California Governor Arnold Schwarzenegger signed into law on Sept. 27 a bill that will increase the capital and surplus requirements for nonadmitted insurers.
Assembly Bill 1708 goes into effect on January 1 and it increases minimum capital and surplus requirements for nonadmitted insurers and insurance exchanges from $15 million to $45 million, with the amount of cash surplus increased from $15 million to $25 million.
Nonadmitted insurers on the list of eligible surplus line insurers who do not meet the capital and surplus requirements as of January 1, must have at least $30 million of capital and surplus as of December 31, 2011, and at least $45 million as of December 31, 2013.
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