California FAIR Plan
California FAIR Plan is an insurer of last resort, not a standard market carrier. Insurer of last resort. Fire and limited perils; pair with a DIC policy for full coverage.
Event history
Commissioner authorizes a $600 million revolving line of credit for the California FAIR Plan
Stipulation and Order No. 2026-1, executed by Commissioner Lara on February 27, 2026 and final upon execution, authorizes the FAIR Plan to obtain a $600 million revolving line of credit with a maturity date of February 26, 2027, offered by a private lending group. The order also promulgates a revised Plan of Operation (Ed. 2/27/26), which requires the FAIR Plan to give the Commissioner its quarterly reports at least four business days before posting them publicly, and discharges Order 2025-2. The order states the facility is intended to provide financing for prompt payment of claims and to potentially avoid the need to levy an assessment on member insurers to pay extraordinary catastrophe losses, as happened after the January 2025 Los Angeles area wildfires.
Source: California Department of Insurance, Stipulation and Order No. 2026-1 · verified 2026-08-17
Legislation announced to transform the California FAIR Plan
Commissioner Lara and Assemblymember Calderon announced legislation aimed at transforming the California FAIR Plan, the state insurer of last resort.
Source: California Department of Insurance press release · verified 2026-07-02