On October 5, 2001, Governor Gray Davis signed into law Senate Bill 658, an Act amending the California Standard Form Fire Insurance Policy, Insurance Code Section 2071. The bill also added Insurance Code Section 2071.1, which regulates examinations under oath of an insured pursuant any policy that insures property and contains a provision for examining an insured under oath.

If you are an investigator, adjuster or an attorney and ever find yourself taking statements or conducting examinations under oath of an insured on any type of property claim, including automobile theft or damage claims, it is important that you be aware of the significant changes that have become law as a result of Senate Bill 658. Applicable to policies issued or renewed after January 1, 2002, the new statutory changes significantly affects and regulates the investigation and handling of all claims under all homeowner and earthquake insurance policies, including the creation of specified consumer rights in connection with examinations under oath under any policy of insurance that insures property.

Among a myriad of other things, insurers are required on every claim involving residential or homeowners insurance to provide a copy of the Unfair Practices Act (Insurance Code 790.03) and to advise the insured of the right to obtain claim-related documentation and a copy of the Fair Claims Settlement Practices Regulations; adjusters and claim representatives must provide written status reports to the insured under certain circumstances; and investigators, attorneys and anyone else conducting examinations under oath must provide specified notices to the insured of the rights afforded by the new legislation and must conform the examination process to Insurance Code 2071.1.

Knox Ricksen LLP is pleased to make available at the December 7, 2001 quarterly meeting an analysis of the substantial changes resulting from Senate Bill 658 that may affect the business and practices of many of our NCFIA colleagues. We hope you will find this informative and helpful in your pursuit of the truth. If you have any questions, please don't hesitate to contactus. If you are unable to attend the quarterly meeting and would like an email copy of the analysis, email your request to Patrick Snook at rps@knoxricksen.com.

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