CA AB2064

Revises mandatory earthquake insurance disclosure language for residential property insurance, with different disclosures required for participating insurers versus nonparticipating insurers under the California Earthquake Authority (CEA).

Increases the CEA's operating expense cap from 3% to 6% of premium income and excludes specified expenses from the cap, including reinsurance costs, bond expenses, investment services, loss-modeling, legal services, producer compensation, and earthquake mitigation program costs.

Requires concurrent disclosures with issuance or renewal of CEA residential earthquake insurance policies in 14-point boldface type, informing policyholders of coverage differences, liability limitations, potential payment reductions if CEA resources are exceeded, and possible future premium surcharges of up to 20%.

Mandates participating insurers provide each residential property insured with CEA marketing documents at least once annually at the CEA's expense.

Establishes phased operative dates: January 1, 2016 for most provisions, and January 1, 2019 for subsequent versions of disclosure requirements.