An applicant with a home in a high-brush wildfire area has been declined coverage by three voluntary insurers. Which California program is designed to provide basic property insurance as a market of last resort?
Explanation
The California FAIR Plan Association is the market of last resort for basic residential property insurance. Established under Cal. Ins. Code §10091 et seq., it provides a stripped-down dwelling-fire form covering fire, lightning, and certain other named perils for owners who cannot obtain coverage in the voluntary market — most commonly because of wildfire exposure. Owners typically pair FAIR Plan with a difference-in-conditions (DIC) policy for broader protection.
Law Reference: California FAIR Plan (Cal. Ins. Code §10090 et seq.)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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