AB-637
Consumer Protection

False or misleading commercial disaster communication.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Increases penalties by up to $2,500 for deceptive insurance advertising during declared disasters.
  • Applies enhanced penalties to commercial communications targeting disaster victims for up to 180 days.
  • Targets for-profit companies that advertise disaster-related services using misleading government references.
  • Protects disaster survivors from scams during the 60-day recovery period after emergencies end.

Summary

Assembly Member Flora's proposal to curb deceptive insurance-related advertising during disasters would allow courts to impose additional civil penalties of up to $2,500 for misleading commercial communications during declared emergencies. The enhanced penalties would apply to communications targeting disaster-affected individuals that either advertise for-profit disaster recovery services or reference specific geographic areas named in emergency declarations.

The provisions would take effect upon the proclamation of a state of emergency or catastrophic disaster and remain active for 60 days after the emergency's termination, with a maximum duration of 180 days per incident. The bill defines commercial disaster communications as those reasonably expected to reach persons displaced by or residing in declared disaster areas, specifically when advertising services related to disaster losses or mentioning affected locations.

The legislation responds to documented patterns of misleading advertising during disaster recovery periods, including attempts to impersonate government entities or misrepresent for-profit services as nonprofit assistance. These enhanced penalties would supplement existing Insurance Code provisions that prohibit deceptive insurance-related communications and establish base civil penalties between $5,000 and $10,000 for violations.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Insurance
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Insurance
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Read first time. To print.

Contacts

Profile
James GallagherR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Heath FloraR
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Marc BermanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 17 row(s) selected.
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Select All Legislators
Profile
James GallagherR
Assemblymember
Committee Member
Profile
Mike GipsonD
Assemblymember
Committee Member
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Heath FloraR
Assemblymember
Bill Author
Profile
Marc BermanD
Assemblymember
Committee Member
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
David AlvarezD
Assemblymember
Committee Member
Profile
Dawn AddisD
Assemblymember
Committee Member
Profile
Liz OrtegaD
Assemblymember
Committee Member
Profile
Stephanie NguyenD
Assemblymember
Committee Member
Profile
Avelino ValenciaD
Assemblymember
Committee Member
Profile
Greg WallisR
Assemblymember
Committee Member
Profile
Anamarie FariasD
Assemblymember
Committee Member
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Michelle RodriguezD
Assemblymember
Committee Member
Profile
David TangipaR
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Heath Flora
Heath FloraR
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/13/2025)

Key Takeaways

  • Increases penalties by up to $2,500 for deceptive insurance advertising during declared disasters.
  • Applies enhanced penalties to commercial communications targeting disaster victims for up to 180 days.
  • Targets for-profit companies that advertise disaster-related services using misleading government references.
  • Protects disaster survivors from scams during the 60-day recovery period after emergencies end.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Heath Flora
Heath FloraR
California State Assembly Member

Summary

Assembly Member Flora's proposal to curb deceptive insurance-related advertising during disasters would allow courts to impose additional civil penalties of up to $2,500 for misleading commercial communications during declared emergencies. The enhanced penalties would apply to communications targeting disaster-affected individuals that either advertise for-profit disaster recovery services or reference specific geographic areas named in emergency declarations.

The provisions would take effect upon the proclamation of a state of emergency or catastrophic disaster and remain active for 60 days after the emergency's termination, with a maximum duration of 180 days per incident. The bill defines commercial disaster communications as those reasonably expected to reach persons displaced by or residing in declared disaster areas, specifically when advertising services related to disaster losses or mentioning affected locations.

The legislation responds to documented patterns of misleading advertising during disaster recovery periods, including attempts to impersonate government entities or misrepresent for-profit services as nonprofit assistance. These enhanced penalties would supplement existing Insurance Code provisions that prohibit deceptive insurance-related communications and establish base civil penalties between $5,000 and $10,000 for violations.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/13/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Insurance
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Insurance
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Read first time. To print.

Contacts

Profile
James GallagherR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Heath FloraR
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Marc BermanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 17 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
James GallagherR
Assemblymember
Committee Member
Profile
Mike GipsonD
Assemblymember
Committee Member
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Heath FloraR
Assemblymember
Bill Author
Profile
Marc BermanD
Assemblymember
Committee Member
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
David AlvarezD
Assemblymember
Committee Member
Profile
Dawn AddisD
Assemblymember
Committee Member
Profile
Liz OrtegaD
Assemblymember
Committee Member
Profile
Stephanie NguyenD
Assemblymember
Committee Member
Profile
Avelino ValenciaD
Assemblymember
Committee Member
Profile
Greg WallisR
Assemblymember
Committee Member
Profile
Anamarie FariasD
Assemblymember
Committee Member
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Michelle RodriguezD
Assemblymember
Committee Member
Profile
David TangipaR
Assemblymember
Committee Member