Homeowners InsuranceQuestion 162 of 215
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?
a.California Insurance Guarantee Association (CIGA)
b.California Low Cost Automobile Insurance Program
c.California Earthquake Authority (CEA)
d.California FAIR Plan
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.)Practice all 215 questions free — no signup required.
Related questions on this topic
- An insured's college-age son living away at school has personal property stolen from his dorm room. Under the standard HO-3, how is this covered?
- Within how many days after the insured submits a sworn proof of loss does the standard fire policy (incorporated into California residential property policies) generally require the insurer to pay an undisputed loss?
- While an insured's HO-3 home is being constructed (not yet occupied), building materials stored on site are stolen. How does the standard HO-3 typically respond?
- Which of the following Section I losses is COVERED on an unendorsed HO-3?
- Coverage E (Personal Liability) on an HO-3 extends to the "insured location." Which of the following would NOT meet the definition of an insured location?
- Under California's Fair Claims Settlement Practices regulations, after a homeowner files a claim, within how many calendar days must the insurer ordinarily acknowledge receipt of the claim?
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