CaliforniaInsurance: residential and commercial.
What it does
Existing law establishes the Department of Insurance, headed by the Insurance Commissioner, which regulates insurers and insurance practices. Existing law divides insurance into classes, including, among others, life insurance, fire insurance, and marine insurance. Under existing law, an insurer is entitled to payment of the premium as soon as the subject matter insured is exposed to the peril insured against.
More detail
This bill would require, upon an appropriation, the state to pay for any annual increase in residential property insurance rates that is above either an annual increase of 7% or the annual national average increase in residential insurance premiums, whichever is lower. The bill would require, by March 31, 2026, the Department of Insurance, in consultation with insurers in the insurance industry, to provide a report to the Legislature on, among other things, how to slash regulations on the insurance market to achieve efficiencies to keep residential property insurance rates at or below the annual national average increase in residential insurance premiums. The bill would repeal these provisions on January 1, 2030.
Existing law imposes a gross premiums tax of 2.35% on all insurers doing business in this state, as set forth in the California Constitution.
This bill would, until January 1, 2030, set the gross premiums tax rate for premiums received for residential property insurance policies at 0% for premiums received on or after January 1, 2026.
Where do you stand?
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Feb 2From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.Latest
- Jan 31Died pursuant to Art. IV, Sec. 10(c) of the Constitution.Major
- 2025
- Apr 28In committee: Set, second hearing. Held under submission.
- Apr 21In committee: Set, first hearing. Referred to suspense file.Minor
- Mar 28(Ayes 46. Noes 17. Page 908.)
- Mar 28Re-referred to Coms. on REV. & TAX. and INS. pursuant to Assembly Rule 96.Minor
- Mar 11Re-referred to Com. on INS.Minor
- Mar 10From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.Major
- Mar 10Referred to Coms. on INS. and REV. & TAX.Minor
- Feb 13From printer. May be heard in committee March 15.
- Feb 12Read first time. To print.Introduced