AB 567: Insurance: residential and commercial.

Official summary

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

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.

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 28, 2025In committee: Set, second hearing. Held under submission.
4. April 21, 2025In committee: Set, first hearing. Referred to suspense file.
5. March 28, 2025(Ayes 46. Noes 17. Page 908.)
6. March 28, 2025Re-referred to Coms. on REV. & TAX. and INS. pursuant to Assembly Rule 96.
7. March 11, 2025Re-referred to Com. on INS.
8. March 10, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.
9. March 10, 2025Referred to Coms. on INS. and REV. & TAX.
10. February 13, 2025From printer. May be heard in committee March 15.
11. February 12, 2025Read first time. To print.