California-Specific RulesQuestion 60 of 474
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 canceling a residential property policy solely because the property is in the declared ZIPs, for one year from the declaration
b.Writing any new residential property policy anywhere inside the two declared counties, for the five years following the Governor's emergency proclamation
c.Paying additional living expense benefits to a policyholder who has not yet begun rebuilding, for the first two years following the date of the declared loss
d.Raising the premium on any residential property policy in the declared ZIP codes until the Insurance Commissioner approves a new rate filing under Proposition 103
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)This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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