Governor Signs CIGA Reinsurance Bill

Gov. Jerry Brown signed into law a bill allowing the California Insurance Guarantee Association to purchase reinsurance from any reinsurer authorized to transact business in the state. The governor on Saturday signed Senate Bill 430, a measure introduced by the Senate Insurance Committee to give CIGA more flexibility when purchasing reinsurance. Current law requires CIGA to purchase reinsurance from a company that is a member the association. Proponents of SB 430 said more reinsurers are not members of CIGA. The bill will allow the association to purchase reinsurance from any reinsurer ...