California AB428 allows water corporations to join joint powers agreements for insurance.

California AB428 amends the Government Code to allow water corporations, mutual water companies, and public agencies to enter joint powers agreements for insurance. The bill specifies that these entities can pool self-insured claims or losses without being subject to Insurance Code regulation. It also mandates that any joint powers agency created must be 100% reinsured and indemnify participating public agencies against debts and liabilities. Water corporations must report cost savings and insurance costs to the Public Utilities Commission before joining such agreements.

California AB428 allows water corporations to join joint powers agreements for insurance.

California AB428 amends the Government Code to allow water corporations, mutual water companies, and public agencies to enter joint powers agreements for insurance. The bill specifies that these entities can pool self-insured claims or losses without being subject to Insurance Code regulation. It also mandates that any joint powers agency created must be 100% reinsured and indemnify participating public agencies against debts and liabilities. Water corporations must report cost savings and insurance costs to the Public Utilities Commission before joining such agreements.