The vote on the legislation, S.B. 1474, introduced by state Senator Martha Escutia, D-Whittier, needed nine votes in favor to pass out of committee, but fell three votes short when panel members voted 6-3 in favor. During the voting, four legislators were absent, while four others abstained.

S.B. 1474?which was a major part of Commissioner Garamendi's Homeowners Bill of Rights initiative?was intended to limit insurers from rescinding policies, hike premiums or eliminate policy discounts in response to claims related to a natural cause (earthquake, lightning, hail, floods) or fires that began on someone else's property.

According to the California Department of Insurance, the measure would have helped many victims of last year's devastating wildfires, including those who have been unable to get coverage since filing a claim for destroyed property, or those whose policies have been or may be nonrenewed in the future because they made a fire claim.

In a statement, Sen. Martha Escutia and Commissioner Garamendi said they will reintroduce the measure to help protect the rights of homeowners who file claims.

"This disaster took 24 lives and burned 3,600 homes from Simi Valley to San Diego," said Commissioner Garamendi, referring to last summer's wildfires. "Now, the victims of those fires are being burned again as insurance companies deny them the coverage they need to rebuild their homes and their lives."

"We will not give up until every past and future victim of such a disaster is protected from insurance companies who cancel them after a legitimate claim," Sen. Escutia added.

Commissioner Garamendi also said components from S.B. 1474 would be put into other, already existing legislation and taken directly to the House and Senate chambers for votes. "This ?use-it-and-lose-it' syndrome must end," the commissioner said. "Californians should not be afraid to use their policies when they have a legitimate claim."

Sam Sorich, president of the Association of California Insurance Companies, which represents over 300 property-casualty insurers doing business in California, applauded the decision by the State Assembly Insurance Committee.

Mr. Sorich remarked that consumers are best served when carriers are "allowed to operate in an open and competitive market, using all the tools available to provide a valuable product at a reasonable price."

Mr. Sorich said the rejected bill, S.B. 1474, would have "dramatically restricted a homeowner insurer's ability to consider past claims history."

"If allowed to become law, homeowners with infrequent claims would have been forced to pay higher premiums to subsidize the frequent losses claimed by other policyholders," he said.