Insurance.

Senator Allen's insurance market oversight legislation would require large insurers to submit annual reports detailing their reinsurance programs and catastrophic risk modeling, while extending consumer protections for policyholders affected by state emergencies. The reporting requirements apply to admitted insurers with over $50 million in annual premiums from specified property insurance lines, with initial reports due March 2026.

The bill mandates that insurers provide more time for policyholders to document losses and receive full replacement costs during declared emergencies. Proof of loss documentation could not be required sooner than 100 days after the loss, with three-month extensions available for circumstances beyond the policyholder's control. For total losses of furnished residences, insurers must offer advance payments of 60% of personal property coverage, up to $350,000, without requiring itemized claims.

To protect proprietary information while maintaining transparency, individual insurer reports would remain confidential and exempt from public records requests, but the Insurance Commissioner must publish aggregated data on the department's website. Insurers face civil penalties up to $5,000 per month for non-compliance, increasing to $10,000 monthly for willful violations with a $100,000 maximum. The Commissioner may grant 30-day filing extensions for unforeseen circumstances.

The legislation requires all insurance policies to comply with the new provisions by July 2026. The bill's findings cite California climate assessments showing increased wildfire risks and note that insurers commonly use reinsurance and catastrophe modeling to address such risks. The reporting requirements aim to help regulators understand market trends and systemic risks in wildfire-prone areas.