CA AB2327

Authorizes affordable housing entities to form self-insured risk pooling arrangements to cover tort liability, employee liability, board member/volunteer liability, and property damage losses.

Pooling arrangements are not regulated as insurance under California Insurance Code and must notify participants in 10-point type that state insurance guaranty funds are not available.

Insurance pools must have minimum initial pooled resources of $2,500,000 in cash or equivalents and maintain adequate reinsurance coverage.

Pools must submit annual audited financial statements and actuarial reviews to four legislative committees within 180 days of fiscal year end, reporting any material changes to financing, management, operations, or regulatory status.

Defines "affordable housing entities" to include housing authorities, nonprofit corporations, and affiliated partnerships/limited liability companies engaged in providing low or moderate income housing, whether organized in California or another state.