NIAC Announces Nonrenewal of Insurance Coverages for California Foster Family Agencies
TL;DR
FFAs in California will not be renewed due to lack of insurability, creating potential opportunity for alternative insurance providers.
NIAC's announcement regarding nonrenewal of coverages for California FFAs is a result of the unlikeliness of AB 2496 to pass.
NIAC's commitment to advocating for California FFAs demonstrates their dedication to support the important work of these organizations.
The announcement by NIAC highlights the challenges faced by FFAs in California, shedding light on the need for legislative change.
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The Nonprofits Insurance Alliance of California (NIAC) has announced it will send out notices of nonrenewal for all coverages for foster family agencies (FFAs) in California. This decision follows the realization that AB 2496, the Foster Family Agency Protection Act, is unlikely to be passed in a form that allows these agencies to remain insurable.
NIAC emphasized that organizations with policies underwritten as FFA exposures, which cease providing FFA services or working with children in resource homes, might still be considered for renewal on a case-by-case basis. The organization continues to advocate for California FFAs, working with various stakeholders to pass legislation that would ensure insurability for these agencies.
AB 2496 was initially designed as a moderate bill to achieve this goal, allowing FFAs in California to continue their crucial work. However, recent developments indicate that the bill is unlikely to pass with provisions that codify appropriate judicial processes to make FFAs insurable. The bill's future now lies with the California legislature and the governor, with NIAC expressing limited hope for an equitable resolution.
NIAC acknowledged the severe difficulties this situation imposes on FFAs. Pamela Davis, Founder, President, and CEO of NIAC, stated, “If there were any other way to maintain NIAC’s financial integrity while continuing to insure FFAs, that path would have been taken.”
This announcement underscores the critical need for legislative action to support FFAs and ensure the continuity of foster care services in California. The implications are significant for the foster care system, as the lack of insurance coverage could jeopardize the operational capacity of FFAs, directly impacting the welfare of children in resource homes.
Curated from News Direct
