What is the California Fair Plan?
The California Fair Plan is an insurance pool made up of all the insurers who are admitted to write property insurance in California. The California Fair plan was created as a last resort insurance option for customers who can not obtain insurance with an admitted carrier.
Created in 1968, the California Fair Plan is not a state agency and does not have any taxpayer money or public funding involved in financing the California Fair Plan. So how does the Fair plan stay financially solvent? If the Fair plan does not have enough capital to cover claims and expenses they will access the member companies to cover those costs. As I mentioned above, all licensed insurers that write property insurance in California are member companies of the Fair Plan. Companies like Nationwide, Safeco, State Farm, Allstate, etc.