FAIR Plan policy notices and renewals

FAIR Plan customers must receive recurring notice that they can shop for other coverage. The law also creates a process for participating insurers to make offers to eligible FAIR Plan policyholders while allowing them to opt out of personal-information sharing.

What the law does ​

• Requires the FAIR Plan to send a stand-alone, bold notice at issuance, renewal, and at least annually telling policyholders to contact their broker and shop for available coverage.
• Allows the FAIR Plan, beginning January 1, 2028, to share relevant policyholder information with clearinghouse insurers for homeowners and commercial coverage, subject to privacy rules and an opt-out method.
• Requires insurers to send any clearinghouse offer simultaneously to the listed agent or broker and the policyholder.
• Requires participating insurers to report quarterly, beginning May 1, 2027, how many FAIR Plan policyholders received policies through the clearinghouses; requires the FAIR Plan to publish aggregate results and report them to the Insurance Commissioner and legislative insurance committees.
• Requires agents and brokers to provide clearinghouse information and complete the FAIR Plan's department-approved training on advising customers about voluntary-market options.
• Requires the FAIR Plan to post and quarterly update its list of clearinghouse insurers.

Who it affects ​

• California FAIR Plan policyholders seeking homeowners or commercial property coverage.
• Insurance agents, brokers, admitted insurers, and nonadmitted insurers participating in FAIR Plan clearinghouses.
• The California FAIR Plan Association.

Context ​

The FAIR Plan serves people unable to obtain basic property insurance through normal market channels.