California Insurance Code

§ 11623.5

INS § 11623.5Div. 2 · Part 3 · Ch. 1 · Art. 4

Statute text

(a)Groups of insurers not under common ownership or management may form a limited assignment distribution arrangement. Each arrangement shall have one servicing carrier that writes assigned risk business on behalf of the members of the arrangement in return for consideration from the other participating carriers for not writing the business.

(b)No insurer may act as a servicing carrier except with the continuing approval of the commissioner.

(c)Each servicing carrier shall have a surplus of at least ten million dollars ($10,000,000).

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Legislative history

Added by Stats. 1990, Ch. 509, Sec. 1.