SB 222

Bill Subjects

Abstract

(1) Existing law gives a person the right of protection from bodily harm and the right to possess and use property. If a person suffers bodily harm or a loss of their property because of the unlawful act or omission of another, existing law authorizes them to recover compensation from the person at fault, which is known as damages. This bill would authorize a person who suffered physical harm to their person or property totaling at least $10,000 to bring a civil action against a party responsible for a climate disaster to recover damages, restitution, specified costs, and other appropriate relief. The bill would make responsible parties jointly, severally, and strictly liable to a plaintiff for damages and restitution. The bill would require an action to be filed within 3 years of the date that the harm was or should have been discovered. (2) Existing law generally regulates the business of insurance in the state. The California FAIR Plan Association is a joint reinsurance association in which all insurers licensed to write basic property insurance participate in administering a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Under existing law, a member insurer participates in the writings, expenses, and profits and losses of the association in proportion to its written premiums, as specified. Existing law authorizes the association, with the Insurance Commissioner's approval, to assess member insurers in amounts sufficient to operate the association. This bill would specify that an insurer has a right of subrogation against a responsible party and would authorize an insurer to seek damages against a responsible party for a climate disaster, pursuant to the above-described provisions. The bill would require the association to exercise its right of subrogation against a responsible party for a climate disaster if the association pays claims and receives a policyholder petition, as specified. The bill would require the association to notify the petitioners of a deficiency in the petition within 30 days of receipt, would authorize the petitioners to respond to a notice in accordance with specified procedures, and would require the association to file a lawsuit within 90 days of a court-ordered or statutory determination of completeness, as prescribed. The bill would require the association to assess member insurers based on each insurer's market share if the claims paid after a climate disaster exhaust the association's claims-paying capacity, but would provide for adjusting an assessment amount if the insurer has or has not filed a subrogation lawsuit in response to a climate change disaster for which the association has also filed a lawsuit against a responsible party. (3) This bill would declare that it is to take effect immediately as an urgency statute.