California AB567 proposes to reduce residential property insurance rates by eliminating gross premiums tax and funding rate increases.

California AB567, known as the Cap and Cut Cost of Insurance through Reform Act, aims to reform the insurance market by eliminating the gross premiums tax for residential property insurance policies starting January 1, 2026. It also provides state funding to cover any annual increase in residential property insurance rates above 7% or the national average until January 1, 2030. The bill mandates a report from the Department of Insurance on strategies to help insurance companies afford reinsurance and encourages dialogue with the federal government for a national reinsurance relief program.

California AB567 proposes to reduce residential property insurance rates by eliminating gross premiums tax and funding rate increases.

California AB567, known as the Cap and Cut Cost of Insurance through Reform Act, aims to reform the insurance market by eliminating the gross premiums tax for residential property insurance policies starting January 1, 2026. It also provides state funding to cover any annual increase in residential property insurance rates above 7% or the national average until January 1, 2030. The bill mandates a report from the Department of Insurance on strategies to help insurance companies afford reinsurance and encourages dialogue with the federal government for a national reinsurance relief program.