Amended  IN  Assembly  April 11, 2019
Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 1602

Introduced by Assembly Member Low

February 22, 2019

An act to add Chapter 4 (commencing with Section 12130) to Part 4 of Division 2 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 1602, as amended, Low. Use of firearm insurance.
Existing law requires the Department of Insurance, headed by the Insurance Commissioner, to regulate specific classes of insurance, including liability, burglary, and legal insurance. Existing law prohibits an insurer from transacting any class of insurance that is not authorized by its charter.
This bill would, on and after January 1, 2020, prohibit an insurer from issuing or renewing a policy of insurance for insurance policy from covering a loss related to the use of a firearm, except for a policy that insures against liability for loss of of, or damage to to, property related to the use of a firearm or firearm. The bill would exclude a homeowners’ insurance policy or a commercial insurance policy from that prohibition, if specified criteria are met. The bill would authorize an insurer to issue or renew a commercial policy that insures a licensed firearms dealer against liability for, among other things, injury to or death of a person as a result of the theft, sale, lease, or transfer of a firearm or ammunition.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 4 (commencing with Section 12130) is added to Part 4 of Division 2 of the Insurance Code, to read:
CHAPTER  4. Firearm Insurance

12130.
 (a) Notwithstanding any other law, on and A policy of insurance issued or renewed on or after January 1, 2020, an insurer shall not issue or renew a policy of insurance for shall not cover a loss related to the use of a firearm, including, but not limited to, personal liability and legal fees. except for loss of, or damage to, property.

(b)(1)Notwithstanding subdivision (a), an insurer may issue or renew a policy of insurance that insures against liability for loss of or damage to property related to the use of a firearm.

(b) (1) Subdivision (a) does not apply to a homeowners’ insurance policy that covers the risks described in subdivision (a) of Section 675, a commercial insurance policy that covers the risks described in subdivision (b) of Section 675.5, or an umbrella liability, excess liability, or excess property insurance policy described in subdivision (b) of Section 676.6.
(2)  Notwithstanding subdivision (a), an insurer may issue or renew a policy of commercial insurance for a licensed firearms dealer that insures against liability for loss of or damage to property and for injury to or death of a person as a result of the theft, sale, lease, or transfer or offering for sale, lease, or transfer of a firearm or ammunition, or any other operations of the business and business premises.