Why Isn't The FAIR Plan Listed In Best's Rating Guide?
The FAIR Plan is a syndicated fire insurance pool comprised of all insurers authorized to write property insurance in California. Created in 1968 as an insurance placement facility under state law, the FAIR Plan is not an insurance company; it owns no assets and owes no liabilities.
The Best Rating Guide gives all insurers that have capital and surplus with either private or public stock ownership a financial rating based on financial factors such as profitability, liquidity, adequacy of reserves, etc., so that the business community can determine a given company's financial strength or weakness.
The FAIR Plan is regulated by the Department of Insurance. All property and casualty companies are required by law to belong to the Association. Each member company participates in the writings, expenses, profits or losses of the Plan in the same proportion as its individual written premiums bear to the aggregate premiums written by all insurers in the state. The Plan issues fire insurance policies on behalf of its member companies and each such insurer is considered a direct insurer for its share in such writings.