State

Life insurance in California

California life insurance rules: guaranty coverage of 80% up to $300,000, a 60-day grace period, 30-day free look for buyers 60+, and community property.

California insurance regulator Search California unclaimed property Latest news
Guaranty limit: death benefit80% of the death benefit, up to $300,000
Guaranty limit: annuities80% of present value, up to $250,000 per contract ($300,000 across several annuities)
Free-look periodNot less than 10 days (and not more than 30) for individual life policies and annuities (Ins. Code § 10127.9); at least 30 days if the buyer is 60 or older (§ 10127.10); 30 days for replacements
Insurance department800-927-4357

Guaranty association protection

Guaranty association California Life & Health Insurance Guarantee Association
Life insurance death benefits 80% of the death benefit, up to $300,000
Cash surrender value 80% of the cash value, up to $100,000
Annuity benefits 80% of present value, up to $250,000 per contract ($300,000 across several annuities)
Health benefits Up to $661,862 as of March 31, 2024 (a $200,000 base indexed to health care inflation)
Overall limit $300,000 per person for life insurance and annuities combined
Notes California covers only 80% of life and annuity values, where most states cover 100% up to the cap; values are also subject to interest rate adjustments.
Website califega.org

Policy rules

Free-look period Not less than 10 days (and not more than 30) for individual life policies and annuities (Ins. Code § 10127.9); at least 30 days if the buyer is 60 or older (§ 10127.10); 30 days for replacements
Grace period At least 60 days from the premium due date (Ins. Code § 10113.71), with a lapse notice at least 30 days before termination
Interest on delayed claims Ins. Code § 10172.5: interest from the date of death on proceeds not paid within 30 days after the death
Community property state Yes

Taxes

State estate tax No state estate tax
Inheritance tax No

Lost policies and unclaimed money

Unclaimed property office California State Controller's Office Unclaimed Property
Search unclaimed property claimit.ca.gov

Regulator

Insurance regulator California Department of Insurance
Consumer hotline 800-927-4357
Website insurance.ca.gov
File a complaint insurance.ca.gov/01-consumers/101-help
Address Consumer Communications Bureau, 300 South Spring Street, South Tower, Los Angeles, CA 90013

How your policy is protected if an insurer fails

The California Life & Health Insurance Guarantee Association (CLHIGA) protects California residents when a life or health insurer licensed in the state becomes insolvent. All life and health insurers licensed in California must belong to it. It pays for that protection by assessing those insurers, not with tax dollars. One feature sets California apart. For life insurance and annuities it covers only 80% of the policy value, up to a dollar cap, where most states cover 100% up to the cap.

Limits from CLHIGA's own FAQ, as of October 4, 2026:

Coverage California limit
Life insurance death benefit 80% of the death benefit, up to $300,000
Life insurance net cash surrender or withdrawal value 80% of the value, up to $100,000
Annuities (present value, including cash values) 80% of the value, up to $250,000; up to $300,000 if you own several annuities with the same insurer
Health insurance (including long-term care) Up to $661,862 as of March 31, 2024; the $200,000 statutory base is indexed to health care inflation
Overall cap, life and annuities $300,000 per person, however many policies you own

CLHIGA's own examples show how the 80% rule works. A $300,000 policy is protected for $240,000. A cash value of $135,000 is protected for $100,000, because 80% of it ($108,000) exceeds the cap. Interest rate adjustments can reduce life and annuity values further when the failed insurer promised more than the act allows. NOLHGA's national chart (as of June 1, 2025) lists the same life and annuity limits and a health figure of $668,205 as of June 30, 2024. The health figure moves with inflation, so check with CLHIGA if it matters to you.

Protection follows where you live when the insurer fails, and only policies from insurers licensed in California are covered. Self-insured employer health plans are not covered. CLHIGA says it is a statutory association, not a state agency. California law also prohibits insurers and agents from using the association's existence to sell insurance, because the protection is limited. Guaranty coverage is a backstop, not a substitute for choosing a strong company. See state life and health guaranty associations and what happens if your life insurance company fails.

