Plain English Breakdown
The official status shows 'Passed Legislature' but also lists a hearing postponed date in July 2026; this creates uncertainty about whether the bill has been signed into law or if further action is needed.
FAIR Plan Policy Notices and Renewals
This law allows the California FAIR Plan Association to share customer information with insurers so they can offer new policies at renewal time, requires quarterly reporting on issued policies, and mandates annual notices about coverage options for policyholders.
What This Bill Does
- Starting January 1, 2028, the association may share policyholder details with participating clearinghouse insurers to allow them to offer a policy simultaneously with a renewal.
- If an agent or broker of record is listed on the file, the insurer must send the new policy offer to both that person and the policyholder at the same time.
- Beginning May 1, 2027, participating insurers must report quarterly to the association how many policies they issued to FAIR Plan customers.
- The association must post a list of clearinghouse participants on its website within 30 days and update that list every quarter.
- The association must give all policyholders an annual notice about their coverage options, including when first issuing a policy or renewing it.
- Agents and brokers selling basic property insurance must provide customers with information about the clearinghouse programs to help them obtain coverage.
Who It Names or Affects
- The California FAIR Plan Association
- Insurers licensed in California that participate in the clearinghouse program
- Registered agents and brokers who sell basic property insurance
- Policyholders with existing or new FAIR Plan policies
Terms To Know
- FAIR Plan Association
- A group where all insurers licensed to write basic property insurance work together to provide coverage for people who cannot find it through normal channels.
- Clearinghouse program
- A system where a participating insurer offers homeowners or commercial insurance directly to customers currently in the FAIR Plan.
- Basic property insurance
- Standard coverage for homes and businesses that is required by law to be available through this program when normal channels fail.
Limits and Unknowns
- The official text does not specify penalties if insurers or agents fail to follow the new reporting or notice rules.
- It is unclear how offers are handled if a policyholder has no agent or broker of record listed on their file, other than noting that simultaneous delivery applies only 'if any' exists.