Business
New Property Insurance Bill Aims to Help L.A. Fire Victims; Stabilize Market
According to the Office of California Assembly Speaker Robert Rivas (D-Hollister), the legislation would authorize the FAIR Plan “to request the California Infrastructure and Economic Development Bank (I-Bank) to issue bonds if the FAIR Plan faces liquidity challenges in the event of a major catastrophe such as a wildfire.”
By Bo Tefu, California Black Media
Last week, Assemblymember Lisa Calderon (D-Whittier) and Assemblymember David Alvarez (D-San Diego) introduced Assembly Bill (AB) 226, legislation the authors say will strengthen the state’s property insurance market and “protect homeowners, families and consumers.”
AB 226 also proposes increasing the claims-paying capacity of the FAIR Plan, The California Fair Access to Insurance Requirement (FAIR) plan, a private insurance pool for residents and businesses who can’t find insurance otherwise through the general market.
According to the Office of California Assembly Speaker Robert Rivas (D-Hollister), the legislation would authorize the FAIR Plan “to request the California Infrastructure and Economic Development Bank (I-Bank) to issue bonds if the FAIR Plan faces liquidity challenges in the event of a major catastrophe such as a wildfire.”
The California Building Industry Association issued a statement on Jan. 10, praising the plan and urging the Legislature and Governor to sign it into law without delays.
“AB 226 will help bolster the solvency of the California FAIR Plan and California’s property insurance market. The tragedy unfolding in Los Angeles underscores how urgently this measure is needed to address the insurance and related housing crisis,” the CBIA statement reads.
“This legislative proposal was originally introduced in the Legislature last year in the form of AB 2996. That bill did not receive a single ‘NO’ vote as it moved through the legislative process, but unfortunately died on the final night of session,” it continues.
Rivas said the bill is one way to help L.A. fire victims.
“Our Assembly is taking action today,” Rivas said. “The Assembly plans to advance legislation to support recovery efforts, including a bill focused on insurance claims for homeowners.”
