Commissioner Lara advances major consumer protection package to Governor's desk

News: 2026 Press ReleaseFor Release: September 2, 2026Media Calls Only: 916-492-3566Email Inquiries: cdipress@insurance.ca.gov SACRAMENTO, Calif.— Californians could soon benefit from one of the most significant consumer protection packages advanced by the California Department of Insurance in recent years. A package of 10 Commissioner-sponsored bills now awaiting the Governor’s signature would strengthen disaster recovery protections, increase insurance company accountability and transparency, safeguard consumer privacy, and expand access to health care. “Californians deserve an insurance system that works for them before, during, and after life’s most difficult moments. Consumers play by the rules, and insurance companies should too,” saidInsurance Commissioner Ricardo Lara. “These reforms strengthen accountability, speed disaster recovery, protect privacy, and expand access to health care. They reflect years of working with consumers, lawmakers, and the Governor to turn real challenges into lasting protections.” Strengthening disaster recovery SB 876 (Senator Steve Padilla)Disaster Recovery Reform Actand SB 878 (Senator Sasha Renée Pérez)— This comprehensive reform package would help homeowners and renters recover more quickly following disasters. SB 876 would: SB 878 would accelerate claims payments by requiring insurers to pay the actual cash value of a total loss within 30 days, with interest due when payments are delayed. AB 1795 (Assembly Member Mike Gipson)Smoke Damage Recovery Act— Establishes clear guidelines and standards that insurance companies must follow when investigating and settling smoke damage claims involving standing homes after a wildfire. AB 1795 would establish the nation’s first enforceable, science-based standards for inspecting, testing, and restoring smoke-damaged homes and hold insurers accountable for meeting those standards. The bill also would require specialized training and certification for insurance adjusters handling smoke damage claims. The legislation responds directly to concerns raised by wildfire survivors statewide by ensuring families are not forced back into unsafe homes. Insurers would be prohibited from terminating Additional Living Expense (ALE) coverage for properties within a wildfire impact zone until the home has been restored to pre-loss condition and cleared for human occupancy. The Lineage Logistics warehouse fire in Boyle Heights demonstrated that large-scale contamination events are not limited to wildfires and exposed important questions about insurance coverage and consumer protections. AB 1795 would require studies by the Department of Insurance and CalOES to evaluate contamination-related insurance gaps and develop recommendations for the Governor and Legislature. AB 1680 (Assembly Member Lisa Calderon)Make It FAIR Act— The privately run FAIR Plan provides last-resort coverage for Californians. The Make It FAIR Act would strengthen oversight to protect consumers and preserve the FAIR Plan’s financial stability. AB 1680 would require the FAIR Plan’s insurance company-run governing board to implement recommendations issued by the Insurance Commissioner to strengthen operations, improve policyholder claims handling, and enhance financial oversight. Strengthening insurance company accountability and consumer protections SB 354 (Senate President pro Tempore Monique Limón)Insurance Information and Privacy Protection Act— California’s insurance privacy laws are more than 40 years old and have not kept pace with modern industry practices. SB 354 would modernize consumer privacy protections by increasing transparency and accountability regarding how insurers and third parties collect, use, and share personal information. This bill would establish comprehensive privacy standards that Californians increasingly expect in today’s data-driven economy. SB 1209 (Senator Ben Allen)Insurance Examination Compliance and Accountability Act— SB 1209 closes a major gap in existing law by providing the Department of Insurance with stronger enforcement authority when insurers fail to comply with corrective actions identified through financial and market conduct examinations. The bill would establish clear compliance timelines, create a formal order-to-show-cause process, authorize penalties for failure to complete corrective actions, and allow insurers to request additional time when appropriate. SB 1206 (Senate Insurance Committee)Insurance Omnibus Bill— The Department’s annual omnibus bill updates California insurance law by: Expanding Health Care Protections AB 1798 (Assembly Member Lori Wilson)— Genetic testing should lead to better health outcomes, not discrimination. AB 1798 would protect asymptomatic consumers by prohibiting life and disability insurers from using certain genetic test results for underwriting purposes. AB 2011 (Assembly Member Gregg Hart and Senator Scott Wiener)Behavioral Health Parity Protection Act— AB 2011 would codify federal Mental Health P