AB 2230

  • California Assembly Bill
  • 2013-2014 Regular Session
  • Introduced in Assembly
  • Passed Assembly May 01, 2014
  • Passed Senate Jun 19, 2014
  • Signed by Governor Jun 28, 2014

Insurance: Workers' Comp Bond Fund: assessments.

Abstract

Existing law creates the California Insurance Guarantee Association (CIGA) and requires all insurers admitted to transact insurance in this state to become members. CIGA is required to collect premium payments from members to discharge its obligations to cover claims of an insolvent insurer. Existing law provides that CIGA shall be a party in interest in all proceedings involving a covered claim, and has all of the rights an insolvent insurer would have if the insurer was not in liquidation. CIGA is required to allocate its claim payments and costs based on categories of insurance, including, but not limited to, workers' compensation claims and homeowners' claims. The premium payments from each category are separate and required to be used to pay the claims and costs allocated to that category. Existing law provides that the premium charged to a member insurer for any of the categories of insurance is 1% of the net direct written premium, as defined, written in the category by the member per year. Existing law authorizes CIGA to request the issuance of bonds by the California Infrastructure and Economic Development Bank to pay for covered claims that arise as a result of the insolvency of workers' compensation insurers. Proceeds from the sale of the bonds are deposited in the Workers' Comp Bond Fund, and CIGA distributes this money to pay covered claims. Principal and interest on the bonds are paid from special bond assessments levied by CIGA on workers' compensation insurers, as provided. This bill would, commencing January 1, 2015, provide that the premium charged to a member insurer for a category of insurance would be 2% of the net direct written premium, unless there are outstanding bonds, as specified, in which case the premium would not exceed 1% of the net direct written premium for any category of insurance for which the bond proceeds are being used to pay claims and expenses. The bill would prohibit, once all the bonds issued pursuant to these provisions are redeemed, further initial special bond assessments from being levied or made. The bill would require that any premium adjustments applicable to the special bond assessments continue to be made and determined, and that any credits or charges that result from the premium adjustments be credited or charged to the workers' compensation assessments that the insurers are otherwise required to pay CIGA.

Bill Sponsors (1)

Votes


Actions


Jun 28, 2014

California State Legislature

Chaptered by Secretary of State - Chapter 76, Statutes of 2014.

California State Legislature

Approved by the Governor.

Jun 24, 2014

California State Legislature

Enrolled and presented to the Governor at 11:45 a.m.

Jun 19, 2014

Assembly

In Assembly. Ordered to Engrossing and Enrolling.

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 34. Noes 0. Page 4021.).

Jun 12, 2014

Senate

Read second time. Ordered to third reading.

Jun 11, 2014

Senate

From committee: Do pass. (Ayes 10. Noes 0.) (June 11).

May 15, 2014

Senate

Referred to Com. on INS.

  • Referral-Committee
Com. on INS.

May 01, 2014

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 1. Page 4713.)

Apr 30, 2014

Assembly

Read second time. Ordered to third reading.

Apr 29, 2014

Assembly

Read second time and amended. Ordered to second reading.

Apr 28, 2014

Assembly

From committee: Do pass as amended. (Ayes 13. Noes 0.) (April 23).

Apr 01, 2014

Assembly

Re-referred to Com. on INS.

  • Referral-Committee
Com. on INS.

Mar 28, 2014

Assembly

From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

Mar 06, 2014

Assembly

Referred to Com. on INS.

  • Referral-Committee
Com. on INS.

Feb 21, 2014

Assembly

From printer. May be heard in committee March 23.

Feb 20, 2014

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB2230 HTML
02/20/14 - Introduced PDF
03/28/14 - Amended Assembly PDF
04/29/14 - Amended Assembly PDF
06/20/14 - Enrolled PDF
06/28/14 - Chaptered PDF

Related Documents

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Sources

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