10101-10107

INSURANCE CODE
SECTION 10101-10107




10101.  On and after July 1, 1993, no policy of residential property
insurance may be first issued or, with respect to policies already
in effect on January 1, 1994, initially renewed in this state by any
insurer unless the named insured is provided a copy of the California
Residential Property Insurance disclosure statement as contained in
Section 10102.



10102.  (a) The disclosure required by Section 10101 shall be in no
less than 10-point typeface and shall be provided prior to or
concurrent with, the application for a policy of residential property
insurance. In the event that an application is made by telephone, an
insurer that mails a copy of the disclosure within three business
days shall be in compliance with this section. For policies issued on
or after July 1, 1993, the agent or insurer shall obtain the
applicant's signature acknowledging receipt of the disclosure form
within 60 days of the date of the application. When the insurer or
agent establishes delivery of the disclosure form by obtaining the
signature of the applicant or insured, or when an insurer or agent
provides the applicant with the disclosure form and the applicant
does not return a signed acknowledgment of receipt within 60 days of
the date it was provided, there shall be a conclusive presumption
that the insurer or agent has complied with the disclosure
requirement of this chapter. The insurer or agent shall have the
burden of demonstrating in accordance with California Rules of
Evidence that the disclosure was provided to the applicant or
insured. A signature shall not be required at the time of renewal.
   If the disclosure is mailed to the named insured or applicant, it
shall be mailed to the mailing address shown on the policy of
residential property insurance or to the address requested by the
applicant. First-class mail shall be deemed adequate for proof of
mailing. The insurer shall have the burden of demonstrating in
accordance with California Rules of Evidence that the disclosure was
mailed to the applicant or insured.
   The disclosure shall contain the following language:

               CALIFORNIA RESIDENTIAL PROPERTY INSURANCE DISCLOSURE
   This disclosure is required by California law (Section 10102 of
the Insurance Code). It describes the principal forms of insurance
coverage in California for residential dwellings. It also identifies
the form of dwelling coverage you have purchased or selected.
   This disclosure form contains only a general description of
coverages and is not part of your residential property insurance
policy. Only the specific provisions of your policy will determine
whether a particular loss is covered and, if so, the amount payable.
Regardless of which type of coverage you purchase, your policy may
exclude or limit certain risks.
   READ YOUR POLICY CAREFULLY. If you do not understand any part of
it or have questions about what it covers, contact your insurance
agent or company. You may also call the California Department of
Insurance consumer information line at: 1-800-927-4357.
   The cost to rebuild your home may be very different from the
market value of your home since reconstruction is based primarily on
the cost of labor and materials. Many factors can affect the cost to
rebuild your home, including the size of your home, the type of
construction, and any unique features. Please review the following
coverages carefully. If you have questions regarding the level of
coverage in your policy, please contact your insurance agent or
company. Additional coverage may be available for an additional
premium.

* * * * * * * * * * * * * * * * * * * * * * * * * *

NOTICE OF INCOMPLETE TEXT: The Residential Dwellings Coverage
disclosure form appears in the hard-copy publication of the
chaptered bill. See Sec. 1 of Chapter 589, Statutes of 2010.

