California City Warned of Possible Insurance Loss

September 6, 2011

State officials have warned the Southern California city of La Puente that it could lose its insurance if elected officials do not start managing the city properly.

The Los Angeles Times reported Saturday that the California Joint Powers Insurance Authority, which oversees a municipal insurance pool, has told La Puente that it must meet certain conditions by the end of 2012 or it could lose its insurance. Cities cannot operate without insurance.

Among the conditions, the city of 40,000 must hire a permanent city manager, give notice of any harassment and retaliation complaints and send council members to etiquette classes to learn how to get along.

A similar dilemma recently faced the city of Maywood, forcing it to disband its police department and lay off almost all employees.

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