"Assembly Bill 234 would put the state's two top lawmakers - currently Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas - on the governing committee of the FAIR Plan, the insurer that's mandated by law to sell policies to homeowners who can't get them from other insurance companies. But the lawmakers or their representatives would be non-voting members of the committee, raising concerns about the bill's effectiveness."
"The FAIR Plan, which is an alliance of insurers that do business in the state, has grown to more than 610,000 policies as of June, a 154% increase since September 2021. It has become one of the largest insurers in California as other insurance companies have canceled or stopped issuing new policies here, citing growing wildfire risk. The plan is run by its member insurers - not the state."
"Insurance Commissioner Ricardo Lara asked the governor to sign the bill, saying in a letter dated Saturday that it "will help further needed transparency of this insurance safety net while supporting legislative policymakers' oversight efforts.""
Assembly Bill 234 would add the state's top two lawmakers, Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas, as non-voting members of the FAIR Plan governing committee to bolster scrutiny. The FAIR Plan serves as the insurer of last resort and has surged to more than 610,000 policies, a 154% increase since September 2021, as private insurers retreat amid growing wildfire risk. The plan is run by member insurers rather than the state, faces legal and regulatory challenges, and drew support from the Insurance Commissioner as a measure to improve transparency and oversight.
Read at The Mercury News
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