S IN HIS FIRST POLICY
COMMITTEE OF THE HOUSE OF ORIGIN.
THE FOUR MONTHS TO GET HERE.
WE HAVE FOUR MONTHS LEFT TO GET
THROUGH THIS HOUSE THROUGH THE
SECOND HOUSE IN BACK FOR
CONCURRENCE.
SO IF YOU WERE TO HOLD IT FOR
HOW LONG AND WHAT DO YOU WOULD
YOU ENVISION.
BEEN ABLE TO ACCOMPLISH IN THAT
PERIOD OF TIME THEY'RE NOT
TAKING SENATOR MITCHELL FIRST
AYE IF THE AUTHOR WANTS VOTE
THAT HAPPY TO AS TO HAVE THE
VOTE. TODAY THAT'S WHAT THEY
WANT.
.
AND AND BY THE WAY I I'VE ONLY
HAD THIS GAVEL FOR.
LISTEN FOR WEEKS SO WE HAD A
LITTLE TRANSITION OF OUR OWN
HERE IN THE INSURANCE COMMITTEE.
.
BUT NEVERTHELESS IT'S A
CHALLENGING ISSUE. THAT THE
AUTHOR INDICATED THAT HE DIDN'T
RECEIVE THAT HE RECEIVED TWO
PROPOSALS FROM THE INDUSTRY.
AS EARLY AS JANUARY BY EATING
RECEIVE THAT CHAIR. THE CHAIRS
VIEW UNTIL JUST OF.
FEW DAYS AGO MAYBE.
.
I I'D LIKE A COUPLE WEEKS TO TRY
TO SEE IF WE CAN MAKE SOME
PROGRESS THAT WE CAN HAVE A
HEARING IN TWO WEEKS WE CAN HAVE
A VOTE THEN HAPPY TO.
RESOLVER UNRESOLVED HAVE THE
VOTE HE HAS THE RIGHT TO HAVE
THE VOTE. IDEA.
.
AND SEE IF WE CAN.
AT.
WORK HARDER ON THIS AS I
INDICATED THAT SENATOR.
NOBODY'S LIKES THIS ALTERNATIVE.
CENTER MCGUIRE DIDN'T ACCEPT
THE FIFTY PERCENT IN THE
INDUSTRY DIDN'T ACCEPT FIFTY
PERCENT HAPPEN TO BE BACK TO
SQUARE ONE BY IT IT'S SOMETHING
THAT.
YOU KNOW I THOUGHT BUT I THINK
IT'S A REASONABLE ONE BUT THAT
DOESN'T MEET CHANGE ANYTHING.
AND I'M HAPPY TO CONTINUE TO
WORK WITH ALL PARTIES TO SEE IF
WE CAN FIND COMMON GROUND.
SENATOR ROTH AND CENTER GALGIANI
OF REYES TO SOME NUANCES OF THAT
I DON'T KNOW IF. IF SAID THEY'RE
RELEVANT OR NOT I DON'T KNOW
BECAUSE I HAVEN'T HAD THE
COVERAGE I'D LIKE THAT THE
CONVERSATIONS SO IS THAT.
FIVE LIGHTNING TO YOU I HOPE I I
APPRECIATE.
YOU KIND OF WALKING US THROUGH
HOW WE GOT HERE TODAY AND I GET
TO THE OTHER PIECE THAT WHAT AND.
TO SENATE MCGUIRE.
WHILE I CONCUR WITH HIM TO
GALGIANI IN TERMS OF BOTH OF THE
STEPPING UP AND BEING TRUE
STATEMENT IN TERMS OF REPRESENT
YOU DISTRICTS.
THE REALITY YEARS. WITH THE
POLICY WE'RE CONSIDERING COULD
IN EFFECT IMPACT ANY OF US TODAY
OR TOMORROW.
THE GRAPHIC DEPICTION THAT YOU
CONSISTENTLY REMIND US
ABOUT HOW DEVASTATING HOW HOW
HISTORIC THIS FIRE WAS. IS
FURTHER REMINDER THAT IT COULD
BE ANY OF US IT COULD BE
ANYWHERE IN THE STATE OF
CALIFORNIA.
ALL THE MORE REASON THAT WE HAVE
TO BE DELIBERATE AND CAREFUL AND
THOUGHTFUL IN MAKING SUCH A
MAJOR SHIFT IN. UMP IN THE
POLICY.
THERE THE DOWNSIDE OF HAVING
BEEN AROUND THIS BUILDING FOR
THE I'M YEARS I HALF THE STAFF
AND.
WHAT HAVE YOU IT IS REMEMBERING
THE GOOD OLD DAYS?
WHEN WE. TOOK OPPORTUNITIES TO
NOT JUST IN THE CONTEXT OF A
PARTICULAR BE ABLE TO PARTICULAR
POLLS ALL IN A COMMITTEE
DEADLINE HEARING.
COMPETING INTERESTS WILL ONLY. A
COMMITTEE CHAIR FOR EXAMPLE
WOULD HOLD ALL THE BILL.
FOLKS HAVE BEEN AROUND YOU
REMEMBER THE OLD DAYS WITH THE
STEVE PIECE IN WORKERS COMP WILL
BE.
GOT HERE A REAL LOT PEOPLE AND
YOU CAN LEAVE FOR HOURS AND DAYS
AND DAYS AND AT ANY TIME.
TO HAVE A COMPREHENSIVE PUBLIC
POLICY DISCUSSION.
ABOUT STATUS QUO AND WHERE WE
WANT TO MOVE IN TERMS OF POLICY
MOVEMENT.
I DON'T KNOW IF TO ADDITIONAL
WEEKS.
DOT IN.
WITH THE COMMITTEE HAVE
POSSESSION OF OF THIS BILL AND
OTHERS WOULD ALLOW FOR THAT KIND
OF.
BOB FULL STRATEGIC CONVERSATION
BUT IT CERTAINLY SEEMS TO ME THE
MAGNITUDE OF WHAT YOUR
CONSTITUENTS EXPERIENCE.
OUR NEW NORMAL THAT WERE ALL
THAT KNOWLEDGE AND.
AND THE ROLE THE INDUSTRY HAVE
TO PLAY IN BOTH.
REMAINING HALL AN INDUSTRY WE
CAN RELY ON AS WELL AS AN
INDUSTRY THAT WE CAN COUNT ON IN
TIMES OF CRISIS HAVE TO BE
DISCUSSED.
AND SO I AM CLEARLY WITNESS IN
THE LITTLE PUSH BACK IN TERMS OF
WHETHER WE'D MOVE THE BILL TODAY
BUT I HAVE TO SAY I THINK THAT
THERE'S.
.
REAL VALUE. IN THAT KIND OF.
CONVERSATION.
AND IN OUT AND BASED ON YOUR
TIMELINE I DON'T KNOW THAT YOU
S. THE NEW CHAIR OF THE
COMMITTEE HAVE BEEN AFFORDED THE
OPPORTUNITY. TO ENGAGE WORK OUR
BACKS UP AGAINST THE WALL ALL
THE TIME ON REGARDING DEADLINES
AND THAT'S TRAGIC.
THIS IS TOO IMPORTANT AND TOO
BIG FOR US TO RASH.
THANK YOU SENATOR MITCHELL
CENTER HERNANDEZ.
YEAH LET ME I'D LIKE TO COMMEND
CENTER MCGUIRE FOR HIS PASSION
ESPECIALLY IN CENTER DIED FOR
THE CONSTITUENTS THAT.
HAD TO DEAL WITH THIS HORRIFIC
FIRE.
I'VE SEE I GET A SENSE THAT.
YOU KNOW.
THURMAN WEARS WILLING TO WORK
WITH THE CHAIR WORK WITH MEMBERS
HERE. ARE YOU TO SEND SAID HE
WANTS HAVE A VOTE. I THINK HE
FEELS BY MOVING THIS BILL AT
LEAST IT KEEPS THE CONVERSATION
MOVING BUT MORE IMPORTANTLY HAS
THE OPPORTUNITY TO HAVE THAT
DISCUSSION.
AND MISTER CHAIR YOU KNOW
UNPREPARED TO MOVE THE BILL AT
THIS POINT.
I MAKE A MOTION.
ALRIGHT I SENATOR ABOUT MCGUIRE
RELATES CLOSE IF YOU
COMMISSIONER SICHER I DO WANT TO
SAY THANK YOU TO THE CHAIR.
ABOUT FOR TAKING SO MUCH TIME
OUT OF HIS BUSY SCHEDULE.
A ON THIS
VERY BUSY WEEK.
TO BE ABLE TO HAVE THIS
IMPORTANT CONVERSATION.
WHAT I WILL SAY IS I I REALLY
DON'T THINK CAN GET INTO WHERE
MISS
MITCHELL CENTER MITCHELL? WAS
DISCUSSING.
I DON'T THINK WE'RE GOING TO BE
ABLE TO GET IT DONE IN TWO WEEKS.
AND THE REASON WHY I SAY THAT.
IS WERE STILL PRETTY FAR APART.
IT'S GONNA TAKE TIME BEFORE. WE
GET TO THE FLOOR TO REALLY JUMP
INTO THIS.
IN DO THE JOB THAT IT DESERVES.
IN WHAT I WOULD* FOR
COURTESY VOTE TODAY.
TO BE ABLE TO CONTINUE TO
ADVANCE THIS IMPORTANT
DISCUSSION.
I DON'T ALSO THINK A SENATOR
DODD SENATOR DODD HAS BEEN BUT
WE'VE BEEN ATTACHED TO HIT. ON
ALL ISSUES.
OVER THE PAST SEVEN MONTHS AND
I'M GRATEFUL TO BE WORKING.
ABOUT WITH SENATOR DIED
OBVIOUSLY WITH ALL OF YOU.
BUT TRULY SOMEONE SPECIAL.
AND.
YOU DON'T GET ALL DESCENDED HERE
THERE ARE ISSUES THAT.
ARE REALLY IMPORTANT TO ALL OF
US.
IN THIS IS ONE OF THE.
IT IS GOING TO TAKE TIME.
BUT I ASK THAT YOU AFFORD US THE
TIME TO HAVE THIS IMPORTANT
CONVERSATION.
I WILL DISAGREE THAT SIX
THOUSAND SIX HUNDRED SIXTY FIVE.
HOMES IT'S THE WORST IN OUR
STATE'S HISTORY.
