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SB-1242 Affordable housing risk retention pools.(2019-2020)

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Date Published: 02/20/2020 09:00 PM
SB1242:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1242


Introduced by Senator Archuleta

February 20, 2020


An act to amend Section 13902 of the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


SB 1242, as introduced, Archuleta. Affordable housing risk retention pools.
Existing law authorizes an affordable housing entity to join with one or more affordable housing entities in an arrangement providing for the pooling of self-insured claims or losses. Existing law requires a pool to annually furnish a copy of the pool’s audited financial statement and most recent actuarial review to specified legislative committees, including the Senate Committee on Transportation and Housing and the Senate Committee on Banking, Finance, and Insurance.
This bill would make technical, nonsubstantive changes to this provision, including updating the names of the committees to the Senate Committee on Housing and the Senate Committee on Insurance.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 13902 of the Insurance Code is amended to read:

13902.
 (a) Any insurance pool, An insurance pool that is established pursuant to this division, division may be organized as a nonprofit corporation, limited liability company, partnership, or trust, whether organized under the laws of this state or another state or operating in another state.
(b) Any An insurance pool that is established pursuant to this division shall have initial pooled resources of not less than two million five hundred thousand dollars ($2,500,000) in the form of cash or cash equivalents.
(c) Any An insurance pool that is established pursuant to this division shall maintain adequate reinsurance to protect against its risks.
(d) Any An insurance pool that is established pursuant to this division shall furnish a copy of the pool’s annual audited financial statement and most recent actuarial review, by first-class mail or by any other method of delivery, including electronic transmission, to the Assembly Committee on Housing and Community Development, the Assembly Committee on Insurance, the Senate Committee on Banking, Finance, and Insurance, and the Senate Committee on Transportation and Housing Housing, and the Senate Committee on Insurance within 180 days of the close of the pool’s fiscal year. If, in the period of time since the last submittal required by this subdivision, any of the following has occurred, the transmittal letter accompanying the annual audited financial statement and most recent actuarial review shall so indicate and shall provide a brief description of each matter:
(1) There has been a change to the pool’s plan of financing, management, or operation, including any a material amendment to any of those plans.
(2) A claims audit report has been filed with any a regulatory body with respect to the pool.
(3) A report of examination issued by any a regulatory body with respect to the pool has been received.
(4) There has been a material change in the scope of the regulation of the pool by other states in which the pool operates.