AB 2154 Summary

• Expands California Insurance Guarantee Association (CIGA) authority to request bond issuance from the California Infrastructure and Economic Development Bank to cover insolvencies in homeowners', automobile, and other insurance categories, not just workers' compensation claims.

• Repeals provisions allowing bond issuance for natural disaster-related covered claims and creates three separate bond funds: Workers' Compensation Bond Fund, Homeowners' and Automobile Bond Fund, and Other Bond Fund.

• Authorizes CIGA to levy special bond assessments on member insurers writing homeowners', automobile, and other insurance to repay bond principal and interest, with costs recouped through policyholder surcharges.

• Requires CIGA board to report to the Assembly and Senate Insurance Committees within 60 days of requesting bonds and annually thereafter, including bond amounts, reasons, claim details, and repayment plans.

• Adds cybersecurity insurance as a covered claim with a $1,000,000 liability limit and permits member insurers to assess surcharges even if they had no direct written premium in a category during the prior year.