California-Specific RulesQuestion 69 of 215
Which best describes the California FAIR Plan?
a.A government-funded program that pays all wildfire losses for low-income homeowners
b.A private insurer that competes with admitted carriers on rate
c.A reinsurance pool that only commercial carriers may access
d.An insurer of last resort that provides basic property coverage when private market coverage is unavailable
Explanation
The California FAIR Plan Association, created under Cal. Ins. Code §10091 et seq., is an industry-funded syndicated pool that serves as the insurer of last resort. It offers basic property (mostly fire and limited perils) coverage to applicants who cannot obtain insurance through the voluntary market — most often properties in high brush or wildfire areas. It is not a government program and does not compete on the regular voluntary market.
Law Reference: Cal. Ins. Code §10091+ (California FAIR Plan)Practice all 215 questions free — no signup required.
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