California FAIR Plan Association governing committee.

Assembly Member Calderon's legislation to modify the California FAIR Plan Association's governing committee reflects mounting concerns about the state's property insurance market amid increasing wildfire risks. The measure adds two nonvoting ex officio positions to the committee - the Assembly Speaker and Senate Rules Committee Chair, each with authority to designate alternates.

The bill maintains the existing committee structure of nine elected insurers and four governor-appointed representatives while expanding legislative oversight of the Association, which serves as the state's property insurer of last resort. The FAIR Plan provides basic property coverage to property owners unable to obtain insurance through standard market channels, operating as a joint reinsurance association with mandatory participation from all insurers licensed to write basic property insurance in California.

Under the measure's urgency clause provisions, the expanded governance structure would take effect immediately upon enactment. The bill's findings cite the growth of the FAIR Plan amid reduced availability of traditional coverage, raising questions about the Association's capacity to pay claims after catastrophic events. The legislation preserves the committee's authority to assess member insurers for operational costs, establish coverage limits and underwriting standards, and set commission rates for licensed producers, while maintaining exclusions for automobile and agricultural risks from premium calculations.