CA AB637

Authorizes courts to increase civil penalties by up to $2,500 for false or misleading commercial disaster communications in the business of insurance that violate existing unfair trade practice laws

Defines "commercial disaster communication" as advertising targeting disaster-affected residents that either promotes for-profit goods/services related to disaster losses or uses the name of a geographic area under emergency declaration

Applies to communications made from the date of a state of emergency or catastrophic disaster proclamation until 60 calendar days after termination, with a maximum application period of 180 calendar days per emergency

Builds upon existing law that already imposes civil penalties of $5,000 to $10,000 for untrue, deceptive, or misleading statements in insurance advertising

Includes legislative findings that disasters are increasing in frequency and that false advertising by bad actors seeking to exploit disaster survivors is a significant problem requiring strengthened restrictions