CA AB409

Amends Section 1063.5 of the Insurance Code to clarify the timing for adjusting initial premium charges collected by the California Insurance Guarantee Association from member insurers.

Changes the adjustment calculation so that the initial premium rate applies to written premiums from the annual statement for the second year following the year on which the initial charge was based, rather than the second year following when the charge was made.

Maintains existing provisions that premium payments are uniform percentages of net direct written premiums and are allocated to three categories: workers' compensation, homeowners/automobile, and other claims.

Preserves rules for refunding credits to insurers that were members when the initial assessment was paid but are no longer members due to insolvency or withdrawal from the state.