CA State Senate to vote on slew of insurance reform bills, addressing transparency, non-renewals

SACRAMENTO, Calif. (KGO) -- A slew of bills that would bring significant insurance reforms to California are set for a vote in the State Senate Insurance Committee Wednesday.

One of the bills' authors is crediting reporting from 7 On Your Side Investigates.

We've been exposing problems with California's insurance market for years now. And today is what consumer advocates are calling "a test." Will lawmakers pass real reforms?

One of the bills, SB 1301, stemmed from our reporting last year, uncovering false claims on insurance non-renewals.

Remember Karen and Tony Hoover? The San Francisco couple was dropped from Liberty Mutual for "mold and algae" on their roof - a problem that didn't exist.

If passed, this bill would do three key things: Give homeowners a six-month notice of a non-renewal, force insurers to explain why they're dropping you, and clearly spell out whether there's a way to keep your coverage.

The bill's author, State Senator Ben Allen (D - Pacific Palisades), who is also running for Insurance Commissioner, says this is about transparency.

"We've heard from whistleblowers, we've heard from investigative reporting on internal documents -- this is not a system that's working well for people. And the question is what are we going to do about it?" Sen. Allen said.

"One of the things that SB1301 will do thanks to that kind of reporting that uncovered the problem...will let us know what the reason is for non-renewals, so we can correct the insurance company and have time to do so," said Carmen Balber, Executive Director of Consumer Watchdog.

"All of the KGO reporting really fed into the details of this bill that helped tell us what problems consumers were facing - so we can correct them," said Sen. Allen.

Los Angeles wildfire survivors and consumer advocates packed the state capitol today, demanding more action to hold the insurance industry accountable. The survivors say they can't get coverage, or simply get their claims paid.

"How will California stay insured in the near future? And for several years now... lawmakers have been hoping that what the Insurance Commissioner did with the Sustainable Insurance Strategy will start getting consumers insured again. Unfortunately, that hasn't been the case. FAIR enrollment is still growing. And California consumers are struggling," Balber said.

Balber says it's a step in the right direction, having four insurance related bills make it to the Senate Insurance Committee.

"Will they be watered down? Well, we're already seeing some of that today," she said.

Sen. Allen's SB 1301 on insurance non-renewals passed and heads to the Appropriations Committee.

Three other bills that aim to bring transparency to loss estimates, penalize unnecessary delays in paying claims, and ensure access to coverage for consumers who harden their homes are also up for a vote today.

Those bills are being heard as we speak... we'll be following them.

Take a look at more stories and videos by 7 On Your Side.

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