* * * * * * * * * * * * * * * * * * * * * * * * * *PRINTER PLEASE
NOTE: TIP-IN MATERIAL TO BE INSERTED
   (b) The agent or insurer shall indicate on the disclosure form
which category of coverage the applicant or insured has selected or
purchased.
   (c) The disclosure statement may contain additional provisions not
in conflict with or in derogation of the foregoing.
   (d) Following the issuance of the policy of residential property
insurance, the insurer shall provide the disclosure statement to the
insured on an every-other-year basis at the time of renewal. The
disclosure required by this section may be transmitted with the
material required by Section 10086.1.
   (e) No policy of residential property insurance may be initially
issued on and after January 1, 1993, as guaranteed replacement cost
coverage if it contains any maximum limitation of coverage based on
any set dollar limits, percentage amounts, construction cost limits,
indexing, or any other preset maximum limitation for covered damage
to the insured dwelling. The limitations referred to in this section
are solely applicable to dwelling structure coverages. Endorsements
covering additional risks to the insurer's dwelling structure
coverage may have internal limits as long as those endorsements are
not called guaranteed replacement cost coverage.
   (f) On and after July 1, 1993, no policy of residential property
insurance may be renewed as guaranteed replacement cost coverage if
it contains any maximum limitation of coverage based on any set
dollar limits, percentage amounts, construction cost limits,
indexing, or any other preset maximum limitation for covered damage
to the insured dwelling. The limitations referred to in this section
are solely applicable to dwelling structure coverages. Endorsements
covering additional risks to the insurer's dwelling structure
coverage may have internal limits as long as those endorsements are
not called guaranteed replacement cost coverage.
   (g) Coverage provided for building code upgrades by a policy of
residential property insurance shall be applicable to building codes,
ordinances, standards, or laws only to the extent that those codes,
ordinances, standards, or laws do not impose stricter standards on
the property on the basis of the level of insurance coverage
applicable to the property.
   (h) The disclosure required by Section 10101 shall also be
provided to the mortgagor in the event that a policy is forced placed
by an insurer at the request of a mortgagee. In such cases, neither
the insurer nor the mortgagee shall be required to obtain a signature
from the mortgagor. No disclosure shall be required to be provided
with respect to blanket policies issued to a mortgagee, and designed
to provide interim coverage for losses occurring prior to the
mortgagee obtaining knowledge of the lapse of the policy and prior to
placement of a policy on behalf of the mortgagor.
   (i) On and after July 1, 1994, insurers shall add to the
disclosure, in no less than 10-point type the following statement:

   This disclosure form does not explain the types of contents
coverage (furniture, clothing, etc.) provided by your policy. Some
policies do not replace contents with new items, but instead, only
pay for the current market value of an item. If you have any
questions, contact your insurer or agent.

   (j) No later than December 1, 2005, the commissioner shall report
to the Governor and the Legislature on the status of the issues
regarding residential property insurance and the effectiveness of the
California Residential Property Insurance Disclosure.
   (k) This section shall remain in effect only until July 1, 2011,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2011, deletes or extends that date.




10102.  (a) The disclosure required by Section 10101 shall be in no
less than 10-point typeface and shall be provided prior to or
concurrent with, the application for a policy of residential property
insurance. In the event that an application is made by telephone, an
insurer that mails a copy of the disclosure within three business
days shall be in compliance with this section. For policies issued on
or after July 1, 1993, the agent or insurer shall obtain the
applicant's signature acknowledging receipt of the disclosure form
within 60 days of the date of the application. When the insurer or
agent establishes delivery of the disclosure form by obtaining the
signature of the applicant or insured, or when an insurer or agent
provides the applicant with the disclosure form and the applicant
does not return a signed acknowledgment of receipt within 60 days of
the date it was provided, there shall be a conclusive presumption
that the insurer or agent has complied with the disclosure
requirement of this chapter. The insurer or agent shall have the
burden of demonstrating in accordance with California Rules of
Evidence that the disclosure was provided to the applicant or
insured. A signature shall not be required at the time of renewal.
   If the disclosure is mailed to the named insured or applicant, it
shall be mailed to the mailing address shown on the policy of
residential property insurance or to the address requested by the
applicant. First-class mail shall be deemed adequate for proof of
mailing. The insurer shall have the burden of demonstrating in
accordance with California Rules of Evidence that the disclosure was
mailed to the applicant or insured.
   The disclosure shall contain the following language:


* * * * * * * * * * * * * * * * * * * * * * * * * *

NOTICE OF INCOMPLETE TEXT: The Residential Dwellings Coverage
disclosure form appears in the hard-copy publication of the
chaptered bill. See Sec. 2 of Chapter 589, Statutes of 2010.

