Legislature Passes Bill to Loosen CIGA Reinsurance Limitations

California lawmakers sent to the governor a bill that would give the association that pays benefits on behalf of insolvent carriers more flexibility when buying reinsurance. The Assembly on Thursday voted 73-0 to pass Senate Bill 430, a measure by the Senate Insurance Committee that would allow the California Insurance Guarantee Association to purchase reinsurance from any reinsurer licensed in California. The insurance commissioner would have to approve any reinsurance transaction involving CIGA. Current law allows CIGA to purchase reinsurance only from a company that is a member of the ass...