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 depend upon receipt of documents and payments in the FAIR Plan office (or receipt of payments made via ACH), 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 insurance broker.

New Business

It is recommended that new business applications be submitted well ahead of the date the coverage is needed.

If the new business application is accepted, a Quotation is issued. 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.

The effective date of coverage will be:

  • One day after the date the premium is received in the California FAIR Plan’s office, or;
  • A later date may be specified if desired, provided it is not more than 60 days from the quotation expiration date shown on the quotation. A later effective date can be selected on the online payment screen.

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.

Renewals

Policies are renewed by Renewal Declaration. The Declaration Pages are normally mailed to the insured with electronic notification to the broker and any loss payee approximately 60 days prior to the expiration date of the policy.

The Renewal Premium Due Notice is sent approximately 30 days prior to the expiration date of the policy. This notice includes wording advising that if the renewal premium is not received by the expiration date of the current policy term, the policy will be cancelled as of that date. If the premium is not received by that date, a cancellation confirmation notice is sent to the insured and any loss payees listed on the policy and an electronic notification is sent to the broker, if any. This notice advises that the policy is cancelled, but may be reinstated if the premium payment is received prior to the final due date (15 days after the renewal date). If payment is received prior to the final due date, a notice of reinstatement will be sent to the same persons and entities.

Endorsements

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 (via the Brokers System on the FAIR Plan web site or via mail, email, or fax from the insured).

Endorsements Deleting or Decreasing Coverage

The effective date of an endorsement decreasing coverage (or increasing the deductible) shall be the date the endorsement request is received in the FAIR Plan office (via the Brokers System on the FAIR Plan web site or via mail, email, or fax from the insured), unless a later date is specifically requested. If there is reason to use an earlier date, this reason should be shown on the endorsement request.

Endorsements Adding or Increasing Coverage

The FAIR Plan will mail an endorsement quotation to the insured and send an electronic notification to the broker 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:

  • If the endorsement premium is received within 15 days of the date of the quotation, the effective date is the endorsement effective date shown on the endorsement quotation. Unless a later date is specifically requested, the effective date will be the fifth day after such coverage increase is received in the FAIR Plan office.
  • If the endorsement premium is received within 16 to 60 days from the date of the quotation, the effective date is the date the endorsement premium is received. Premium will be adjusted based on the actual number of days of coverage .
  • If the endorsement premium is received after 60 days from the date of the quotation, the effective date is five days after the date the endorsement premium is received. Premium to be charged will be adjusted based on the actual number of days of coverage.