The bill enacts a new section of the FAIR Plan Act that establishes maximum insurable values for properties insured under the FAIR plan based on the fire department's class rating. Specifically, properties located in the service area of a fire department with a class rating of eight, nine, or ten will have a maximum liability limit of $600,000 if damaged or destroyed by fire. In contrast, properties in areas served by well-staffed and well-equipped fire departments with a class rating of one through seven will have a higher limit of $750,000.

Additionally, the bill defines "nationally recognized insurance service" as an organization that evaluates fire departments based on various criteria, including emergency communication systems, staffing and training, water supply availability, and community risk reduction programs. This new legal language aims to provide clarity on insurance limits based on fire department ratings, thereby enhancing the insurance framework for properties at risk of fire damage.