Governor Drafting Bill to Expedite Review of Rate Filings
In his May 10 press conference on his revised state budget proposal, Governor Gavin Newsom said that he intends to include a “trailer bill” to the state budget which would require the Department of Insurance to expedite its review of homeowners insurance rate filings. The bill is still being drafted. 

The Legislature must pass the 2024-2025 state budget by June 15.

The Governor praised Commissioner Ricardo Lara and the Department of Insurance for their work on a set of reform regulations which are targeted to be in place by December, but the Governor said, “We can’t wait until December.”

Commissioner Lara’s reaction to the Governor’s proposed bill was favorable. 

A Mercury News article reported that Lara posted this message on X, formally Twitter: “Newsom is right: time is of the essence. Our partnership with the Governor and the Legislature are essential to stabilizing our market. We’ve taken significant steps forward, but there is more to do.”

In response to a question at the press conference, Governor Newsom said that he and Commissioner Lara have been speaking with insurance companies about expanding the availability of homeowners insurance.

In the Mercury News article, Denni Ritter, vice president with the American Property Casualty Insurance Association, praised the Governor’s announcement and said, “Expediting the rate review process is a vital component to addressing California’s insurance crisis.”     

Skip to content