FAIR Plan policy notices and renewals.

Assembly Member Calderon’s proposal would require the California FAIR Plan Association to furnish an annual, standalone notice to every policyholder that highlights coverage options beyond the FAIR Plan and encourages engagement with brokers to explore alternatives, including directing readers to the state’s Home Insurance Finder resource. The objective is to inform policyholders about other coverage possibilities and to prompt broker involvement in evaluating suitable options.

Key mechanisms center on the notice’s content and its delivery. The notice would include explicit messaging about contacting a broker, the right to shop around, the notion that the FAIR Plan may not be the only option, and guidance for brokers to assist in identifying suitable coverages, with a reference to the Department of Insurance Home Insurance Finder as a resource. The notice must be provided at least annually, including with the initial policy issuance and with each renewal, and it must appear on a separate page from any other notice or disclosure. The bill text does not specify penalties or explicit enforcement mechanisms, and it notes a fiscal committee review, but contains no direct appropriations.

Across implementation and context, the measure would require administrative changes for the FAIR Plan to generate, format, and deliver the notice—potentially affecting digital portals and printed materials—along with recordkeeping to document issuance with initial policies and renewals. Stakeholders include policyholders, brokers, the California Department of Insurance, and the FAIR Plan itself, with indirect effects on other insurers participating in the basic property program. In the policy landscape, the provision is additive, introducing a consumer-information requirement designed to increase awareness of alternative coverage options and broker-assisted guidance, while leaving unresolved questions about delivery medium, definitions of “policyholder,” accessibility, and enforcement mechanics.