Lawmakers to Hold Insurance Hearings

Chairmen of the state Senate Insurance Committee and the Assembly Select Committee are scheduled to join insurance executives and residents at a public hearing Tuesday titled, “Are Insurer Denials of Earthquake Claims from ‘Hidden Damage’ Undermining Homeowner Security?”

Assemblyman Wally Knox (D-West Los Angeles), who chairs the select committee, announced plans over the summer to revive a bill that would give homeowners more time to file insurance claims for damage caused by the 1994 Northridge quake.

The bill, AB 1120, died on the Assembly floor by a 41-29 vote in May. But Knox hopes a jury verdict in favor of a Tarzana couple who sued their insurance company in Los Angeles Superior Court signifies the bill’s possible resurrection.

“The San Fernando Valley was hardest hit by the Northridge earthquake. For reasons that are less obvious, it also has been hardest hit by this situation,” Knox said Friday. “This hearing is essential to flesh out the facts.”

Scrutiny of the insurance industry has intensified of late, with many San Fernando Valley residents voicing concerns that companies such as Woodland Hills-based 20th Century are denying claims based on what the residents say is a faulty statute of limitations. Knox maintains the one-year limit is too short and his bill will seek to begin the one-year period at the time that damage is discovered, rather than when the disaster occurs.

Insurance companies, meanwhile, are strongly opposed to any changes. Industry advocates say Knox’s bill is too open-ended and would increase insurers’ liability, drive up insurance premiums and generally harm California’s economy.

The hearing is scheduled to run from 10 a.m. to 12:30 p.m. at the Van Nuys State Office Building Auditorium, 6150 Van Nuys Blvd.

For more information, call (818) 888-6338. Insurance policyholders wishing a chance to speak must contact Knox’s area office at (213) 932-1201.