Insurance: Weakness in the Front Line of Fiscal Defense

This session will explain how public agencies have insured against their liability claims through risk-pools - pooling funds and sharing risk across many agencies. California's  risk-pools did not anticipate the costs of retroactive claims associated with the change in  the statute of limitations for childhood assaults. This has led to a huge liquidity gap for  the onslaught of new claims, among other coverage limitations. Panelists will address the state of the risk-pool landscape, specific limitations of risk pools to settle claims individually and collectively, and their expectations for a massive cost gap that will be absorbed by the general funds of all pool participants.