AB 1837 Summary

• Authorizes California-domiciled insurers to share common directors with affiliated nonadmitted insurers, provided such directors do not constitute a majority of the nonadmitted insurer's voting authority and do not perform management functions for the nonadmitted insurer in California.

• Permits California-domiciled insurers to provide specified administrative, claims adjusting, and investment management services to affiliated nonadmitted insurers that qualify as eligible surplus line insurers, including computer operations, clerical support, human resources, and investment management.

• Increases capital and surplus requirements for nonadmitted insurers from $15,000,000 to $45,000,000, with existing insurers granted transition periods (minimum $30,000,000 by December 31, 2011, and $45,000,000 by December 31, 2013).

• Modifies Insurance Exchange syndicate capital requirements from graduated increases to a flat $45,000,000 minimum capital and surplus requirement.

• Contains coordination provisions with AB 1708 that specify this bill's amendments supersede conflicting provisions in AB 1708 if both bills are enacted before January 1, 2011.