Assessment
In accordance with section §1063.5 of the California Insurance Code, the California Insurance Guarantee
Association (also known as "CIGA") is required to collect initial premium charges from the member companies for
the insolvency insurance provided by CIGA in the amount necessary to pay covered claims and expenses of insolvent
member insurers. The statute authorizes separate premium charges for each of the three categories of covered
claims (automobile and homeowners claims, workers' compensation claims, and all other claims) that CIGA pays. It
also currently limits premium charges to one percent of written premiums for any category of covered claims.
For historical detailed information, click this link for
Historical Assessment Information.
Surcharge
The CIGA plan of operation, in accordance with section §1063.14 of the California Insurance Code, requires each
member insurer to recoup a sum reasonably calculated to recoup the assessment paid by the member insurer through a
surcharge on premium charged for insurance policies. The amount of the surcharge shall be separately stated on
either a billing or policy declaration sent to an insured. CIGA shall determine the rate of the surcharge and the
collection period for each category and these shall be mandatory for all member insurers of CIGA who write
business in the three categories.
For a copy of the current surcharge notification letter from CIGA, click this link
Surcharge Notification Letter.
Frequently Asked Questions
Nothing in the following frequently asked questions (FAQs) and answers alters the statutory and case law
definitions of covered claims for which CIGA is responsible. The actual terms of the applicable statutes, other
controlling laws, and legal opinions shall prevail over the information provided on this web site. These FAQs and
answers are not intended to provide legal advice.
My company is a Member Insurer of CIGA. How do I find out about assessments or
surcharges?
If still necessary after reviewing the web site menu link titled Member Insurer Advice, contact the CIGA Director
of Finance at 818-844-4300 Ext. 267
The unearned insurance premium refund amount is incorrect on the check that I received from
CIGA. What should I do?
Contact CIGA Premium Research at 818-844-4300 Ext 166.