CA AB1072

Requires firefighters' and police officers' benefit and relief associations holding a certificate of authority to submit a qualified actuary's opinion by July 1, 2016 certifying that reserves for long-term disability and long-term care policies are adequate, based on reasonable assumptions, and follow actuarial standards of practice.

Mandates associations seeking a certificate of authority to file an actuary's opinion establishing they have adequate resources to provide promised benefits and satisfy proposed contractual obligations.

Requires associations that self-fund benefits to include a specific disclosure in all unregulated contracts and certificates stating benefits are not subject to California Department of Insurance regulation and not guaranteed by the California Life and Health Insurance Guarantee Association.

Designates actuary opinions and supporting materials submitted to the Department of Insurance as proprietary trade secrets, making them confidential, exempt from public records disclosure, and not subject to subpoena or discovery in private civil actions.

Directs the Insurance Commissioner to report to the Legislature by July 1, 2017 with recommendations on whether laws governing these associations adequately protect member interests; all provisions sunset on December 31, 2018.