* * * * * * * * * * * * * * * * * * * * * * * * * *PRINTER PLEASE
NOTE: TIP-IN MATERIAL TO BE INSERTED
   (b) The agent or insurer shall indicate on the disclosure form
which coverages the applicant or insured has selected or purchased.
   (c) The disclosure statement may contain additional provisions not
conflicting with, annulling, or detracting from the foregoing.
   (d) Following the issuance of the policy of residential property
insurance, the insurer shall provide the disclosure statement to the
insured on an every-other-year basis at the time of renewal. The
disclosure required by this section may be transmitted with the
material required by Section 10086.1.
   (e) No policy of residential property insurance may be initially
issued on and after January 1, 1993, as guaranteed replacement cost
coverage if it contains any maximum limitation of coverage based on
any set dollar limits, percentage amounts, construction cost limits,
indexing, or any other preset maximum limitation for covered damage
to the insured dwelling. The limitations referred to in this section
are solely applicable to dwelling structure coverages. Endorsements
covering additional risks to the insurer's dwelling structure
coverage may have internal limits as long as those endorsements are
not called guaranteed replacement cost coverage.
   (f) On and after July 1, 1993, no policy of residential property
insurance may be renewed as guaranteed replacement cost coverage if
it contains any maximum limitation of coverage based on any set
dollar limits, percentage amounts, construction cost limits,
indexing, or any other preset maximum limitation for covered damage
to the insured dwelling. The limitations referred to in this section
are solely applicable to dwelling structure coverages. Endorsements
covering additional risks to the insurer's dwelling structure
coverage may have internal limits as long as those endorsements are
not called guaranteed replacement cost coverage.
   (g) Coverage provided for building code upgrades by a policy of
residential property insurance shall be applicable to building codes,
ordinances, standards, or laws only to the extent that those codes,
ordinances, standards, or laws do not impose stricter standards on
the property on the basis of the level of insurance coverage
applicable to the property.
   (h) The disclosure required by Section 10101 shall also be
provided to the mortgagor in the event that a policy is forced placed
by an insurer at the request of a mortgagee. In those cases, neither
the insurer nor the mortgagee shall be required to obtain a
signature from the mortgagor. No disclosure shall be required to be
provided with respect to blanket policies issued to a mortgagee, and
designed to provide interim coverage for losses occurring prior to
the mortgagee obtaining knowledge of the lapse of the policy and
prior to placement of a policy on behalf of the mortgagor.
   (i) This section shall become operative on July 1, 2011.




10103.  (a) No policy of residential property insurance may be
issued or renewed in this state unless it provides the following
information on the declarations page of the policy:
   (1) The limits of liability for the structure.
   (2) The following statement regarding the valuation of the
structure:
   "The limit of liability for this structure (Coverage A) is based
on an estimate of the cost to rebuild your home, including an
approximate cost for labor and materials in your area, and specific
information that you have provided about your home."
   (3) Limits of liability for personal property.
   (4) Deductibles.
   (5) Whether the policy provides coverage for the increased costs
of repairing or replacing damage to the insured dwelling caused by a
covered loss because of building ordinances or laws regulating the
repair. In the event that no coverage is provided for repairs that
result from new building ordinances or laws, the insurer shall
include in no less than 10-point typeface the following statement:
"THIS POLICY DOES NOT INCLUDE BUILDING CODE UPGRADE COVERAGE."
   (b) In the event that the policy does include code upgrade
coverage, it shall either:
   (1) State this on the declaration page, and denote any applicable
limits.
   (2) State this on a separate disclosure form attached to the
declarations page, if the separate disclosure form meets the
following standards:
   (A) It is printed in not less than 10-point typeface.
   (B) It denotes any applicable limits on the amount of coverage.
   (C) It denotes restrictions, if any, on coverage for compliance
with applicable building codes which take effect after the date of
loss but prior to the issuance of required building permits.
   (c) The provisions of paragraphs (1) and (2) of subdivision (a)
are not required for policies purchased by tenants or unit owners
that do not cover the structure of the premises.



