AB 1554

Existing law establishes the California Earthquake Authority (CEA), administered under the authority of the Insurance Commissioner, to transact insurance in this state as necessary to sell policies of basic residential earthquake insurance. Existing law requires the CEA to annually report to the Legislature and the commissioner on the CEA’s program operations, including the financial condition of the authority, and to post the report on the CEA’s internet website. Existing law requires copies of a certified report examining the CEA’s financial and program operations and verifying the annual report to be made public. This bill would additionally require the CEA to provide the annual report to the Senate Committee on Insurance and the Assembly Committee on Insurance. The bill would specify that the certified examination and verification report be posted on the CEA’s internet website. Existing law requires the commissioner to convene a working group to, among other things, identify, assess, and recommend risk transfer market mechanisms that promote investment and create incentives for investment in natural infrastructure to reduce risks of climate change, as specified. This bill would require the working group to, no later than January 1, 2028, incorporate hazard mitigation projects into the above-described recommendations.