California AB493 mandates interest on hazard insurance proceeds held by financial institutions pending property repair or rebuilding.

California AB493 requires financial institutions to pay at least 2 percent simple interest per annum on hazard insurance proceeds held in a loss draft account pending property rebuilding or repair. The act also prohibits financial institutions from imposing fees or charges that would result in an interest rate of less than 2 percent per annum on these funds. This urgency statute is necessary for the immediate preservation of the public peace, health, or safety.

California AB493 mandates interest on hazard insurance proceeds held by financial institutions pending property repair or rebuilding.

California AB493 requires financial institutions to pay at least 2 percent simple interest per annum on hazard insurance proceeds held in a loss draft account pending property rebuilding or repair. The act also prohibits financial institutions from imposing fees or charges that would result in an interest rate of less than 2 percent per annum on these funds. This urgency statute is necessary for the immediate preservation of the public peace, health, or safety.