Authored by Assemblymember Blanca Rubio (D–Baldwin Park) and co-sponsored by the California Water Association (CWA) and CalMutuals, AB 428 allows water corporations regulated by the California Public Utilities Commission (CPUC) to join joint powers agreements (JPAs) alongside mutual water companies and public water agencies. This change enables these systems to participate in shared insurance programs, rather than having to secure costly individual coverage.

This legislation builds on the foundation established by CalMutuals in 2016, when the association successfully advanced legislation expanding access to comprehensive and competitive insurance options for small mutual water companies. That effort led to the creation of the CalMutuals Joint Powers Risk and Insurance Management Authority (JPRIMA).

CalMutuals JPRIMA President & CEO Allen praised the new law as a major step forward for equity and resiliency among California’s diverse water systems.

“As California’s voice for small water systems, we broke new ground in 2016 when Governor Jerry Brown signed AB 656 (Garcia), allowing mutual water companies to form insurance JPAs with public agencies,” said Allen. “Mutual water companies are community-owned, not-for-profit water providers. Through insurance JPAs like CalMutuals JPRIMA, we’ve been able to deliver broader coverage and lower premiums by actively reducing risks that drive up insurance costs.  We also reinvest residual revenues in small water system capacity-building efforts.”

“While large utilities can afford self-insurance or membership in multimillion-dollar insurance pools, CalMutuals JPRIMA provides an affordable, proactive alternative—one that smaller water suppliers can now access, including those regulated by the CPUC. We thank Governor Gavin Newsom for signing AB 428 and recognizing the importance of extending these protections statewide,” said Allen.

CalMutuals JPRIMA Board President David Michalko emphasized the bill’s importance in today’s rapidly changing risk environment.

“Having affordable insurance choices is vital in an age of increasing volatility—whether from natural disasters, technology failures, or evolving workplace safety laws,” Michalko said. “Earlier this year, CalMutuals JPRIMA assisted three mutual water companies devastated by the Eaton Fire, helping them restore service as quickly as much larger utilities like LADWP. In emergencies, there should be no distinction between small and large systems. We’re grateful to Assemblymember Blanca Rubio for ensuring AB 428 makes that principle a reality.”

Founded in 2013 by twelve mutual water companies in Los Angeles and the Inland Empire, CalMutuals provides technical, financial, and management assistance—as well as advocacy—to small and community-based water systems. In just over a decade, CalMutuals has grown to represent more than 500 members statewide, serving nearly every county in California.

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The book distills years of risk  management experience into a thoughtful book that delivers real insights into the practice with enough personality and humor. We were also pleased to share a copy of the Handbook of Risk and Insurance Strategies for Certified Public Risk Officers and other Water Professionals, co-authored by Paul Fuller. This book provides a functional comprehension of water and wastewater operations as well as a broad understanding of industry derivations and various stakeholder interconnectivity. It also examines risk management best practices and provides an actionable review of doing the right thing, the right way, every time through a combination of core risk management principles.

For more information, click here.

This training covers:

• Realities of surveillance
• What can go wrong in the investigative stages
• What must be covered in a fraud referral
• What obstacles must be overcome
• What an employer should expect
• What does Zenith do and why are we different?

Who should attend this training?
Managers, General Managers, Human Resource Managers or any others who work in supervisory/ management roles within the organization.

Presented by:
This session is presented by Don Marshall, Vice President and National Director of Zenith’s Anti-Fraud Program & Chair of the State of CA, Fraud Assessment Commission. Don is a longtime member of the Fraud Assessment Commission, first appointed by then Governor Arnold Schwarzenegger in 2009.  He was elected Chair of the State of California’s Fraud Assessment Commission in 2011

WHEN: 
Tuesday, May 10, 2022
10:00 a.m. – 11:00 a.m.
 
WHERE: Online webinar
 
REGISTRATION: Click here to register.

Once registered, you’ll receive an email from Webex. Follow the email instructions to access the webinar. To hear the webinar, call the phone number that appears on your screen.
 
Contact Jessica Neal at (559) 449-4836 or  jneal@thezenith.com with any questions.

Our liability insurance program does not have a communicable disease exclusion. That means JPRIMA is prepared to respond to covered litigation affecting our members from COVID-19. Our property insurance program requires direct physical loss or damage to covered property to trigger most claims. That means COVID-19 claims involving business interruption and extra expense may not be covered. Other property exclusions such as pollution conditions and microorganism may also impact coverage.

As a reminder, all submitted claims require a thorough review of the facts and circumstances, which are then weighed against JPRIMA policy terms and conditions.

We encourage you to contact our insurance administrator, Paul Fuller, at pfuller@alliedpublicrisk.com or 415 205 8648 should you wish to discuss any loss scenarios or COVID-19 concerns you may have. Responses will be prompt, and we stand ready to provide assistance.

Paul R. Fuller, CPCU
CEO

In January 2016, the California Association of Mutual Water Companies Joint Powers Risk and Insurance Management Authority (CalMutuals JPRIMA) became the nation’s first joint powers insurance authority to provide insurance and technical assistance to help small community water systems statewide fix their aging pipes and comply with water quality regulations.

CalMutuals JPRIMA was formed after Assembly Bill 656 (Garcia) became law. Authored by Assemblywoman Cristina Garcia (D-Bell Gardens), AB 656 specifically authorizes a mutual water company and a public agency to participate in a joint powers agreement for purposes of insurance and risk-pooling, technical support, and other similar services.

AB 656 was initiated by mutual water companies who also won the support of the (Central) Valley Ag Coalition, and the California State Firefighters’ Association. Nine mutual water companies from throughout Southern and Central California partnered with North of the River Municipal Water District, a public agency in Kern County, to form the Authority. The founders include Bellflower Somerset Mutual Water Company (Bellflower), California Domestic Water Company (Whittier), Covina Irrigating Company (Covina), Montebello Land & Water Company (Montebello), Oildale Mutual Water Company (Kern County), Rubio Cañon Land & Water Association (Altadena), South Mesa Mutual Water Company (Calimesa/Yucaipa), Sunny Slope Mutual Water Company (Pasadena), and Valencia Heights Mutual Water Company (West Covina).

The Authority provides customized insurance solutions to small water systems throughout California whose operations comprise the development, transportation, management, storage, treatment or distribution of water. These water systems provide water to more than 1.3 million Californians.

Other water management agencies, such as public water districts, sewer districts, conservation districts, and community services districts, are also eligible and now well-positioned to secure insurance coverage through CalMutuals JPRIMA.

Lynda has served on the CalMutuals JPRIMA Board of Directors since 2022. Lynda is Chair of the Board of Directors of the Main San Gabriel Basin Watermaster, President of the Board of Directors of the San Gabriel Valley Water Association, and member of the Board of Directors of Covina Irrigating Company. She also serves as Vice Chair of the Board of Directors for the San Gabriel Basin Water Quality Authority, and as a member of the Board of Directors for Mujeres de la Tierra, an environmental advocacy non-profit based in Los Angeles.