Insurance.

Senator Allen's proposal to enhance California's insurance market oversight would require large insurers to submit detailed annual reports on their reinsurance practices and catastrophic risk modeling, while extending key consumer protections for wildfire-related claims.

Starting March 2026, insurance groups writing over $50 million in specified property coverage would need to report their reinsurance placement data and use of probabilistic catastrophe models to the Insurance Commissioner. While individual submissions would remain confidential, the Department would publish aggregated findings on market trends. Insurers failing to comply face penalties up to $5,000 per month, increasing to $10,000 monthly for willful violations with a $100,000 maximum.

The legislation also modifies claim requirements during declared emergencies by prohibiting proof of loss deadlines shorter than 180 days and mandating full personal property coverage payments without itemization. Insurers must grant six-month deadline extensions when policyholders face reconstruction delays beyond their control, such as permit issues or contractor unavailability. The measure preserves replacement cost coverage when rebuilding at new locations, preventing deductions for land value differences.

These provisions aim to provide regulators deeper insight into reinsurance strategies and catastrophic risk assessment while expanding consumer flexibility during disaster recovery. The requirements take effect for policies issued or renewed after July 1, 2026.