California is introducing new reforms to its FAIR Plan. California Insurance Commissioner Ricardo Lara announced changes to what’s also known as the state’s “insurer of last resort”, that would allow its member insurance companies to assess policyholders in addition to themselves in the case of catastrophic fires. The agreement expands coverage by establishing a new “high-value” commercial coverage option, creates a financial formula to protect the market in extreme loss scenarios, and improves transparency by requiring increased public reporting on FAIR Plan activity. This comes after Governor Gavin Newsom signed an executive order last September, urging Commissioner Lara to take action to address issues with the insurance market and expand coverage options.
California FAIR Plan Gets New Reforms
