HB 1571 Summary

• Creates the Earthquake Insurance Act of 2015, requiring all insurers to offer earthquake coverage on residential property insurance policies issued or renewed after November 1, 2015.

• Mandatory offer must be made before, during, or within 60 days of policy issuance or renewal, with specific disclosure language informing insureds that homeowners policies do not cover earthquakes and that acceptance is optional.

• Coverage may be provided through policy provision, endorsement, separate policy, or by arranging coverage through affiliated or nonaffiliated insurers; insurers must maintain proof of offer delivery.

• Insurers must re-offer earthquake coverage every other year at policy renewal if initial offer was declined, and cannot reject or cancel policies solely because the insured accepted earthquake coverage.

• Insurers must disclose all available discounts and surcharges for earthquake coverage and earthquake-hazard reductions (such as foundation bracing or chimney reinforcement), with all disclosures subject to Insurance Commissioner approval.