AB 1680: California FAIR Plan Association.

The California FAIR Plan Association is a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law requires the Insurance Commissioner to approve the associations plan of operation and authorizes the commissioner to examine the associations books, records, files, papers, and documents that relate to its operation. Existing law authorizes the commissioner to impose civil penalties for various violations of the Insurance Code.

This bill would require the association to comply with the recommendations of take corrective actions to correct violations of applicable statutes, regulations, statutory accounting principles, or other applicable rules identified in a report of examination or other operational report and report. The bill would subject the association to a fine of not more than $20,000 for each violation of failing to adopt the recommendations failing to take correction action within a timeframe agreed upon by the commissioner or a person designated by the commissioner. The bill would set other civil penalty amounts for violations of provisions relative to the association as not to exceed $10,000 for each act in violation or not to exceed $20,000 if the act was willful, and would require the commissioner to impose those penalties, as specified. The

The bill would also authorize the commissioner to require the association to both adjust the policy limits available under programs underwritten by the association and make additional coverage offerings available for fair rental value coverage under the associations renters property insurance program.