This bill creates an independent state agency to provide real property insurance coverage when such coverage is not available from insurers.
This bill:
- defines terms;
- enacts the Access to Insurance Plan Act;
- creates the Access to Insurance Plan Association as an independent state agency;
- requires each admitted insurer that writes property insurance in the state to participate in the association as a condition of transacting business;
- requires the association to establish and operate a residual market property insurance plan (fair plan);
- authorizes the fair plan to provide residential and commercial property insurance when coverage is not available in the admitted market;
- establishes governance of the association by a board of directors that the governor appoints;
- requires the board to adopt and submit a plan of operation to the insurance commissioner for approval;
- establishes requirements for rates, underwriting standards, coverage limits, and policy forms under the fair plan;
- requires an applicant to demonstrate that at least three admitted insurers declined coverage before obtaining coverage through the fair plan;
- authorizes the association to assess member insurers to fund startup costs and ongoing financial obligations;
- authorizes member insurers to recover certain assessments through policyholder surcharges;
- grants the insurance commissioner oversight, enforcement authority, and rulemaking authority; and
- provides for judicial review of final administrative actions.

Statutes affected:
Introduced: 63E-1-102