California FAIR Plan Association: automatic payments.

Assembly Member Bauer-Kahan's legislation mandates the California FAIR Plan Association to implement an automatic payment system for insurance premiums by April 1, 2026, expanding payment options for property owners who rely on this last-resort insurance program. The measure requires the Association to accept automatic premium payments while maintaining consistent payment amounts across all payment methods.

The bill establishes key consumer protections, prohibiting the Association from canceling or declining to renew policies solely because policyholders opt out of automatic payments. When policyholders miss installment premium deadlines, the legislation provides a 10-day period to submit outstanding payments. These provisions complement existing law, which requires insurers to notify policyholders at least 10 business days before canceling policies for nonpayment.