Description of Applicant

In 1986, California Corporations Code Section 5005.1 was enacted for the purpose of giving nonprofit corporations the ability to create their own sources of affordable liability insurance. NIAC is a liability insurance pool organized under Section 5005.1. It has been in existence since 1988 and is incorporated as a tax-exempt, public benefit nonprofit corporation, owned and governed by its nonprofit member-insureds. In 1997, federal tax law was changed to enable NIAC's own federal exemption as a 501(c)(3) organization. NIAC is also exempt from income tax under Section 23701z of the California Revenue and Taxation Code, which was amended in 1997 to clarify NIAC's exemption.

NIAC's members number more than 2,000 California nonprofit organizations operating throughout the state, representing approximately one of every 10 active California nonprofits. They are primarily small, grassroots 501(c) (3) tax-exempt nonprofits, offering a wide range of services throughout the state. NIAC provides a variety of broad liability insurance products tailored to the specific needs of nonprofits. This includes coverage for general liability, directors and officers' liability, auto liability, and others. Examples of NIAC's members include: Child Assault Prevention Training Center of California, Jewish Welfare Federation of Fresno, Kings County United Way, and the Bakersfield SPCA.