10103.5.  (a) Every California Residential Property Insurance
Disclosure shall be accompanied by a California Residential Property
Insurance Bill of Rights. If the insurer provides the insured with an
electronic copy of a policy, the bill of rights may also be
transmitted electronically.
   (b) The California Residential Property Insurance Bill of Rights
shall be plainly printed in no less than 10-point type. The bill of
rights shall contain the following:
             "California Residential Property Insurance Bill of
Rights
   The largest single investment most consumers make is their home
and related property. In order to best protect these assets, it is
wise for consumers to understand the homeowner's insurance market.
Consumers should consider the following:
    Read your policy carefully and understand the coverage and limits
provided. Homeowner's insurance policies contain sublimits for
various coverages such as personal property, debris removal,
additional living expense, detached fences, garages, etc.
    Keep accurate records of renovations and improvements to the
structure of your home, as it could affect your need to increase your
coverage.
    Maintaining a list of all personal property, pictures, and video
equipment may help in the case of a loss. The list should be stored
away from your home.
    Comparison shop for insurance, as not all policies are the same
and coverage and prices vary.
    Take time to determine the cost to rebuild or replace your
property in today's market. You can seek an independent evaluation of
this cost.
    You may select a licensed contractor or vendor to repair,
replace, or rebuild damaged property covered by the insurance policy.
    An agent or insurance company may help you establish policy
limits that are adequate to rebuild your home.
    Once the policy is in force, contact your agent or insurance
company immediately if you believe your policy limits may be
inadequate.
   A consumer is entitled to receive information regarding homeowner'
s insurance. The following is a limited overview of information that
your insurance company can provide:
    The California Residential Property Insurance Disclosure.
    An explanation of how your policy limits were established.
    The insurance company's customer service telephone number for
underwriting, rating, and claims inquiries.
    An explanation for any cancellation or nonrenewal of your policy.
    A copy of your policy.
    The toll-free telephone number and Internet address for reporting
complaints and concerns about homeowner's insurance issues to the
department's consumer services unit.
    In the event of a claim, an itemized, written scope of loss
report prepared by the insurer or its adjuster within a reasonable
time period.
    In the event of a claim, notification of a consumer's rights with
respect to the appraisal process for resolving claims disputes.
    In the event of a claim, a copy of the Unfair Practices Act and a
copy of the Fair Claims Practices Regulations.
   The information provided herein is not all inclusive and does not
negate or preempt existing California law. If you have any concerns
or questions, the officers at our Consumer Hotline are there to help
you. Please call them at 1-800-927-HELP (4357) or contact us at
www.insurance.ca.gov."

   (c) (1) The bill of rights shall be distributed by all insurers
licensed to sell residential property insurance in this state.
   (2) (A) If the insurer under a personal lines residential property
insurance policy reports claims history or loss experience of
insureds under those policies to an insurance-support organization,
the insurer shall include the following disclosure in the California
Residential Property Insurance Bill of Rights:

   "This insurer reports claim information to one or more claims
information databases. The claim information is used to furnish loss
history reports to insurers. If you are interested in obtaining a
report from a claims information database, you may do so by
contacting:
   (Insert the name, toll-free telephone number, and, if applicable,
Internet Web site address of each claims information database to
which the insurer reports the information covered by this section)"

   (B) This paragraph shall become operative on July 1, 2006.
   (d) This section shall remain in effect only until July 1, 2011,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2011, deletes or extends that date.




