Fraternal fire insurers: coverage.

Existing law authorizes certain nontraditional insurers, including religious organizations meeting specified criteria, to insure against specified risks. Existing law authorizes these associations to insure against a specified list of losses, including, but not limited to, vandalism or malicious mischief, vehicles owned or operated by the insured or by any tenant of the described premises, falling trees, burglary and theft, and mysterious disappearance. This bill would remove insuring vehicles owned or operated by the insured or by any tenant of the described premises from the list of insurable losses and would add insuring against liability to the list of insurable losses. Existing law prohibits an association from writing insurance in excess of $10,000 on any one risk or in excess of $60,000 in any one city block within an incorporated city without immediately reinsuring all the excess amount. Existing law authorizes an association to write insurance for an amount not exceeding $60,000 on any one risk if the excess over $10,000 is reinsured, as provided. An association is not authorized to accept reinsurance but may reinsure risks if that reinsurance is by contracts and with reinsurers that meet the prescribed standards. This bill would delete the above-described provisions.