WILL HAVE A SIGNIFICANT RATE
IMPACT. TO THOSE EIGHT TO TEN
MILLION PICTURE.
AND WE HEAR THAT FROM THE
DEPARTMENT INSURANCE.
BUT THE SIZE AND SCOPE THE
WILDFIRES IN THE STATE ARE ONLY
GETTING WORSE.
AND I GUARANTEE MANY OF US.
WE'RE STILL IN THIS LEGISLATURE
IN FIFTY YEARS WILL BE IN THIS
COMMITTEE.
THERE EIGHT TO TEN MILLION
PEOPLE THAT DESERVE GREATER
PROTECTIONS WHEN THEY LOSE THEIR
HOME.
AND THAT'S WHY WE NEED TO BE TO
GET THIS RIGHT.
LISA SAID IT BEST.
OFFICE IS WHAT LEE SAYS HAD TO
PUT TOGETHER IN THE SEVEN MONTHS.
SHE'S TRYING TO BE ABLE TO
REBUILD HER LIFE.
THE REBUILD HER HOME.
AND THIS IS HOW SHE HAS TO
GRAPPLE.
WITH CLAIMING WHAT IS HERS.
THERE ARE MILLIONS A LEASES OUT
THERE.
WHAT I WOULD ASK IS LATEST HAVE
THE CONVERSATION?
BLADECENTER DOT KNIGHT CONTINUE
TO MOVE FORWARD. A RESPECTFULLY
ASK FOR AN ITEM.
I THINK YOU CENTER MCGUIRE.
ALRIGHT MEMBERS ARE GONNA CALL
THE VOTE PASSED SECRETARY TO US.
WE ARE THAT WE THE BILL AS
AMENDED SO THAT THE AUTHOR IS
ACCEPTING THE AMENDMENT SIX
EIGHTY. SEE THE ANY AND THAT'S
WHAT IT IS BEFORE US DOES NOT
NOT BE.
THAT'S THE.
THE BILL WITH THOSE AMENDMENTS
THAT'S BEFORE US.
OKAY WITH THE SECRETARY CALL THE
ROLL.
GLAZER.
WE SHOULD NOT VOTING GAINES.
GAINES THEM VOTING BERRYHILL
ABSENT. GALGIANI. GALGIANI AYE
HERNANDEZ. HERNANDEZ AYE HUESO.
HUESO AYE LARA AYE AYE LARA AYE
MITCHELL.
MITCHELL AYE MORE A LOT.
MORE LIKE NOT VOTING MORALE
ABSENT. NEWMAN.
NEWMAN THAT VOTING PORTANTINO
TOPS BICU THE PORTANTINO. ORG.
I ROTH.
ROTH NOT VOTING.
PHYLLIS CENTER YEAR SIX VOTES
WERE TO KEEP THE ROLE OPEN FOR
ABSENT MEMBERS
THANK YOU ALL VERY MUCH.
COULD.
THANKS TO BOTH OF THEM BRINGS UP THE BEST A PUBLIC
SERVANTS AND YOU GUYS ARE AMONG
THE BEST MAKES A TERRIFIC.
THE NUMBERS ARE GOING TO DO THE
CONSENT CALENDAR NEXT OKAY THE
CONSENT CALENDAR.
THAT SIDE ITEM SIX AND SEVEN.
ALRIGHT WE HAVE A MOTION THAT WE
CONSENT COUNTER ITEM SIX AND
SEVEN SP TEN FORTY SIX AND AN SP
TWELVE FORTY EIGHT SECRETARY
CALL THE ROLL. PLAY HERE BY
LEISURE AYE GAINES.
GAINES AYE BERRYHILL ABSENT.
GALGIANI. GALGIANI AYE HERNANDEZ.
HERNANDEZ AYE HUESO.
HUESO AYE LARA.
LARA AYE MITCHELL.
MITCHELL I MORE LA.
MORE LIKE AYE MORRELL ABSENT
NEWMAN.
NEWMAN AYE PORTANTINO I HAPPEN
TO KNOW I'VE ROTH.
ROTH I.
OKAY THAT HAS ENOUGH BILLS TO
GET OUT BUT CHAO WE'RE GOING TO
HOLD THE ROLE OF.
YOU.
THANKS FOR STAND.
HELLO PROPERLY APPRECIATE.
SENATOR HERTZBERG WE APPRECIATE
YOUR PATIENCE.
AND I WELCOME YOU TO THE SENATE
INSURANCE COMMITTEE.
PRETTY HERE MEMBERS ITEM NUMBER
FOUR SP EIGHT NINETY EIGHT.
SENATOR HERTZBERG WE WELCOME
YOUR COMMENTS AND NOW AS YOU MAY
HAVE HEARD OR NOT THAT WE THAT'S
THE WITNESSES THAT TWO ON EACH
SIDE TWO MINUTES EACH.
VERY GOOD IN THE MEANTIME IN
THIS COMMITTEE I.
BUT I WAS OUT THERE A NEW POLICY
ON PATIENTS FOR NEW KIND OF
ASSURANCE THIS COMMITTEE IS A
GOOD THING IT'S A VERY
THOUGHTFUL COMMITTING WHAT DID
HE KNOW THAT.
THANK YOU THANK YOUR STAFF.
FOR HELPING ON THIS THING
YOU'VE GOT LOT OF HOMEWORK CAN
MADE CHANGES FROM THE ORIGINAL
MEASURE.
AND BASICALLY ALL I.
I HAD ONE WOMAN WITH THIS IS TO
TALK BUT HERE'S THE THING.
MOST PEOPLE IF THEY DON'T THEY
KNOW THAT THE LAST TWO YEARS OF
WORK ON BAIL REFORM IN THE IDEA
BEHIND BILL REFORM IN ESSENCE
WAS TO LOOK AT THE INDIVIDUAL
BEFORE YOU MAKE A DETERMINATION.
AND HOLDEN FOR BAIL AND LOOK AT
THEIR ABILITY TO PAY AND THEIR
RISK TO SOCIETY. AND THEIR
FLIGHT RISK THAT'S THAT
UNDERMINE DEFICIT SAID THAT. IN
THAT PROCESS WHAT WE'VE
DISCOVERED ABOUT THE INDUSTRY
THEY CAN USE ALL THE TERMS THEY
WANT BUT FUNDAMENTALLY IN
CALIFORNIA FOR SAY THE LAST
SEVENTY YEARS. THERE HAS BEEN A
SIGNIFICANT MOVEMENT ON CONSUMER
PROTECTION.
THE IN HOMEOWNERSHIP SIN
AUTOMOBILE OWNERSHIPS CREDIT
CARD LAW.
THE WHOLE BODY OF LAW THAT
BANNED HOW YOU TREAT COULD
SCHUMER'S.
IN IN DEALING WITH FOLKS EDITS.
EVERYWHERE BUT THE BAIL INDUSTRY
THE BAIL INDUSTRIES MAKE PAYDA
LENDERS AND PREDATORY LENDING
LOOK LIKE IT'S THE BEST OF
CONSUMER PROTECTION. BECAUSE
THEY THE CLAIMS AND HOW THEY
COMPORT THEMSELVES BECAUSE WHAT
WE'RE DEALING WITH PEOPLE ARE
CRIMINAL ELEMENT LAST TIME I
KNOW SOMEBODY ARRESTED IS NOT A
CRIMINAL UNTIL THEY'RE CONVICTED
IN. IN THE UNITED STATES.
AND SO THEY HAVE THE SERIES OF
LAWS WHERE COMMERCIAL BAIL
BASICALLY IN THE OLD DAYS FROM
MY DAD WAS A JAILHOUSE LAWYER IN
THE FORTIES.
YOU GO IN AND
GIVE THE CLERK A COUPLE HUNDRED
DOLLARS AND YOU CAME BACK AND
YOU GOT YOUR COUPLE HUNDRED
DOLLARS BACK.
NOW YOU GOT TO SIGN A CONTRACT
BECAUSE HE SINGS IS A DAMN
EXPENSIVE NOBODY HAS THE DOUGH.
TO PUT UP COMMERCIAL MAIL AND SO
THEY GET SHAUNA
TRACK TO SAY WELL YOU KNOW WILL
PUT UP THE MONEY.
WE'RE GONNA NOW HAVE THESE
CONTRACTS THAT ALLOW US TO GO
AFTER YOU TO SEIZE YOUR
AUTOMOBILE TO BREAK INTO YOUR
HOME.
TO GO IF IF YOU DON'T HAVE
ENOUGH MONEY TO GET YOUR ANSWER
YOUR UNCLE AND HIS GIRLFRIEND
YOUR SISTER AND WHOEVER ELSE IT
MIGHT BE.
SO WHAT'S HAPPENED IS THE
PATTERN AND PRACTICE THAT WE
SEEN.
PLANTS IN THIS HAS BEEN JUST.
MIND NUMBING UCLA DID THIS
REPORT CALLED THE DEVIL IN THE
DETAILS JUST LOOKING AT TWENTY
OF THE MOST EGREGIOUS THINGS
WE HAVEN'T EVEN SCRATCHED THE
SURFACE. BUT WHAT I WANTED TO DO
WITH RESPECT TO INTRODUCING THIS
MEASURE. FARM THAT WAS TO BEGIN
TO SHINE A LIGHT.
LEAD THE CALIFORNIA SUPREME
COURT A GROUP OF JUDGES WHO
DIDN'T AGREE HERE THEY STARTED
OUT VOTE UP PRETTY.
SCATHING REPORT ON THE
COMMERCIAL BAIL INDUSTRY AND HOW
THEY TREAT PEOPLE THE NEW YORK
TIMES LAST WEEK FRONT PAGE STORY
YESTERDAY HEARD THAT THE GATE
WAS HUGE STORY WE GAVE IT YOU IN
THE LOS ANGELES TIMES. TELLING
STORIES OF PEOPLE'S CARS GETTING
SEIZED AND AND AND PEOPLE ARE
GOING THE HOSPITAL AND I'M JUST
THE STORIES ARE ARE ARE ARE GUT
WRENCHING IN TERMS OF INDUSTRY.
AND AND LASTLY I'LL JUST SAY
THAT THAT WEEK WE HAVE COMPANIES
WHERE A CUP INSURANCE COMPANY
BRAGGING THAT ALTHOUGH I'VE BEEN
PAID A CLAIM AND SEVENTEEN YEARS
AND THEY'LL TALK TO YOU ABOUT
THESE FUNDS THAT THEY PUT UP
THOSE THE. BAIL AGENTS FUNDS
WHERE THEY PUT UP THE MONEY.
