The California Department of Insurance published an order approving the California FAIR plan’s request to issue an assessment, following major losses from recent wildfires. The last time the FAIR plan assessed the industry was in 1994 and 1995 after the Northridge Earthquake.

California Insurance Code section 10094(c) provides that the California FAIR Plan Association can issue an assessment to all members for an amount necessary to operate the FAIR Plan, with approval from the commissioner of insurance.

The Association’s Accounting Committee and Governing Committee agree that an assessment of $1 billion is necessary for the Association to continue to pay claims and operating expenses, including maintaining the increased staffing levels necessary to deal with the aftermath of the wildfires.