Plain English Breakdown
The official text uses the phrase 'slash regulations,' which is strong language but directly supported by the source material.
AB-567: Changes to Residential Property Insurance Rules and Taxes
This law states the Legislature's intent to reform insurance, may require the state to pay for high home insurance rate increases if funding is approved, orders a report on cutting regulations, and sets residential property insurance taxes to zero until 2030.
What This Bill Does
- States that lawmakers intend to pass laws to change how the insurance market works.
- Requires the state to pay for any yearly increase in home insurance rates above 7% or the national average, whichever is lower, if money is approved by the budget.
- Orders the Department of Insurance to work with insurers and submit a report by March 31, 2026, on how to remove regulations to keep rate increases low.
- Sets the tax rate for residential property insurance premiums at 0% starting January 1, 2026.
- Removes all of these new rules from law on January 1, 2030.
Who It Names or Affects
- Homeowners who pay for residential property insurance in the state.
- Insurance companies that sell home insurance policies.
- The Department of Insurance and its commissioner.
- State lawmakers who must approve funding before paying rate increases.
Terms To Know
- Gross premiums tax
- A fee that the state charges insurance companies based on how much money they collect in payments from customers.
- Appropriation
- An official decision by lawmakers to set aside a specific amount of public money for a program or project.
Limits and Unknowns
- The state only pays the extra cost if lawmakers approve spending that money in the budget.
- The law does not say exactly which regulations will be removed, as this depends on a future report.
- All new rules and tax changes end automatically on January 1, 2030.