Plain English Breakdown
The phrase 'as specified' appears multiple times in the official summary, indicating specific details are defined elsewhere in the full bill text not provided here.
Allowing Water Corporations to Join Insurance Groups
This law lets water corporations join with mutual water companies and public agencies in joint powers agreements for insurance or risk pooling, but only if customers get better benefits than their current policies.
What This Bill Does
- Allows water corporations, mutual water companies, and one or more public agencies to form joint powers agreements to provide insurance as specified.
- Authorizes these groups to enter into joint powers agreements for risk pooling purposes as specified.
- Prohibits the Public Utilities Commission from approving a water corporation's entry if customers receive no greater benefits than their current policy provides.
- Requires any joint powers agency formed under this law to be 100% reinsured with no financial liability, assessments, or shared legal responsibility for members.
- Mandates that water corporations entering risk pooling agreements must submit an annual information filing to the Public Utilities Commission and the joint powers agency.
Who It Names or Affects
- Water corporations
- Mutual water companies
- Public agencies participating in these insurance or risk pooling groups
- The Public Utilities Commission, which reviews agreements and receives annual filings
Terms To Know
- Joint powers agreement
- A formal contract where two or more public agencies work together to share a specific power or service.
- Risk pooling
- Combining resources from multiple groups to spread out the financial risk of paying for insurance claims.
- Reinsured
- When an entity buys its own insurance protection so that members do not face extra costs or assessments if large losses occur.
Limits and Unknowns
- The law states requirements are 'as specified' but does not list the exact details of those specifications in this summary.
- The specific content required for annual information filings is defined only as 'as specified'.
- The effective date is listed as enacted, though a specific calendar start date is not provided in the metadata.