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SB 1212, previously a bill dealing with life settlements, was amended this past week into a new legislative proposal for e-renewals of automobile and homeowners insurance.
The Personal Insurance Federation of California (PIF) is sponsoring the measure, which would simply authorize insurers to offer to renew motor vehicle and property-casualty policies electronically should a consumer choose to opt-in to receiving e-renewals.
PIF argues the bill is needed because policyholders are demanding that insurers move toward "paperless" transactions, and frequently react negatively when the insurer responds that it is not authorized by law to provide certain documents or notices in an electronic format. This bill identifies two categories where the insurer's action is in the policyholders' favor - offers to renew certain policies - and empowers policyholders to mutually agree with their insurer that the statutory requirements may be satisfied via electronic communication. According to proponents, the documents authorized for electronic transmission by this bill are less sensitive than many documents already eligible for delivery electronically.
SB 1212 was heard and passed by the Assembly Insurance Committee this past Wednesday. It will now advance to the Assembly Floor. To view the entire text of SB 1212, please click here.