Coverage Offered
Effective Dates of Coverage
Coverage effective dates are governed by the rules printed on the forms the FAIR Plan provides to its customers. Generally, coverage effective dates rules depend upon receipt of documents and payments in the FAIR Plan office, not postmarks or postage meter dates. As used in the forms of the FAIR Plan, the phrase "received in the FAIR Plan office" means the actual physical receipt in the offices occupied at the time of such receipt by the California FAIR Plan Association. The term "rejected" means that a written statement that an application or request has been rejected, has been delivered or deposited in the mail addressed to the applicant, insured or producer.
New Business:
All quotations are provisional, and have been quoted prior to inspection. An additional premium may be due after inspection, and any additional premium due must be received in the FAIR Plan office by the date shown on the billing.
To avoid possible lapse of coverage, new business applications must be received in the FAIR Plan office 20 days prior to the effective date desired. On new business, the FAIR Plan is permitted 20 days to accept or decline the risk.
The application is the basis for policy issuance and the acceptance or rejection of coverage. It is the responsibility of the producer and the applicant to see to it that information submitted is in all respects accurate. Inspections, where made, are for the purpose of determining the physical condition of the property or for the presence of a brush/wildfire exposure. They are not for the purpose of correcting omissions or inaccuracies in the information submitted in the applications for insurance, or renewal of insurance. Inspectors hired by the FAIR Plan do not make any determination of the value of the property, the adequacy of the insurance requested by the applicant, or the safety of any property.
The effective date of coverage will be:
1. The date of the FAIR Plan's premium quotation if the premium is received in California FAIR Plan's office within 15 days of said date,
2. The date the premium is received in the FAIR Plan office, if after this 15 day period or;
3. A later date may be specified if desired, provided it is not more than 60 days from the date of the FAIR Plan's premium quotation.
4. If a future date is shown on the application as the cancellation or expiration date of present coverage, this will be used as the effective date of FAIR Plan coverage, unless it is more than 60 days from the date of the FAIR Plan’s premium quotation, or an earlier date is requested.
If the premium is not received in California FAIR Plan's office within 60 days of the date of the FAIR Plan's premium quotation, the offer of coverage expires and a new application must be submitted.
Endorsements:
Endorsements Adding or Increasing Coverage: Unless a later date is specifically requested on the Endorsement Application, the effective date of an endorsement increasing the dollar amount of coverage will be the fifth (5th) day after the Endorsement Application requesting such increase is received in the FAIR Plan office, but only if the FAIR Plan has not rejected such request by the end of such fifth (5th) day.
Endorsements Deleting or Decreasing Coverage: The effective date of an endorsement decreasing coverage shall be the date the Endorsement Application is received in the FAIR Plan office, unless a later date is specifically requested. If there is reason to use an earlier date, this reason should be shown on the Endorsement Application.
Endorsements Not Impacting Coverage: The effective date of a non-money endorsement, such as a change of loss payee, will be the date the requested change is received in the FAIR Plan office.
Endorsement Quotations: The FAIR Plan will generate an endorsement quotation to the insured and producer of record indicating the amount of the total additional premium. If the insured desires the coverage being quoted, payment must be received by the FAIR Plan for coverage to be effective. The insured is responsible for making sure that any additional premium is paid timely, even if the insurance premium is paid through a mortgage impound account. The effective date of coverage is determined by the date the endorsement premium is received in the FAIR Plan Office as follows:
Renewals:
Policies are renewed by Renewal Certificate. The certificates are normally mailed to the insured and the producer approximately 60 days prior to the expiration date of the policy. The premium is due on the renewal, or anniversary, date of the policy. If the renewal premium is not received by the due date, a cancellation notice will be sent to all insureds and loss payees under the expired policy, and to their producers, if any. If payment is received prior to the cancellation date, an acknowledgement of payment will be sent to the same persons and entities.