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Bill

AB 75

Revises provisions governing grants made by the State. (BDR 31-433)

2025 Regular Session

Requires annual notice and access to aerial property images, and limits reliance on old imagery for insurance cancellations or nonrenewals.

(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.)
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Bill Summary · AB 75

AB 75 — Summary (Calderon)

Revises rules for insurers’ use of aerial images of residential property and requires notice and due-process protections for policyholders. (Adds Section 2035 to the Insurance Code.)

Main purpose

Increase transparency and procedural protections when admitted insurers collect or use aerial images (aircraft or satellite imagery/video) of insured residential properties — particularly when those images inform underwriting decisions that cancel, nonrenew, or reduce coverage.

Key provisions

  • Annual notice requirement

    • Admitted insurers must notify residential property policyholders, at least annually (including initial issuance and each renewal), that aerial images may be taken or obtained of the insured property by or for the insurer.
    • The notice must be on a separate page and include a prescribed statement in at least 14‑point bold font explaining rights to request images, to obtain an in‑person inspection if an image is used to cancel/nonrenew/reduce coverage, and that images older than 180 days generally cannot be used for such decisions unless timely verified.
    • The notice must include instructions on how to request any aerial images.

  • Access to images

    • Upon a policyholder’s request, an admitted insurer must provide any aerial images taken or obtained of the insured property within 30 days.

  • Limits on using older images

    • An insurer may not base a termination (cancel, nonrenew, or reduce coverage) wholly or partly on an aerial image taken more than 180 days before the insurer sends the termination notice — unless the condition shown has been verified as accurate, persistent, and valid by an in‑person inspection or an alternative verification conducted no more than 180 days before the notice.

  • Procedural protections when aerial images are relied upon

    • If a termination decision is based (in whole or part) on an aerial image, the insurer must:
    • Provide the aerial image with the notice of that decision;
    • Give the policyholder an opportunity to dispute the image’s accuracy and to verify remediation before the decision’s effective date; and
    • Allow the policyholder to request an in‑person inspection (or use an insurer‑provided alternative verification) to verify accuracy/remediation.

  • Exceptions and limits

    • The annual notice requirement does not apply where a claim has been submitted or is pending and images are used solely to evaluate that claim.
    • The section does not authorize aerial imaging otherwise prohibited by law.

  • Definitions and operative date

    • “Aerial image” = image or video collected by aircraft or satellite (with or without human intervention).
    • “Termination of insurance coverage” is defined by cross‑reference to Section 791.02.
    • Operative date: July 1, 2026.

Who is affected

  • Direct: admitted insurers writing residential property insurance in the state and their policyholders.
  • Indirect: third‑party imagery providers and underwriting units that use remote sensing data.

Procedural / status notes

  • Introduced: December 16, 2024.
  • Operative date (if enacted): July 1, 2026.
  • Provided record indicates committee referrals and amendments. The record attached to this request lists the status as: “Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.” (Consult the official legislative status portal for current posture.)

Potential impacts / considerations

  • Consumer protections: increases notice and access rights, and creates procedural safeguards before coverage termination based on remote imagery.
  • Administrative impact: insurers will need processes to deliver the specified notice, fulfill 30‑day image requests, conduct timely verifications/inspections, and include images with notices — potentially increasing operational cost and time.
  • Underwriting practice: limits use of stale aerial data (older than 180 days) for adverse underwriting actions unless recent verification is completed, which may change reliance on historical imagery for nonrenewals or cancellations.
  • Privacy and legal compliance: the bill preserves existing prohibitions on unlawful aerial imaging but raises intersections with privacy/data use and vendor management for imagery providers.

For authoritative obligations, exceptions, and enforcement details, refer to the full text of the proposed Section 2035 in the Insurance Code.

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

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