Governor signs Wolk's first bill this year

Legislation will streamline auto-insurance claims process

"We live in the modern world, and have to legislate accordingly," said Assemblywoman Lois Wolk. "The technology is available to store important documents electronically, and utilizing that technology will streamline the insurance claims process, facilitating savings to auto insurers and their customers. AB 1985 helps the auto insurance industry evolve with the times."

Existing law requires an insurer, in the case of any claim arising from the theft of an insured vehicle, prior to the settlement of the claim, to secure from the insured a claim form containing specified information. Existing law requires the insurer to retain the original claim form for at least three years. This bill would allow the insurer to meet the requirement regarding retention of the claim form by retaining an electronic copy of the original form, the same manner in which many insurers retain other claim forms.

"AB 1985 makes a common sense change to the Insurance Code that allows insurers to recognize, and ultimately pass along to policyholders, cost savings and increased efficiencies by maintaining certain claims documents electronically, eliminating the need to store millions of pages of paper," said Gary Falati, an insurance agent in Fairfield.

AB 1985, sponsored by State Farm Insurance Companies, was supported by Association of California Insurance Companies and the Personal Insurance Federation of California. The measure will take effect on January 1, 2005.