The Committee on Labor, Commerce and Industry proposes the following amendment (LC-3227.PH0003H):
Amend the bill, as and if amended, SECTION 1, by striking Section 38-75-70 and inserting:
Section 38-75-70. (A) No policy for residential property insurance may be issued, delivered, or renewed in this State unless the named insured is offered coverage for loss or damage caused by an earthquake.(B) Insurance coverage for loss or damage caused by an earthquake may be provided in the policy of residential property insurance itself, either by specific policy provision or endorsement, or in a separate policy or certificate of insurance which specifically provides coverage for loss or damage caused by an earthquake.
(C) The offer of insurance coverage for loss or damage caused by an earthquake must contain all of the following language in at least ten point boldface type: "Your residential property insurance policy does not cover loss or damage caused by an earthquake to your home or its contents."
(D) If an insured elects to decline coverage, the insured must sign a waiver, provided by the insurer, which expressly states that the insured is declining coverage for loss or damage caused by an earthquake.If an insurer issues a policy or contract of insurance covering residential property in this State that does not provide coverage for a loss as a result of an earthquake, this must be communicated to the insured at the time of policy issuance and each subsequent renewal. The communication must be in at least ten point boldface type and contain the following language, or something similar: "This residential property insurance policy does not provide coverage for losses as a result of an earthquake. Please contact your insurance agent or insurance carrier to inquire about options to cover a loss resulting from an earthquake."
Amend the bill further, SECTION 2, by striking Section and inserting:
SECTION 2. This act takes effect upon approval by the Governoron January 1, 2027.Renumber sections to conform.
Amend title to conform.