(a) Any insurance pool, established pursuant to this 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 insurance pool 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 insurance pool established pursuant to this division shall maintain adequate reinsurance to protect against its risks.
(d) Any insurance pool 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 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 material amendment to any of those plans.
(2) A claims audit report has been filed with any regulatory body with respect to the pool.
(3) A report of examination issued by any 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.
(Added by Stats. 2010, Ch. 384, Sec. 1. (AB 2327) Effective January 1, 2011.)
Last modified: October 25, 2018