CA AB2927

Requires the California Earthquake Authority (CEA) to issue and sell investment grade revenue bonds or secure other debt financing up to $1,000,000,000 plus issuance costs when claims exhaust available capital, insurer assessments, reinsurance, and capital market contracts.

Authorizes the CEA to impose annual surcharges on all policies not exceeding 20 percent of annual premiums to repay bonded indebtedness, debt financing costs, and credit support amounts, with total surcharges capped at $1,000,000,000 plus associated costs.

Requires insurers to provide policyholders with a stand-alone notice stating that failure to pay the surcharge will result in cancellation of both the CEA earthquake insurance policy and the underlying residential property insurance policy.

Eliminates the requirement to reduce surcharges according to market share calculations and clarifies that surcharges are not considered revenue or basic residential earthquake premium.

Creates a mandatory appropriation by establishing bond issuance and surcharge authority as a defined funding source for the CEA's claim-paying capacity.