The California FAIR Plan Association will expand its clearinghouse to include commercial policies, such as those covering farms and condos, beginning July 1.
The move follows the passage of Senate Bill 505 in 2023. California Insurance Commissioner Ricardo Lara in late November 2023 ordered the FAIR Plan to implement his mandated increases to its decades-old commercial property coverage limits offered to businesses.
The FAIR Plan began offering increased commercial coverage of up to $20 million per location in 2023.
In 2020, Assembly Bill 3012 established the FAIR Plan’s clearinghouse program, which allows FAIR Plan dwelling policyholders a path to reenter the voluntary insurance market. SB 505 expanded the program to include commercial policies. This could transition more policies away from the FAIR Plan if insurance options in the voluntary insurance market become available.
Related:
- California Commissioner Wants FAIR Plan Changes, Modeling to Improve Insurance Market Conditions
- California Commissioner OKs FAIR Plan Coverage Options for Farms and Ag Businesses
- California FAIR Plan Files to Offer Property Coverage to Farms
Topics California Commercial Lines
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