AB 1552

  • California Assembly Bill
  • 2019-2020 Regular Session
  • Introduced in Assembly Feb 22, 2019
  • Passed Assembly Jan 27, 2020
  • Senate
  • Governor

Commercial insurance: business interruption: coverage for COVID-19.

Abstract

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law authorizes the issuance of commercial insurance, which may cover, among other things, business interruption. Other existing law, the California Emergency Services Act, authorizes the Governor to declare a state of emergency during conditions of disaster or extreme peril to persons or property, including epidemics. Pursuant to this authority, on March 4, 2020, the Governor declared a state of emergency relating to the coronavirus 2019 (COVID-19) pandemic. This bill, with respect to a policy of commercial insurance that provides coverage for business interruption, would create specified rebuttable presumptions affecting the burden of proof in a case in which the insured alleges that the business interruption was due to the COVID-19 pandemic and occurred during the period of the state of emergency declared by the Governor due to the COVID-19 pandemic. Specifically, the bill would create certain rebuttable presumptions that COVID-19 was present on specified property and caused physical damage to that property which was the direct cause of the business interruption. Among other things, the bill would provide that with respect to coverage for business interruption due to an order of civil authority, a rebuttable presumption applies that COVID-19 was present on property located within the geographical location covered by the order of civil authority and caused physical damage to that property which was the direct cause of the insured's business. The bill would define "civil authority" for these purposes to include any federal, state, or local government, or the governing body or duly constituted agencies of any federally recognized Indian tribe, and their instrumentalities, divisions, political subdivisions, enterprise boards, and business entities. The bill would prohibit COVID-19 from being construed as a pollutant or contaminant for purposes of any exclusion within a commercial insurance policy unless viruses are expressly included in that exclusion policy language. The bill would provide that it applies retroactively to all commercial insurance policies that provide coverage for business interruption that were in full force and effect on and after March 4, 2020. This bill would declare that it is to take effect immediately as an urgency statute.

Bill Sponsors (2)

Votes


Actions


Jul 02, 2020

Senate

Re-referred to Com. on INS.

  • Referral-Committee
Com. on INS.

Jun 30, 2020

Senate

Re-referred to Com. on RLS.

  • Referral-Committee
Com. on RLS.

Senate

Withdrawn from committee.

Jun 29, 2020

Senate

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED.

  • Amendment-Introduction
  • Reading-1
  • Amendment-Passage
  • Referral-Committee
  • Reading-2
Com. on ED.

Jun 23, 2020

Senate

Referred to Com. on ED.

  • Referral-Committee
Com. on ED.

Jan 28, 2020

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

Jan 27, 2020

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 3898.)

Jan 23, 2020

Assembly

Coauthors revised.

Assembly

In committee: Set, first hearing. Referred to APPR. suspense file.

  • Referral-Committee
APPR. suspense file. APPR

Assembly

From committee: Do pass. (Ayes 18. Noes 0.) (January 23).

Assembly

Read second time. Ordered to third reading.

Jan 15, 2020

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (January 15). Re-referred to Com. on APPR.

  • Referral-Committee
  • Committee-Passage
  • Committee-Passage-Favorable
Com. on APPR.

Jan 07, 2020

Assembly

Re-referred to Com. on ED.

  • Referral-Committee
Com. on ED.

Jan 06, 2020

Assembly

From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.

Apr 10, 2019

Assembly

In committee: Hearing postponed by committee.

Mar 14, 2019

Assembly

Referred to Com. on ED.

  • Referral-Committee
Com. on ED.

Feb 25, 2019

Assembly

Read first time.

Feb 23, 2019

Assembly

From printer. May be heard in committee March 25.

Feb 22, 2019

Assembly

Introduced. To print.

Bill Text

Bill Text Versions Format
AB1552 HTML
02/22/19 - Introduced PDF
01/06/20 - Amended Assembly PDF
06/29/20 - Amended Senate PDF

Related Documents

Document Format
No related documents.

Sources

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