CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

Introduced by Senator Pérez

(Coauthor: Senator McGuire)

February 13, 2026

An act to add Article 4 (commencing with Section 2090) to Chapter 2 of Part 1 of Division 2 of the Insurance Code, relating to insurance.

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 generally regulates classes of insurance, including residential property insurance. Existing department regulations prohibit an insurer from using a rating plan that does not take into account and reflect specified wildfire risk mitigation, including property-level building hardening measures.

On and after January 1, 2028, this bill would prohibit an admitted insurer that offers or sells residential property insurance in this state from refusing to offer, sell, or renew a policy of residential property insurance for an applicant or insured whose property meets minimum home hardening and wildfire mitigation standards, except as provided. The bill would authorize an admitted insurer to apply to the commissioner for a temporary waiver of that prohibition in a particular geographic area of the state, as specified. On and after January 1, 2028, the bill would also require any residential property insurance offered or sold to, at a minimum, provide coverage equivalent in scope to the residential property coverage the admitted insurer most commonly offers or sells in this state. The bill would suspend or revoke an insurer’s certificate of authority to offer or sell residential property insurance and automobile insurance in this state for five years if the admitted insurer habitually and as a matter of ordinary practice violates these provisions or if the admitted insurer offers residential property insurance in this state on and after January 1, 2026, but elects to cease offering that insurance rather than comply with these provisions.

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

SECTION 1.

Article 4 (commencing with Section 2090) is added to Chapter 2 of Part 1 of Division 2 of the Insurance Code, to read:

Article 4. Wildfire-Safe Property

2090.

(a) (1) On and after January 1, 2028, an admitted insurer that offers or sells residential property insurance in this state shall not refuse to offer, sell, or renew a policy of residential property insurance for an applicant or insured whose property meets minimum home hardening and wildfire mitigation standards, as established by the commissioner by regulation.

(2) On and after January 1, 2028, any residential property insurance offered or sold to an applicant or insured described in paragraph (1) shall, at a minimum, provide coverage equivalent in scope to the residential property insurance coverage the admitted insurer most commonly offers or sells in this state.

(b) Notwithstanding subdivision (a), on and after January 1, 2028, an admitted insurer may refuse to offer, sell, or renew a policy of residential property insurance if the applicant or insured does not meet underwriting guidelines that the insurer applies generally to all properties to determine eligibility for coverage and that are unrelated to the risk of wildfire.

(c) (1) An admitted insurer may apply to the commissioner for a temporary waiver of the requirement specified in paragraph (1) of subdivision (a) to be permitted by the commissioner to refuse to offer or sell policies of residential property insurance for property in a particular geographic area of the state on the grounds that offering new residential property insurance in that geographic area would prevent the insurer from meeting its obligations to insureds due to an overconcentration of risk in that geographic area. The commissioner shall not approve an application made pursuant to this paragraph unless the insurer has made an adequate showing of overconcentration of risk, as determined by the commissioner.

(2) The commissioner shall consider an application for a waiver under this subdivision utilizing procedures for review and approval substantially similar to those established by Sections 1861.05 to 1861.10, inclusive, including provisions for public notice, hearings, and consumer participation. The commissioner shall hold a hearing on any application upon a timely request. The commissioner shall adopt regulations establishing procedures for the purposes of this paragraph.

(3) An insurer that is granted a waiver under this subdivision shall be required to reapply for an extension of the waiver every six months until the insurer is no longer eligible for the waiver.

(4) A waiver granted under this subdivision does not authorize an insurer to refuse to renew an existing policy of residential property insurance.

(d) (1) If the commissioner determines that an admitted insurer has habitually and as a matter of ordinary practice violated subdivision (a), the insurer’s certificate of authority, and the certificate of authority of any affiliated insurer, to offer or sell residential property insurance and automobile insurance in this state shall be suspended or revoked for a period of five years.

(2) If an admitted insurer that offers residential property insurance in this state on or after January 1, 2026, elects to cease offering residential property insurance rather than comply with subdivision (a), the insurer’s certificate of authority, and the certificate of authority of any affiliated insurer, to offer or sell residential property insurance and automobile insurance in this state shall be suspended or revoked for a period of five years.

(3) All proceedings in connection with the suspension or revocation of a certificate of authority pursuant to paragraph (1) or (2) shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the commissioner shall have all the powers granted therein.

(e) The commissioner shall adopt regulations to implement this section in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall additionally define “minimum home hardening and wildfire mitigation standards” for purposes of subdivision (a) and “overconcentration of risk” for purposes of subdivision (c).