THE END OF THE DAY THIS IS AN
INSURANCE COMMITTEE INSURANCE
MEANS THAT SYSOP THAT WE'VE COME
UP WITH A MECHANISM IN ITS
SIMPLEST TERMS WHERE WE SHARE
RISK. AND WE PRICE THAT RISK YOU
CALL YOURSELF ASSURE YOU COMPANY
ALL THE FANCY TERMS YOU WANT TO
DO TO LAWYER. TO GET AROUND THE
LAW
THE REALITIES YOU PAY A PRICE
YOU MEASURE RISK AND YOU MAKE A
RETURN ON THE RISK THAT'S WHAT
YOU DEBATE ALL DAY LONG TODAY
ABOUT WHAT THAT RISK LOOKS LIKE
YOU WHAT THE PRICE IN THE MARKET
IS.
THERE HAS BEEN THE CUSTOM AND
PRACTICE
IT LARGELY AROUND THIS NOTION
THAT YOU PAY TEN PERCENT TO THE
PRICE OF GONE THROUGH THE ROOF
SOMEBODY PAYS TEN PERCENT. AND
WE DON'T KNOW WHAT THE BIT
RISKIER AND SO THE MANGA
PROPHECIES GUYS HAVE MADE.
THE THAT WAY THEY'VE COMPORTED
THEMSELVES.
STORIES EXTRAORDINARY THIS IS
JUST THE FIRST STEP TO BEGIN WE
WILL USE TO LOOK AT FOUR HUNDRED
CONTRACTS ONLY A HANDFUL MORE
ONLINE.
YOU KNOW AND IT'S IT'S A PER
IT'S IT'S IT'S AN INDUSTRY THAT
WILL RUN AROUND AND TELL YOU
THEY'RE SINCE THEY'RE ENGAGED IN
PUBLIC SAFETY WELL THE REALITY
IS I WOULD ARGUE IRRESPECTIVE.
OF THE CONTEXT OF DEALING WITH
PUBLIC SAFETY I WOULD SUGGEST
THAT EGGS THEY'RE DOING EXACTLY
OPPOSITE BY HOW THEY COMPORT
THEMSELVES IN DEALING WITH THE
PUBLIC. THAT'S YOUR SUPPORT BUT
THE PROFESSOR BELL HERE FROM THE.
A STANFORD GRADUATE THOSE CHIU
UNIVERSITY GUYS WHOSE YEARS
WHATEVER EXPERTS TO TALK ABOUT
SOME OF HIS EXPERIENCE IN THE
SPACE WILL MAKE IT SHORT. THANK
YOU MUCH AND ALSO THE DEPARTMENT
INSURANCE.
EXCEPT THE MEMBERS.
CENTER YOU HAVE IT EXCEPT THE
AMENDMENT SAYS PROPOSED IN THE
ANALYSIS YES SIR OKAY.
I'M NOT HERE WE HAVE A MOTION
BUT LET'S GO THROUGH THIS
PROCESS HAT EFFICIENTLY. SIR WE
WELCOME YOU AND IF YOU COULD.
GIVE US YOUR ON MY NAME IS DAVID
BALL AND I'M AN ASSOCIATE
PROFESSOR AT SANTA CLARA LAW
SCHOOL AND I JUST WANTED TO
SPEAK A LITTLE BIT ABOUT THE
NEED FOR REPORTING REQUIREMENTS
OF ROBUST DATA.
ABOUT THE PALE INDUSTRY SO.
I TAUGHT A CLASS OF IT IT'S
SORT OF AN ADVISORY GROUP TO THE
SANTA CLARA BEILIN PRETRIAL
WORKING GROUP.
AND REALLY THERE'S SO LITTLE
DATA THAT WE HAVE TO ASSESS ANY
OF THE CLAIMS MADE BY THE BILL
BOND INDUSTRY
YOU KNOW STATEWIDE DATA ON BAIL
BOND FOR FUTURE.
THERE'S NO STATEWIDE DATA ON
BOND AMOUNTS.
AND EXPENSES THAT ARE CHARGED
TO PEOPLE THERE'S ALSO A
STATEWIDE DATA ON OUTCOMES SO.
WHO FAILED TO APPEAR GUY RE
ARRESTED WHO GOT PICKED UP BY
LAW ENFORCEMENT THAT YOU OFTEN
HEAR BAIL BOND COMPANY SAY THAT
THEY FIND PEOPLE WHO FAILED TO
APPEAR?
IF THAT'S TRUE THEY SHOULD
WELCOME THAT REPORTING
REQUIREMENT BECAUSE PEOPLE LIKE
ME THINK THAT IT'S THE PUBLIC
COMMENTS UP PAYING TO APPREHEND
PEOPLE WHO FAIL TO APPEAR VIA
BENCH WARRANTS AND IF I'M WRONG
ABOUT THAT I WOULD LOVE TO LEARN.
THAT I'M WRONG ABOUT THAT.
THERE'S NO STATEWIDE DATA ALSO
WANT PEOPLE WHO ARE OFFERED BOND
AMOUNTS THEY COULDN'T AFFORD.
MANY PEOPLE TRY TO STUDY THE
CALIFORNIA.
PRE TRIAL OF AND.
POPULATION AND WE JUST DON'T
KNOW OF THE SIXTY TO SEVENTY
PERCENT OF PEOPLE WHO ARE IN
JAIL HOW MANY PEOPLE CAN'T
AFFORD TO BAIL OUT. AND HOW MANY
PEOPLE CHOSE NOT TO BAIL OUT. AS
FAR AS DO YOU KNOW ON COSTS AND
REPORTING THOSE BECAUSE I JUST
WANNA TELL YOU ABOUT A STORY.
THAT APPEARED THE MERCURY NEWS
ON.
DECEMBER NINETEENTH TWENTY
FIFTEEN BUT THIS WAS A WOMAN
WHOSE FATHER PAID FIFTEEN
HUNDRED DOLLARS TO BOND HER OUT.
AFTER SHE FAILED TO APPEAR
THERE WAS ANOTHER FIVE THOUSAND
DOLLARS CHARGED AND THEN THAT
SOMEHOW TURNED INTO THIRTY SIX
THOUSAND DOLLARS RICHER FATHER
ALSO PAID. THEN LATER ON AFTER
THAT DO FATHER WAS CHARGED WITH
A HUNDRED THOUSAND DOLLAR A BILL
INCLUDING NINETEEN THOUSAND FIVE
HUNDRED DOLLARS FOR RECOVERY
EXPENSES AND ONLY THEN DID HE
TURNED TO THE DISTRICT ATTORNEY.
AND SAY THAT HE THOUGHT
SOMETHING WAS WRONG.
AND THIS BILL BONDS AND WAS
EVENTUALLY CHARGED WITH
EXTORTION BUT. A ROBUST
REPORTING SYSTEM WOULD HAVE
STARTED THIS WHOLE PROCESS
EARLIER.
IT WHERE WE COULD HAVE ACTUALLY
DONE INTERVENE BEFORE THE BILL'S
REACHED INTO THE TENS AND SIXTY
OF FIVE AND SIX FIGURES. A AND I
WANT TO REALLY KNOW HOW MANY
MORE PEOPLE WE DON'T HEAR ABOUT.
WHO DON'T GO TO THE DISTRICT
ATTORNEY TO REPORT THE BAIL BOND
COMPANIES SO I I THINK IN SHORT
I'M JUST GONNA I'M GONNA KEEP
THIS BRIEF BUT I'M HAPPY TO
ANSWER ANY QUESTIONS? WE CAN'T
REGULATE AND DESIGN POLICY
WITHOUT THIS INFORMATION THANK
YOU VERY MUCH OTHER WITNESSES IN
TRANSPORT MISTER CHAIRMAN AND
MEMBERS ROBERT RELATIVELY
COMMISSION FOR LEGISLATIVE
AFFAIRS FOR THE DEPARTMENT OF
INSURANCE WOULD LIKE
I THINK PROFUSELY THE AUTHOR AND
THE COMMITTEE STAFF A VERY
THOROUGH ANALYSIS. WITH THE
SUGGESTED AMENDMENTS THAT ARE
HAD BEEN ACCEPTED BY THE AUTHOR
WE'RE AND HEARTY SUPPORT OF THIS
BILL. TO HELP SOLVE THIS DATA
GAPS OR ANY OTHER WITNESSES IN
SUPPORT. COME ON UP.
DETACHMENTS HER EIGHT SO YOU OF
CALIFORNIANS STRONG SUPPORT
THANK YOU.
GOOD EVENING GOING BACK IS FOR
THE ELEVATOR CENTER FOR HUMAN
RIGHTS IN SUPPORT THANK YOU.
ANYWAY WITH THE SERVICE
EMPLOYEES INTERNATIONAL UNION
AND SUPPORT THANK YOU THANK YOU.
MICHAEL YOUNG WITH THE
CALIFORNIA LABOR FEDERATION ALSO
SUPPORT. ANY OTHER WITNESSES IN
FAVOR.
I'D SEEN WOODEN AND NOT ARE
GOING TO GO TO ABOUT WITNESSES
IN OPPOSITION.
FINANCING THEM.
BUT COMMITTEE CAN IDENTIFY
YOURSELF FOR THE RECORD.
I THINK YOU MY NAME IS KATHERINE
BRANDENBURG AND I REPRESENT THE
AMERICAN BILL COALITION. AND I
FIRST WANT TO THANK STAFF FOR
PROVIDING THE PROPOSED
AMENDMENTS ARE THE ONES THAT
HAVE BEEN ACCEPTED BY THE
SENATOR. WE RECEIVED THEM
YESTERDAY ON MY CLIENTELE.
WAS PROVIDED WE PROVIDED THEM TO
OUR CLIENT YESTERDAY AND SO. WE
HAVE SOME COMMENTS AND CONCERNS
WERE OPPOSED TO THESE NEW
AMENDMENTS.
BUT WE ALSO WANT TO FURTHER THE
DISCUSSION WITH THE SENATOR TO
FULLY DETERMINE WHAT IS THE.
CONCERNED HOW TO ADDRESS IT
PROPERLY AND.
THERE ARE A FEW THINGS SOUND AND.
