CA AB1512

Requires insurers to maintain a verifiable process allowing policyholders to designate one additional person to receive notice of policy lapse, termination, expiration, nonrenewal, or cancellation for nonpayment of premium.

Insurers must notify policyholders of this right within 30 days of policy inception (or within 60 days if premiums are paid through payroll/pension deduction) and at least every two years thereafter.

Designees must receive notice at least 10 days before a policy lapses or is terminated for nonpayment, sent by first-class mail within 10 days after the premium becomes due and unpaid.

Applies to private passenger automobile insurance (6+ months coverage), residential property insurance, and individual disability income insurance policies issued or renewed on or after January 1, 2016, except employer-paid disability policies.

Removes the requirement that application forms clearly indicate the deduction payment plan selected by the applicant.