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Updated:   2026-02-04

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Measure
Authors DeMaio  
Subject Insurance: residential and commercial.
Relating To relating to insurance.
Title An act to add and repeal Section 2063 of the Insurance Code, and to amend, repeal, and add Section 12221 of the Revenue and Taxation Code, relating to insurance.
Last Action Dt 2025-03-10
State Amended Assembly
Status Died
Flags
Vote Req Approp Fiscal Cmte Local Prog Subs Chgs Urgency Tax Levy Active?
Majority No Yes No None No No Y
i
Leginfo Link  
Bill Actions
2026-02-02     From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31     Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-04-28     In committee: Set, second hearing. Held under submission.
2025-04-21     In committee: Set, first hearing. Referred to suspense file.
2025-03-28     Re-referred to Coms. on REV. & TAX. and INS. pursuant to Assembly Rule 96.
2025-03-28     (Ayes 46. Noes 17. Page 908.)
2025-03-11     Re-referred to Com. on INS.
2025-03-10     Referred to Coms. on INS. and REV. & TAX.
2025-03-10     From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.
2025-02-13     From printer. May be heard in committee March 15.
2025-02-12     Read first time. To print.
Versions
Amended Assembly     2025-03-10
Introduced     2025-02-12
Analyses TBD
Latest Text Bill Full Text
Latest Text Digest

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.

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.