California: FAIR Plan Coverage, Assessment Recoupment Bill Introduced

AB 2996, FAIR Plan Association, has been introduced by California Assembly member David Alvarez. The legislation would require the FAIR Plan Association to develop, maintain, and offer to sell basic property insurance for common interest development association policies and commercial farming enterprise policies. The legislation also specifies how the amount an insurer is assessed will be determined and allocated.

The bill would require the association to retain any excess assessment amounts remitted by an insurer and apply it to reduce future assessments, as specified. Additionally, the bill would require a member insurer to recoup an assessment paid on or after Jan. 1, 2025, through a surcharge on premiums charged on insurance policies within the line of business for which the insurer was assessed and would require the insurer to make specified consumer disclosures regarding the surcharge.