Introduced by Senator Jackson
January 22, 2018
An act to add Section 530.5 to the Insurance Code, relating to insurance.
legislative counsel’s digest
SB 917, as introduced, Jackson. Insurance policies.
Existing law regulates insurance and the business of insurance in the state. Under existing law, an insurer is liable for a loss of which a peril insured against was the proximate cause, although a peril not contemplated by the contract may have been a remote cause of the loss. Under existing law, an insurer is not liable for a loss of which the peril insured was only the remote cause.
This bill would provide that a policy that does not cover the peril of landslide shall not exclude coverage for any loss or damage attributable to a landslide if the landslide resulting in loss or damage was proximately caused by another covered peril, as provided. The bill would state that it does not constitute a change in, but is declaratory of, existing law.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 530.5 is added to the Insurance Code, to line 2 read:
line 3 530.5. (a) Notwithstanding Section 532, and in the absence line 4 of an endorsement or additional policy provision specifically line 5 covering the peril of landslide, a policy that does not cover the
1 peril of landslide shall not exclude coverage for any loss or damage line
2 attributable to a landslide if the landslide resulting in the loss or line
3 damage was proximately caused by another covered peril. This line
4 subdivision applies regardless of whether the loss or damage line
5 attributable to the landslide directly or indirectly resulted from, or line
6 was contributed to by, concurrently or in any sequence, any other line
7 proximate or remote cause, whether or not that cause was covered line
8 by the policy.
line 9 (b) For purposes of this section, the term “policy” means any line 10 insurance policy of any nature, including, but not limited to, line 11 business and commercial policies providing coverage against loss line 12 due to property damage.
line 13 (c) For purposes of this section, the term “landslide” includes line 14 a landslide, mudslide, or mudflow, or any other similar earth line 15 movement.
line 16 (d) This section shall be liberally construed to effectuate its line 17 purpose.
line 18 SEC. 2. The addition of Section 530.5 to the Insurance Code line 19 by this act does not constitute a change in, but is declaratory of, line 20 existing law.
