Committee passes amendment limiting SB 368 to residential property policies, excluding earthquake coverage

The Senate Insurance & Commerce Committee passed SB 368 as amended after adopting language that limits the bill to residential property insurance policies and excludes earthquake policies.

Senator Boyd explained the amendment’s purpose and scope, saying it “takes the original bill and it limits it to residential property insurance policies, and it makes it clear that it excludes earthquake policies.” She told the committee she worked with State Farm and Shelter Insurance on the amendment wording and that both insurers are comfortable with the language.

Why it matters: Senator Boyd said earthquake policies are traditionally written on a percentage basis, and updating insurers’ systems to accommodate a new formulation would be costly. The amendment therefore narrows the bill’s effect to policies that can be processed without creating significant system changes for earthquake coverage.

Committee action: With no committee questions and no public testimony for or against the measure, the committee adopted the amendment, then voted to pass SB 368 as amended by voice vote.

Next steps: The committee forwarded SB 368 as amended; the transcript records voice votes but no roll-call tally.