Examination findings need follow-through
California announced the signing of AB 1680, the Make It FAIR Act, in its September 30 insurance legislation package. The department says the law improves oversight of the privately run FAIR Plan, which provides last-resort coverage. A stronger oversight announcement does not establish a new cash refund for all policyholders.
The law requires implementation of corrective actions identified in examinations. The department also describes improvements to operations, claims handling and financial accountability. Those duties address how the plan is run and supervised, rather than naming a universal payout or replacement policy.
Oversight is different from a benefit change
Policyholders still need to distinguish their actual coverage, a pending claim and a regulator examination finding. The department press release does not say that every claim has been reopened or every premium reduced. We are not attaching an effective date to this law that the summary does not supply.
Keep policy documents and claim correspondence, and consult current FAIR Plan and regulator notices for changes that apply to your own coverage. The signed bill is a new accountability measure; it is not enough by itself to decide whether a particular loss is covered or whether moving to another policy would be cheaper.