AS THE ANALYSIS I. KNOW THAT
SAID THE AMERICAN BILL COALITION
WHAT DID USE HAVE A NEUTRAL
POSITION WE JUST HAD CONCERNS ON
THE ORIGINAL BILL SO WE ARE
OPPOSED TO. THESE NEW AMENDMENTS
AS THEY ARE CURRENTLY DRAFTED
AND THAT WE'D LIKE TO THE
KNOWLEDGE THAT THERE IS A NEED
FOR STATEWIDE COMPREHENSIVE DATA.
ON THE BELL SYSTEM WE DO
UNDERSTAND THAT AS THE PREVIOUS
SPEAKER DID KNOW THAT FEEL. OF
ROBUST DATA SYSTEM IS NEEDED.
BUT WE WOULD ALSO LIKE TO. I'M
MAKE NOTE THAT THE DEPARTMENT OF
INSURANCE HAS A LOT OF THAT
INFORMATION CURRENTLY.
SO GALLAGHER SOME POINT WE NEED
TO LOOK AT THAT AND SAY WHAT IS
ALREADY THERE AND WHAT.
WHAT MORE NEEDS TO BE ADDED AND
HOW SHOULD WE DO HAT? AND ALSO
THAT THERE ARE SOME PROVISIONS
IN THE REPORTING AND SECTION
THAT CONTAIN PROPRIETY
INFORMATION.
SO. THERE IS INFORMATION THAT
SHOULD NOT BE RELEASED TO THE
PUBLIC AND. YOU KNOW WE CAN LOOK
AT IT AND SAY IF I WAS ARRESTED
AND LET'S SAY I FAILED TO.
.
I TO APPEAR IN COURT THE AYE
FORFEITED MY BILL. I WOULDN'T
WOULD WOULD I WANT THAT TO BE
PUBLIC KNOWLEDGE YOU KNOW SO
THERE'S A LOT AND ALONG WITH
MARKETING ALONG WITH PRICE SEEM.
THINGS THAT ARE PROPRIETARY
INFORMATION SO WE DO NEED TO
CAREFULLY LOOK AT THE REPORTING
ON THE SECTION TO MKE SURE WERE.
GATHERING THINGS FOR THE RIGHT
REASON AND HOW WE SHOULD DO THAT.
I'D ALSO LIKE TO.
MAKE NOTE COULD SUM UP GETS I'M
JUST THAT WERE OPPOSED WE SHOULD
LOOK AT AND THE COLLECTING OF
THE DATA FOR.
ALSO NOT JUST A BILL SYSTEM BUT
WE SHOULD LOOK AT THE PRE TRIAL
THE PERFORMANCE OF THE PRE POP
TRIAL SYSTEM. AND.
MISSION SO WE SHOULD LOOK AT IT
AS A WHOLE NOT JUST ONE LITTLE
SECTOR. OF THE BELL SYSTEM PUT
FORGET IT IT'S A WHOLE AND A
WITHOUT WE'D LIKE TO YOU KNOW WE
DO OPPOSE THE BILL. AND LIKE TO
CONTINUE WORKING WITH THE SENATE
WE HOPE THAT WE CAN HAVE A
DIALOGUE WITH HIM WE HAVEN'T HAD
ONE YET. ON SAID AS YOU KNOW THE
AMENDMENTS ARE JUST.
WE HAVE GIVEN TO US YESTERDAY
THANK YOU THANK YOU VERY MUCH
THE OTHER WITNESS AND IN
OPPOSITION ANSWER MY NAME IS
DALE MILLER I'M GONNA BAIL AGENT
FOR TWENTY NINE YEARS HI I'M
HERE ON BEHALF OF GOLDEN STATE
DILIGENCE HAS ASSOCIATION.
I ALSO RECEIVED OF THE LATEST
ITERATION IN THIS BILL LAST
NIGHT.
OUR BOARD HAS NOT HAD AN
OPPORTUNITY TO REVIEW IT AND AND
CAN.
CONFER ON IT.
BUT ONE THING I WOULD LIKE TO
POINT OUT IS IS A.
WOULD LIKE TO COMPLIMENT THE
COMMITTEESANALYSIS.
ON THE ISSUES PRESENTED BY IT'S
AN OUTSTANDING ANALYSIS OF A
COMPLICATED.
AND LITTLE UNDERSTOOD SUBJECT.
I DON'T KNOW I HAVE A FEW ISSUES
OF A VERY BRIEF.
AND BY THE WAY I'M FROM SANTA
ROSA SO I REALLY APPRECIATE ALL
TIME IS SPENT ON THE ISSUE
EARLIER.
BUT FIRST ISSUES.
SECTION ONE.
HAS NOT CHANGED SIGNIFICANTLY.
AND I WOULD CONSIDER A PREAMBLE
THAT DOES MORE OF TALKING POINTS.
ANDERSON WELL QUITE A FEW
INACCURACIES
OTHER PARTISAN ASSERTIONS.
AND SINCE THE IN THE COMMITTEES
ANALYSIS AND AS A POINTS OUT IT
HAS NO RELATION TO THE SURFACE
SUPPLEMENT PORTION OF THE BILL.
PA HAND AND SO WHY IS IT THERE
HOME. BUT ONE EXAMPLE IS.
THAT THAT CRITICS ASSUREDLY
BAIL ASSERT THAT.
SURELY DOES NOT IMPROVE RATES
COUNCIL THAT'S FLAT FALSE.
THERE'S NUMEROUS.
STUDIES THAT THAT PROVE THAT
IT'S EFFECTIVE.
INFECTED LE A RECENT ONE FROM
UNIVERSITY OF.
DALLAS TEX AND TEXAS IN DALLAS.
STATES THAT DEFENDANT'S RELEASE
TO BE A BILL BOD OR
SIGNIFICANTLY AND SUBSTANTIALLY
LESS LIKELY TO FAIL TO APPEAR ON
THE OTHER SOURCES.
I I WOULD ASK THAT THAT THAT
WHOLE SECTION BE REMOVED.
MY SECOND ISSUE.
SECTION TWO IS BEEN
SIGNIFICANTLY REWORKED.
AND SOME OF THESE ITEMS IN
SECTION TWO SEEM REASONABLE IT
SEEMS REASONABLE TO ME BUT
DISCLOSING THE MATURITY IN THE
CONTRACT SHOULD BE THERE.
PROVIDING.
CDI CONTACT INFORMATION FOR
CONSUMERS LOGGED COMPLAINT THAT
SEEMS REASONABLE.
BUT ON THE OTHER HAND WITHOUT
HAVING IN OPTION AND CONFER WITH
WITH THE SURETIES THERE SOME
ASPECTS AND IN SECTION TWO THAT.
THAT MAY BE BETTER.
PLACED ON THE CD I OR SURETIES
THEMSELVES AND THE REASON I SAY
THAT. HIS.
DE LIVES BEEN STATE DIDN'T
SOMEWHERE AND I HAVEN'T
RESEARCHED IT MYSELF DIRECTLY
WILL JUST TAKE THIS IS TRUE
THERE'S LESS THAN TWENTY SHIRLEY
COMPANIES IN.
AFTER AS GOOD BUSINESS IN
CALIFORNIA EACH ONE OF THOSE
CHARITY COMPANIES MUST HAVE
THEIR CONTRACT APPROVED BY THE
DEPARTMENT SHARON'S BEFORE CAN
BE USED AND EACH ONE OF THOSE
SURE TO COMPANIES WILL NOT ALLOW.
RETAIL AGENT TO USE ANY
CONTRACTOR THAN THEIR OWN.
THERE ARE AND BY BY ESTIMATE
ABOUT THREE HUNDRED AND FIFTY
RETAIL FAIL AGENCIES IN THE
STATE.
BUT THERE'S OVER THREE THOUSAND
BAIL LICENSEES IN SECTION TWO
PUTS THE BURDEN OF POSTING.
THE THE CONTRACT ONLINE ON THE
LICENSEES
AND MOST OF THESE LICENSEES
ARMED POLICE SO PERHAPS IT'S
APPROPRIATE TO HAVE THE AGENCY
DO IT. IT PROBABLY IS EVEN MORE
PREPARE FOR THE SUGARS DO IT AND
PERHAPS THE CD I DO HAVE THAT
BURDEN.
HOWEVER.
UNTIL TODAY THAT OPEN FOR THAT
YOU COULD SUM UP PLEASE HAVE A
GREAT.
THE THIRD ISSUE IS THE PRIOR
NEGOTIATION. THEN THE BAIL
AGENTS.
ARE THE ONLY LICENSEES
REGULATED BY THE DEPARTMENT
PARENTS.
THAT ARE SUBJECT TO A FELONY FOR
A MERE REGULATORY VIOLATIONS.
AND AND THE THE TITLE TEN OF
WHICH.
THE.
THE DEPARTMENT SHARON'S
REGULATES
THE INDUSTRY HAS NOT BEEN
UPDATED SINCE NINETEEN SEVENTY
SEVEN.
WHAT WERE SUBJECT TO TWO FELONY?
CHARGES AND WE DON'T HAVE.
YOUR GUIDANCE ON.
THE SINCE BEFORE FAX MACHINES
WERE FINE.
.
AND IN THE MY FOURTH IN AND I'LL
MAKE MY FINAL ISSUE.
THE.
REQUIREMENTS THAT AND IT IS SO
SO FOR AN AGENT TO BE APPOINTED
WITH THE SURETIES THERE'S A
NOTICE OF GET SENT TO THE
DEPARTMENT PARENTS NOTIFY THE
DEPARTMENT SHARON SO THAT. THIS
BILL IN SECTION THREE ADDS THAT
THE CONTRACT BETWEEN THE AGENTS
AND THE SURETIES BE ALSO SUBMIT
OR THAT AND FURTHER IT SAYS.
THAT AND ALSO SHOULD BE GIVEN TO
ANY PERSON NAMED IN TWELVE SIXTY
NINE BE A. AND THOSE PEOPLE ARE
THE JAILERS AND THE SUPERIOR
COURT CLERKS.
AND THEY THEY HAVE NO BUSINESS
IN MY OPINION SEEING WHAT THE IN
THE PRIVATE CONTRACT BETWEEN
AGENCY. AND THE SHIRT HE HAS
BEEN PERHAPS THE DEPARTMENT
SHARON STONE'S I DON'T KNOW IF
OTHERWISE AND SHOOK IT IF YOU
COULD SUM UP DOWN I'M DONE OKAY
VERY VERY GOOD THANK YOU FOR
YOUR TESTIMONY.
