SACRAMENTO –Assemblyman Obernolte (R-Hesperia) has introduced a bill to give homeowners the right to appeal an increase to their homeowner’s insurance premium that is based on a computer-generated fire risk score.
“Fire risk scores help insurers determine if they can cover homes in high-risk fire areas. However, these computer-generated numbers do not always accurately represent a home’s fire safety. Sometimes substantially similar homes right next door to each other have completely different scores,” Assemblyman Obernolte said. “The computer-generated scores are not able to take the whole picture into account as a human review would. This bill allows the homeowner to appeal a premium decision directly to the insurer.”
AB 2611 would establish an appeal process for a homeowner who disagrees with an insurer’s determination made based on a fire risk score and would protect the homeowner from policy cancelation or a rise in premium while the appeal is being processed. Once the appeal is decided, the insurer would be required to provide a notice to the homeowner explaining the underwriting decision.
If the homeowner still disagrees with the decision, they may appeal to the Department of Insurance.
AB 2611 will be heard in the Assembly Insurance Committee next week.
(source: Jay Obernolte news release)