California Assembly Members Introduce Insurance Legislation to Protect Homeowners

Assembly Bill 226 ensures financial stability of the Fair Access to Insurance Requirements (FAIR) Plan

For immediate release:

• Cynthia Moreno
• Press Secretary
• 916-319-2029
• [email protected]

SACRAMENTO-In response to the devastating wildfires across Southern California, Assembly members are taking action to protect homeowners, families, and consumers.

Assemblymember Lisa Calderon (D-Whittier) and Assemblymember David Alvarez (D-San Diego) introduced a new bill that will assist in issuing catastrophe bonds and help finance the costs of insurance claims, increasing claims-paying capacity of the FAIR Plan.

How The New Bill Protects Homeowners

The FAIR Plan Stabilization Act (Assembly Bill 226) authorizes the Fair Access to Insurance Requirements Plan to request the California Infrastructure and Economic Development Bank to issue bonds if the FAIR Plan faces liquidity challenges in the event of a major catastrophe such as a wildfire.

There are many Southern California residents whose homes are covered by the FAIR Plan.

California Assembly Taking Action To Support Wildfire Victims

Speaker Robert Rivas announced plans to introduce AB 226 on Thursday at the State Capitol during a press availability.

"The most important question for us right now is: 'How can we help?'" Speaker Rivas told reporters. "Our Assembly is taking action today. The Assembly plans to advance legislation to support recovery efforts, including a bill focused on insurance claims for homeowners."

"The loss in Southern California is inconceivable. AB 226 will alleviate some of the uncertainty that FAIR Plan policy holders may encounter as a result of this tragedy," said Assemblymember Lisa Calderon, Chair of the Assembly Committee on Insurance. "We remain steadfast in acting with urgency to support the impacted communities during this difficult time."

"This bill is an excellent first step, among many we must take, to stabilize California's insurance market by protecting the FAIR Plan," Assemblymember David Alvarez said. "When disaster strikes, Californians should be able to count on their insurance coverage to pay out valid claims."

On Thursday, Speaker Rivas shared that many Assembly members are in Los Angeles "to do all that they can to lend a hand, to volunteer and to assist efforts at the local level to ensure the local residents, organizations, and nonprofits have the information and resources to get through this crisis."

###