California Insurance Code

§ 10089.35

INS § 10089.35 Effective Sep 27, 1996Div. 2 · Part 1 · Ch. 8.6

Statute text

(a)If at any time the board determines that all the authority’s available capital may be exhausted and no source of additional funds such as assessments, reinsurance, or private capital market moneys will be available to the authority to pay policyholder claims, the board shall draw up and present to the commissioner a plan to pay policyholder claims on a pro rata basis or in installment payments. The board shall maintain sufficient capital to ensure the continued operation of the authority for the purpose of implementing the proration or installment plan. At this point, the commissioner shall adopt a schedule for reinstitution of an insurer’s statutory obligation to offer earthquake coverage by a means other than placement in the authority. In no event shall the schedule adopted pursuant to this subdivision be for a period longer than six months.

(b)Upon presentation of that plan to prorate or pay in installments, the commissioner shall order the authority to cease renewing or accepting new earthquake insurance policies and may apply to the superior court for orders or injunctions as the commissioner deems necessary to prevent any event or occurrence adverse to the authority, including, but not limited to, any or all of the following:

(1)Interference with the commissioner’s consideration and implementation of a plan for pro rata or installment payment of policyholder claims under this section.

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Legislative history

Amended by Stats. 1996, Ch. 968, Sec. 10. Effective September 27, 1996.