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AB-1931 • 2026

Insurance: home protection companies.

Insurance: home protection companies.

Energy Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Papan
Last action
2026-04-22
Official status
From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 22). Re-referred to Com. on APPR.
Effective date
Not listed

Plain English Breakdown

The bill text and summary do not provide specific details about the penalties for violations or the exact requirements for filing a notice of appointment with the commissioner.

Home Protection Insurance Rules

This law sets new rules for home protection insurance companies and agents who sell contracts through utilities.

What This Bill Does

  • Establishes a special license for people selling home protection contracts through utilities, starting July 1, 2027.
  • Requires applicants to submit an application and proof of trustworthiness to the Department of Insurance.
  • Allows vendors to collect fees on behalf of agents if certain conditions are met.
  • Requires clear disclosures in home protection contracts about covered items and limitations.
  • Prohibits property and casualty insurance agents from selling home protection contracts without proper notice.

Who It Names or Affects

  • Home protection companies
  • Agents who sell home protection contracts through utilities
  • Customers buying home protection contracts

Terms To Know

home protection contract limited lines agent
A person licensed to sell specific types of insurance related to home repairs or replacements.
utility
Companies that provide services like electricity, water, and gas to homes.

Limits and Unknowns

  • The rules only apply from July 1, 2027.
  • Utilities can collect home protection fees until December 31, 2027, if they were doing so before January 1, 2025.

Bill History

  1. 2026-04-22 California Legislative Information

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

  2. 2026-04-20 California Legislative Information

    Re-referred to Com. on INS.

  3. 2026-04-16 California Legislative Information

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

  4. 2026-04-16 California Legislative Information

    Re-referred to Com. on INS.

  5. 2026-04-15 California Legislative Information

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

  6. 2026-03-02 California Legislative Information

    Referred to Com. on INS.

  7. 2026-02-14 California Legislative Information

    From printer. May be heard in committee March 16.

  8. 2026-02-13 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 1931, as amended, Papan.
Insurance: home protection companies.
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 a person authorized to transact home protection contracts through, or in connection
with, a utility, as defined. 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 transact contracts 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 if the invoice or utility bill 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 require a home protection contract vendor and its employees
to
to, among other things,
act in good
faith, among other specified duties,
faith and provide a specified disclosure as prescribed
when offering a home protection contract. 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 that issues or offers protection contracts to file a copy of an insurance policy covering 100% of the company’s contractual obligations, 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.
This bill would, until December 31, 2027, authorize a utility to collect home protection fees on behalf of an agent if it was already collecting those fees prior to January 1, 2025.

Current Bill Text

Read the full stored bill text 
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