FOR IMMEDIATE RELEASE
February 11, 2022
California FAIR Plan to Ask Court of Appeal to Stay HO-3 Order
This California FAIR Plan’s issued the following statement in response to the Los Angeles Superior Court’s February 10, 2022 denial of a request to stay the California Department of Insurance’s September 2021 Order ordering the FAIR Plan to offer a quasi- HO-3 policy, in violation of the Insurance Code:
The California FAIR Plan Association is disappointed by the denial of the request to stay the CDI’s Order. The FAIR Plan intends to appeal the denial and, if necessary, will ask the
California Court of Appeal to stay enforcement of the CDI’s Order pending the determination of the appeal.
The FAIR Plan is challenging the Order that would require the FAIR Plan to offer a quasi-HO-3 policy form even though consumers already have ready access to equivalent coverage. We remain committed to preventing unnecessary rate increases for FAIR Plan policyholders and protecting the FAIR Plan’s role as a safety net that provides basic property insurance for those who cannot obtain coverage in the voluntary insurance market.
For additional information on the CA FAIR Plan’s legal challenge to CDI’s authority to order this coverage expansion, please see California FAIR Plan Association Takes Legal Action to Protect California Homeowners, issued on 10/14/21.
About the California FAIR Plan
The California Fair Access to Insurance Requirements (FAIR) Plan is an insurance pool established by law to assure the availability of basic property insurance to people who own insurable property in the State of California and who, beyond their control, have been unable to obtain insurance in the voluntary insurance market. The FAIR Plan provides stability in California’s insurance marketplace. It is committed to strengthening consumer choices in the voluntary insurance market, while ensuring that all homeowners, including those who live in areas threatened by wildfires, have access to basic property coverage and the peace of mind they deserve. For more information, visit www.CFPnet.com.
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