CA SB1406

Requires insurers offering residential property insurance to offer earthquake coverage prior to, concurrent with, or within 60 days following policy issuance or renewal, with specific disclosure language in at least 10-point boldface type.

Allows insurers to temporarily defer mandatory earthquake coverage offers for up to 60 days following policy issuance or renewal to focus resources on claims and services to existing policyholders in the event of an earthquake.

Establishes a conclusive presumption of compliance with disclosure requirements when insurers obtain the applicant's signature or when applicants fail to return signed acknowledgment within 60 days of receipt.

Requires the offer to specify dwelling coverage amount, applicable deductible, contents coverage, additional living expenses, and rate or premium, with applicants having 30 days to accept the coverage offer.

Permits the Insurance Commissioner to approve modifications to prescribed disclosure language only if modifications are necessary to accurately reflect actual policy coverage and are strictly limited to necessary changes.