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CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
89
CHAPTER 475
Statutes of 2025
[ Approved by Governor October 9, 2025. Filed with Secretary of State October 9, 2025. ]
Introduced by Assembly Member Bauer-Kahan
(Coauthors: Assembly Members Addis, Gipson, Hadwick, and Harabedian)
January 22, 2025
An act to add Section 10095.8 to the Insurance Code, relating to insurance.
Vote: majority Appropriation: no Fiscal committee: yes Local program: no
LEGISLATIVE COUNSEL’S DIGEST
Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law authorizes cancellation of an insurance policy for nonpayment of premium, and requires an insurer to notify a policyholder at least 10 calendar days before the policy will be canceled for nonpayment.
This bill, on or before April 1, 2026, would require the California FAIR Plan Association to create an automatic payment system and accept automatic payments for premiums from policyholders. The bill would prohibit cancellation or nonrenewal of a FAIR Plan policy solely because the policyholder is not enrolled in automatic payments. The bill would provide a period for the policyholder to pay any outstanding installment premium, in accordance with the existing 10-calendar-day notice requirement.
The people of the State of California do enact as follows:
SECTION 1.
Section 10095.8 is added to the Insurance Code, to read:
10095.8.
(a) On or before April 1, 2026, the association shall create an automatic payment system and accept automatic payments for premiums from policyholders.
(b) A policy shall not be canceled or nonrenewed solely because the policyholder is not enrolled in automatic payments.
(c) If a policyholder fails to timely pay any outstanding installment premium, the policyholder shall have a period to pay the outstanding installment premium, in accordance with Section 677.4.