AB-290 • 2026

California FAIR Plan Association: automatic payments.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Bauer-Kahan
Last action: 2025-10-09
Official status: Chaptered by Secretary of State - Chapter 475, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The bill text does not explicitly state that it gives additional grace periods beyond the existing 10-calendar-day notice requirement for nonpayment of premium.

Automatic Payments for California FAIR Plan

This law requires the California FAIR Plan Association to set up an automatic payment system and accept payments from policyholders automatically, while also preventing cancellations or nonrenewals of policies just because a policyholder is not using this system.

What This Bill Does

Requires the California FAIR Plan Association to create an automatic payment system by April 1, 2026.
Allows policyholders to make payments automatically through this new system.
Prevents the cancellation or nonrenewal of a FAIR Plan policy just because a policyholder is not using automatic payments.

Who It Names or Affects

Policyholders who have insurance through the California FAIR Plan Association
The California FAIR Plan Association

Terms To Know

Automatic payment system: A method that allows payments to be made automatically without needing manual action from the policyholder.
FAIR Plan: A program in California where insurance companies work together to provide basic property insurance for people who cannot get it through regular channels.

Limits and Unknowns

The bill does not specify what happens if a policyholder fails to pay their premium after the grace period.
It is unclear how many policyholders will choose to use the automatic payment system once it is available.

Bill History

2025-10-09 California Legislative Information
Chaptered by Secretary of State - Chapter 475, Statutes of 2025.
2025-10-09 California Legislative Information
Approved by the Governor.
2025-09-24 California Legislative Information
Enrolled and presented to the Governor at 3 p.m.
2025-09-12 California Legislative Information
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3423.).
2025-09-12 California Legislative Information
In Assembly. Concurrence in Senate amendments pending.
2025-09-11 California Legislative Information
Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2887.).
2025-09-08 California Legislative Information
Read second time. Ordered to third reading.
2025-09-05 California Legislative Information
Read third time and amended. Ordered to second reading.
2025-08-26 California Legislative Information
Read second time. Ordered to third reading.
2025-08-25 California Legislative Information
Read third time and amended. Ordered to second reading.
2025-08-21 California Legislative Information
Ordered to third reading.
2025-08-21 California Legislative Information
From Consent Calendar.
2025-08-20 California Legislative Information
Read second time. Ordered to Consent Calendar.
2025-08-19 California Legislative Information
From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.
2025-07-10 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (July 9). Re-referred to Com. on APPR.
2025-07-03 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.
2025-06-17 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.
2025-06-09 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2025-05-28 California Legislative Information
Referred to Com. on INS.
2025-05-20 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-05-19 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 1602.)
2025-05-15 California Legislative Information
Read second time. Ordered to third reading.
2025-05-14 California Legislative Information
From committee: Do pass. (Ayes 15. Noes 0.) (May 14).
2025-05-05 California Legislative Information
Re-referred to Com. on APPR.
2025-05-01 California Legislative Information
Read second time and amended.
2025-04-30 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 30).
2025-04-22 California Legislative Information
Re-referred to Com. on INS.
2025-04-21 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.
2025-04-07 California Legislative Information
Re-referred to Com. on INS. pursuant to Assembly Rule 96.
2025-04-07 California Legislative Information
Re-referred to Com. on HEALTH.
2025-04-03 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
2025-03-24 California Legislative Information
In committee: Hearing postponed by committee.
2025-02-19 California Legislative Information
Re-referred to Com. on HEALTH.
2025-02-18 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
2025-02-10 California Legislative Information
Referred to Coms. on HEALTH and JUD.
2025-01-23 California Legislative Information
From printer. May be heard in committee February 22.
2025-01-22 California Legislative Information
Read first time. To print.

Official Summary Text

AB 290, Bauer-Kahan.
California FAIR Plan Association: automatic payments.
Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law authorizes cancellation of an insurance policy for nonpayment of premium, and requires an insurer to notify a policyholder at least 10 calendar days before the policy will be canceled for nonpayment.
This bill, on or before April 1, 2026, would require the California FAIR Plan Association to create an automatic payment system and accept automatic payments for premiums from policyholders.
The bill would prohibit cancellation or nonrenewal of a FAIR Plan policy solely because the policyholder is not enrolled in automatic payments. The bill would provide a period for the policyholder to pay any outstanding installment premium, in accordance with the existing 10-calendar-day notice requirement.

Current Bill Text

Read the full stored bill text

Download Bill PDF