The Peace Officers Research Association of California (“PORAC”), California Correctional Peace Officers Association (“CCPOA”) and California State Firefighters’ Association (“CSFA”) were all co-sponsors of AB1072. Under current Insurance Code 11401, Relief and Benefit associations were created to provide help to survivors of deceased peace officers and firefighters through a charity type of mechanism wherein fellow peace officers and firefighters provided monies to the surviving families.   Some of these associations have evolved to provide valuable long-term disability coverage, long-term care coverage and other types of health and welfare plan coverage for their eligible members.  Under current law, if an association has a “certificate of authority” and complies with minimum membership requirements, it generally will not be subject to oversight by the Insurance Commissioner.

AB 1072 requires an association that holds a certificate of authority and who offer long-term (One-year +) disability coverage or long-term care coverage submit to the commissioner an opinion of a qualified actuary as to whether the reserves and related actuarial items that support the policies or contracts issued are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts and are based on specified actuarial standards and procedures. 

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