The California FAIR Plan Association (FAIR Plan) will expand its clearinghouse to include commercial policies, such as those covering\u00a0farms and condos, beginning July 1, following the passage of Senate Bill 505 (Rubio) in 2023.\u00a0This expansion represents\u00a0a further step toward depopulating the FAIR Plan and stabilizing California\u2019s property insurance market.<\/p>\n
In 2020, the FAIR Plan worked collaboratively with stakeholders to pass AB 3012 (Wood\/Daly) establishing the FAIR Plan\u2019s clearinghouse program, which allows FAIR Plan dwelling policyholders a path to reenter the voluntary insurance market. SB 505, which the FAIR Plan supported,\u00a0expanded the program to include commercial policies. This could transition more policies away from the FAIR Plan if insurance options in\u00a0the voluntary insurance market\u00a0become available, helping to reduce the FAIR Plan\u2019s significant risk exposure.<\/p>\n
The clearinghouse program provides participating insurers with FAIR Plan policy data monthly, excluding customer contact information. Participating insurers may\u00a0review existing FAIR Plan policies to determine if they can instead offer coverage. Under the clearinghouse program, it is important to note that the FAIR Plan provides a platform for brokers and insurers to work together to determine which policies can move from the FAIR Plan to the voluntary market.<\/p>\n
The FAIR Plan is committed to ongoing collaboration with the California Department of Insurance, the Governor, the Legislature and other stakeholders to stabilize the market and depopulate the FAIR Plan, which are essential goals of the Insurance Commissioner\u2019s Sustainable Insurance Strategy.<\/p>\n
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