CA| The California Department of Insurance, through Bulletin 2025-10, announces a 22.7% increase in the financial thresholds for the “commercial insured” exemption under Insurance Code Section 1760.1(b), effective January 1, 2025. This adjustment, based on changes in the Consumer Price Index from June 2019 to June 2024 and adopting the NAIC’s calculations, raises the minimum requirements for net worth, annual revenues, and annual budgeted expenditures for commercial insured status.
- The new minimums are: net worth of $29,179,483, annual revenues of $72,948,708, and annual budgeted expenditures of $43,769,225, effective January 1, 2025.
- These updated thresholds determine which entities qualify as “commercial insureds” for surplus line insurance exemptions in California.