Who regulates life insurance in California

The California Department of Insurance (CDI), led by the elected Insurance Commissioner, licenses insurers and agents, approves policy forms, examines insurer finances and enforces the Insurance Code. Its consumer hotline, 800-927-HELP (800-927-4357), answers questions and takes complaints. Callers in the Los Angeles area can also use 213-897-8921, and CDI can confirm whether a company is licensed in California.

Free look, grace periods and policy rules

  • Free look: Insurance Code § 10127.9 requires every individual life policy and annuity to state on its cover a return period of at least 10 and at most 30 days. Returning a non-variable policy in that window voids it, and the insurer must refund all premiums and fees within 30 days. If the buyer is 60 or older on the purchase date, § 10127.10 requires at least 30 days. Replacement policies also get 30 days under § 10509.6, according to the NAIC. See the free-look period: returning a policy for a refund.
  • Grace period: § 10113.71 requires a grace period of at least 60 days from the premium due date for life policies, including group policies, and the policy stays in force during it. A lapse notice is not effective unless the insurer mails it to the owner, and to any designee or known assignee, at least 30 days before termination.
  • Lapse designee: under § 10113.72, insurers must let every applicant name at least one additional person to receive lapse notices. Naming a relative or adviser can prevent an accidental lapse.
  • Interest on late claims: § 10172.5 requires interest from the date of death on proceeds not paid within 30 days after the insured's death. The insurer must tell beneficiaries the rate.

Taxes, estates and community property

California has no state estate tax and no inheritance tax. The federal estate tax exclusion is $15,000,000 per person in 2026, according to the IRS.

California is a community property state (IRS Publication 555). Earnings during marriage and what they buy, including premiums, are generally owned half by each spouse. If a policy was paid for with community funds, a surviving spouse who was not named beneficiary may be able to claim a share of the proceeds. See community property states and life insurance, and talk to a California family or estate attorney before naming a non-spouse beneficiary.

Finding a lost policy or unclaimed benefits

Start with the free NAIC Life Insurance Policy Locator. Participating insurers search their records and contact the beneficiary if they find a policy. Then search the State Controller's Office unclaimed property database at claimit.ca.gov. Undelivered life insurance proceeds are reported there, and claiming them is free. Our guides to how to find a lost life insurance policy and unclaimed life insurance money and state unclaimed property cover other leads.

Life insurers based in California

Pacific Life is headquartered in Newport Beach. It ranked eighth among U.S. life insurance groups by 2024 individual life premiums, according to NAIC market share data.

Where to get help

  • California Department of Insurance consumer hotline: 800-927-4357 (800-927-HELP), or 213-897-8921 from the Los Angeles area; Consumer Communications Bureau, 300 South Spring Street, South Tower, Los Angeles, CA 90013; insurance.ca.gov.
  • File a complaint: CDI's online complaint forms are the fastest route, and printable forms are also available. Contact the insurer first, then send CDI copies of your policy, letters and claim records. See how to file a complaint against a life insurer.
  • Guarantee association: California Life & Health Insurance Guarantee Association, 2377 Gold Meadow Way, Suite 100, Gold River, CA 95670; 916-631-1581.

Neighboring states: Oregon, Nevada and Arizona.

Sources

  1. califega.org/FAQ
  2. nolhga.com/policyholders/how-youre-protected/
  3. content.naic.org/sites/default/files/model-law-chart-in-10-life-and-health-guaranty-fund…
  4. insurance.ca.gov/01-consumers/101-help/
  5. leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=10113…
  6. leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=10113…
  7. leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=10127.9
  8. leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=10127…
  9. leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=10172.5
  10. content.naic.org/sites/default/files/model-law-chart-li-30-life-insurance-disclosure-pro…
  11. sco.ca.gov/search_upd.html
  12. claimit.ca.gov/
  13. irs.gov/publications/p555

Rules and limits were checked against these sources on the review date below. Laws change - confirm with the state insurance department or guaranty association.

Profile last reviewed October 4, 2026

Related insurers

Pacific Life Newport Beach life and annuity insurer under a mutual holding company, sold through independent advisors and best known for indexed and variable universal life.

Mentioned in

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