HOW ANY OTHER UP A WITNESSES IN
OPPOSITION YOU COME TO THE
MICROPHONE STATE YOUR NAME AND
YOUR AFFILIATION?
GOOD EVENING MY A MATTER OF
MISTER CHAIR MEMBERS.
PUB OUR IN BEHALF OF ALL PRO
BILL BONDS OUT WE ARE OPPOSE THE
BILL WE DO AGREE WITH THE AUTHOR
THAT THE BILL SCHEDULED
CALIFORNIA'S TO AYE. AND WE'D
LIKE TO ADDRESS THAT.
GREW BECAUSE TO A LOWER THE
COST TO BAIL MAKE IT MORE
AFFORDABLE FOR PEOPLE WE
DEFINITELY SUPPORT THAT.
AND WOOD SUPPORT LEGISLATION TO
DO THAT SO THANK YOU VERY MUCH.
NEXT MISTER REMEMBERS RANDY
PICKER THEIR RE DISSOCIATES ON
BEHALF OF TOKIO MARINE
CASUALTIES AND WE'RE OPPOSED.
THANK YOU.
GOOD EVENING MISTER.
MEMBERS OF THE COMMITTEE
CAPITAL INTERPRETING GOLDEN
STATE BAIL AGENTS ASSOCIATION WE
DISCUSSED THE AMENDMENTS LAST
NIGHT AND WE ARE OPPOSED TO THE
BELL IN ITS CURRENT FORM. WE TO
CONCUR THAT LOOKING AT THE BAIL
SCHEDULE BELL STACKING IS WHAT
BILL REFORM BUT LOOK LIKE THANK
YOU. THANK YOU KATHY.
CAROLINE BILL HUNTER STILL TAKEN
JENSEN AND ASSOCIATES ON BEHALF
OF FINANCIAL CASUALTY INSURER T.
AS WELL AS HOT POT LINE BAIL
BONDS POSE FOR THE BILL AND
ASSOCIATE ARE. FROM UP
OPPOSITION WITH THE PREVIOUS
SPEAKERS THANK YOU VERY MUCH.
THEY THE CANTON OF THE
CALIFORNIA BILL AGENTS
ASSOCIATION HAVING JUST RECEIVED
THE AMENDMENTS WE DON'T HAVE AN
OFFICIAL POSITION BUT WE JUST
WANT EXPRESS OUR CONCERN
REGARDING THE.
PENALTY PROVISIONS FOR SOME OF
THE REPORTING VIOLATIONS
I CAN THANK YOU ANY OTHER
WITNESSES IN OPPOSITION.
ALRIGHT STING THAT WILL BRING
THE ISSUE BACK TO OUR.
COMMITTEE GOT THOUGHTS COMMENTS.
OBSERVATIONS.
CENTER GAINES.
WANNA THANK CENTER HAD HERTZBERG
FOR BRING THIS FORWARD AND I
THINK THERE ARE SOME ISSUES IN
TERMS OF ABUSES AND THINGS OF
THAT NATURE.
THE RECEIPT OF SOME DISCUSSION
ABOUT RATES MORE THAN THEY CAN
BE ADJUSTED.
WHICH I WOULD BE INTERESTED IN
LOOKING AT.
I DO YOU HAVE SOME CONCERNS
ABOUT THE.
BILL AGENT WHO.
TALKED ABOUT THE FELLOW ON THE
ASPECT OF REGULATION.
AND CURRENTLY.
.
REGULATORY RULES THAT DATE BACK
TO THE SEVENTIES TONIGHT.
THAT IS THAT THIS KIND OF US
STOOD OUT.
FOR ME AND.
WITH WATER IF YOU COULD.
CLARIFY THAT.
.
BY I HAVE ANOTHER CONCERN ABOUT
THE STABILITY OF THE.
ABILITY TO.
TO GET A BOND.
A BAIL BOND.
AND SO I. MIGHT MIGHT MY
THOUGHTS ARE WHAT HAPPENS IN THE
EVENT OF THE PASSAGE OF YOUR.
LEGISLATION HOW DOES IT AFFECT
THAT MARKET.
THERE'S A LOT OF SMALL BUSINESS
OWNERS THAT ARE. BY DOING THIS I
THINK THEY PLAY A ROLE THAT. AND
MY PIN IS CRITICAL.
BUT AT THE SAME TIME WANT TO
MAKE SURE THAT PEOPLE ARE BEING
OVER CHARGED SO.
.
THANK YOU.
THEY ARE THE GET GETTING TO THE
POINT OF BEING OVER CHARGED
EXACTLY THIS SCAM THAT'S BEING
PULLED EVERYBODY'S EYES THE
NOTION IT MISSES THE POINT IT'S
IT'S A WAY TO SAY THERE'S A BAIL
SCHEDULE AND WE'RE GONNA MAKE IT
STATE WIDE BECAUSE ONE.
JURISDICTION IS A DIFFERENT
NUMBER THE OTHER THAT'S NOT THE
POINT THE POINT IS IS THAT IF
YOU WANT TO NOT HAVE PEOPLE OVER
CHARGES SHOULD BE A RATIONAL
RELATIONSHIP BETWEEN THE RISK ON
THE WHAT WE SHOULD BE TWO THINGS
HAVE HAPPENED. ONE THAT THERE'S
A RATIONAL RELATIONSHIP BETWEEN
THE RISK AND INSURANCE COMPANY
IS IN THE EIGHTEEN SURETIES
INSURANCE COMPANY BAIL AGENT
WHATEVER. IS IS UNDERTAKING ON
THE ONE HAND WHAT THEY CHARGE
FOR IT BY A SIMPLY REGULATING
EVERYBODY DID
THE SAME AMOUNT HAVING THE EGGS
LAW EXACTLY THE WAY IT IS IS
PROBLEMATIC. WHAT WE'VE SEEN IS
A PATTERN OF ONLY FIFTEEN A
COMPANIES EVEN POSTING THESE
THINGS?
PEOPLE ARE IN URGENT SITUATIONS
THEY STICK THESE CONTRACTS UNDER
THEIR NOSES TO THEM AT ALL
FAMILY MEMBERS THAT HAVE THE
RIGHTS TO INVESTIGATE LOOKING
TAKE IN THEIR HOUSE ARREST THEM
ALL THESE VARIOUS THINGS THAT
THEY CLAIM TO DO.
AND ALL WE'RE ASKING IS TO BEGIN
THE PROCESS OF GATHERING THE
DATA IN THAT REGARD THE FELONY
PROVISIONS THAT THEY'RE TALKING
ABOUT TO ASKING ME TO CHANGE
HAVE BEEN THE LAW FOREVER I
HAVEN'T CHANGE WHAT THE LAW IS
THEY JUST WANT TO REDUCE IT. IN
TERMS OF OF OF WHAT IT WAS
SO THE NOTION OF A BAIL SCHEDULE
OF THE NOTION OF OVER CHARGING I
THINK WHAT'S HAPPENING IS BY
SHINING LIGHT IN AN INDUSTRY.
THAT DOESN'T PAY OUT CLAIMS THAT
BASICALLY GOES IN AND ASK FOR A
CONTINUANCE THEY PUT UP A BOND
THEN WAITS TO THE PERSON GETS
APPREHENDED IN RACES IN
EXONERATES THE BONDS THEY NEVER
PAY ANYTHING.
IT'S NOT A PLACE WHERE PEOPLE
GET VALUE IN ADDITION WHAT WE'VE
FOUND THAT THE.
RETURN RATES OF PEOPLE COMING
BACK TO JAIL WITH THESE
ALTERNATIVE SYSTEMS IS
DRAMATICALLY HIGHER BY. THE EACH
TO ORDINARY NUMBER SO AND SO THE
REAL VALUE IS THAT WHAT WE'RE
SAYING TO PEOPLE IN SOCIETY THAT
YOU CANNOT HAVE A RISK.
SUPREME COURT SAID AND AND OTHER
COURTS HAVE SAID AND AND NOT
CHARGE PEOPLE MONEY SO REALLY
WHAT WE'RE DOING IN THE FIRST
STEP HERE AND THIS MEASURES
OPPOSED TO THE OTHER MEASURES S.
B. TEN. IS BASICALLY SHEDDING
LIGHT ON AN INDUSTRY THAT HAS
DONE EXACTLY THE OPPOSITE OF
WHAT THEY CLAIM TO HAVE DONE THE
DALLAS BUT JUST YOU KNOW THE
DALLAS EXAMPLE THAT WAS CITED.
HEADED WITH DALLAS COUNTY TEXAS
ALONE IN TWO THOUSAND EIGHT HAS
NOTHING TO DO WITH CALIFORNIA
PUBLIC RECORDS IF YOU'RE RESTED
THOSE ARE PUBLIC RECORDS THE
NOTION OF PUBLIC RECORDS AND THE
FINDINGS ARE PART OF THE LAW.
IN TERMS OF WHAT THEY'RE GONNA
SAY ULTIMATELY WHAT THIS BODY
PASSES THOSE FINDINGS DON'T GET
ONE FIND THEMSELVES INTO THE
CODE SOBRE THEY LIKE THE
CHARACTERIZATIONS ARE NOT I
UNDERSTAND THAT. AND I WOULD IS
SUSPECTED THE INDUSTRY THEY
WOULDN'T LIKE THEM I JUST PULLED
IN ALL THE FACT THAT I FOUND.
BUT THAT BEING SAID IT'S NOT
PART OF THE LAW.
THANK YOU SIR THE OTHER COMMENTS
OR QUESTIONS FROM COMMITTEE
MEMBERS.
SENATOR WAY SYSTEM OF THE BILL
SENATOR PER THROUGH YOU LIKE TO
CLOSE YOUR STATURE AND I BOTH
THANK YOU SO MUCH LIKE YOU AND I
WOULD LIKE TO SAY BEFORE THE
VOTE THE SENATOR. I'M SENSITIVE
TO THE CONCERNS THAT HAVE BEEN
RAISED ABOUT THE PRICE.
AND THAT MAN THAT'S NOT BEING
THAT RELEASED UNTIL FAIRLY
RECENTLY SO I WOULD ASK YOUR
INDULGENCE TO PLEASE.
AYE DO WHAT YOU CAN TO ENGAGE IN
A LITTLE BIT MORE ROBUST WAY AND
HEAR THEM OUT AND.
.
