AB 637: False or misleading commercial disaster communication.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law generally regulates the rules governing insurance and insurance contracts. Existing law prohibits a person from engaging in any trade practices that are defined as unfair methods of competition or unfair or deceptive acts or practices in the business of insurance, including publicly making or dissimilating in a publication or advertising device, among others, a statement containing an untrue, deceptive, or misleading statement regarding the business of insurance, and makes a person who engages in those practices liable to the state for a civil penalty not to exceed $5,000 or $10,000, as specified.

This bill would authorize a court to increase a civil penalty by up to $2,500 for a commercial disaster communication, as defined, that otherwise constitutes a violation of the above-described provisions. The bill would authorize the increase for a commercial disaster communication made on or after the date of a proclamation of a state of emergency or catastrophic disaster, as defined, until 60 calendar days after the termination of the state of emergency or catastrophic disaster, but prohibits the increase for applying more than 180 calendar days for any one state of emergency or catastrophic disaster.

The bill would make related findings and declarations.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. April 30, 2025In committee: Set, first hearing. Hearing canceled at the request of author.
4. April 21, 2025Re-referred to Com. on INS. pursuant to Assembly Rule 96.
5. April 21, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended.
6. March 17, 2025Re-referred to Com. on P. & C.P.
7. March 13, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended.
8. March 13, 2025Referred to Coms. on P. & C.P. and INS.
9. February 14, 2025From printer. May be heard in committee March 16.
10. February 13, 2025Read first time. To print.