"My Department issued this revised plan of operation to show we are moving forward as required by law to protect homeowners throughout the state," Commissioner Lara said in a statement. "The FAIR Plan has become the only permanent option for many homeowners abandoned by the private insurance market. The plan will provide homeowners with the option of basic coverage they deserve in order to feel safe and protect our local economies from the state's growing insurance availability crisis." (Credit: A_stockphoto/Shutterstock)

The California Department of Insurance issued a revised plan of operation for the California FAIR Plan Association (FAIR Plan) as required under California law. The action furthers Insurance Commissioner Ricardo Lara's November 14 order, Order No. 2019-2, which revoked portions of the FAIR Plan's current plan of operation and ordered the insurer to make changes to its plan to better serve California homeowners.

The FAIR Plan was required under Insurance Code section 10095(f) to submit a plan of operation within 30 days of the November 14 order. The FAIR Plan, an association located in Los Angeles comprised of all insurers authorized to transact basic property insurance in California, sued the Department of Insurance last month instead, filing a petition for a writ of mandate asking the Los Angeles Superior Court to direct Commissioner Lara to annul, vacate, or withdraw the Order.

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Denny Jacob

Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at djacob@alm.com.