Lisa Calderon

The California FAIR Plan Association is a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law requires the association to implement programs to help reduce the number of existing FAIR Plan policies, including clearinghouse programs in which a participating insurer offers homeowners or commercial insurance to FAIR Plan policyholders. Existing law requires an agent or broker transacting basic property insurance to assist a person in obtaining basic property insurance coverage by one of several specified methods, including making an application for insurance through the FAIR Plan.

This bill would authorize an insurer participating in a clearinghouse program to offer coverage directly to the insured after 3 renewal periods after January 1, 2027. Commencing May 1, 2027, the bill would require a participating insurer to report to the association on a quarterly basis the number of policies it has issued to FAIR Plan policyholders. The bill would require the association to report aggregated numbers within 30 days, as specified, and post and quarterly update on its internet website a list of participating insurers in the clearinghouse programs. The bill would require the association to provide all policyholders with a notice regarding their coverage options at least annually, including with the initial policy issuance and upon each renewal. The bill would require an agent or broker transacting basic property insurance to assist a person in obtaining basic property insurance coverage by providing the person with information on the clearinghouse programs, among other specified assistance.