The California FAIR Plan Association (FAIR Plan) will expand its clearinghouse to include commercial policies, such as those covering farms and condos, beginning July 1, following the passage of Senate Bill 505 (Rubio) in 2023. This expansion represents a further step toward depopulating the FAIR Plan and stabilizing California’s property insurance market.

In 2020, the FAIR Plan worked collaboratively with stakeholders to pass AB 3012 (Wood/Daly) establishing the FAIR Plan’s clearinghouse program, which allows FAIR Plan dwelling policyholders a path to reenter the voluntary insurance market. SB 505, which the FAIR Plan supported, expanded the program to include commercial policies. This could transition more policies away from the FAIR Plan if insurance options in the voluntary insurance market become available, helping to reduce the FAIR Plan’s significant risk exposure.

The clearinghouse program provides participating insurers with FAIR Plan policy data monthly, excluding customer contact information. Participating insurers may review existing FAIR Plan policies to determine if they can instead offer coverage. Under the clearinghouse program, it is important to note that the FAIR Plan provides a platform for brokers and insurers to work together to determine which policies can move from the FAIR Plan to the voluntary market.

The FAIR Plan is committed to ongoing collaboration with the California Department of Insurance, the Governor, the Legislature and other stakeholders to stabilize the market and depopulate the FAIR Plan, which are essential goals of the Insurance Commissioner’s Sustainable Insurance Strategy.


More information about the California FAIR Plan:

The FAIR Plan is a private association comprised of all insurers licensed to write property insurance in California and is funded primarily through the policies it sells to customers. The FAIR Plan is not a state agency and is not funded by the state or other public agencies.

The California FAIR Plan Association offers basic property insurance for all Californians who cannot access coverage in the voluntary insurance marketplace. As an insurer of “last resort,” the FAIR Plan was established by statute to provide a temporary safety net for consumers who need fire insurance until coverage through the voluntary market is available.

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