FAIR Plan policy notices and renewals.

Assembly Member Calderon's proposal to modify California FAIR Plan operations would require insurance brokers to evaluate voluntary market alternatives before renewing FAIR Plan policies, while mandating enhanced policyholder notifications about coverage options.

The legislation establishes two primary requirements for the FAIR Plan Association and insurance brokers. The Association must provide policyholders with an annual notice, printed in 14-point bold font on a dedicated page, detailing their right to explore alternative coverage options and directing them to the California Department of Insurance Home Insurance Finder tool. Additionally, brokers must assess whether FAIR Plan policies can transfer to voluntary market insurers prior to renewal, using their active experience in placing similar types of insurance coverage.

These provisions supplement existing law requiring the FAIR Plan Association, a joint reinsurance association comprising licensed basic property insurers, to implement programs reducing reliance on FAIR Plan policies. The Association currently serves as a market of last resort for property owners unable to obtain coverage through standard channels.