California State Assembly Democratic Caucus
07/17/2026 | Press release | Distributed by Public on 07/17/2026 14:51
Governor Newsom Signs Assemblymember Rodriguez’s AB 1781 to Strengthen California’s Insurance System
For immediate release:
Friday, July 17, 2026
SACRAMENTO, CA - Assemblymember Michelle Rodriguez applauds Governor Gavin Newsom for signing Assembly Bill 1781, legislation designed to promote greater stability and certainty within California's insurance system.
AB 1781 clarifies how agreements between insurers and Federal Home Loan Banks are treated when an insurance company enters insolvency. The law allows Federal Home Loan Banks to enforce their rights against collateral pledged under qualifying security agreements and prevents those transfers from being reversed unless they were made with the intent to hinder, delay, or defraud creditors.
By establishing clear and consistent rules for these financial agreements, AB 1781 supports access to reliable liquidity for insurers and helps strengthen the broader insurance market for California consumers and policyholders.
"Thank you, Governor Newsom, for signing AB 1781," said Assemblymember Michelle Rodriguez. "This legislation provides greater certainty within our insurance system and supports a stable, reliable marketplace. This is a win for consumers, policyholders, and communities throughout California."
AB 1781 passed the Assembly on April 23, 2026, and the Senate on July 2, 2026, before being enrolled on July 15, 2026.
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