AND DOES THAT WE CAN BE SURE
THAT WE'RE COMMUNICATING I THINK
IT'S A HEALTHY THING EVEN WHEN
WE HAVE SUPPOSED OF OPS IS
WRITING IN A PROBLEM THANK YOU
VERY MUCH THANK YOU YOU CALL THE
ROLL. PLEASE.
BLASIER I LEAVE HERE AYE GAINES.
NOT VOTING BERRYHILL ABSENT.
GALGIANI.
HERNANDEZ HERNANDEZ AYE HUESO.
WHISTLE AYE LARA. LARA AYE
MITCHELL. MITCHELL AYE MORRELL
AYE.
AND VOTING PEROT ABSENT NEWMAN.
NOT VOTING.
PORTANTINO.
PORTANTINO AYE ROTH.
NOT.
I HEAR A SENATOR YOU HAVE ENOUGH
VOTES TO GET OUT WE'RE GONNA
HOLD OVERALL OKAY THANK YOU VERY
MUCH SENATOR LARA ARE YOU READY
TO PRESENTS.
OKAY.
THIS IS SB EIGHT TWENTY FOUR
ITEM ONE.
SEVERAL ARE WELCOME
IF YOU MISTER CHAIR AND MEMBERS
I'D LIKE TO BEGIN BY ACCEPTING
THE COMMITTEE AMENDMENTS LISTED.
IN THE ANALYSIS ON PAGE FOUR
SUGGESTED AMENDMENT A I WILL
ACCEPT THE PROPOSED LANGUAGE.
BUT IN TERMS OF THE PROPOSED
ADDITION OF SUBDIVISION FEE I
WANT TO COMMIT TO WORKING WITH
THE COMMITTEE ON LANGUAGE.
CHOIRS INSURANCE TO REPORT.
BERMAN OF INSURANCE IF THEY
BELIEVE THAT WHEN YOU ALSO
POLICY WOULD THREATEN THEIR.
SEE.
I ALSO AGREE WITH.
WHAT WAS PROPOSED BY SENATOR
DODD IN S. B.?
EIGHT NINETY FOUR.
THE QUESTION OF HOW INSURERS
WOULD DEMONSTRATE EVIDENCE OF
SOLVENCY ISSUES.
STILL REMAINS.
AND THEN HAVING THAT THE REPORT
TO THE DEPARTMENT IS A NECESSARY
STEP. TO ADDRESS THAT CONCERN.
I WILL ALSO ACCEPT THE SUGGESTED
AMENDMENTS BE AND SEE AND WANT
TO THANK YOU COMMITTEE PROFUSELY.
FOR WORKING WITH OUR
STAKEHOLDERS ON THIS MEASURE BUT
HAVE BEEN A GREAT TO WORK WITH
AN AYE.
APPRECIATE THEIR THEIR I WORK I
SUPPOSE TO BE AMENDED S. B.
EIGHT TENTY FOUR WILL PROHIBIT
INSURERS FROM CANCELLING OR NOT
RENEWING THE HOMEOWNERS.
POLICY
FOR TWELVE MONTHS AFTER THE
DECLARED STATE OF EMERGENCY IF
THE PROPERTY IS LOCATED IN A
COUNTY OF A DECLARED EMERGENCY.
AFTER THE MASS DESTRUCTION OF
FROM WILDFIRES ARE FLAWED IT
STANDS TO REASON THAT INSURERS
ARE LIKELY TO RE EXAMINE THEIR
EXPOSURE. TO THE RISK IN THOSE
IMPACTED AREAS BY EXTENDING THE
ONE YEAR RENEWAL REQUIREMENT TO
ALLHOMES IN THE AFFECTED
DISASTER AREA WE CAN MAKE SURE
THAT HOMEOWNERS. WHO MAY OR MAY
NOT HAVE BEEN DAMAGED IN THE
DISASTER DON'T HAVE TO STRUGGLE
WITH? THE FAT AND NON RENEWAL OR
CANCELLATION IMMEDIATELY AFTER
THE EVENT S. B. A TWENTY FOUR
WILL ALSO OPTIMIZE THE
DEPARTMENT OF INSURANCE.
TO CONDUCT THE DATA CALL ON
INSURED LOSSES RELATED TO FIRES
AND WILDFIRES.
HAVE BEEN WORKING WITH THE
JURORS AND THE DEPARTMENT ON THE
DETAILS OF THE BAND YOU KNOW
DATA CALL WHICH WENT TO
REQUIREMENTS FOR INFORMATION ON
PREMIUMS. TO USE A FIRE RISK
SCORES AND FIRE OR WILDFIRE
INCURRED LOSSES AMONG OTHER
FACTORS.
THIS WILL BE DONE ON A PER
POLICY BASIS TO INFORM US
ABOUT THE GROWING WELFARE RISK
AND ANY BEARING THAT HAS HAD ON
THE AVAILABILITY AND
AFFORDABILITY OF HOMEOWNERS
INSURANCE AS STRICTLY AS FOR
IVRS.
IF YOU COMMISSIONER I MEAN
SENATOR SITE BUT HA HA.
WHO IS WITNESSES IN FAVOR?
THAT WAS FINE.
WITNESSES IN FAVOR PLACE THANK
YOU GOOD EVENING CHAIRMAN GLAZER
HONORABLE SENATORS AND SENATOR
LARA HAPPY BIRTHDAY TO THE NOW
ABSENT SENATOR GAINES.
I I APPRECIATE THIS OPPORTUNITY
TO WORK COLLABORATIVELY TOGETHER
I'M JENNIFER MONTGOMERY AND THE
FIFTH DISTRICT SUPERVISOR AND
PLACER COUNTY I'M AT THIRTY YEAR
RESIDENT OF THE WILDLAND URBAN
INTERFACE AND MY HUSBAND IS A
PROFESSIONAL FIREFIGHTER.
WE KNOW THAT NON RENEWALS AND
SIGNIFICANT RATE INCREASES ARE
HAPPENING EVERYWHERE IN URBAN
CITIES IN SUBURBAN LAW AND BLOCK
DEVELOPMENT AND IN RURAL
COMMUNITIES. MANY AREAS WITHOUT
ANY RECENT ADJACENT FIRES
IN THE PAST SIX YEARS I HAVE
SEEN SIGNIFICANT RATE INCREASES
AND NON RENEWALS
LIKE IN PLASTER COUNTY. THESE
RATE INCREASES NON RENEWALS AND
CANCELLATIONS CONTINUE TO
ACCELERATE AFTER THE BELL AIR
SANTA ROSA IN SANTA BARBARA
FIRES. THIS IS INCREASING NOT
DECREASING AND JUST TODAY THE
SAC BEE REPORTED THAT STATE DATA
SHOW THAT COMPLAINTS ABOUT
RENEWING HOMEOWNERS INSURANCE OR
SPIKING PREMIUMS HAVE MORE THAN
TRIPLED IN ZIP CODES AT THE
GREATEST RISK OF WILDFIRE OVER
THE LAST SIX YEARS.
I CANNOT OVER EMPHASIZE THE
IMPORTANCE OF EXTENDING THE
REQUIREMENT TO NOT CANCEL OR NON
RENEW FOR A YEAR AFTER DECLARE
DISASTERS. WORKING WITH THE EPIC
CHO B. M. USING DATA FROM
PLASTIC COUNTY WE SEE
SIGNIFICANTLY INCREASED
PURCHASING NEED. WE DO NOT YET
HAVE STATISTICALLY SIGNIFICANT
CONSUMER PROVIDED DATA REGARDING
AVAILABILITY OR PRICING BUT THE
AVERAGE WE ARE SEEING FOR
RECENTLY COMPLETED POLICIES IS
HOVERING NEAR TWO THOUSAND
DOLLARS PER YEAR.
YEP THE COBIA RECENTLY AT.
WE NEED THE DATA CALL IN THIS
BILL FROM INSURERS TO INCLUDE
NOT ONLY RATE INCREASES NON
RENEWALS AND CANCELLATIONS BY
ZIP CODE. BUT ALSO DATA
AVAILABLE ON TRANSFERS OF
COVERAGE WITHIN THE PRIMARY
MARKET.
COVERAGE TO THE SECONDARY
MARKET AND TO THE FAIR PLAN ONLY
DATA WILL DETERMINE WHO IS
CORRECT AND I WOULD BE HAPPY TO
BE PROVEN WRONG ABOUT THESE
INCREASES.
WE NEED TO ESTABLISH
COMPREHENSIVE RISK MODELS THAT
INCLUDE ACCEPTED FIRE MITIGATION
PRACTICES AS WELL AS THE RISKS
SIMILAR TO GOOD DRIVERS HEALTH
AND LIFE INSURANCE INCENTIVES.
THESE MEDICATIONS SHOULD INCLUDE
ACCESS TO FIRE PROTECTION
RESPONSE FIRE MANAGED LANDSCAPES
HARDSCAPE BANG HOME CONSTRUCTION
MATERIALS AND OTHER MEDICATIONS.
ALL OF THESE THINGS SHOULD BE
ANALYZED ALONGSIDE RISK IN
SETTING RATE STRUCTURE.
I THANK YOU FOR YOUR TIME THIS
EVENING THOUGH I DID WRITE TODAY
I WAS VERY HELPFUL.
AND I AM OPEN TO ANY QUESTIONS
I WILL LEAVE A COPY OF MY
EXPANDED COMMENTS AND MY
BUSINESS CARD FOR YOUR
CONVENIENCE THANK YOU AGAIN
THANK YOU VERY MUCH NEXT WITNESS
IN SUPPORT. THANK YOU.
AMY BACH WITH UNITED
POLICYHOLDERS CAN WE ARE
STATEWIDE FIVE ONE C. THREE.
AND BECAUSE OF THE EXPERIENCES
WE'VE HAD IN OTHER STATES.
WERE THEY'VE HAD VERY VERY
SEVERE NON RENEWALS AFTER
CATASTROPHES BUT WE HAVE BEEN
ENGAGED WITH?
THE AUTHORS OFFICE HIS STAFF AS
SUPERVISOR MONTGOMERY FOR ABOUT
TWO YEARS NOW STUDYING THE
SITUATION IN CALIFORNIA TO MAKE
SURE THAT. WE ARE AT KEEPING A
STEADY HAND KEEPING A STABLE
COMPETITIVE HOMEOWNERS MARKET.
BUT ALSO OF THE HOLDING.
INSURERS CALM IN THE FACE OF
THEIR SHIFT FROM USING MORE
HUMAN BASED UNDERWRITING TO
DECIDE WHO THEY'RE GOING TO
INSURE NOT ENSURE TO MORE.
