Insurance: Guarantee Association.

Existing law establishes the California Insurance Guarantee Association to provide coverage against losses arising from the failure of an insolvent property, casualty, or workers' compensation insurer to discharge its obligations under its insurance policies. The association is managed by a board of governors appointed by the commissioner, the President pro Tempore of the Senate, and the Speaker of the Assembly. Existing law defines the term "insolvent insurer" to mean an insurer that was a member insurer of the association, as specified, either at the time the policy was issued or when the insured event occurred, and against which an order of liquidation or receivership with a finding of insolvency has been entered by a court of competent jurisdiction, or, in the case of the State Compensation Insurance Fund, if a finding of insolvency is made by a duly enacted legislative measure. This bill would delete an order of receivership as a qualification for being an insolvent insurer. Existing law provides that any bonds to provide funds to the California Insurance Guarantee Association under specified statutory authority for covered claim obligations for workers' compensation claims shall be issued, as specified, prior to January 1, 2011. This bill would extend the date for bonds to be issued to provide funds for covered claim obligations for workers' compensation claims, as specified, to January 1, 2013.