Board members on June 18 discussed consumer protection and underinsurance after wildfire losses and directed staff to return with options to improve transparency and safeguards, including potential legislative proposals and Department of Insurance actions.

Vice Chair Sally Lieber, who convened an earlier informational hearing on survivor recovery, said the board would examine policy options that increase clarity for homeowners about insurance replacement‑cost calculations and potential gaps in coverage. “I will be bringing back items, both large and small,” Lieber said, adding that one reform under consideration would require insurers to warn policyholders about the tradeoffs of replacement‑cost coverages.

The board received public comment from independent insurance agent David Shafer, who submitted a 29‑page proposal and urged comprehensive reform of replacement‑cost estimators used by agents and insurers. Shafer said the industry and state should act to prevent chronic underinsurance and provide clearer guidance to consumers.

Board members agreed staff should develop a range of options — from consumer‑education and model disclosure language to statutory changes — and return with proposals. No formal vote was taken on specific policy measures; members directed staff and committed to bringing draft ideas back to the board for review.

The board asked staff to coordinate with the Department of Insurance, consumer advocates and industry representatives and to include suggested statutory language or regulatory steps where appropriate. Members said protecting consumers and maintaining the integrity of local property tax bases are priorities as they assess follow‑on steps.