MODEL BASED AND DATA MINING SO
WE I THINK THIS BILL STRIKES THE
RIGHT BALANCE IT'S VERY I'D SAY
IT'S ACTUALLY COME A LONG WAY
FROM. ON THE ORIGINAL DRAFTING A
ONE I THINK YOU'RE COMMITTEE
AGAIN STAFF AND THE SENATOR AND
HIS STAFF. AND I THINK AT THIS%
POINT WE HAVE A VERY MODERATE.
APPROACH TO KEEPING OPTIONS FOR
CONSUMERS BUT ALSO GETTING THE
DATA THAT YOU ALL ARE GOING TO
NEED SO WE DON'T END UP WITH
DESERT'S INSURANCE DESERT'S
AROUND THE STATE. AND REALISTIC
CRISES ARE GOOD THANK YOU VERY
MUCH OTHER WITNESSES IN FAVOR
COULD IDENTIFY YOURSELF THANK
YOU CASEY RYAN RURAL COUNTY
REPRESENTS OF CALIFORNIANS
SUPPORT. THANK YOU VERY MUCH
CARE MARKETS AND ARMY HAVE OF
THE CALIFORNIA STATE ASSOCIATION
OF COUNTIES IN SUPPORT THANK YOU.
GOOD EVENING MISTER CHAIR
MEMBERS ROBERT HER OF THE
DEPARTMENT OF INSURANCE.
WITH THE AMENDMENTS GOING TO
THE BILL.
AT WHICH WE HAVE WORKED VERY
EXTENSIVELY WITH THE YOUR
COMMITTEE STAFF AND HE AUTHOR
AND HIS OFFICE ON WE SUPPORT THE
BILL THINKING THANK YOU VERY
MUCH ANY OTHER WITNESSES IN
FAVOR.
I ARE THERE ANY WITNESSES IN
OPPOSITION TO COME FORWARD
PLEASE YES FORCED.
WE CARRY.
BASED UPON LIKE THE CURRICULUM.
GOOD AFTERNOON MISTER CHAIR
MEMBERS THE COMMITTEE HARMONICAS
YA DON'T BE HAVE A PC I WE WE DO
HAVE AN OPPOSE ON AS AMENDED
POSITION.
BUT I DO WANT TO KNOW AND I
WANNA THANK CENTER LARA YOUR
STAFF.
ABOUT THE COMMITTEE STFF
WORKING WITH US WE DO AGREE
WHERE WE'RE GETTING CLOSE.
AND UP WE DO BELIEVE THAT IS
THE RIGHT DIRECTION TO DO A DATA
CALL THIS ISSUE I THINK IN
ADDRESS A LOT OF THE.
A LOT OF THE QUESTIONS THAT MAY
WE MAY HAVE ON THIS ISSUE SO
THANK YOU.
YES MA'AM CARE ACROSS THE
PERSONAL INSURANCE FEDERATION.
WE TO REALLY APPRECIATE ALL THE
WORK FROM SENATOR LARA'S STAFF
AND AUTHOR COMMITTEE STAFF.
WE REMAIN OPPOSED TO LESS
AMENDED BUT THAT SAME THING. AS
OUR COLLEAGUE TO SAID WE.
LOOK FORWARD TO WORKING WITH
HIM IN.
WELL BEFORE THE CAP HIT ANY
OTHER WITNESSES.
AND OPPOSITION JERRY MCKEE
REPRESENT THE PACIFIC
ASSOCIATION DOMESTIC INSURANCE
COMPANIES WE'D REALLY LIKE TO
THANK THE AUTHOR IN THE
COMMITTEE STAFF.
THE AMENDMENTS OUTLINED IN THE
ANALYSIS MAKERS VERY COMPLICIT
BILL MOVING FORWARD WE LOOK FOR
TO CONTINUE TO WORK ON SOME OF
THE SPECIFICS OF THE DATA
CALLING WHICH. AS WELL AS
PERHAPS THE SIZE OF THE CUNTY
TRYING TO WORK OUT SOME OF THOSE
DETAILS BUT WE REALLY THINK ALL
OF YOU FOR US SUPREME VOTE I
THINK YOU.
OKAY THANK YOU OTHER WITNESSES.
IN OPPOSITION.
CATHERINE PUT ON AMERICAN
ENTRANCES STATION ACT MY
COLLEAGUE'S COMMENTS.
GREAT THANK YOU ANY OTHER
WITNESSES IN OPPOSITION. ALRIGHT
SING THAT WILL BRING IT BACK TO
THE COMMITTEE FOR US THOUGHTS
COMMENTS.
OR MOTION WASN'T.
AND AYE COLLEGE SENATOR ROTH TO
DO THAT.
HE NEVER COME I WOULD LIKE TO
EMPLOY PLANET YOU GO AHEAD AND
THEN WILL I.
THE RESPECTFUL OF FOR YEARS
TRYING TO CLARIFY WHAT THE
CURRENT OBJECTIONS ARE TO THE
BILL OF THE LA COUNTY IS SIZE
THE COUNTY MUST BE ONE.
SO I. I'D CERTAINLY.
SUGGESTS THAT WE.
CONSIDER ADDRESSING THAT ISSUE
IN SOME WAY. AND THAT HAVE A
COUNTY WIDE APPROACH WAS THE
OTHER OBJECTION.
PART THE OTHER OBJECTION IS THAT
WE WE BELIEVE THAT SOME OF IT IS.
.
GOOD QUESTIONS ABOUT NON
RENEWALS AND CANCELLATIONS AND.
OTHER SOME ANECDOTAL EVIDENCE
THAT THIS REALLY BAD OUT THERE
AND I THINK AT THIS POINT WE
WOULD LIKE BE ABLE TO WORK WITH
A LARA AND FIGURE OUT HOW WE DO
THAT AND THAT A CALL TO GET. THE
ACCURATE INFORMATION FOR MEMBERS
OF THE COMMITTEE IN OUR POLICY
YOU KNOW SO THAT'S IDENTICAL
ISSUE.
RIGHT GOT IT OKAY THANK YOU
MISTER CHAIR I'M FINE.
THAT CENTER GAINES.
LIKE TO ASK IN TERMS OF.
.
THE IMPACT IN THE MARKETPLACE.
IN THE EVENT OF THIS BILL'S
PASSAGE
SO IT.
.
IT TALKS ABOUT THE EXTENDING
COVERED SHOW A.
FOR TWELVE MONTH PERIOD OKAY I
UNDERSTAND THAT. BUT IT ALSO
SAYS HERE THAT.
TOLL NUMBER POLICY HOLDER
POLICIES IN THE DISASTER AREA.
.
BY TWENTY PERCENT OR MORE TO
SUBMIT A PLAN.
TO BE SURE IT'S COMMISSIONER CAN
YOU EXPAND ON WHAT THAT IS THAT
YOU ARE SPIRITUALLY BEEN REMOVED
FROM THE BILL BOATHOUSE OKAY.
ALRIGHT SO.
I WOULD LIKE TO GET BACK TO THE
MARKET AVAILABILITY ISSUE.
IS THAT AN ISSUE THAT WE NEED
WE NEED TO WORRY ABOUT IN TERMS
OF THE PASSAGE OF THIS BILL.
AND THE BILL ABILITY OF COVERAGE
IN WILDFIRE AREAS.
AND OTHER AREAS THROUGHOUT THE
STATE.
WE DO NOT BELIEVE THAT
AVAILABILITY IS ISSUE IN THE
STATE RIGHT NOW. ON A TESTIFIED
AT THE SENATE INFORMATIONAL
HEARING ON THIS ACTUAL ISSUE.
WITH RESPECTIVE ILL ABILITY BUT
WE ARE SEEING IS THAT GUY YOU
MAY NOT HAVE SOME OF THE LARGER
INSURERS THAT FOLKS ARE USED TO
GOING TO HIM NECESSARILY.
WRITING AS MUCH BECAUSE THERE
MAY BE SOME OVER EXPOSURE ISSUES
OTHER SURE INSURERS ARE COMING
AND.
WHEN YOU LOOK AT THE FAIR PLAN.
AND LOOK AT HOW THAT IF THERE'S
BEEN ANY GROWTH HAS BEEN VERY
VERY SMALL AMOUNT OF GROWTH THAT
WE BELIEVE THAT'S A PRETTY GOOD
INDICATOR OF THE FACT THAT WE
DON'T HAVE AN AVAILABILITY ISSUE
IN THE STATE. IS MORE JUST ABOUT
EDUCATING FOLKS AND SHOPPING
AROUND.
OKAY AND THOSE WHO DO YOU THINK
YOU CAN GET TO A SUPPORT WORKING
WITH SENATOR LARA ON THE
LEGISLATION.
I I I AM LOOKING FORWARD TO
WORKING WITH THEM I THINK.
WE'VE GOT SOMEONE WHO LOOKED TO
TO WITH THEM ON THE DATA CALL.
VERY WELL ACT I THINK ALL OF OUR
RESERVES AND INTEL. I SEE ANY.
FURTHER OUT PROGRESS AND THEN.
HOPEFULLY HAVE UP TO SUPPORT ON
THE FLOOR.
THANK YOU THANK YOU OKAY TO HAVE
A MUCH FROM CENTER HERNANDEZ AYE
HERE THAT I CAN HEAR YOUR VOICE
IS ALWAYS ECHO CERTAINLY.
THE CENTER OF HERNANDEZ HAS
MOVED TO SENATOR LARA WOULD YOU
LIKE TO CLOSE JUST THANK YOU
AGAIN WE WE ARE MAKING HEADWAY
AND SENATOR ROBB.
THAT THE ISSUE THAT WE HAVE ON
THE COUNTY WIDE IT'S IS THAT.
GENERALLY WHEN THE STATE OF
EMERGENCY IS DECLARED IS DONE BY
COUNTY BY COUNTY NOW ZIP CODE
STILL TRYING TO. FIGURE OUT
WHAT'S THE BEST APPROPRIATE WAY
FOR THAT BUT WE ARE CONTINUE TO
WORK AND AGAIN THANK YOU MISTER
CHAIRMAN THANK YOUR STAFF FOR
ALLOWING US TO TO DO THIS
MODERATE APPROACH APPRECIATE AND
ASK FOR SUPPORT. THANK THANK YOU
SETTLE OUR AND I DO APPRECIATE
ALL YOUR GOOD WORK IF YOU AND
YOUR STAFF WITH OUR WONDERFUL
TEAM HERE TO. TO GET THIS INTO A
SUCH A GOOD SHAPE FOR THAT I'M
HAPPY TO SUPPORT ITS DAY AND I
WISH YOU WELL AND I HAVE
CERTAINLY HOPE THAT YOU CONTINUE
TO. WORK WITH THAT THOSE WHO
HAVE ISSUES THAT WE CAN FIGURE
THEM OUT SO WITH THAT WILL CALL
THE ROLL IN THE BILL.
