Senator Sasha Renée Pérez (File Photo – SashaReneePerezOfficial)
Senator Sasha Renée Pérez joined fire survivors this week to announce the advancement of two major bills designed to increase transparency and accountability within California’s insurance industry.
By News Desk
The legislation, prompted by widespread concerns following the Eaton and Palisades fires, seeks to ensure that policyholders receive timely and fair treatment during the recovery process.
Senator Pérez said the bills represent a critical step forward for communities still struggling to rebuild. “Together, these bills will make a real difference for Californians who have faced incredible hardships from the devastating Eaton and Palisades fires,” she said. “The insurance industry must uphold their commitment to policyholders and be better partners in the region’s recovery.”
Two Bills Advance With Committee Approval
Both measures passed Wednesday in the Senate Insurance Committee:
- SB 877 — Fair Claims Practices and Transparency Act Passed with bipartisan support, this bill would require insurers to disclose all loss estimate documents and revisions to policyholders. It also mandates clear written explanations for any reductions in estimated losses and identification of who made those changes.
- SB 878 — Insurance Payment Accountability Act This bill would impose interest penalties on insurers for unjustified delays in claim payments. It also requires timely explanations of disputed items, mandates payment of undisputed claim amounts, and strengthens oversight to prevent prolonged or unresolved claims.
Senator Pérez emphasized that too many survivors have faced unnecessary obstacles. “Every fire survivor deserves to be made whole and must not face unreasonable delays and unfair treatment,” she said.
Support From Survivor and Consumer Advocacy Groups
The legislation is co-sponsored by Every Fire Survivor’s Network—formerly the Eaton Fire Survivors Network—and Consumer Watchdog. Joy Chen, Executive Director of Every Fire Survivor’s Network, said the bills reflect the experiences of more than 1,300 survivors who reported insurer misconduct.
“She turned those stories into legislation that cracks down on delays and underpayments and makes insurance available again,” Chen said. “Every Californian will be safer because of these bills.”
Third Bill Fails by One Vote
A related proposal, SB 1076 — Insurance Coverage for Fire-Safe Homes Act, fell short in committee by a single vote. The bill would have created a pilot program guaranteeing insurance coverage for homeowners who invested in fire‑safe improvements.
Senator Pérez expressed disappointment at its failure. “Fire survivors deserved better. This legislation mattered,” she said.
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