AB 2167 (along with companion measure SB 292) has received a great deal of criticism from both consumer advocacy groups, and the current Insurance Commissioner’s office of California, with the Deputy Commissioner, Bryant Hendly, going so far as to say "We view this really as an industry wish list". With public attention focused elsewhere, there are many who see this move as an extremely underhanded tactic by the insurance industry. The bill is formally opposed by Consumer Watchdog, Consumer Federation, and Insurance Commissioner Ricardo Lara, who have stated that its passing will negatively impact consumers.

The main stated purpose of the bill is to create what is being called the “Insurance Market Action Plan (IMAP)” that allows for insurers to propose residential insurance policies in targeted areas where the highest numbers of homeowners are insured through the states FAIR Plan policies due to their estimated insurance rates expected to be higher than what is allowed under current parameters of the state. The majority of locations in question are in areas of California that have been identified to be most at risk of wildfires – which recently had a devastating effect on California’s insurance industry between 2017 and 2018.

After passing through the Insurance Committee on a 14-0 vote, the bill then went on to pass the Appropriations Committee by a 17-0 vote, as well as passing the full State Assembly on a 61-3 vote on June 8th. The final verdict will be up the State Senate on whether or not this measure is formally adopted.

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Original story published to Latimes on June 19th, 2020 by Michael Hiltzik