California FAIR Plan Association.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
In Floor Process
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill updates the California FAIR Plan Association’s rules and regulations to strengthen its oversight and enforcement. It requires the association to take corrective actions when directed by the Insurance Commissioner, subject to potential civil penalties of up to $20,000 for non-compliance. The bill also authorizes the commissioner to adjust policy limits and offer additional coverage options, particularly for fair rental value coverage, and establishes a process for clearinghouses to encourage policyholders to switch to standard insurance policies.
Key provisions
- Requires the FAIR Plan Association to take corrective actions as directed by the Insurance Commissioner.
- Establishes civil penalties of up to $20,000 for failing to comply with corrective action orders.
- Authorizes the commissioner to adjust policy limits and offer additional coverage, including fair rental value coverage.
- Creates clearinghouse programs to encourage FAIR Plan policyholders to switch to standard insurance policies.
- Mandates the association to comply with the Insurance Information and Privacy Protection Act.
- Requires the association to provide policyholders with notice of how their personal information will be shared.
- Allows policyholders to opt out of sharing their personal information.
- Establishes a process for the commissioner to issue orders to show cause and enforce penalties.
Who is affected
Bill text
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Sponsors
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11 on record
Primary sponsor
Cosponsors
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