The California Legislature to Address FAIR Plan Wildfire Challenges

Legislation is being pushed in the California Legislature to upgrade the state’s FAIR Plan. Assemblymember Lisa Calderon is the chair of the Assembly’s insurance committee and the co-author of the FAIR Plan Stabilization Act. It will authorize the California Infrastructure and Economic Development Bank to issue catastrophe bonds to support the FAIR Plan when claims become so great that liquidity is a problem.

“The loss in Southern California is inconceivable,” she said. “AB 226 will alleviate some of the uncertainty that FAIR Plan policyholders may encounter as a result of this tragedy.”

Her co-author is Assemblymember David Alvarez. He says the bill will help stabilize California’s insurance market.

“When disaster strikes, Californians should be able to count on their insurance coverage to pay out valid claims,” Alvarez said.

A separate bill is being drafted by Assembly Speaker Robert Rivas to shorten claims processing for homeowners.

Source link: Insurance Business America — https://bit.ly/4gTfGjX