SPEAK EIGHT TWENTY FOUR DO PASS
AS AMENDED TO APPROPRIATIONS
GLACIER AYE LEISURE AYE GAINES.
BEING SENT BOATING BERRYHILL
ABSENT GALGIANI GALGIANI AYE
HERNANDEZ. HERNANDEZ AYE HUESO.
WEASEL AYE LARA BY MORE AYE
MITCHELL. MITCHELL AYE MORLOCK
NOT VOTING. MORALE ABSENT NEWMAN.
NEWMAN AYE PORTANTINO.
UNTIL I ROTH. ROTH AYE.
IT HAS NINE HOMES OKAY THAT THAT
BILL HAS NINE VOTES WE HAVE TWO
MEMBERS WHO ARE NOT EXPECTED TO
ATTEND TODAY SO I'M GONNA CLOSE
THE ROLE. ON THAT IT'S A NINE
ZERO IN THAT BILL IS OUT.
MEMBERS ARE GOING TO GO THROUGH
THAT THE BILLS THAT ARE ON CALL
THAT JUST GIVE ME.
ANOTHER MOMENT HERE BEFORE WE
GET TO THAT AND I KNOW ITS BEEN
A LONG HEARING BUT JUST BE A
LITTLE BIT MORE PATIENT JUST A
FEW MINUTES.
THANK YOU YOU WANT.
WHILE WE'VE
AND OPEN THE CALLS ON ON A
AND THE REMAINDER OF THE BILLS
BUT.
IF THEY.
.
SO PRIVILEGED TO WHAT SENATOR
MCGUIRE AND SENATOR DIED.
BEFORE WE DO THAT.
THANK YOU SO MUCH FOR SECURING
COMMITTEE HIGH THROUGH THE CHAIR
ONE OF THE ITEMS THAT WE ARE
JUST DISCUSSING WITH THE CHAIR
IS CONTINUE TO WORK. OF BOTH OF
THESE BILLS ARE IN A COMMITMENT
AND I DON'T SPEAK FOR.
A PARTNER IN THIS BUT.
COMMITMENT THAT WERE NOT
WANTING TO BE ABLE TO ADVANCE
YOUR TO THE COMMITTEE TODAY. AND
IT IS NOT TO EXCUSE ME NOT TO
ADVANCE BUT THE BILL'S.
UNLESS WE. PRAY GOD.
SO UNLESS WE HAVE CONCURRENT UP
FROM THE THANK YOU SO MUCH OH
GOOD THAT IT HAS THAT SIX OF THE
HNGN.
THAT'S WHAT I'M WRITING GOOD
WHILE IT MAY BE GOOD.
WITHOUT THE CONCURRENCE OF THE
CHAIR DIE IN THE WAY WE WOULD
SEE.
THIS
IS THAT AT THINKING SO MUCH WE
WOULD I SIT DOWN I HAVE. HASH
OUT ON ALL ISSUES TRY TO BE TO
DEVELOP SOME TYPE OF COMPROMISE
A COMPROMISE THAT.
WE COULD POTENTIALLY BRING TO
THE FLOOR.
AND WE WILL CONTINUE WORKING
WITH THE CHAIR AND WHAT WE
ANTICIPATE IS WORKING WITH THE
INDUSTRY HERE OUT BETWEEN NOW
AND WE NEED TO COME UP WITH THE
DEADLINE THAT. OR YEAH FOR FLOOR
ABOUT IT WE'D WORK WITH.
.
THAT'S NOT THAT'S WE WEED OUT WE
WORK WITH BOTH AT THE CHAIRED
INDUSTRY IT TO TRY TO DRIVE SOME
TYPE OF COMPROMISE ENDS AND
CENTER YOU'RE SPEAKING TO SB
EIGHT NINETY SEVEN. RIGHT
FUNDING AND SEVEN YEAH OKAY. SO
LET ME TURN TO SENATOR DIED THE
I DO HAVE A POINT OF PERSONAL
PRIVILEGE ON YOUR BILL S. B.
EIGHT NINETY FOUR.
THE A SIX SAME TERMS. APPLY FOR
ME I WILL NOT BRING IT TO YOU
KNOW BACK TO THE TO THE FLOOR
UNLESS WE HAVE AN AGREEMENT WITH
CHAIRS.
ON THIS MOVIE BOARD OKAY SO WE
APPRECIATE THOSE CLARIFICATIONS
NOW WE'RE GONNA GO BACK AND OPEN
THE ROLE.
THE LARA BILL IS CLOSE IS THAT
CORRECT THAT SKIN THAT'S DONE SO
THEN THE NEXT ONE ITEM TWO S. B.
EIGHT NINETY FOUR IF YOU COULD
CALL THE ROLL S. B. EIGHT NINETY
FOUR DO PATH AS AMENDED TO REFER.
TO THE FLOOR.
GLACIER BY LEISURE AYE GAINES
NOT HERE. BERRYHILL ABSENT A
HERNANDEZ HERNANDEZ AYE HUESO
WHISTLE AYE LARA. LARA AYE
MITCHELL. MITCHELL AYE MORE LIKE
NOT HERE MORRELL NOT HERE NEWMAN.
NOT VOTING. ROTH.
WE NINETY FOUR EIGHT NINETY FOUR
RIGHT CIRCUMVENT THAT TOLD VOTE
ON NAFTA BUT I EMPLOYING BROUGHT
UP AYE ROTH. AYE OKAY AS
EVERYBODY ON THAT BILL.
THE RESULT IS.
HIS EIGHT EIGHT COUNTS CIOS
REGULATE.
INTENT IS SLOW EIGHT EIGHT EIGHT
VOTES IN FAVOR THAT PHYLLIS IS
OUT OKAY. ALL RIGHT NEXT ONE IS
ITEM THREE SB EIGHT NINETY SEVEN
MCGUIRE.
S. B. EIGHT NINETIES WHAT NINETY
SEVEN I. EIGHT NINETY SEVEN DO
PATH OF THEM AMENDED TO THE
FLOOR.
.
GLAZER AYE LEISURE AYE GAINES
NOT HERE BERRYHILL ABSENT.
MORE LOT LOT HERE. NEWMAN.
I VOTING ROTH.
ROTH I.
THIS A PROPS FAKE THAT SOMEHOW
CARRIED. BY THAT THAT IS EIGHT
VOTES SENATOR DODD THAT BILL IS
OUT.
OKAY.
SUCH AS MRS SENATOR MCGUIRE THAT
THAT BILL IS OUT.
BUT CAN PLAY RIGHT ITEM NUMBER
FOUR IS S. B. EIGHT NINETY EIGHT
HERTZBERG CALL THE ROLL.
DO PASS AS AMENDED TO
APPROPRIATIONS.
.
GALGIANI.
OF VOTING AND MORE LIKE NOT HERE.
NEWMAN.
BUT VOTING AND PORTANTINO OUT ON
BROUGHT SEVERAL ISSUES.
HERTZBERG PAN OUT OF THEM.
I'VE. HIGH FOR NEWMAN AND ROTH.
ROTH I.
EIGHT LEGAL. EIGHT VOTES IN
FAVOR OF ALRIGHT THAT BILL IS
OUT.
I ITEM FIVE S. B. NINE SEVENTEEN
JACKSON FROM CALL THE ROLL.
YOU PASS AMENDMENT TO AMEND IT
TO THE FLOOR.
HERNANDEZ.
AN HERNANDEZ NOT VOTING HUESO.
THE VOTING LARA.
LARA AYE MITCHELL.
I'M SORRY THIS THIS IS NINTH AT
THREE NINE SEVENTEEN JACKSON'S
BILL.
MITCHELL AYE.
NEWMAN.
ASSEMBLY.
NEWMAN AYE.
THE VOTES.
LET'S APPLY.
I WAS SO HUESO AND I.
OKAY.
EIGHT MONTHLY ON.
PETE OKAY THAT'S EIGHT VOTES
SAID SENATOR JACKSON'S BILL IS
OUT. HOUSING AND HE WAS A.
OKAY.
LET'S GO TO THE CONSENT
CALENDAR THAT'S ITEMS SIX AND
SEVEN LIVED THERE THEY'RE ALL.
YOU KNOW WE HAVE A VERY GOOD NOT
THAT WE HAD TO BE CLOSER ALL
MEMBERS ON THAT WE HAD ABSENT
MEMBERS LET'S TO THAT'S JUST.
KNOW THAT WE'RE ALL HERE.
THEY'RE ALL HERE.
OKAY SO TOO DID THE TO THAT ONE
OF THE CONSENT KELLER'S OUT NINE
ZERO.
ELEVEN OF WHICH YOU HAVE IF I
HAVE ELEVEN.
I COULD HAVE A SECURE LIFE HERE
RIGHT HERE WE HAVE A TOTAL OF
THIRTEEN OKAY HOLD ON ONE SECOND.
SO THE VOTERS ELEVEN ZERO. OKAY
THE CONSENT COUNTERS OUT ELEVEN
ZERO LAST BILL IS I ITEM EIGHT
SP TWELVE NINETY ONE BY DIED.
I DO PASS IS THE MAN THAT
AMENDED TO APPROPRIATIONS.
GALGIANI.
HERNANDEZ HERNANDEZ AYE HUESO
WHISTLE I LARA. FLORA AYE
MITCHELL AYE MITCHELL AYE.
NEWMAN. NEWMAN AYE.
EIGHT EIGHT VOTES. THEIR POSTS
AGAINST EIGHT EIGHT TO TWO OKAY
THAT BILLS OUT A TO TO.
.
REGULATIONS TO SENATOR DODD AND
THAT COMPLETES OUR GENDER THANK
YOU AND EVERYONE FOR THEIR
PATIENCE AND OUR WONDERFUL STAFF
FOR THE GREAT WORK THEY DID. TO
I KEEP ALL THESE THINGS MOVING
FORWARD.
THIS MEETING IS ADJOURNED