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California 20252026

AB 1931

Insurance: home protection companies.

Open original source Back to bills
Source: Open States / PluralUpdated 2026-09-12 13:12:55 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill
Subjects
Insurance, homeprotectioncompanies
Introduced / first action
2026-02-13 00:00:00

Source-supplied abstracts

Existing law regulates home protection companies, which issue contracts for the repair or replacement of a component, system, or appliance of a home. Existing law prohibits a person from issuing home protection contracts in this state unless they hold a home protection company license issued by the Department of Insurance, except as specified. Existing law requires a home protection contract, as defined, to specify certain information in clear and conspicuous terms, including, but not limited to, every appliance, system, or component covered by the contract and all exclusions and limitations respecting the extent of the contract. This bill would, beginning on July 1, 2027, establish a license for a home protection contract limited lines agent, as defined, for an organization authorized to transact home protection contracts on behalf of a home protection company and in connection with a home protection contract vendor, as defined. The bill would additionally authorize a utility to solicit home protection contracts and transmit protection contract fees if it is a vendor acting on behalf of specified entities, including a licensed home protection contract limited lines agent. The bill would require an applicant for a license to submit specified items to the commissioner, including an application and a certificate stating the named applicant is trustworthy. The bill would authorize an agent to authorize a home protection contract vendor, as defined, to solicit contracts and collect protection contract fees on its behalf subject to specified conditions, and would authorize a purchaser to return the contract within 30 days of purchase if no claim has been made. The bill would allow a vendor to collect fees on behalf of an agent through the utility bill if the bill makes it clear that the home protection contract is issued by a third party and not the utility, lists the protection contract fees separately from the utility charges, and the bill includes a telephone number for customers to inquire about their contract. The bill would also require the contract to include specified disclosures. The bill would prohibit an unlicensed employee of a vendor from participating in the transaction of home protection contracts other than clerical or billing services, and would require the home protection contract limited lines agent or property and casualty insurance agent to ensure the home protection contract vendor informs its employees about the restrictions. The bill would authorize the commissioner to implement specified penalties if a vendor violates these provisions. The bill would also require a home protection company to maintain a single insurance policy covering 100% of the company's contractual obligation associated with the home protection contracts, among other specified requirements. The bill would prohibit a property and casualty insurance agent from acting as an agent of a home protection company in connection with a utility unless the company has filed a notice of appointment with the commissioner. The bill would require the notice of appointment to continue until specified documents are filed.

Sponsors

Source-supplied history

Actions

  1. Enrolled and presented to the Governor at 4 p.m.

    executive-receipt

  2. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0.).

    amendment-passage, committee-passage, committee-passage-favorable

  3. In Assembly. Concurrence in Senate amendments pending.

  4. Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.).

    passage, reading-1, reading-3

  5. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  6. Read third time and amended. Ordered to second reading.

    amendment-passage, reading-1, reading-2, reading-3

  7. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  8. Read second time and amended. Ordered returned to second reading.

    amendment-passage, reading-1, reading-2

  9. From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).

    amendment-introduction, amendment-passage, committee-passage

  10. In committee: Referred to APPR. suspense file.

    referral-committee

  11. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 24). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  12. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  13. Referred to Com. on INS.

    referral-committee

  14. In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1, referral-committee

  15. Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 5204.)

    passage, reading-1, reading-3

  16. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  17. From committee: Do pass. (Ayes 14. Noes 0.) (May 14).

    committee-passage, committee-passage-favorable

  18. In committee: Set, first hearing. Referred to APPR. suspense file.

    referral-committee

  19. From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 22). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  20. Re-referred to Com. on INS.

    referral-committee

  21. From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  22. Re-referred to Com. on INS.

    referral-committee

  23. From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  24. Referred to Com. on INS.

    referral-committee

  25. From printer. May be heard in committee March 16.

  26. Read first time. To print.

    reading-1

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