20250AB__007595AMD INTRODUCED 2024-12-16 AMENDED_ASSEMBLY 2025-02-11 AMENDED_ASSEMBLY 2025-04-22 AMENDED_ASSEMBLY 2025-05-23 AMENDED_SENATE 2025-07-01 2025 AB AMD Introduced by Assembly Member Calderon LEAD_AUTHOR ASSEMBLY Calderon

An act to add

Section to the Insurance Code, relating to insurance. insurance Residential property insurance images. Existing law generally regulates classes of insurance, including residential property insurance. Existing law requires an insurer to send various notices to a policyholder at specified intervals. This bill would require an admitted insurer to notify a residential property insurance policyholder that aerial images may be taken or obtained of the insured property, as specified, unless a claim has been submitted or is pending on the property and the images will be used only for evaluating the claim.

The bill would require the insurer to provide the aerial images upon request, as specified, and would require the notice to include instructions regarding how a policyholder may make that request. This bill would prohibit an admitted insurer from basing a decision to terminate insurance coverage, as defined, on an aerial image taken more than days prior to sending notice of that decision to the policyholder, except as specified.

The bill would require an admitted insurer that bases a decision to terminate insurance coverage on an aerial image to provide the policyholder with that aerial image, notice of that decision, and the opportunity to dispute the accuracy of the image, and to verify remediation, before the effective date of the decision to terminate insurance coverage. This bill would make the above-described provisions operative on July 1, 2026. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1.

Section is added to the Insurance Code , to read: 2035. (a) (1) (

A) An admitted insurer shall notify a residential property insurance policyholder if any aerial images may be taken or obtained of the insured property during the policy period by, on behalf of, or in service of the insurer. (

B) The notice pursuant to this subdivision shall be provided at least annually, including with the initial policy issuance and upon each renewal, and shall be on a separate page from any other notice, information, or disclosure. (

C) The notice shall include both of the following: (

i) In at least 14-point bold font, the following: “[INSURER NAME] WILL COLLECT OR OBTAIN AERIAL IMAGES OF THE INSURED PROPERTY FOR USE IN UNDERWRITING DECISIONS. You have the right to request and receive any aerial images taken or obtained of the insured property. If an aerial image is used in a decision to cancel, nonrenew, or reduce coverage for an insurance policy, the aerial image will be included with the notice of that decision.

If the aerial image is used in a decision to cancel, nonrenew, or reduce coverage for an insurance policy, you have the right to request an in-person physical inspection of the property to verify the accuracy, timeliness, and validity of the aerial image.

You have the right to dispute the accuracy of an image used in a decision to cancel, nonrenew, or reduce coverage based on an aerial image prior to the effective date of the decision, and to request an in-person physical inspection to verify remediation, or to otherwise provide evidence of remediation in a manner set forth by [Insurer Name]. [Insurer Name] cannot use aerial images older than days in a decision to cancel, nonrenew, or reduce coverage for an insurance policy unless the reason for the decision has been verified as accurate, persistent, and valid by an in-person physical inspection of the insured property or alternative verification process conducted no more than days prior to sending the notice of that decision.” (ii) Instructions regarding how a policyholder may make a request to receive any aerial images taken or obtained of the insured property, pursuant to subdivision (b). (

D) This subdivision shall not apply if a claim has been submitted or is pending on the property, provided any aerial images taken or obtained of the insured property are used only for the purpose of evaluating the submitted or pending claim. (2) (

A) A notice pursuant to this subdivision shall be mailed via the United States Postal Service to the policyholder’s mailing address of record. (

B) For a policyholder who has agreed to transact business electronically pursuant to the Uniform Electronic Transactions Act (Title 2.5 (commencing with

Section 1633.1) of Part of Division of the Civil Code), the insurer may provide notice to the email address provided by the policyholder. (

b) An admitted insurer shall provide any aerial images taken or obtained of the insured property to the policyholder upon request within days of receiving that request. (

c) An admitted insurer shall not base a decision to terminate insurance coverage in whole or in part on an aerial image taken more than days prior to sending notice of that decision to the policyholder unless the conditions pertaining to the decision to terminate insurance coverage have been verified as accurate, persistent, and valid by an in-person physical inspection of the insured property or alternative verification process conducted no more than days prior to sending the notice of the decision. (

d) If an admitted insurer bases a decision to terminate insurance coverage in whole or in part on an aerial image, that aerial image shall be provided to the policyholder concurrent with the notice of that decision pursuant to

Chapter 11 (commencing with

Section 675) of Part of Division 1. (

e) A policyholder that has been subject to a decision to terminate insurance coverage based in whole or in part on an aerial image may request that the admitted insurer conduct an in-person physical inspection of the property to verify the accuracy, persistence, and validity of the conditions pertaining to the decision to terminate insurance coverage as depicted in the aerial image. The policyholder may, at their sole discretion, use a process made available by the insurer other than an in-person physical inspection to verify the accuracy, persistence, and validity of the conditions pertaining to the decision to terminate coverage. (

f) An admitted insurer that bases a decision to terminate insurance coverage in whole or in part on an aerial image shall provide the policyholder with the opportunity to dispute the accuracy of the image used in the decision to terminate insurance coverage, and to verify remediation, before the effective date of the decision to terminate insurance coverage. The policyholder may verify remediation by in-person physical inspection pursuant to subdivision (

e) or by otherwise providing evidence of remediation in a manner set forth by the admitted insurer. (

g) This

section shall not be construed to authorize aerial imaging that is otherwise prohibited under law. (

h) For purposes of this section: (1) “Termination of insurance coverage” has the same meaning as in

Section 791.02. (2) “Aerial image” means an image or video collected by aircraft or satellite, whether or not that aircraft or satellite is operated with the possibility of direct human intervention. (

i) This

section shall become operative on July 1, 2026.