Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law authorizes cancellation of an insurance policy for nonpayment of premium, and requires an insurer to notify a policyholder at least 10 business days before the policy will be canceled for nonpayment.
This bill, on or before April 1, 2026, would require the California FAIR Plan Association to create an automatic payment system and accept automatic payments for premiums from policyholders. The bill would prohibit an automatic payment amount from being different than if the policyholder made a payment through another method. The bill would prohibit cancellation or nonrenewal of a FAIR Plan policy solely because the policyholder is not enrolled in automatic payments, except as specified. The bill would provide a 10-day grace period for the policyholder to pay any outstanding installment premium.

Statutes affected:
AB 290: 1317 HSC, 1317.3 HSC, 1317.4 HSC, 1317.6 HSC
01/22/25 - Introduced: 1317 HSC, 1317.3 HSC, 1317.4 HSC, 1317.6 HSC
02/18/25 - Amended Assembly: 1317 HSC, 1317.3 HSC, 1317.4 HSC, 1317.6 HSC
04/03/25 - Amended Assembly: 1317.3 HSC, 1317.4 HSC, 1317.6 HSC