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California insurance laws

Insurance regulations, rate filing requirements, department info, and recent bulletins for California. Updated Mar 31, 2026.

Department of Insurance

DepartmentCalifornia Department of Insurance
CommissionerRicardo Lara
Rate Filing SystemPrior Approval
Regulatory CodeCal. Ins. Code §§ 100-16230
Overview

California operates under Proposition 103 (1988), which established prior approval for all property and casualty insurance rates, making it one of the most consumer-protective regulatory environments in the nation. The California Department of Insurance (CDI) is the largest state consumer protection agency, with extensive authority over rate regulation, unfair practices, and market conduct. The state faces unique challenges with wildfire risk and insurance availability, leading to significant recent reforms including catastrophic modeling integration and FAIR Plan expansion.

Auto Insurance

Min Pd$15,000
Pip MinN/A
StatuteCal. Ins. Code §§ 11580-11629; Cal. Veh. Code §§ 16000-16560
Fault SystemTort (At-Fault)
Min Bi Per Person$30,000
Uninsured Penalty$100-$1,000+ fine, vehicle impound, license suspension up to 4 years
Min Bi Per Accident$60,000
Sr22 Duration Years3
Noncompliance PenaltyInsurers face fines up to $10,000 per violation under Cal. Ins. Code § 1861.05 for unfair rating practices; license suspension or revocation under Cal. Ins. Code § 1063 for pattern violations; civil penalties under Cal. Ins. Code § 12921 for late payments or improper claims handling
Rate Filing RequirementPrior approval required for all rate changes under Proposition 103 (Cal. Ins. Code § 1861.05); must demonstrate rates are not excessive, inadequate, or unfairly discriminatory based on approved rating factors
Avg Full Coverage Premium$2,115-$3,119

Notable Laws

  • Cal. Ins. Code § 11580.1(b) - Mandatory liability insurance with 30/60/15 minimums effective January 1, 2025 (SB 1107)
  • Cal. Ins. Code § 11580.2 - Uninsured/underinsured motorist coverage must be offered in same amounts as liability limits
  • Cal. Ins. Code § 1861.02 - Proposition 103 requires prior approval for all auto insurance rates
  • Cal. Ins. Code § 1861.025 - Credit scoring prohibited in auto insurance rating (since 2003)
  • Cal. Veh. Code § 16029 - Criminal penalties for driving without insurance, including fines and license suspension

Homeowners Insurance

StatuteCal. Ins. Code §§ 675-679, 2051-2191, 10089-10089.90
Wind PoolNone
Fair Plan NameCalifornia FAIR Plan Association
Noncompliance PenaltyFines up to $10,000 per violation for notice violations under Cal. Ins. Code § 12921; additional penalties up to $5,000 per violation for unfair non-renewal practices; license suspension for pattern violations under Cal. Ins. Code § 1063
Rate Filing RequirementPrior approval required under Proposition 103 (Cal. Ins. Code § 1861.05); catastrophic modeling now permitted (2024 reforms); rates must not be excessive, inadequate, or unfairly discriminatory

Notable Laws

  • Cal. Ins. Code § 675.1 - Mandatory one-year moratorium on cancellations/non-renewals after declared state of emergency (wildfire protections)
  • Cal. Ins. Code § 676.10 - Safer from Wildfires regulation requiring insurance discounts for mitigation measures (AB 1, effective 2024-2025)
  • Cal. Ins. Code § 2051.5 - Prohibition on credit scoring in homeowners insurance rating
  • Cal. Ins. Code §§ 10089-10089.90 - California FAIR Plan provisions for insurer of last resort coverage
  • Cal. Ins. Code § 677 - 75-day advance notice requirement for non-renewal or cancellation (except 10 days for non-payment)

Recent Bulletins

One-Year Moratorium for Palisades, Eaton, Hurst, Lidia, Sunset and Woodley Fires

#2025-012025-01-17Effective: 2025-01-17

Mandatory one-year moratorium on cancellations and non-renewals of residential property insurance policies following the January 2025 Los Angeles area wildfires, with grace period for premium payments

View bulletin

Principle-Based Reserving — Life Annual Aggregate Assessment

#2025-82025-05-16

Annual assessment for principle-based reserving for life insurance companies, establishing reserve calculation requirements and assessment methodology for 2025

View bulletin

Principle-Based Reserving — Long-Term Care Annual Aggregate Assessment

#2025-92025-05-16

Annual assessment for principle-based reserving for long-term care insurance companies, establishing reserve calculation requirements and assessment methodology for 2025

View bulletin

New Law Imposes New Requirements for Law Enforcement Agencies and Bail Fugitive Recovery Agents

#2025-152025-10-01Effective: 2025-10-01

Implementation of new requirements for law enforcement agencies and bail fugitive recovery agents, including licensing, training, and operational standards

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Mandatory Moratorium on Cancellations and Non-Renewals of Policies of Residential Property Insurance After the Declaration of a State of Emergency

#2024-52024-07-11Effective: 2024-07-11

One-year mandatory moratorium on cancellations and non-renewals of residential property insurance following declared state of emergency related to wildfires

View bulletin

Recent Law Changes

AB 8882025Homeowners

The California Safe Homes Act

Establishes a new grant program within the Department of Insurance to assist residents with costs for fire-safe roofs and mitigation measures within five feet of their homes (Zone Zero hardening)

Homeowners can access state grants to make wildfire mitigation improvements, reducing insurance costs and improving safety

Effective: 2026-01-01

AB 2262025Homeowners

The FAIR Plan Stability Act

Authorizes the California FAIR Plan Association to access catastrophic bonds and credit lines to ensure the payment of consumer claims following major disasters, strengthening the insurer of last resort's financial capacity

FAIR Plan policyholders gain enhanced protection through access to emergency financing after catastrophic wildfire events

Effective: 2026-01-01

SB 7292024Health

Infertility Treatment Health Care Coverage

Requires insurance coverage for fertility and infertility care, including IVF, and updates the definition of infertility to be inclusive of LGBTQ+ family planning, applying to large group plans

Large group health plan members gain coverage for IVF and fertility services, expanding access to family planning resources

Effective: 2026-01-01

SB 4952025Homeowners

Eliminate 'The List' Act

Requires insurers to pay 60 percent of contents coverage limits (capped at $350,000) to wildfire survivors without a detailed inventory, grants 100 days for proof of loss, and establishes data collection authority for climate risks

Wildfire victims receive faster claim payments without needing detailed inventories, easing the recovery process

Effective: 2026-01-01

SB 5472025Commercial/Homeowners

The Business Insurance Protection Act

Extends existing one-year non-renewal protections to include commercial policies, homeowners' associations (HOAs), condominiums, affordable housing units, and non-profits following declared emergencies

Commercial policyholders, HOAs, and non-profits receive same one-year non-renewal moratorium protections as residential policyholders after disasters

Effective: 2026-01-01

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