10103.5.  (a) Every California Residential Property Insurance
Disclosure shall be accompanied by a California Residential Property
Insurance Bill of Rights. If the insurer provides the insured with an
electronic copy of a policy, the bill of rights may also be
transmitted electronically.
   (b) The California Residential Property Insurance Bill of Rights
shall be plainly prepared in no less than 10-point type. The Bill of
Rights shall contain the following:

  "California Residential Property Insurance Bill
  of Rights
  A consumer is entitled to receive information
  regarding homeowner's insurance. The following
  is a limited overview of information that your
  insurance company can provide:
  ^ The insurance company's customer service
  telephone number for
  underwriting, rating, and claims inquiries.
  ^ A written explanation for any cancellation or
  nonrenewal of your policy.
  ^ A copy of the insurance policy.
  ^ An explanation of how your policy limits were
  established.
  ^ In the event of a claim, an itemized, written
  scope of loss report prepared
  by the insurer or its adjuster within a
  reasonable time period.
  ^ In the event of a claim, a copy of the Unfair
  Practices Act and, if requested,
  a copy of the Fair Claims Settlement Practices
  Regulations.
  ^ In the event of a claim, notification of a
  consumer's rights with respect     to
  the appraisal process for resolving claims
  disputes.
  ^ An offer of coverage and premium quote for
  earthquake coverage, if eligible.
  A consumer is also entitled to select a
  licensed contractor or vendor to repair,
  replace, or rebuild damaged property covered by
  the insurance policy.
  The information provided herein is not all
  inclusive and does not negate or preempt
  existing California law. If you have any
  concerns or questions, contact your agent,
  broker, insurance company, or the California
  Department of Insurance consumer information
  line at (800) 927-HELP (4357) or at
  www.insurance.ca.gov for free insurance
  assistance."

   (c) (1) The bill of rights shall be distributed by all insurers
licensed to sell residential property insurance in this state.
   (2) If the insurer under a personal lines residential property
insurance policy reports claims history or loss experience of
insureds under those policies to an insurance-support organization,
the insurer shall include the following disclosure in the California
Residential Property Insurance Bill of Rights:

   "This insurer reports claim information to one or more claims
information databases. The claim information is used to furnish loss
history reports to insurers. If you are interested in obtaining a
report from a claims information database, you may do so by
contacting:
   (Insert the name, toll-free telephone number, and, if applicable,
Internet Web site address of each claims information database to
which the insurer reports the information covered by this section)"

   (d) This section shall become operative on July 1, 2011.



10104.  (a) As used in this chapter, "policy of residential property
insurance" shall have the same meaning as defined in Section 10087,
except that it shall not include a tenant's policy, a policy covering
individually owned mobilehomes and their contents, a renter's
policy, or a policy insuring individually owned condominium units,
when those policies do not provide dwelling structure coverage. If a
policy insuring an individually owned condominium does provide
dwelling structure coverage, an insurer is required to provide the
disclosure required in this chapter.
   (b) As used in this chapter, "insurer" shall have the same meaning
as defined in Section 10091.



10105.  Nothing in this chapter is intended to expand, contract,
modify, or otherwise affect the coverage provided under any policy of
residential property insurance issued and in effect prior to July 1,
1993. The provisions of this chapter shall apply to those policies
upon the first renewal of those policies following January 1, 1994.




10106.  The Insurance Commissioner may modify a disclosure statement
as contained in Section 10102, 10103, or 10103.5 only upon request
of an insurer. The modification shall only be for the purpose of
adding new or clarifying existing language describing any form of
dwelling coverage offered by an insurer. The commissioner's authority
to modify the disclosure statement shall be limited solely to
determining the clarity and accuracy of the information provided in
the disclosure to ensure that the disclosure accurately reflects a
new or existing product. It is the intent of the Legislature that the
disclosure form be kept as brief as clarity and accuracy permit. Any
modification to the disclosure statement shall be approved in
writing by the commissioner.



10107.  Except as provided in subdivisions (e) and (i) of Section
10102, this chapter shall apply to all policies newly issued on or
after July 1, 1993, and to all policies renewed after January 1,
1994.