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Lawmakers press insurers on delayed disaster payments; bill would impose interest on late payments

California State Senate (Insurance Committee) · April 22, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

SB 8 78 would impose automatic interest penalties when insurers miss statutory deadlines for claim decisions and payments, require identification of disputed items within the 40‑day window, and require payment of undisputed amounts. Survivors described months‑long delays and rotating adjusters; insurers supported reform but argued automatic penalties and 30‑day ACV deadlines need exceptions for safety, access and fraud prevention.

Sen. Perez described SB 8 78 as a response to widespread delays and partial payments that have left wildfire and flood survivors unable to rebuild. The bill would impose a ten percent interest penalty (as amended in committee) on delayed payments when statutory deadlines are missed without justifiable cause, require insurers to identify disputed items in writing within the 40‑day…

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