CA AB1708

Increases minimum capital and surplus requirements for nonadmitted insurers from $15,000,000 to $45,000,000, with at least $25,000,000 in liquid assets (cash and specified securities).

Establishes transition timeline for existing eligible surplus line insurers: $30,000,000 required by December 31, 2011, and $45,000,000 by December 31, 2013.

Raises capital and surplus requirements for Insurance Exchange syndicates to $45,000,000, and increases liquid asset requirements from $15,000,000 to $25,000,000.

Permits California-domiciled insurers to provide administrative services (IT operations, human resources, clerical support, and claims adjusting) to affiliated nonadmitted insurers, with limits on decision-making authority.

Allows common directors between California-domiciled and affiliated nonadmitted insurers if they do not constitute a voting majority and perform no management functions in California.