CA AB567

State would pay for any annual residential property insurance rate increases exceeding 7% or the national average increase, whichever is lower, contingent on legislative appropriation (effective until January 1, 2030)

Department of Insurance must submit a report to the Legislature by March 31, 2026 on reducing insurance regulations, strategically allocating $1 billion annually for four years on fire fuel reduction, and suspending regulations that limit defensible space clearing

Eliminates the 2.35% gross premiums tax on residential property insurance policies for premiums received on or after January 1, 2026, through January 1, 2030

Legislature urges the Governor to initiate dialogue with the federal government regarding a national reinsurance relief program with "reinsurance bridge financing"

All provisions sunset on January 1, 2030, at which point the gross premiums tax exemption expires and the original tax code provisions are restored