California-Specific RulesQuestion 60 of 158
A wildfire prompts the Governor to declare a state of emergency in two counties. Insurance Code §675.1 then bars a property insurer from doing what, and for how long?
a.Non-renewing or cancelling a residential property policy solely because the property is in the declared ZIPs, for one year from the declaration
b.Raising the rate on any policy in the affected counties, indefinitely
c.Selling new policies in the affected counties for five years
d.Paying claims to insureds who have not yet rebuilt, for two years
Explanation
Senate Bill 824, codified at §675.1, imposes a one-year moratorium on non-renewal or cancellation of residential property policies solely because the property is located in a ZIP code within or adjacent to the wildfire emergency area. The statute does not freeze rates, does not bar new sales, and does not delay paying claims; it only blocks location-based non-renewal.
Law Reference: Cal. Ins. Code §675.1 (SB 824, 2018)Practice all 158 questions free — no signup required.
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