CaliforniaCommissioner can require FAIR Plan fixes and coverage changes
The California FAIR Plan Association must fix certain violations by agreed deadlines, and the commissioner may require changes to coverage for policyholders.
What it does
The association must fix violations identified in an examination or other operational report, as directed by the commissioner or a designee. It must meet the agreed deadline, though it may seek more time for good cause.
Violations can bring penalties of up to $10,000 per act, or up to $20,000 per willful act. Each failure to complete a specified fix on time can also bring a penalty of up to $20,000.
To meet policyholders’ needs, the commissioner may require the association to adjust policy limits and offer additional fair rental value coverage through its renters’ program.
Argument forPolicyholders could have higher coverage limits or fair rental value coverage if the commissioner requires the association to make those changes.
Argument againstThe association could face penalties for missed fixes or other violations, adding pressure to complete corrective work within agreed timeframes.
More detail
The association must take corrective action specified by the insurance commissioner or a designee. The action addresses violations of laws, regulations, accounting rules, the association’s operating plan, or other binding rules identified in an examination or operational report. The commissioner or designee sets the corrective action and agrees on a timeframe for completion. The association may request more time for good cause, such as circumstances beyond its control or a good faith effort to comply. The association must complete each specified fix within the timeframe agreed upon with the commissioner or designee.
The commissioner must impose civil penalties for violations of the chapter governing the association. The penalties apply to violations of the chapter governing the association, including failure to take specified corrective action. Penalties may be up to $10,000 for each act, or up to $20,000 for each willful act. The commissioner decides what counts as an act. A penalty for missed corrective action may be added to other penalties provided by law. A penalty for missed corrective action applies if the association does not complete the fix within its agreed timeframe.
The commissioner may require the association to adjust policy limits and offer more fair rental value coverage. Policy limit changes may cover programs underwritten by the association. Additional fair rental value coverage would be under its renters’ property insurance program. The commissioner may require both changes to meet policyholders’ needs.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State - Chapter 540, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 14Enrolled and presented to the Governor at 1:30 p.m.To Governor
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 1. Page 7002.).Major
- Vote recorded AB 1680 Calderon Concurrence in Senate Amendments. Result: pass.Lower
- Vote recorded 3rd Reading AB1680 Calderon et al. By Allen. Result: pass.Upper
- Aug 31In Assembly. Concurrence in Senate amendments pending.
- Aug 31Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).Passed Senate
- Aug 20Read second time. Ordered to third reading.Minor
- Aug 19Read third time and amended. Ordered to second reading.Major
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 7. Noes 0.) (August 13).Minor
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 25From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
- Jun 24
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 22From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.Major
- Jun 15From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.Major
- Jun 4From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.Major
- Jun 3Referred to Com. on INS.Minor
- May 21In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 1680 Calderon Assembly Third Reading. Result: pass.Lower
- May 21Read third time. Passed. Ordered to the Senate. (Ayes 62. Noes 8. Page 5192.)Passed Assembly
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 12. Noes 1.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- Apr 29In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 15From committee: Do pass and re-refer to Com. on APPR. (Ayes 14. Noes 1.) (April 15). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 14Re-referred to Com. on INS.Minor
- Apr 13From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.Major
- Mar 26Re-referred to Com. on INS.Minor
- Mar 25From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.Major
- Feb 23Referred to Com. on INS.Minor
- Feb 3From printer. May be heard in committee March 5.
- Feb 2Read first time. To print.Introduced
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