Commissioner Lara and Assemblymember Calderon announce legislation transforming the California FAIR Plan

News: 2026 Press ReleaseFor Release: February 2, 2026Media Calls Only: 916-492-3566Email Inquiries: cdipress@insurance.ca.gov SACRAMENTO, Calif.— Insurance Commissioner Ricardo Lara and Assembly Insurance Committee Chair Lisa Calderon today announced new legislation to overhaul the FAIR Plan, strengthening claims handling, expanding coverage options, and improving transparency for wildfire survivors. The Make It FAIR Act, authored by Assemblymember Calderon and sponsored by Commissioner Lara enacts key reforms identified in the California Department of Insurance’s recent Report of Examination, which found the FAIR Plan had failed to comply with 17 critical recommendations related to financial condition, corporate governance, and consumer protections. The Department’sReport of Examination—the most comprehensive review of the FAIR Plan in decades—revealed systemic problems that have left wildfire survivors struggling with delays, denials, and inconsistent claims decisions, particularly after the 2025 Los Angeles wildfires, the largest urban wildfire disaster in state history. “Since my first year in office, I’ve pushed the FAIR Plan to modernize, expand coverage, meet basic customer‑service standards, and treat policyholders fairly—yet its governing board has resisted key reforms and continues to fight others in court,” said Commissioner Lara. “The Southern California wildfires and the smoke‑damage crisis didn’t create these failures, they exposed them. Families with standing homes are still fighting for simple answers about contamination and safety, and that is unacceptable. The Make It FAIR Act turns years of our work into enforceable requirements, so the FAIR Plan finally delivers real coverage, real accountability, and real help for wildfire survivors.” “Property insurance isn’t a luxury in California, it’s a necessity. Californians need a reliable and dependable source of insurance in good times and bad times. The California FAIR Plan is our property insurance safety net and we need this association to work for all Californians,” said Assemblymember Calderon. “As market conditions change, the FAIR Plan needs to evolve to meet these needs, which is why I’ve introduced AB 1680. Californians do not want to be non-renewed but if they are, we need to ensure comprehensive coverage is available. Providing more stability and options at a time when the voluntary insurance market is still playing tug-of-war is needed now, in this moment.” As climate change has contributed to more severe wildfires and winter storms, decades-old insurance laws have not kept pace. The payment of insurance claims from insurance companies for the Los Angeles wildfires is already the fastest on record, with$22.4 billion distributedsince January 2025—including by the FAIR Plan—along with $6 billion in federal, state, local, and private donations committed. Yet the Department hastaken formal legal action against the FAIR Planfor illegally denying hundreds of smoke damage claims. While that case is scheduled for hearings in front of an administrative law judge later this year, wildfire survivors with standing homes urgently need answers. Despite major efforts under Commissioner Lara to improve the FAIR Plan’s performance and accountability, wildfire survivors have continued to report ongoing problems accessing their FAIR Plan insurance benefits, with delays, denials, and miscommunication at the top of the list of consumer complaints filed with the Department since the January 2025 Los Angeles wildfires. The Make It FAIR Act would improve coverage and claims handling by the insurance company-run FAIR Plan. The legislation would enact reforms outlined in a comprehensiveReport of Examinationcompleted last month by the Department. The comprehensive examination evaluated the FAIR Plan’s financial conditions, corporate governance, and controls to protect policyholders across 32 areas—finding that in more than half of them, the FAIR Plan had not started or fully implemented the Department’s recommendations. The legislation would require the FAIR Plan to make significant operational and governance changes to meet Californians’ needs, while market improvements take hold, such as: The Make It FAIR Act builds on reforms Commissioner Lara advanced after the Los Angeles wildfires, including new wildfire‑safety grants, expanded insurance discounts, faster claim payouts for survivors, extended non‑renewal protections for businesses, stronger FAIR Plan financial safeguards, and modernized insurance laws to increase transparency and accountability. Commissioner Lara’s leadership has positioned California as a national leader in wildfire‑resilience policy—from advancing community‑level mitigation standards to championing the nation’s first public wildfire catastrophe model. Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of