California SB878: Insurance business practices.

What the bill says

An act to amend Sections 2051 and 2051.5 of, and to add Article 15.6 (commencing with Section 1078) to Chapter 1 of Part 2 of Division 1 of, the Insurance Code, relating to insurance. insurance Insurance business practices. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates classes of insurance, including fire and residential property insurance…

From the enrolled text, September 4, 2026:

An act to amend Sections 2051 and 2051.5 of, and to add Article 15.6 (commencing with Section 1078) to Chapter 1 of Part 2 of Division 1 of, the Insurance Code, relating to insurance. insurance Insurance business practices. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates classes of insurance, including fire and residential property insurance. Existing regulations prescribe specified deadlines by which an insurer is required to, among other things, respond to a notice of claim, accept or deny a claim, in whole or in part, and, upon acceptance of a claim in whole or in part, tender payment or otherwise take action to perform its obligation, as specified. This bill, with respect to a claim under a policy of residential property insurance, would codify specified provisions of the regulations prescribing the deadlines above. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. Under existing law, the measure of the actual cash value recovery is the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. If …

Read the full official text

Sponsors

• Pérez, Sasha Renée (D, SD25) · primary sponsor
• John Harabedian (D, AD41)
• Benjamin Allen (D, SD24)
• Rosilicie Ochoa Bogh (R, SD19)

Latest actions

1. September 27, 2026: In Senate. Consideration of Governor's veto pending.
2. September 27, 2026: Vetoed by the Governor.
3. September 9, 2026: Enrolled and presented to the Governor at 2 p.m.
4. August 31, 2026: In Senate. Concurrence in Assembly amendments pending.
5. August 31, 2026: Read third time. Passed. (Ayes 70. Noes 0. Page 6996.) Ordered to the Senate.
6. August 31, 2026: Read third time. Passed. Ordered to the Senate.
7. August 31, 2026: Assembly amendments concurred in. (Ayes 37. Noes 0.) Ordered to engrossing and enrolling.
8. August 21, 2026: Assembly Rule 69(b)(1) suspended. (Ayes 55. Noes 17. Page 6296.)
9. August 21, 2026: Ordered to third reading.
10. August 21, 2026: Read third time and amended.

Votes

• Unfinished Business SB878 Pérez et al. Concurrence (August 31, 2026): 37 yea, 0 nay, passed
• SB 878 Pérez Senate Third Reading By Harabedian (August 31, 2026): 70 yea, 0 nay, passed
• Do pass. (August 13, 2026): 12 yea, 0 nay, passed
• Do pass and be re-referred to the Committee on [Appropriations] (June 17, 2026): 14 yea, 0 nay, passed
• Senate 3rd Reading SB878 Pérez et al. (May 26, 2026): 29 yea, 6 nay, passed
• Do pass (May 14, 2026): 5 yea, 2 nay, passed

Common questions

What is SB878?

SB878 is a bill in the California Legislature (2025-2026 Regular Session): Insurance business practices.

What does SB878 do?

In its own words: An act to amend Sections 2051 and 2051.5 of, and to add Article 15.6 (commencing with Section 1078) to Chapter 1 of Part 2 of Division 1 of, the Insurance Code, relating to insurance. insurance Insurance business practices. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates classes of insurance, including fire and residential property insurance…

What is the status of SB878?

Vetoed as of September 27, 2026. Latest action: In Senate. Consideration of Governor's veto pending. (September 27, 2026).

Who sponsored SB878?

Pérez, Sasha Renée (D, SD25), with 3 co-sponsors.

Where is the official record for SB878?

On the California Legislature website: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB878