§ 1063.72. — 1063.72. (Repealed and added by Stats. 2022, Ch. 408, Sec. 11.)

California § 1063.72.

• Jurisdiction: California
• Code INS: Insurance Code - INS
• Div. 1.: DIVISION 1. GENERAL RULES GOVERNING INSURANCE
• Part 2.: PART 2. THE BUSINESS OF INSURANCE
• Ch. 1.: CHAPTER 1. General Regulations
• Art. 14.26.: ARTICLE 14.26. California Insurance Guarantee Association Bond Funds

Text

(a)
The Workers’ Compensation Bond Fund is hereby created.
(1)
Proceeds from the sale of bonds with respect to the workers’ compensation category described in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1063.5 shall be deposited in a separate account in the Workers’ Compensation Bond Fund. Only CIGA, and, with respect to payment of the bonds, the trustee for the bonds, shall have the ability to authorize disbursements from the separate account within the Workers’ Compensation Bond Fund.
(2)
Special bond assessments levied pursuant to Section 1063.74 with respect to the
workers’ compensation category shall be deposited in a separate account in the Workers’ Compensation Bond Fund and shall not be commingled with any other moneys. Only the trustee for the bonds shall have the ability to authorize disbursements from this separate account within the Workers’ Compensation Bond Fund, and CIGA shall have no right or authority to authorize disbursements from this separate account.
(3)
The Workers’ Compensation Bond Fund shall be maintained with the trustee for the bonds. Following payment or provision for payment of the bonds, amounts in the Workers’ Compensation Bond Fund shall be transferred to the fund that is designated in the indenture for the bonds.
(4)
All money in the Workers’ Compensation Bond Fund and all special bond assessments levied
pursuant to Section 1063.74 with respect to the workers’ compensation category shall be used by CIGA for the exclusive purpose of carrying out the purposes of this part. Notwithstanding any other law, the Workers’ Compensation Bond Fund is not a state fund and shall not be subject to the rules or procedures of any fund in the State Treasury, and application of the fund shall not be subject to the supervision or budgetary approval of any officer or division of state government.
(5)
CIGA and the trustee for the bonds may, as necessary or convenient to the accomplishment of any other purpose under this article, divide the Workers’ Compensation Bond Fund into separate accounts.
(b)
The Homeowners’ and Automobile Bond Fund is hereby created.
(1)
Proceeds from the sale of bonds with respect to the homeowners’ and automobile category described in subparagraph (B) of paragraph (2) of subdivision (a) of Section 1063.5 shall be deposited in a separate account in the Homeowners’ and Automobile Bond Fund. Only CIGA, and, with respect to payment of the bonds, the trustee for the bonds, shall have the ability to authorize disbursements from the separate account within the Homeowners’ and Automobile Bond Fund.
(2)
Special bond assessments levied pursuant to Section 1063.74 with respect to the homeowners’ and automobile category shall be deposited in a separate account in the Homeowners’ and Automobile Bond Fund and shall not be commingled with any other moneys. Only the trustee for the bonds shall have the ability to
authorize disbursements from this separate account within the Homeowners’ and Automobile Bond Fund, and CIGA shall have no right or authority to authorize disbursements from this separate account.
(3)
The Homeowners’ and Automobile Bond Fund shall be maintained with the trustee for the bonds. Following payment or provision for payment of the bonds, amounts in the Homeowners’ and Automobile Bond Fund shall be transferred to the fund that is designated in the indenture for the bonds.
(4)
All money in the Homeowners’ and Automobile Bond Fund and all special bond assessments levied pursuant to Section 1063.74 with respect to the homeowners’ and automobile category shall be used by CIGA for the exclusive purpose of carrying out the purposes of this part. Notwithstanding any other
law, the Homeowners’ and Automobile Bond Fund is not a state fund and shall not be subject to the rules or procedures of any fund in the State Treasury, and application of the fund shall not be subject to the supervision or budgetary approval of any officer or division of state government.
(5)
CIGA and the trustee for the bonds may, as necessary or convenient to the accomplishment of any other purpose under this article, divide the Homeowners’ and Automobile Bond Fund into separate accounts.
(c)
The Other Bond Fund is hereby created.
(1)
Proceeds from the sale of bonds with respect to the other category described in subparagraph (C) of paragraph (2) of subdivision (a) of Section 1063.5 shall be deposited in a separate account
in the Other Bond Fund. Only CIGA, and, with respect to payment of the bonds, the trustee for the bonds, shall have the ability to authorize disbursements from the separate account within the Other Bond Fund.
(2)
Special bond assessments levied pursuant to Section 1063.74 with respect to the other category shall be deposited in a separate account in the Other Bond Fund and shall not be commingled with any other moneys. Only the trustee for the bonds shall have the ability to authorize disbursements from this separate account within the Other Bond Fund, and CIGA shall have no right or authority to authorize disbursements from this separate account.
(3)
The Other Bond Fund shall be maintained with the trustee for the bonds. Following payment or provision for payment of the bonds,
amounts in the Other Bond Fund shall be transferred to the fund that is designated in the indenture for the bonds.
(4)
All money in the Other Bond Fund and all special bond assessments levied pursuant to Section 1063.74 with respect to the other category shall be used by CIGA for the exclusive purpose of carrying out the purposes of this part. Notwithstanding any other law, the Other Bond Fund is not a state fund and shall not be subject to the rules or procedures of any fund in the State Treasury, and application of the fund shall not be subject to the supervision or budgetary approval of any officer or division of state government.
(5)
CIGA and the trustee for the bonds may, as necessary or convenient to the accomplishment of any other purpose under this article, divide the
Other Bond Fund into separate accounts.

Legislative History

Repealed and added by Stats. 2022, Ch. 408, Sec. 11. (AB 2154) Effective January 1, 2023.