California Assessments to be Billed Upfront Beginning January 1, 2027

What's changing?

Beginning January 1, 2027, BerkleyNet will bill California assessments upfront for policies with California exposure.

This update applies to policies effective on or after January 1, 2027, and aligns with California requirements for assessment billing.*

While the timing of the charge is changing, the assessment itself is not. Depending on the payment plan selected, assessments will be due with the initial payment or first payroll report. 

When are California assessments due?

The timing of the assessment charge depends on the payment plan selected. 

Installment Payment Plans

For policies on an installment plan, California assessments will be included with and due at the first payment, which is typically the policy deposit. 

Payroll Reporting Plans

For policies on payroll reporting plans, such as SmartPay, California assessments will be due with the expense constant at the time of the first payroll report. 

Why is this change being made?

This update is being implemented per California compliance requirements related to how assessments are charged and collected. While the timing of the assessment charge is changing, there is no change to the assessment itself. The adjustment simply moves the collection of the assessment to the beginning of the policy term. 

What should agents expect? 

Beginning with policies effective January 1, 2027:

• Policies with California exposure will have assessments billed upfront.
• Installment plans will include assessments in the first payment.
• Payroll reporting plans will include assessments with the first payroll report.
• Quotes will reflect the updated billing structure for applicable policies.

Agents should review payment expectations with clients so there are no surprises when coverage is bound. 

*8 CCR § 15607(c)