Insurance Surcharge to Develop Emergency Fund

The California Senate Banking, Finance and Insurance Committee has passed a bill that would impose a surcharge of 4.8 percent on commercial and residential fire and multiperil insurance policies to assist the state with the creation of an Emergency Response Fund in the State Treasury. SB 1258 would require funds to be deposited into the Emergency Response Fund to be allocated to the program. The special purpose surcharge imposed on insurers would apply to all policies with combined property and liability coverage issued or renewed on or after July 1, 2010. The bill would also require the Secretary of California Emergency Management to allocate funds to specific entities to enhance or sustain fire and rescue disaster mutual aid capacity to combat the effect of all hazard disasters.
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