CA AB478

Limits yearly premium increases to 25 percent for residential property insurance policyholders aged 65 and older whose properties are located in high or very high fire hazard severity zones, with increases allowed only once every 5 years.

Allows insureds aged 65 and older subject to premium increases to pay the increased amount over a 3-year period as part of their regular residential property insurance payments.

Prohibits insurers from canceling or refusing to renew residential property insurance policies for insured persons aged 65 and older solely because the property is located in a high or very high fire hazard severity zone.

Requires a two-thirds legislative vote because the bill amends Proposition 103 (the Insurance Rate Reduction and Reform Act of 1988) by limiting the Insurance Commissioner's discretion to approve rate increases.