California Stop-Loss Minimum Attachment Point Law Effective January 1, 2014

A new California law imposes individual and aggregate attachment point requirements on stop-loss policies issued to small employers (50 employees or less; 100 employees or less beginning in 2016).?á The individual attachment point must be at least $35,000 ($40,000 beginning in 2016).?á The aggregate attachment point must be at least the greater of (1) $5,000 times the number of group members, (2) 120 percent of expected claims, or (3) $35,000 ($40,000 beginning in 2016).?á The new law can be found here.