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CA AB188

Bill

Official Source

Status

Passed

7/9/2019

Primary Sponsor

Tom Daly

Click for details

Origin

State Assembly

2019-2020 Session

AI Summary

  • Amends Insurance Code Section 2051 to revise how actual cash value is calculated for fire insurance claims under open policies
  • Eliminates separate valuation rules for total loss to structures and applies a uniform calculation for both total and partial losses: repair/rebuild/replacement cost minus depreciation deduction, or policy limit, whichever is less
  • Restricts depreciation deductions to only components of a structure that are normally subject to repair and replacement during the structure's useful life
  • Extends depreciation deduction limitations to total loss claims, whereas previously these restrictions only applied to partial losses
  • Approved by Governor and filed with Secretary of State on July 9, 2019

Legislative Description

Fire insurance: valuation of loss.

Last Action

Chaptered by Secretary of State - Chapter 59, Statutes of 2019.

7/9/2019

Committee Referrals

Insurance4/24/2019
Rules4/11/2019
Insurance1/24/2019

Full Bill Text

No bill text available