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 obtain coverage through this last-resort insurance program.

The bill establishes specific parameters for the new payment system while maintaining existing policyholder protections. Premium amounts must remain identical regardless of payment method chosen, though the association may charge a reasonable convenience fee to offset costs associated with automatic payments. The legislation explicitly prohibits the cancellation or nonrenewal of policies based solely on a policyholder's decision not to enroll in automatic payments.

For policyholders who miss premium installments, the measure preserves current grace period provisions under state insurance law, requiring the association to provide at least 10 calendar days' notice before canceling a policy for nonpayment. This integration with existing payment default procedures ensures consistent treatment of late payments across all payment methods.