CA Ins Code Section 10752.4

A stop-loss insurance policy issued, reissued, or renewed on or after January 1, 2016, to a small employer shall not contain any of the following provisions:

(a)

An individual attachment point for a policy year that is less than forty thousand dollars ($40,000).

(b)

An aggregate attachment point for a policy year that is less than the greater of one of the following:

(1)

Five thousand dollars ($5,000) times the total number of group members.

(2)

One hundred twenty percent of expected claims.

(3)

Forty thousand dollars ($40,000).

(c)

A provision for direct coverage of an employee or dependent of an employee.