Insurance Code section 1872.87

(a)

Each insurer required to pay special purpose assessments pursuant to Section 1872.8, 1872.81, 1872.85, 1874.8, or subdivision (a) of Section 1872.86 may, over a reasonable length of time, but in no event later than the calendar year in which the assessment is paid, recoup the special purpose assessments by way of a surcharge on premiums charged for the insurance policies to which those sections apply or by including the assessments within the insurer’s rates. Amounts recouped shall not be considered premiums for any purpose, including the computation of gross premium tax or agents’ commission.

(b)

The amount of the surcharge shall be separately stated on either a billing or policy declaration sent to an insured.

Source: Section 1872.87, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=INS§ionNum=1872.­87.­ (updated Jan. 1, 2014; accessed Nov. 17, 2025).

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Nov. 17, 2025

§ 1872.87's source at ca​.gov