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Bill

SB 1136

RELATING TO INSURANCE.

2025 Regular Session Introduced by Stanley Chang and 3 co-sponsors

SB 1136 enhances homeowners insurance by improving coverage for disaster displacement, updating risk assessments, and ensuring fairer rates amid rising wildfire threats.

Carried over to 2026 Regular Session.
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Bill Summary · SB 1136

Summary of Bill SB 1136: Relating to Insurance

Bill Number: SB 1136
Introduced On: January 17, 2025
Current Status: Deferred by the committee on CPN
Classification: Legislative Bill
Subject Areas:
- Additional Living Expenses Coverage
- Catastrophe Modeling
- Homeowners Insurance
- Insurance Regulations
- Over-Insurance
- Past Loss Experience
- Policies
- Ratemaking
- Replacement Cost Value
- State of Emergency
- Wildfire Risk

Purpose and Intent

Bill SB 1136 aims to address various aspects of homeowners insurance, particularly in the context of natural disasters such as wildfires. The bill seeks to enhance coverage options for policyholders, improve the accuracy of catastrophe modeling, and ensure that insurance rates reflect the true risk associated with different geographic areas.

Key Provisions

While the specific text of the bill is not provided, the following key provisions can be inferred based on the subject areas:

  • Additional Living Expenses Coverage: The bill may propose enhancements to coverage for policyholders who are displaced from their homes due to catastrophic events, ensuring they have adequate financial support during recovery.

  • Catastrophe Modeling: The legislation could mandate the use of updated catastrophe modeling techniques to better assess risks and set insurance rates, particularly in areas prone to wildfires.

  • Homeowners Insurance Regulations: The bill may introduce new regulations aimed at preventing over-insurance, ensuring that homeowners are not paying excessively for coverage that exceeds the actual replacement cost of their property.

  • Ratemaking Adjustments: Changes to how insurance rates are calculated could be implemented, taking into account past loss experiences and current wildfire risks to create fairer pricing structures.

  • State of Emergency Provisions: The bill may outline specific provisions for insurance companies to follow during declared states of emergency, ensuring timely claims processing and support for affected homeowners.

Affected Parties

The primary stakeholders affected by this bill include:

  • Homeowners: Individuals and families who hold homeowners insurance policies will benefit from improved coverage options and potentially fairer rates.

  • Insurance Companies: Insurers may need to adjust their policies and pricing structures in response to the new regulations and requirements set forth by the bill.

  • State Agencies: Regulatory bodies overseeing insurance practices will be involved in implementing and enforcing the new provisions.

Procedural Timeline

  • January 17, 2025: Bill introduced.
  • January 21, 2025: Passed First Reading.
  • January 23, 2025: Referred to committees on CPN/PSM, WAM/JDC.
  • January 31, 2025: Public hearing scheduled for February 5, 2025, at 9:30 AM in Conference Room 229 & via videoconference.
  • February 5, 2025: Deferred by the committees on PSM and CPN.

Conclusion

SB 1136 represents a significant effort to reform homeowners insurance in the context of increasing wildfire risks and other natural disasters. By focusing on coverage adequacy, fair pricing, and improved risk assessment, the bill aims to provide better protection for homeowners while ensuring the sustainability of the insurance market. Further discussions and hearings will determine the bill's future and potential amendments.

Compiled from official sources — confirm details with the bill’s official record.

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