CA SB1011

Extends self-insurance pooling authority for nonprofit corporations organized to provide health or human services to cover loss or damage to property of every kind, including expenses related to property loss.

Requires insurance pools providing property coverage to be organized as nonprofit public benefit corporations, maintain existence for tort liability coverage for at least 5 years, and maintain accumulated net assets of at least $5,000,000.

Mandates that all membership applications and risk pooling contracts issued or renewed on or after January 1, 2016 include a boldface 10-point notice on the front page stating the pooling arrangement is not subject to all California insurance laws and not regulated by the Insurance Commissioner.

Prohibits pooling arrangements from paying for or insuring punitive or exemplary damages against employees and requires participating corporations to pay premiums or make mandatory financial contributions to ensure the pool remains financially sound.

Applies only to corporations that are organized chiefly to provide or fund health or human services (excluding hospitals) and are exempt from federal income tax under Section 501(c)(3).