California FAIR Plan Association

The law gives the state more tools to compel the FAIR Plan to fix operational violations and to impose penalties. It also allows changes to coverage limits and renters’ fair-rental-value coverage when needed for policyholders.

What the law does ​

• Requires the FAIR Plan to complete corrective actions identified by the Insurance Commissioner or designee after an examination or operational report.
• Allows penalties of up to $20,000 for each category of required corrective action the FAIR Plan fails to complete on time.
• Authorizes civil penalties of up to $10,000 per violation, or up to $20,000 per willful violation, plus cease-and-desist orders after notice and a hearing.
• Allows the Insurance Commissioner to require adjusted FAIR Plan policy limits and additional fair-rental-value coverage under its renters’ insurance program.

Who it affects ​

• The California FAIR Plan Association.
• Insurers and other persons subject to FAIR Plan insurance requirements.
• FAIR Plan renters and other policyholders.