Commercial property insurance cancellation and nonrenewal.

The exemption for large commercial policies was changed from a $10 million policy limits threshold (excluding only those that did not insure real property, agricultural production, or residential-use property) to an annual premium of $25,000 or more combined with 25 or more average employees. This is a much broader exemption that removes protection for many mid-size commercial properties.

The definition of 'policy of commercial property insurance' in subdivision (c)(1) was simplified to simply reference Section 675.5, removing the prior 'including but not limited to' language that specifically called out real property, agricultural production, and residential-use property.

The exclusion for inland marine, transit, or transportation insurance in subdivision (c)(2)(A) was expanded to explicitly include commercial automobile insurance.

The bill text was reformatted from an official chaptered document (with 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGISLATE MATERIAL' header, page numbers, and formal layout) to a web-based display with navigation elements, a quick search bar, version history dropdown, and a digest key showing Vote: MAJORITY, Appropriation: NO, Fiscal Committee: YES, Local Program: NO.

Header changed from enrolled bill format (with Senate/Assembly passage dates and blank signature lines) to chaptered format showing Chapter 544, approved by the Governor on October 10, 2025, and filed with the Secretary of State the same day.

Page numbering and formatting adjusted throughout (e.g., page 96 became page 95, different footer format). No changes to the actual statutory language.

Section 675.55(c)(1) was expanded to explicitly state that 'policy of commercial property insurance' includes policies insuring against loss of or damage to real property, property used in agricultural production, and real property used primarily for residential purposes.

New subdivision (c)(2)(A) excludes inland marine, transit, or transportation insurance policies from the definition of 'policy of commercial property insurance,' meaning those policies are not protected by the wildfire cancellation prohibition.

New subdivision (c)(2)(B) excludes commercial property insurance policies with limits of $10,000,000 or more that do not insure against loss of or damage to real property, agricultural production property, or residential-use real property. This carves out large-limit policies covering only personal property or business income from the protection.