Self-Insurance for Veterans

California’s Military and Veterans Code, in Division 4, Chapter 6, Article 3.7, provides for pooled self-insurance as a state benefit for veterans in this state.

Section 989 provides a statement of legislative intent to establish the Pooled Self-Insurance Fund in order to ensure that each of the department’s insurance reserve funds are self-sufficient and adequately maintained for the benefit of the contract purchasers.

Section 989.1 requires the department to maintain a Pooled Self-Insurance Fund, which was created in the State Treasury. The Pooled Self-Insurance Fund includes the reserves and moneys held by the department. The department may, in the discretion of the Secretary, pool these reserves for the purpose of providing reliable, consistent, and affordable home protection, and to encourage the strengthening of bond ratings.

In addition, the department may purchase insurance against any risk, or portion of any risk, otherwise payable out of appropriated moneys in the Pooled Self-Insurance Fund. The department must make an annual report on or before September 1 of each year to the Legislature regarding any insurance coverage implemented or required by it. The report must include specified information.

There is also a biennial audit of each subfund to ensure adequate rates are being charged to meet expenses. Premium rates of each subfund will be monitored and adjusted annually according to need to ensure self-sufficiency and reconcile internal borrowing between the members of the Pooled Self-Insurance Fund.

And, upon dissolution or termination of any of the subaccounts or subfunds within the Pooled Self-Insurance Fund, whether established by statute or otherwise, any excess moneys must revert to the Veterans’ Farm and Home Building Fund of 1943.