(Sacramento, CA) — As California continues to grapple with statewide insurance challenges, Assemblymember Lisa Calderon (D-Whittier) introduced Assembly Bill (AB) 234 to give Californians a seat at the table when it comes to the California FAIR Plan.
The Fair Access to Insurance Requirements (FAIR) Plan is the state’s insurer of last resort. However, as challenges with insurance availability continue to persist, it has become the only coverage option for many Californians. Currently, the FAIR Plan Governing Board consists of insurers and several nonvoting members appointed by the Governor. However, there are no representatives from the state Legislature.
“The devastating LA County wildfires cost numerous homeowners and small businesses their livelihoods. During this difficult time, many are turning to the FAIR Plan to help with recovery efforts,” stated Assemblymember Lisa Calderon, Chair of the Assembly Insurance Committee. “These wildfires have highlighted the need for greater transparency of the California FAIR Plan.”
This measure will expand California FAIR Plan Governing Board Committee by adding two new appointees: one selected by the Senate President Pro Tempore and another by the Assembly Speaker. The language of the bill mirrors that of the California Earthquake Authority, the largest provider of residential earthquake insurance, which added members of the state legislature to its governing board.
Assemblymember Calderon continues, “AB 234 aims to ensure the FAIR Plan better represents consumers’ interests. It is clear our constituents who rely on the FAIR Plan will need our continued advocacy.”
This bill has an urgency clause, meaning the law would go into immediate effect upon receiving the Governor signature.
For more information, visit: AB 234 Bill Text
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