Lara, Calderon announce legislation transforming the California FAIR Plan
Insurance Commissioner
The Make It FAIR Act, authored by Calderon and sponsored by Lara enacts key reforms identified in the
The Department's Report of Examination — the most comprehensive review of the FAIR Plan in decades — revealed systemic problems that have left wildfire survivors struggling with delays, denials, and inconsistent claims decisions, particularly after the 2025 Los Angeles wildfires, the largest urban wildfire disaster in state history.
"Since my first year in office, I've pushed the FAIR Plan to modernize, expand coverage, meet basic customer‑service standards, and treat policyholders fairly — yet its governing board has resisted key reforms and continues to fight others in court," said Lara. "The
"Property insurance isn't a luxury in
As climate change has contributed to more severe wildfires and winter storms, decades-old insurance laws have not kept pace.
The payment of insurance claims from insurance companies for the
Yet the department has taken formal legal action against the FAIR Plan for illegally denying hundreds of smoke damage claims. While that case is scheduled for hearings in front of an administrative law judge later this year, wildfire survivors with standing homes urgently need answers.
Despite major efforts under Lara to improve the FAIR Plan's performance and accountability, wildfire survivors have continued to report ongoing problems accessing their FAIR Plan insurance benefits, with delays, denials, and miscommunication at the top of the list of consumer complaints filed with the department since the
The Make It FAIR Act would improve coverage and claims handling by the insurance company-run FAIR Plan. The legislation would enact reforms outlined in a comprehensive Report of Examination completed last month by the Department. The comprehensive examination evaluated the FAIR Plan's financial conditions, corporate governance, and controls to protect policyholders across 32 areas — finding that in more than half of them, the FAIR Plan had not started or fully implemented the Department's recommendations.
The legislation would require the FAIR Plan to make significant operational and governance changes to meet Californians' needs, while market improvements take hold, such as:
Implementing a more comprehensive homeowners coverage option like other insurance companies. Current FAIR Plan residential policyholders must buy a separate insurance policy — at an additional cost — to have coverage for water damage, liability if someone is injured on their property, and other standard coverages. This is unacceptable, and the FAIR Plan has been fighting Lara in court to prevent this change since 2019.
Hiring more staff to manage its increasing operational needs and workload as well as expeditiously address consumer claims and complaints.
Expediting policyholders in returning to the regular market by improving clearinghouse programs created by the
Adopting a three-to-five-year strategic plan, like other insurance companies, to anticipate changes in the market, improve policy handling, and assist people in leaving the FAIR Plan under Commissioner Lara's Sustainable Insurance Strategy.
Improving transparency by providing public access to meetings and documents of the FAIR Plan's Governing Committee and Subcommittees, including mandating the creation of an Annual Report discussing the year in review, governance updates, premium rate information, catastrophe response plans, strategic plans, and initiatives to enhance and improve policyholder service and related metrics.
Prioritizing policyholders' resilience from climate change by adopting a formal climate risk assessment, while reporting climate-related financial risks in line with how more than 85% of the national insurance markets report risks based on the standards established through the
Creating a formal capital and liquidity management plan like other insurance companies to protect from unexpected events such as major wildfires or storms.
The Make It FAIR Act builds on reforms Commissioner Lara advanced after the



Europe's central bank maintains interest rate with economic growth resilient
‘Rewarding delay:’ CA insurance ‘intervenor’ collected big fees in ‘25
Advisor News
- Advisors in Texas and California banned for fraud scams
- House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall
- Iowa House backs temporary tax hike to fill Medicaid gap
- Charitable giving planning can strengthen advisor/client relationships
- Iowa Medicaid temporary tax plan draws sharp public opposition
More Advisor NewsAnnuity News
- LIMRA: Final retail annuity sales total $464.1 billion in 2025
- How annuities can enhance retirement income for post-pension clients
- We can help find a loved one’s life insurance policy
- 2025: A record-breaking year for annuity sales via banks and BDs
- Lincoln Financial launches two new FIAs
More Annuity NewsHealth/Employee Benefits News
- Mass. probed over abortion coverage mandate
- Did your Obamacare premiums rise this year? Tell us about it
- New Breast Cancer Study Findings Have Been Reported by Researchers at University of Massachusetts Chan Medical School (Health Insurance and Neighborhood Deprivation as Determinants of Diagnostic Delays and Survival in Breast Cancer): Oncology – Breast Cancer
- State receives approval to move 1.3 million New Yorkers back to Basic Health Plan insurance
- HHS to investigate Oregon, 12 other states that require insurers to cover abortions
More Health/Employee Benefits NewsLife Insurance News
- Murray Giles Hulse
- New individual life premium hits record-setting $17.5B in 2025
- Maryland orders Cigna to halt underpaying doctors or give cause
- Insurers optimistic about their investments in 2026
- AM Best Affirms Credit Ratings of PVI Insurance Corporation
More Life Insurance News