Assembly Member Calderon's proposal to modify California's insurance marketplace would require brokers to evaluate voluntary market alternatives before renewing policies under the FAIR Plan, the state's property insurance program of last resort for those unable to obtain coverage through standard channels.

The legislation establishes specific obligations for insurance brokers serving as the broker of record for FAIR Plan policies. Prior to each policy renewal, brokers must determine whether coverage could be secured through the voluntary insurance market, drawing upon their professional experience in placing similar types of property insurance. The bill defines this determination process as requiring brokers to apply their active market knowledge gained from placing or attempting to place comparable insurance policies.

This measure aligns with the FAIR Plan Association's existing mandate to implement programs reducing its policy count. While the bill creates new requirements for brokers to regularly assess voluntary market alternatives, it maintains the FAIR Plan's fundamental role as a fallback option for property owners who cannot obtain basic coverage through conventional insurers.