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California creates a new license for selling home protection via utility bills
The new limited lines license was signed Sept. 27, 2026, and becomes operative July 1, 2027, with a $10,000 license cost and coverage requirements backed by carriers holding at least $15 million in surplus.
California has created a new, limited lines insurance license that lets organizations sell home protection contracts through monthly utility bills, according to Insurance Business.
The measure is tied to home protection companies, utilities overseen by the California Public Utilities Commission, and a new class of limited lines agents. It sets mandatory insurance backing from carriers with at least $15 million in surplus, and it creates a new distribution channel aimed at reaching millions of utility customers.
The law, AB 1931, was signed by Gov. Gavin Newsom on Sept. 27, 2026, with an operative date of July 1, 2027. Insurance Business reports the $10,000 license is intended to open the channel and will require new compliance steps for property and casualty agents and home protection companies.
The outlet also notes the July 1, 2027 implementation sets a timeline for market participants, while positioning the new utility-bill route as a potential competitive channel for the home protection segment.