On March 26, 2026, the California Department of Insurance (CDI) issued Bulletin 2026-2 to all insurers licensed to write property and casualty insurance subject to the prior approval provisions of Proposition 103 regarding the modification of formulas in rate templates and exhibits.

The bulletin states that such insurers are required to submit complete rate applications to the California Insurance Commissioner for review and approval before offering a new program or implementing any rate changes, including rate applications filed under the Commissioner's Sustainable Insurance Strategy. The CDI specifies the components of a complete rate application, and further states that insurers may not modify the CDI's proprietary formulas within those components. Unauthorized modification of the formulas may result in severe penalties.

Please see Bulletin 2026-2 for more information. For any questions regarding the bulletin, please contact REBPublicInquiries@insurance.ca.gov.