Shown verbatim: the complete text as captured from the official bulk data posted by the California Legislature, fetched 2026-08-03. Nothing is edited or removed. The official bill page.
An act to add Section 10095.8 to the Insurance Code, relating to insurance. 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.
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