CA AB1846

Authorizes the Department of Managed Health Care to issue health care service plan licenses and the Insurance Commissioner to issue certificates of authority to Consumer Operated and Oriented Plans (CO-OPs) established under the federal Affordable Care Act.

Subjects CO-OPs to all applicable state requirements for health insurers and health care service plans, including certificates of authority, reserve requirements, risk-based capital, and financial statement filings.

Requires CO-OPs to implement member-controlled governance structures, including elections of board directors by majority member vote within one to two years of providing coverage, with a majority of voting directors being CO-OP members.

Prohibits CO-OPs from converting or selling to for-profit or non-consumer-operated entities after receiving a federal solvency loan and requires compliance with ethics, conflict of interest, and disclosure standards to prevent insurance industry interference.

Treats federal solvency loans obtained by CO-OPs as surplus notes subject to the same requirements as mutual insurers and authorizes the Insurance Commissioner to revoke a CO-OP insurer's certificate of authority for violating governance or conversion prohibitions.