In 2009, Maywood lost their insurance coverage and was forced to layoff most of its employees and shut down its police force. Now, La Puenta is trying to avoid the same fate by re-establishing order to municipal affairs and following the guidance of the California Joint Powers Insurance Authority.

The first thing they did right was hire a permanent, experienced city manager to lead the city through the difficult restructuring task list set forth by the CJPIA.

With the hiring of the city manager, the city checked one of the seven benchmarks off of its list. Once all are complete, the city’s standing will no longer be in jeopardy. But along the road to full recovery are pitfalls and challenges, not to mention costs.

From the Insurance Journal:

La Puente, Calif. may be on the road to keeping its insurance, according to a statewide insurance authority.

The Southern California city¬†was recently told that it could lose its insurance if city officials and staff don’t start getting their act together.

The California Joint Powers Insurance Authority has issued a warning to the city, with a caution that it may face a similar situation that another Southern California city found itself in. In 2009, after failing to heed a warning from the CJPIA, Maywood was forced to disband its police department and lay off almost all employees because it lost insurance through the authority.

Read the full article here.