FAIR-PLAN

Home insurance pool for risks declined by the private market.

Definition

Established following the Urban Property Protection Act of 1968 and run by state commissioners (CA, FL, NC, TX...). The FAIR Plan transmits premiums and losses via ACORD EDI to participating carriers. In California, the FAIR Plan exposure tripled in 2020-2024 due to wildfires.

Origin

Federal law of 1968 ; state-by-state rollouts.

Example in context

A California homeowner in a high fire-risk zone subscribes to the California FAIR Plan via their agent.

Related terms

• NAIC — umbrella regulator.