Bill
H 3227
Insurers must offer residential earthquake coverage with a clear, bold disclosure; insureds may decline only via a signed waiver.
Note on source documents
- The materials provided contain two different bill texts: (1) a South Carolina draft adding a mandatory offer-of-coverage requirement for earthquake insurance (Section 38‑75‑70), and (2) a Massachusetts House bill (House No. 3227 / HD 3818) relating to taxation of bundled cellular telephone transactions. The title you gave (“Earthquake insurance”) matches the South Carolina text. This summary focuses on the earthquake‑insurance proposal and flags procedural inconsistencies at the end.
Purpose and intent
- Require insurers to offer residential earthquake coverage to every applicant/insured when issuing, delivering, or renewing residential property insurance policies, and to ensure the offer and declination are clear and documented. The intent is to increase consumer awareness of earthquake risk and the availability of insurance options.
Key provisions
- Mandatory offer: No residential property insurance policy may be issued, delivered, or renewed in the state unless the named insured is offered coverage for loss or damage caused by an earthquake. (New Sec. 38‑75‑70(A).)
- How coverage may be provided: Earthquake coverage may be provided within the primary residential policy (by provision or endorsement) or via a separate policy or certificate specifically providing earthquake coverage. (Sec. 38‑75‑70(B).)
- Clear disclosure requirement: The offer must include the following statement in at least 10‑point boldface type: "Your residential property insurance policy does not cover loss or damage caused by an earthquake to your home or its contents." (Sec. 38‑75‑70(C).)
- Declination/wavier: If the insured declines earthquake coverage, the insurer must provide a waiver that the insured signs, explicitly stating they are declining earthquake coverage. (Sec. 38‑75‑70(D).)
- Effective date: The act takes effect upon approval by the Governor.
Who is affected
- Insurers issuing residential property insurance policies in the state (required to offer and document earthquake coverage offers/declinations).
- Named insureds (homeowners, renters with residential property insurance) who must be offered the coverage and be given a written, bold disclosure and a waiver if they decline.
- Insurance regulators (oversight of compliance with offer, disclosure and waiver requirements).
Potential impacts and considerations
- Consumer protection/awareness: Likely to increase awareness of earthquake risk; may increase take‑up of standalone or endorsed earthquake policies.
- Administrative costs for insurers: New processes for offering coverage, presenting required disclosure text, tracking and storing signed waivers, and training agents.
- Rate and availability effects: The bill does not prescribe pricing, subsidies, or rate adjustments. Premiums for earthquake coverage would continue to be determined under existing insurance rate/filing rules and market conditions.
- No express mandate to include earthquake coverage by default — only to offer it; insureds retain ability to decline (with signed waiver).
- Regulatory enforcement: Implementation and oversight will depend on state insurance regulators’ rules/guidance.
Procedural status and discrepancies in source material
- The South Carolina earthquake text is dated 12/05/2024 and shows the bill as an addition to S.C. Code Title 38, Chapter 75 (Section 38‑75‑70). It states the act takes effect on the Governor’s approval.
- The metadata you provided lists Bill H 3227 (introduced 2/27/2025; referred to Committee on Labor, Commerce and Industry), hearings in Oct 2025, and references to HD 3818. Those procedural entries align with a Massachusetts House docket and the separate Massachusetts text on bundled cellular transactions included in the provided materials.
- Recommendation: Confirm the intended jurisdiction and bill number (South Carolina vs. Massachusetts) and supply the primary bill text you want summarized if you need a summary specific to the Massachusetts bundled‑cellular taxation proposal.
Compiled from official sources — confirm details with the bill’s official record.
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