CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

Introduced by Assembly Member Sanchez

(Coauthors: Assembly Members Davies and Ellis)

February 13, 2026

An act to amend Section 12901 of the Insurance Code, relating to the Insurance Commissioner.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the commissioner’s qualifications and duties. Existing law requires the commissioner to be a person competent and fully qualified to perform the duties of the office and prohibits the commissioner from being an officer, agent, or employee of an insurer or directly or indirectly interested in an insurer or licensee, except as specified.

This bill would additionally require the commissioner, within 10 years before election, to have had at least 5 years of senior, management, or supervisory insurance experience in the private sector or a state or federal agency, as specified.

The people of the State of California do enact as follows:

SECTION 1.

Section 12901 of the Insurance Code is amended to read:

12901.

(a) The commissioner shall be a person competent and fully qualified to perform the duties of the office. Neither the commissioner nor any deputy or employee shall

(b) The commissioner, a deputy, or an employee shall not, during the commissioner’s, deputy’s, or employee’s tenure of office office, be an officer, agent, or employee of an insurer or directly or indirectly interested in any an insurer or licensee under this code, except (a) as a policyholder or (b) by virtue of relationship by blood or marriage to any as either of the following:

(2) A spouse or blood relative of a person interested in any an insurer or licensee.

(c) If the commissioner or any deputy or commissioner, a deputy, or an employee holds any a license or permit issued under this code, that commissioner, deputy, or employee shall surrender it for cancellation within 10 days after appointment and qualification. Upon termination of the commissioner’s, deputy’s, or employee’s office or employment, that license or permit shall be reissued for the balance of the then current license or permit year without fee or penalty.