American Property Casualty Insurance Association
  • Staff Contact: Nicole Mahrt-Ganley     
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  • April 7, 2016
  • California Legislature Moves Closer to Making Insurance Paperless
  • SACRAMENTO, CA — The California Assembly Insurance Committee took an important step towards making auto,  homeowners, and workers’ compensation insurance completely paperless by approving AB 2591, authored by Assembly Member Mathew Dababneh (D-Encino), says the ACIC, the Property Casualty Insurers Association of America’s California voice. 

    “Consumers increasingly prefer conducting their personal business on the web or through their email.  AB 2591 gives consumers the option to be completely paperless,” said Armand Feliciano, ACIC vice president.  “Despite being home to Silicon Valley and the high tech industry, California’s insurance code was written back in the 1940’s and is vastly behind the times.  This bill modernizes our laws and enables consumers to opt-in to a paperless electronic insurance policy.  If AB 2591 becomes law, California will join 34 states that already allows for electronic delivery of insurance policy documents.”

    AB 2591 gives policyholders the opportunity to opt-in and choose electronic delivery.  The bill preserves all the consumer protections found in current law, and creates a higher standard for sending policy cancelations via email. 

    “This important bill carefully balances the needs of policyholders, insurers and regulators,” said Feliciano.  “California previously enacted a measure, SB 251 in 2013, which began to modernize the state’s laws enabling insurers to send policies through email, but several normal consumer transactions were still required to be done through the mail system.  This bill is the next step in making insurance paperless.”

    AB 2591 is sponsored by several insurance trade groups including ACIC.  The Assembly Insurance Committee voted 12 to 0 approving the bill today. 

  • ACIC, the California voice of the Property Casualty Insurers Association of America, represents 363 property casualty insurance companies doing business in California. These members write $20.2 billion in premium in California insuring 36 percent of the property casualty insurance sold in the state. California members write 44 percent of personal auto insurance, 29 percent of homeowners insurance, 33 percent of commercial lines business insurance and 40 percent of private workers compensation insurance sold in California.
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