NIAC Announces Nonrenewal of All Coverages for California Foster Family Agencies It has become clear that AB 2496, The Foster Family Agency Protection Act, is unlikely to pass in a form that allows FFAs to be insurable.
Santa Cruz, CA
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August 21, 2024 03:30 PM Pacific Daylight Time
With incredible sadness, Nonprofits Insurance Alliance of California (NIAC) announced it will be sending out notices of nonrenewal of all coverages for all foster family agencies (FFAs) in the state of California.
This announcement was made after it became clear that AB 2496, The Foster Family Agency Protection Act, is unlikely to pass in a form that allows FFAs to be insurable.
NIAC noted that any organization with a policy that is underwritten as an FFA exposure that ceases providing all FFA services or working with children in resource homes can be considered for renewal, on a case-by-case basis.
NIAC remains committed to advocating on behalf of California FFAs. To that end, NIAC has been diligently working with various stakeholders to pass legislation that would allow FFAs to be insurable.
AB 2496, as originally drafted, was a moderate bill that would have accomplished this goal and allowed FFAs in California to continue with their important work.
Unfortunately, NIAC learned today that the bill is unlikely to pass in a version that codifies appropriate judicial processes to enable FFAs to be insurable.
The bill is currently in motion, but its fate remains in the hands of the California legislature and the governor. However, what NIAC has seen to date has not provided hope for an equitable solution in the best interests of the children.
While NIAC knows that time is short and any changes are unlikely, FFAs and others are encouraged to reach out to their elected officials and utilize any contacts and relationships they may have to let them know that the situation is dire.
NIAC is well aware of the extreme hardship this is placing on FFAs.
“If there were any other way to maintain NIAC’s financial integrity while continuing to insure FFAs, that path would have been taken,” said Pamela Davis, Founder, President, and CEO of Nonprofits Insurance Alliance.
Questions? Please contact Pamela Davis at (pameladavis@insurancefornonprofits.org) or 831-621-6018.
About NIA
Nonprofits Insurance Alliance of California (NIAC) is part of Nonprofits Insurance Alliance (NIA), the nation’s leading liability and property insurer exclusively serving nonprofit organizations.
Founded in 1989 in Santa Cruz, CA, NIA is a social enterprise focused on the long-term sustainability and management of risk in the nonprofit sector. NIA has one of the best customer retention rates in the industry.
NIA members enjoy fair and equitable insurance pricing, specialized insurance coverages, dividends, and innovative risk management and member resources.
The NIA group brand is comprised of Alliance Member Services (AMS) and three insurers rated A (Excellent) by AM Best:
• Nonprofits Insurance Alliance of California (NIAC)
• Alliance of Nonprofits for Insurance, RRG (ANI)
• National Alliance of Nonprofits for Insurance (NANI)
All organizations under the NIA brand are 501(c)(3) nonprofits. Learn more about Nonprofits Insurance Alliance at insurancefornonprofits.org
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