California Insurance Code

§ 10095

INS § 10095 Effective Jan 1, 2024Div. 2 · Part 1 · Ch. 9

Statute text

(a)Within 30 days following the effective date of this chapter, the association shall submit to the commissioner, for the commissioner’s review, a proposed plan of operation, consistent with this chapter, creating an association consisting of all insurers licensed to write and engaged in writing in this state, on a direct basis, basic property insurance or any component of basic property insurance in homeowners or other dwelling multiperil policies. An insurer described in this subdivision shall be a member of the association and shall remain a member as a condition of its authority to transact those kinds of insurance in this state.

(b)The proposed plan shall authorize the association to assume and cede reinsurance on risks written by insurers in conformity with the program.

(c)Under the plan, an insurer shall participate in the writings, expenses, profits, and losses of the association in the proportion that its premiums written during the second preceding calendar year bear to the aggregate premiums written by all insurers in the program, excluding that portion of the premiums written attributable to the operation of the association. Premiums written on a policy of basic residential earthquake insurance issued by the California Earthquake Authority pursuant to Section 10089.6 shall be attributed to the insurer that writes the underlying policy of residential property insurance.

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Legislative history

Amended by Stats. 2023, Ch. 180, Sec. 1. (SB 505) Effective January 1, 2024.