New California insurance laws 2027: taking effect in 2027
20 new California laws on insurance take effect in 2027. Each is listed below with its date, what it does and a link to the official text.
- 20 laws take effect on 1 January 2027.
Updated 25 October 2026
One-line summaries are drafted by software from the bill text and are not reviewed by an attorney.
New California insurance laws in 2027
AB 1126: Medi-Cal managed care plans: enrollees with other health care coverage.
Requires the State Department of Health Care Services to ensure that providers billing Medi-Cal managed care plans for dual-covered enrollees face no excessive administrative requirements compared to fee-for-service billing.
AB 1278: Mortgages: hazard insurance proceeds: interest.
Requires financial institutions holding hazard insurance proceeds in loss draft accounts for one- to four-family residences to credit or pay borrowers at least 2% annual simple interest, with uncashed checks canceled after 90 days.
AB 1683: Workers' compensation: prepaid cards.
Extends indefinitely the authorization for employers to deposit workers' compensation disability indemnity payments into prepaid card accounts that meet specified requirements and disclosure standards.
AB 1781: Federal Home Loan Banks.
Prohibits Federal Home Loan Banks from being stayed or enjoined from enforcing rights against collateral pledged by insurer-members, and prevents insurance receivers from voiding related transfers unless made with intent to defraud creditors.
AB 1798: Genetic testing for life and disability insurance.
Life and disability insurers cannot cancel, limit, deny, or base underwriting decisions on genetic information or test results, except under specified criteria.
AB 1931: Insurance: home protection companies.
Requires home protection contract limited lines agents to obtain Department of Insurance licenses and authorizes utilities to collect home protection contract fees through utility bills beginning 1 July 2027.
Some duties start later: the text names an operative date.
AB 2038: Residential property insurance: cancellations and nonrenewals.
Requires insurers to renew residential property insurance policies for at least 36 months after a total loss from disaster and prohibits cancellations or nonrenewals for two years after wildfire emergencies.
AB 2054: Family temporary disability insurance program: covered active duty.
Expands the family temporary disability insurance program to include workers taking leave for training, non-foreign deployments, and state active duty of military family members.
AB 2227: Farm labor contractors: surety bonds.
Requires farm labor contractors to deposit higher surety bonds with the Labor Commissioner based on annual gross receipts: $50,000 for up to $500,000, $100,000 for $500,000 to $2,000,000, and $150,000 for over $2,000,000.
AB 2361: Insurance: personal vehicle sharing.
Requires personal vehicle sharing programs to assume liability for bodily injury or property damage to third parties in amounts of at least $250,000 per person and $500,000 total for injuries, and $100,000 for property damage.
AB 2499: Health care coverage: claims payments.
Requires health care service plans and insurers to accept electronic medical records and supporting documentation through standard electronic submission methods and prohibits them from denying or delaying claims solely because their systems cannot accept otherwise compliant documentation.
AB 2724: Insurance: distressed areas.
Requires the Insurance Department to review and update distressed areas yearly beginning July 2027, hold public meetings for input, and publish lists of affected ZIP Codes by January 2028 and annually thereafter.
AB 69: FAIR Plan policy notices and renewals.
Requires the FAIR Plan Association to share policyholder information with participating insurers, provide annual coverage option notices to policyholders, and require insurers to report quarterly on policies issued to FAIR Plan policyholders.
SB 1023: Health care coverage: antiretroviral drugs, drug devices, and drug products.
Requires health care service plans and health insurers to cover antiretroviral drugs, devices, and products for HIV prevention without prior authorization or step therapy, and mandates coverage under both medical and prescription drug benefits starting 1 January 2027.
SB 1206: Insurance: omnibus.
Requires the Insurance Commissioner to inactivate licenses of insurers and agents dissolved, forfeited, terminated, canceled, or surrendered by the Secretary of State.
SB 1209: Insurance: examination of insurers.
Requires examined insurance companies to take corrective actions to remediate violations identified in examination reports and subjects companies to penalties up to twenty thousand dollars for failing to comply.
SB 1301: Residential property insurance: nonrenewals.
Beginning 1 January 2028, insurers must give policyholders at least 90 days' notice before not renewing residential property insurance and must explain the grounds in plain language.
Some duties start later: the text names an operative date.
SB 354: Insurance Information and Privacy Protection Act.
Requires insurance licensees, surplus line insurers, reinsurers, and third-party service providers to provide privacy notices, obtain consumer consent, and allow consumers to access or delete personal information starting 1 July 2028.
Some duties start later: the text names an operative date.
SB 876: Fire and residential property insurance.
Some duties start later: the text names an operative date.
SB 988: California Motor Vehicle Glass Act.
Requires motor vehicle glass repair shops to notify customers about advanced driver assistance systems, obtain claim numbers before contracting with insurers, provide good faith estimates, and prohibits offering rebates or incentives for insurance claims.
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Questions about new California insurance laws in 2027
When do new insurance laws take effect in California in 2027?
Most take effect on 1 January 2027. Of the 20 laws listed here, 20 start on 1 January 2027. In California, a statute from a regular session takes effect on the 1 January after 90 days from enactment unless it is an urgency measure (Cal. Const. art. IV, sec. 8(c)(1)).
What new insurance laws take effect on 1 January 2027 in California?
20 laws in insurance, including California AB 1126 (Medi-Cal managed care plans: enrollees with other health care coverage), California AB 1278 (Mortgages: hazard insurance proceeds: interest), California AB 1683 (Workers' compensation: prepaid cards), California AB 1781 (Federal Home Loan Banks) and California AB 1798 (Genetic testing for life and disability insurance). The full list, with what each one does, is above.
Is this legal advice?
No. Dates and the one-line summaries are drafted by software from the bill text and are not reviewed by an attorney. Each law links to the legislature’s own record: check the text before relying on it.
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