General Information


The California Fair Access to Insurance Requirements (“FAIR”) Plan was created in July 1968 following the 1960’s brush fires and riots. It is an insurance pool established 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.

There is no public funding, or taxpayers’ monies involved. The FAIR Plan is not a state agency.

Why the California FAIR Plan is not listed in the Best’s Rating Guide

The California FAIR Plan Association is a syndicated fire insurance pool comprised of all insurers licensed to conduct property/casualty business in California. The Plan was established under Insurance Code statute (Section 10091 et. al) in August, 1968 as an insurance placement facility.

All property/casualty insurers are members of the Association in compliance with insurance code statute (Section 10095a). The Plan issues policies on behalf of its member companies. Each member company participates in the profits, losses and expenses of the Plan in direct proportion to its market share of business written in the state.

The A.M. Best’s Rating Guide assigns a financial rating to all insurers with either private or public stock ownership. The financial rating is based on factors such as profitability, liquidity, adequacy of capital and surplus reserves, etc., so that the business community can determine a given company’s financial strength or weakness.

Since mortgage lenders are concerned about the long term financial strength or weakness of any insurer that is providing hazard insurance prior to their issuance of loan monies, the financial rating of a given company is one of the primary means of judging a given insurer’s viability in the marketplace.

The FAIR Plan is not a state agency, nor an insurance company. The FAIR Plan is stronger than any single insurer, since it is backed by the capital and surplus of all insurance companies writing property insurance in the state.